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MP60021

MAPS PUBLIC TRANSPORT MARCH 2001

Overview

Editor: Market Assessment
ISBN: 1-86111-340-4

Table of Contents

Executive Summary

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TABLE OF CONTENTS

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EXECUTIVE SUMMARY

This report provides an overview and analysis of land-based public transport in Great Britain. Public transport competes with private travel for the movement of passengers. For most of the century through to the 1990s, the share of passenger travel accounted for by public transport declined. Despite the continued rise in the penetration of households that have one or more cars, public transport has marginally increased its share of travel demand during the 1990s measured in terms of passenger kilometres.

This report examines the transformation of land-based public transport in Great Britain since the early 1980s. This report also looks at how this transformation has slowed down the erosion in demand for public transport, so much so that there has actually been a revival in the use of public transport. The processes of privatisation, deregulation, industry concentration and competition have worked to improve the provision of public transport in Great Britain, although commissioned research outlined in the report reveals that over half of the adult population believes that the standard of public transport in the UK is poor. A similar level of the population believes the public transport network is underfunded. In the last decade, funding for buses has declined while funding for the rail network has increased, in real terms. However, government support for the national rail network has declined since the railway was privatised, in 1996 and 1997, into 25 train operating companies.

The Government’s White Paper on Transport published in May 1998 established a framework for the development of a transport infrastructure that would favour public rather than private transport. The legislative requirements to implement many of the necessary changes to achieve this end were detailed in the Transport Act 2000. Much of the change will come through the implementation of local transport plans. These were reviewed by the Government in 2000, and the first tranche of support for some initiatives within the schemes were given approval by the end of that year. Although much of the public transport industry is privatised, the implementation of local transport plans will bring commercial public transport service providers closer to communities, as has already been witnessed through the development of Quality Partnerships and Contracts with local authorities.

The local bus sector is further along the path towards achieving a fully commercially competitive environment than the national rail network, but it is recognised that integrated transport measures, local authority and central government support is required to sustain and build on the progress made since deregulation of the sector. Although there is still a high number of small bus and coach service providers, the local bus service market is mature and the industry is approaching optimum levels of concentration.

There is likely to be some further concentration in the local bus sector, but growth for integrated transport operators will be driven by: investment in joint venture infrastructure schemes; further integration with other modes of transport; and overseas growth. The top five bus and coach operators have interests in other forms of transport and developments overseas.

The scope for normal industrial concentration processes is less for the train operating companies, as the franchisees were given between 5 and 15 years from the date the franchise was awarded. Nevertheless, the acquisition of some of the franchise owners by other transport operators and cross shareholdings is leading to further concentration in the industry. As franchises come up for renewal and new franchises are reformulated, it is likely that the number of franchisees will decline, and most of these will be integrated transport operators with interests in both bus and rail services in the UK and overseas.

While the political and industrial framework of public transport is set for expansion for the long term good of the environment, many consumers seem reluctant to take positive action. An opinion poll conducted by National Opinion Poll (NOP) for Key Note during February 2001 showed that more people prefer to use private cars when they can than those who support increased government funding for public transport or would like to see cars banned in city centres.

Many commentators believe that improvements to public transport will only have a marginal effect on the transition from private to public transport. For any radical change in use, private cars will need to banned from city centres and elsewhere. This will only be acceptable if suitable public transport initiatives are in place. There are some Quality Partnerships and Contracts which demonstrate that public transport patronage can be increased dramatically, but how successful the wholesale transfer from private to public transport is depends on political will, backing from the industry and the public at large taking on green issues more wholeheartedly.

Text © 2001 MAPS

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Last updated by Paul Tucker 22nd August 2001