Private Sector Contribution to Sustainable Mobility

1. David Martin, 2 December 2009 Private Sector Contribution to Economically Sustainable Mobility

2. Who we are • Arriva operates in 12 European countries • 16,000* buses • 570* trains • More than 43,000* people • >1 billion passengers every year * Including share of associates

3. What does the private sector bring? • Sharing Pan-European experience • Exchange of ideas / solutions • Effective partnerships • Innovation • Investment • Customer-based approach • Track record of delivery • Significant savings

4. Our perspective EU objectives for sustainable transport can be reached by: • Accelerating liberalisation • Increasing competition to generate substantial savings • Better utilising existing resources • Promoting sustainable mobility

5. Case Study: Helsingborg, Sweden

6. The challenge • In 2004 transport by car was forecast to increase by 40% by 2020 • Local air quality, and CO2 emissions needed addressing • The city wanted a modal shift from individual to public transport • Aimed to make bus services closer to carbon neutral through the use of CNG and biogas

7. The targets • Doubling public transport use in Helsingborg in the 10 years to 2014 • Public / private sector cooperation on investment to expand public transport and improve infrastructure • Public tender of Helsingborg bus network in 2004 with an active involvement of the city

8. The contract • 2004 - Arriva proposed incentives for beating quality and passenger growth targets • Contract started June 2005 when Skånetrafiken took over as transport authority for Helsingborg • Partnership between Helsingborg city, Skånetrafiken and Arriva to fulfil the vision • Arriva introduced new ‘green’ low-floor buses powered by CNG and biogas

9. The way forward • Increased average speed for buses • Priority bus lanes and signals • A market based timetable: • Open dialogue with the customers – they know what works and what is required • Offer new routes, services and solutions • Create a market based public transport solution • Enter partnerships with other stakeholders • Increase public support for public transport in Helsingborg to 80 per cent by 2014

10. The toolbox • Everything organised as partnership • Strong incentives form a common agenda between the three stakeholders • Clear distribution of tasks and responsibilities • The municipality invests to optimise the infrastructure • The PTA strongly markets public transport services • Arriva invests, motivates and optimises

11. The Helsingborg Model How has it worked out so far?

12. Result: Quality Growth

13. Result: Passenger growth Projected

14. Result: Employee satisfaction • 98% attendance • Increased interest and involvement from employees • More than 200 employee suggestions for services and business improvements • Increased employee satisfaction • Increased employee responsibility • Employee performance bonus

15. Why it’s working • Tendering provided opportunities for innovation and commercial thinking • Alternative contracts = new possibilities • Investments in infrastructure and bus priority • Partnership – common vision and strategy for passenger and environmental benefits • Strong incentives related to quality and passenger growth • Coordinated effort on marketing, traffic and infrastructure Lessons we can benefit from elsewhere

16. Looking Ahead

17. The wider view Challenges across Europe • Increasing congestion • Ageing populations • Infrastructure • Sustainable mobility

18. How do we get there? EU Framework • Need for solid foundations • Increased choice, liberalisation • Level playing field Facilitating Competition • Flexible and efficient solutions • Value for money

19. David Martin, 2 December 2009 Private Sector Contribution to Economically Sustainable Mobility