The Arriva (Malta) Consortium was yesterday named the preferred bidder for the ambitious and long-awaited revamp of the country’s public transportation system.
The new bus service is expected to be rolled out six months after the successful conclusion of the negotiations, which are expected to commence “in earnest” in the coming days, the Transport Ministry said in a statement yesterday.
The winning consortium is comprised of British company Arriva International Ltd and Maltese Tumas Group Co. Ltd., while Malta Land Transport, a company owned by a number of the operators of the incumbent public transport service, holds a minority stake.
The formal award of the 10-year concession, subject to the successful conclusion of negotiations with Transport Malta, is expected next month.
It would appear that Arriva beat its rival bidder, the French company Transdev, mainly due to financial considerations.
During the adjudication process, Arriva had been awarded 250 points in terms of financial considerations while Transdev had been awarded just 20. Arriva’s bid is reported to have been €42 million less costly than that lodged by Transdev.
In fact, while the two consortia were gauged as somewhat closer in terms of technical considerations, Transdev’s bid was judged the better, having been awarded 177.37 points against Arriva’s 122.51.
But, the ministry underscored yesterday, Arriva (Malta) did not appeal when the technical scores were published and Transdev Plus did not appeal the final adjudication.
The new transport system is expected to cost €35 million at its start-up and is to include 230 brand new Euro V buses and an additional 86 buses with Euro V engines between two and seven years old.
The new fleet will also include 13 electric-hybrid vehicles that will be used to provide services in historically and environmentally sensitive areas including Valletta, Cottonera, Attard and its surrounding villages, Victoria and a number of routes in the Gozitan countryside.
The entire fleet will be air-conditioned, have on-vehicle destination and ‘next stop’ electronic displays, be wheelchair accessible and have improved safety standards that “only a fraction” of today’s bus fleet is equipped with.
Overall, the Ministry said in a statement yesterday, “Arriva has far exceeded the minimum expectations set out in the tender published by Transport Malta.”
The tender had required, as a bare minimum, that buses were not to be older than 15 years of age with minimum Euro III standard with air conditioning and accessibility for persons with disability.
The arrival of Arriva in Malta, the ministry said, “Will mean that Malta and Gozo will be equipped with one of the youngest, most modern and most environmentally friendly public transport fleets in Europe”.
The Ministry expressed the view that, “Arriva brings to Malta expertise and professional management, as well as a €47 million investment in a sector where it is sorely needed.”
It also stressed how the introduction of a new bus fleet will signify an improvement to the quality of our air.
It cites an independent report it had commissioned which forecast that, when compared with the current bus fleet, a bus operation running with a Euro V engine standard will lead to significant reductions in its emissions – 48 per cent in hydrocarbons, 94 per cent reduction in particulate matter, a 70 per cent reduction in oxides of nitrogen and a 55 per cent reduction in carbon monoxide.
Moreover, the Ministry pointed out, the study did not even take into account the improvements to air quality that can be reasonably expected as fewer people travel by private car and more people use the bus service.
The fleet improvement, the Ministry said, combined with various other environmental initiatives that Arriva (Malta) has undertaken to implement – including fitting eco-driving technology to vehicles, tyre inflation monitoring and turning engines off between journeys – will also go a long way towards supporting Malta’s effort to improve air quality, particularly in urban areas.
Arriva (Malta) has committed itself to making its Malta project a model of sustainable development.
Its target is to increase bus passengers by 54 per cent over current levels of use by the end of the 10-year contract term but it also undertook to reduce the carbon footprint of Malta’s bus operation by 15 per cent in 2017 over 2011 numbers.
“The reduction from the carbon footprint of today’s bus operation is almost inestimable, given that the average age of the bus fleet before the changeover to the new system is of over 30 years which will be going down to less than two years overnight when the new service starts,” the Ministry noted.
Arriva (Malta) has also undertaken to provide all the services on the extensive network as required by the government in the tender process. In addition to this, Arriva will provide night services to connect various destinations around Malta on a 24-hour basis at weekends all year round and all week during the summer months.
