Transport for Wales confirms contracts will be structures in a way that protects and encourages greater involvement from the SME sector

 
TfW envisages a ‘different playing fields’ approach to bus franchising

 
Bus franchising contracts in Wales could be as small as two vehicles to ensure accessibility for small and medium-sized enterprises (SMEs), the Senedd climate change, environment and infrastructure committee heard last week. The update came during scrutiny of the Bus Services (Wales) Bill, which outlines plans to introduce bus franchising across Wales from 2027.

Transport for Wales, which will oversee the rollout of franchising, is engaging directly with SME operators as part of preparations for its implementation. Richard Marwood, TfW’s bus programme director, told the committee that particular attention is being given to how service contracts are constructed in south west Wales, where franchising will be introduced first.

“We’ve got packages as small as two buses, for example,” said Marwood. “So, we’re really focused on making sure there are contracts that will be really accessible for SMEs.”

He added that recent engagement sessions had provided valuable feedback from smaller operators. “They were very clear that, for example, ‘If there’s a 10-bus package, I’m not interested, I can’t, I haven’t got the scale, and I don’t want to cope with that’,” Marwood explained. “That engagement and understanding of what will be suitable is really important. We absolutely are designing it, and we’re starting to get into the detail, I think, that hopefully will reassure them.”

Marwood also suggested that larger and smaller operators would likely not compete for the same contracts. “What we’re thinking actually is, rather than level playing fields, it’s different playing fields,” he said. “We can actually really have quite distinct offerings that are really focused on where the SME market is and how we can ensure that SME market continues to thrive.”

TfW executive director for regional transport and integration, Lee Robinson, stressed the importance of co-creating contracts with operators. “We have set our stall out to say we want the process of contracting with us to be simple and accessible. I think that’s really important, particularly from an SME perspective,” he said.

Robinson also felt that responsibility for depot infrastructure would largely rest with individual operators, but envisaged a “mixed economy” with TfW owning some larger facilities in major conurbations.

“In south west Wales, we think that, potentially, ownership of three depots will help us with delivery of franchising,” he added.

Meanwhile, Welsh transport minister Ken Skates reaffirmed the Welsh Government’s commitment to franchising over partnership-based models. “I don’t think that there’s a need for a plan B as has been outlined by some in the industry,” he told the committee. “I’m quite confident that we’ve got flexibility built into the legislation to ensure that we can address any market failure or crises.”

 
This article appears in the latest issue of Passenger Transport.

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