Transport Information Group

Greater Bordeaux (Communauté Urbaine de Bordeaux, CUB) in southwest France will change its public transport operator. Present operator Veolia Transport will be replaced, following a decision of the CUB’s council, by its main opponent in France Keolis. 

Final decision should be taken on November 28, 2008 for a contract worth €750 million, the largest public service delegation of Vincent Feltesse mandate (CUB President). Both candidates companies Veolia and Keolis fought against each other during the last couple months, improving each time their transit offer, and diminishing the CUB’s financial participation. 

In the end, Keolis is committed to increase transport system ridership from 90 million to 147 million trips per annum, up 50% from now on (representing 32 million kilometers). To achieve this goal, Keolis expects to remake the bus routing, review scheduling, and add light-rail trainsets. If the ridership targeted is reached, it will almost double revenues (from €36 million in 2007), and minimize the CUB’s participation. Also, CUB’s President wanted to include free access bikes on Bordeaux, that would be in operation by summer 2009. 

Keolis target is also to reduce the CUB’s financial contribution to €83 million by 2013 against €100 million today, all this without a fare increase (inflation excepted). This will thus allow Bordeaux urban community to finance light-rail extensions, helped by €50 million of State subsidies provided by the “Environment Roundtable” law (Loi Grenelle). According to Mr. Feltesse, transit offer under the new contract will be improved by 18% for a cost down 17%, and a risk shared more by the operator. 

References

• Article: L’agglomération de Bordeaux opte pour Keolis et lance la 3è phase du tramway, Le Moniteur, Oct. 27, 2008: here

Transport Expertise hereby starts a series of specialists interviews with Mr. Ignacio Barron de Angoiti, High Speed Director, International Union of Railways (UIC) discussing the issue of “HSR in Northern America… where and when?”

Q3: Transport-Expertise.org

We presently living in a period of world financial crisis, and California State has a very high debt level. However, voters will decide fate of high-speed rail project in California on the November 4, 2008 ballot…

What would you think the conditions of success be for this mega-project?

A3: Ignacio Barron de Angoiti

The first one, to conceive and present a good project (I suppose this point is already ok).

Second, to convince all public authorities that they must be involved in the project. Not necessarily from the financial point of view, but at least by giving a strong support, and maybe by establishing some concessions or benefits to promoters.

And third, with a very important communication campaign. This is essential for any high-speed project, in order to be understood by Society.

Q4: Transport-Expertise.org

Regulation in Europe will open national markets to competition in 2010, for international routes at first and domestic ones afterwards in 2016.

From the UIC point of view, what could European operators be bringing in the high-speed rail projects development in the United States or Canada (operational and technical experience, best practices, financing, etc.)? (more…)

Transport Expertise hereby starts a series of specialists interviews with Mr. Ignacio Barron de Angoiti, High Speed Director, International Union of Railways (UIC) discussing the issue of “HSR in Northern America… where and when?”

Q1: Transport-Expertise.org

Rail in Northern America (United States and Canada) is still far from high-speed…

Could we expect to see a high-speed rail infrastructure in the next couple years (either progressive implementation, or directly 200+ mph)? If yes, according to you, where would be the most probable place(s)? When could we expect to see it?

A1: Ignacio Barron de Angoiti

In my opinion, the first high-speed project in any country or region must start by an “easy” project.

Ideal conditions for high-speed are two important population areas separated by 300 miles (+/-) in a flat land and without population in between.

So the first of this kind of projects in the United States of America should be chosen within the most similar conditions to these, especially because Society must know in deep what really high-speed is. (more…)

The Organisation for Economic Co-operation and Development (OECD) published on October 28, 2008 a document entitled “ITF Round Tables - No. 141 : Privatisation and Regulation of Urban Transit Systems.” I thought it might be of interest to those who are interested in “privatizing” their public transportation network.

Also, Transport Expertise team would be glad to receive any request and questions about the French “Délégation de Service Public” model (public service delegation, used by transit authorities who are contracting with a private company to operate - and more, their transit systems). We also ceise this opportunity to remind you that Transport Expertise recently published a report about innovative financing in the transit sector: “FIRST FRENCH-AMERICAN WORKSHOP ON PUBLIC TRANSPORTATION & INNOVATIVE FINANCING”, September 5, 2008 download the Executive Summary here, or order a free copy here.

No. 141 : Privatisation and Regulation of Urban Transit Systems

Urban public transport services generally run at a large deficit. This has led public authorities to seek efficiencies, notably through private sector involvement. Private entry is complicated by the essential network characteristics of public transport, with parts of the network potentially profitable and others perennially unprofitable. (more…)

Financial crisis does not only affect the banking industry. In France, is seems it now reaches the “real” economy. A few days ago, French bank Groupe Caisses d’Epargne announced some €600 million losses, and this might eventually affect… the Argentinian high-speed rail project!

Quick explanation: Alstom, part of a consortium, won the call for tender for the $1.5 billion high-speed rail project (700 kilometers line between Buenos Aires and Cordoba). However, the consortium awarded French bank Natixis to finance this project… Poor choice since Natixis is the investment bank born from a joint-venture between Groupe Caisses d’Epargne and Banques populaires, and is the one that has been the most affected by the subprime crisis…

Natixis was supposed to bring up a $1.3 billion loan over 30-year to finance the project, and might not be able to close the financing… After Société Générale that was supposed to finance up to 70% of the project, Natixis might be the second one to abandon. What’s next? In a period when banks can not even manage to finance infrastructure, will States be able to relaunch our economies. Usually, infrastructure was the way to do… it seems it will be more difficult this time?

References

• Article: Le TGV argentin victime de l’Ecureuil, Le Parisien, Oct. 21, 2008: here

References from the Transport Information Group

• Alstom AGV launched: on track in France by 2014, Feb. 5, 2008
• Workshop Report – Executive Summary First French-American Workshop Public Transportation & Innovative Financing: here
• In brief: Alstom trains go full speed!, Jan. 16, 2008

Swiss K+N to buy French Alloin Group

Swiss logistics group Kuehne + Nagel signed a contract agreement to take over the French distributor Alloin Group (mail, bulking). Kuehne + Nagel thus reaches one of its strategic goal by extending its ground distribution network in France and Belgium. The company is specialized in domestic mails deliveries and bulking/groupage, and international bulking/groupage. However, Alloin Group has also been a player in air and sea transport (Alloin International subsidiary) since 2002, and in high-added-value logistics since 2005.

Who’s Alloin Group?

Alloin Group headquarters are located in the Greater Lyon area, in the city of Villefranche-sur-Saône. The Alloin Group is ranked among the leading groupage providers in France and Belgium (since 2000 after the acquisition of Widem based in Nivelles), with its 3,000 employees, an annual turnover of around €300 million. The company has a network of 53 cross-docking centers, and handles 20,000 packages a day. (more…)