The preferred bidder also agreed to employ around 1,100 people in Malta’s public transport system, more than double existing numbers – in the process creating new jobs for hundreds of people never before connected with the transport industry.
In its bid, the consortium also committed itself to setting up a new specialised training centre, bringing the level of training in the transport sector in Malta, in terms of driving, operating systems and most importantly customer services, “from its current abysmal levels”, as the Ministry put it, to international standards. This will be combined with a secondment programme for experts from other jurisdictions served by Arriva to train local service providers.
The new service will also introduce contact-less smart cards, several new ticket vending machines as well as operating through agents across Malta and Gozo to ensure easy access to their services for tourists and locals alike.
In addition, the new operator will provide extensive passenger information, with information panels at each stop, route information on all buses, publications, on-line information and a call centre. Passenger information will also be provided on around a 100 electronic bus stop displays that are coordinated with vehicle tracking technology to inform bus passengers in real time about bus arrival times.
Arriva Malta has also said it would support, with maintenance facilities and volunteer labour, a heritage bus museum for retired traditional buses, if such a museum were to be established.
“Transport Malta,” the Ministry said yesterday, “now has the task of securing the best possible deal in its negotiations with Arriva to ensure that public funds are spent in the most cautious and responsible manner in exchange for the highest standard of service the Maltese public and their visitors are right to expect.”
Transport Minister Austin Gatt added: “We are a step closer to the reform the country has been hoping for. It is wrong to assume that we can bring about this massive change without investment, both public and private. We do believe, however, that the rewards the country will reap will go beyond the monetary. Cleaner air, reduced congestion, increased accessibility and improved mobility will be a social, economic and cultural reform that will go far beyond the narrow but highly visible difference made by a new bus fleet on our roads.
“The reform is far from completed. Quite apart from the fact that Transport Malta still needs to complete negotiations with the preferred bidder on the best possible terms for commuters and the public purse – and that will not be an easy ride – the reform will be a failure if all it does is switch old buses for new ones. The success can only be measured over several years, as we get over the inevitable hitches of the first few months and start convincing more people to make the ‘modal shift’, travelling less often by car and more often by bus. We have a long way to go yet.”
Commenting yesterday, Arriva managing director for mainland Europe David Evans said: “We are delighted to be announced preferred bidder. The vision of the Maltese government is for a 21st-century public transport system. Arriva and our consortium partners have the skills and expertise to make that vision a reality. Our investment in new buses and advanced technology for passengers is set to put Malta ahead of many major European cities, with a public transport system of which the people of Malta can be proud.”
George Fenech, executive chairman and managing director of Tumas Group added: “This concession marks the beginning of a new, exciting era for the mobility of everyone across Malta and Gozo. The new network will provide vastly improved travel options which, together with a high quality of service, will provide a sustainable alternative to the private car.”
Arriva said yesterday that it plans to use technology to provide passengers with real-time information, and new timetables will improve reliability with additional buses provided in peak hours.
Mobile phone and smart card-based ticketing using proven technology will also improve convenience for passengers, the consortium said in a statement.
“Arriva,” it added, “is committed to high quality training and development, and training will play a major part in the recruitment and mobilisation plan. Training will be provided on new buses, customer service and operating systems for drivers, other staff and our many new driver recruits, and will be an important aspect in delivering the planned improvements.”
Arriva at a glance
Arriva is one of the largest transport services organisations in Europe, employing more than 42,000 people and delivering more than one billion passenger journeys across 12 European countries every year. It is a public company quoted on the London Stock Exchange that in 2009 registered revenues of £3.148 billion.
It has a significant presence in 12 European countries: Czech Republic, Denmark, Germany, Hungary, Italy, The Netherlands, Poland, Portugal, Slovakia, Spain, Sweden and the UK.
It provides bus, train, commuter coach, waterbus and airport-related transport services, and bus and coach distribution.
It is one of the largest bus operators in London and the largest bus operator in Denmark.
With Arriva Trains Wales and CrossCountry, Arriva is also now established as a leading UK rail operator.