Mobility Matters Daily #87 - TfL bailout, and investment in long distance travel
Plus some data on what English bus users like
Good morning friend,
Amazingly, the sun continues to shine on the UK. Here in rural Bedfordshire, that means that the number of walkers and horse riders along country roads and footpaths rises significantly, with drivers being considerably more careful around the latter! Whilst drivers may benefit from speed and a soundtrack provided by Radio 2, those of us on bicycles and using our feet have the chorus of nature as our soundtrack.
Also, i do apologise, but there are just 2 stories today. Not that there is not enough going on, but because work calls, sadly. Normal service will be resumed tomorrow.
A further bailout for Transport for London as centralisation accelerates in the UK
The UK Department for Transport has confirmed that Transport for London (TfL) will recieve funding so that the capitals transport network doesn’t shut down. This funding will see TfL through until December 2021, and of course has certain conditions for the reform of the finances of Transport for London, particularly the pension scheme (which has gone down well with the unions). Whilst the government wants TfL to find £1bn either in savings or new revenue, it also wants it to waste money - sorry, invest - in driverless trains. No doubt at the behest of a certain former Mayor in Number 10.
This is an example, along with Bus Back Better and Gear Change, shows government is centralising decision making by withholding funding from, well, anyone who doesn’t meet its expectations. To some commentators who have been itching for change for a long time, this is welcomed. But be careful what you wish for. A powerful DfT is a single point of failure in policy making in the UK. And that is a significant risk.
Investors could see a future in long distance public transport
FlixMobility, who are behind the FlixBus and FlixTrain brands, recently announced that it has secured $650m in equity and debt financing for its expansion plans in North America. Despite demand having fallen off a cliff during the pandemic. A big part of this confidence, FlixMobility says, is that investors favour their asset-light model for its adaptability. Or in normal person speak, they do not own their own buses or trains. But does this explain everything?
The long distance surface transport market is most competitive up to 150 miles for long distance coach, and up to 250 miles for rail. In Europe, where the long distance market has been liberalised on road and rail and Flygskam is more dominant, not to mention that major cities are closer together, both markets saw massive growth. Compared with the USA where Greyhound and Amtrak dominate. But perhaps in places where cities are closely grouped like in the North East, there may be potential for growth.
Stat of the Day
Data from Transport Focus shows that, by and large, users of local bus services in England are satisfied with them. But what is interesting is that, just like rail users, they are most dissatisfied with the value for money for their ticket.
Data source: Transport Focus Data Hub