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March 2022
Issue 436
busandcoach
driving towards a greener future
£62million ScotZeb fund boost EV buses News and analysis of the transition to a zero emission bus and coach sector
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greenbusandcoach
is published by Plum Publishing Ltd
Editorial
£62million for Scottish zero emission buses
Steve Rooney steve.rooney@busandcoach.com
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6 London mayor warns of impact of TfL cuts on manufacturers
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to greenbusandcoachare not necessarily those of the publishers who cannot accept responsibility for such contributions.
10 Volvo wins orders for 82 EV buses in Finland
© Plum Publishing Limited 2022
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March 2022
Issue 436
busandcoach
driving towards a greener future
19 £62million ScotZeb fund boost EV buses News and analysis of the transition to a zero emission bus and coach sector
March 2022
Hino admits data manipulation on emissions testing greenbusandcoach 3
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Scottish Government backs electric buses with £62million fund Zero Emission Bus Challenge Fund delivers big boost for EV buses in Scotland
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n the largest investment made in Scotland to decarbonise buses, the Scottish Government has awarded more than £62million in the first phase of its Zero Emission Bus Challenge Fund (ScotZEB). It will support operators in replacing 276 diesel buses with new battery-electric models and the required charging infrastructure. ADL is to build 137 of the buses in Falkirk, supporting green manufacturing jobs in Scotland. Minister for Transport Jenny Gilruth says: “We want more people to choose to travel by bus now and in the future and to do so, knowing that local buses are contributing to our climate change ambitions. Our Zero Emission Bus Challenge Fund is successfully decarbonising Scotland’s bus fleet faster than ever before and making a significant contribution to our Mission Zero ambition for Transport. “Supporting a just transition to a net zero economy is central to the ScotZEB approach. Through this round we’re supporting smaller bus operators and rural service providers, whom I’m pleased are equally keen to step up and help tackle the climate emergency.” William Houston, Owner of Houston’s Coaches in Lockerbie adds: “As a smaller local operator, it’s been difficult for us to compete with larger operators and attract in
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financial support to help make the switch. “The ScotZEB programme has helped us compete and enabled Houston’s to invest in new zero emission buses. I’m delighted that our customers will soon benefit from the modern conveniences of four new battery electric buses, which at the same time will improve air quality and help protect our environment.” ADL president & managing director Paul Davies says: “The Scottish Government continues to lead by example with its support for the bus industry, and the ScotZEB challenge fund supports our collaborative business model of working in close partnership with operators, infrastructure partners and stakeholders. We are pleased that bids for 137 of our zero emission buses have been successful in this phase. “These zero emission buses will be built at our factory in Falkirk and therefore ensure this Scottish Government investment is made domestically, allowing the benefits to be felt by our team members and across our communities. "We very much look forward to working with the successful operators to finalise terms and get our teams working on these buses.” www.transport.gov.scot/public-transport/buses/ scottish-zero-emission-bus-challenge-fund/ March 2022
analysis
ScotZEB awards Bus Operator*
Award offered
Number of buses**
Bluebird Buses Ltd
£3,066,547
13
Craig of Cambeltown Ltd
£2,409,294
10
Dumfries and Galloway Council
£633,934
4
Ember Core Ltd
£5,562,126
26
Fife Scottish Omnibuses
£7,329,923
32
First Aberdeen Ltd & First Glasgow No1 Ltd
£18,599,858
74
Highland Country Buses Ltd
£5,834,978
25
Houston Coaches
£368,413
4
McGills Bus Service Ltd
£9,086,933
41
Shuttle Buses Ltd
£485,955
5
Stirling Council
£595,404
3
Western Buses Ltd
£8,029,890
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Source: Scottish Government, 2022. * This table shows the operators who have been offered awards. There are more operators than there were bidders, as all the bids from Stagecoach owned operators were treated as a single bid. ** A variety of bus sizes, from minibuses to double decks, are being supported. All awards also include support towards the charging infrastructure, in some cases the charging infrastructure will support a greater number of vehicles than the number of buses shown in the table. March 2022
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London mayor highlights supply chain jobs risk Sadiq Khan uses Wrightbus factory visit to highlight implications for UK bus manufacturers from TfL funding row
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ayor of London Sadiq Khan has urged the UK Government to provide longer-term capital funding to Transport for London to support tens of thousands of jobs across the country. He visited Wrightbus’ Ballymena factory to see the production of new electric double-deck buses which are scheduled to go into operation in London in October on route 111, linking Kingston to Heathrow. Khan warned that thousands of jobs around the UK are linked to major transport projects in London and could be at risk if TfL does not get the longer-term funding it needs. Khan said: “Londoners will soon see the all-electric buses built at this Ballymena factory on the capital’s roads, adding to our ever increasing zero-emissions bus fleet and illustrating how investment in our capital can support innovation and jobs in green technology across the country. “This is a prime example of how TfL’s supply chain stretches throughout the UK, supporting jobs, capacity and certainty for the national move towards a zero emission bus market, helping to clean up our filthy air. “Each new electric bus operating on the streets of London and other UK cities also means less reliance on fossil fuels. “However, as it stands the Government’s shortterm funding deals are trapping TfL on life support and putting innovation, economic growth and jobs like this at risk, as well as slowing our efforts to
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improve energy security. I urge the Government to engage with TfL and City Hall in good faith over the next few months so that we can finally agree a fair, longer-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.” The Wrightbus plant is currently preparing buses ordered by Abellio which will be the first electric double-decks to be manufactured for London in Northern Ireland. Wrightbus says the contract for these buses is supporting around 800 jobs linked to skilled manufacturing, and there are plans to further expand the workforce. Highlighting the demand for zero emission vehicles, production at the Wrightbus factory has switched from 30 per cent zero emission buses in 2021 to almost 70 per cent in 2022. Overall production at the factory will be almost double this year compared to last year, driven largely by the desire for zero emission buses. TfL’s supply chain also supports plants in Leeds (Switch) and Scarborough and Falkirk (ADL), creating jobs, capacity and certainty for the wider national zero emission bus market. TfL says its contracts support tens of thousands of jobs outside London and contribute around £7billion to the UK economy, with 55 pence of every pound spent on London Underground investment going outside of London – indicating how essential sustained funding for TfL is to the wider UK economy. March 2022
analysis
Buta Atwal, Wrightbus CEO, adds: “We were delighted to welcome Sadiq Khan to our Ballymena factory to see the world-leading StreetDeck Electroliners in production. We're looking forward to seeing them on the roads of London and helping to improve air quality later this year. “We design and manufacture our buses in Northern Ireland using parts that are, as much as possible, made and sourced in the UK and we directly employ almost 900 people, with many thousands more supported throughout the UK supply chain. As a result, every new Wrightbus-made zero emission bus for the capital is not just good news for air quality in London, March 2022
but for jobs across the UK.” Louise Cheeseman, TfL director of buses, says: “What we are seeing in Ballymena is the green industrial revolution in action. Wrightbus has moved to a bigger factory to accommodate an increased order book and it is great news that the company is now looking to employ more staff with London’s route 111 buses now moving through the production line. This shows the importance of continued investment in decarbonising the transport network and securing the sustainable jobs of the future.” www.wrightbus.com www.london.gov.uk
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Stagecoach agrees new £594.9million cash sale to DWS Infrastructure and drops planned National Express merger STAGECOACH has dropped its intended merger w it h National Express after agreeing a £594.9million cash deal with Inframobility UK Bidco Limited, an infrastructure fund managed by DWS Infrastructure. The bus group has said it has reached an agreement on the terms of a recommended cash offer and no longer intends to recommend the National Express deal announced in December. Under the terms of the offer, DWS will pay 105p in cash for each Stagecoach share, which represents a premium of around 54 per cent to Stagecoach’s closing share price on 20 September, which was the last day before a possible offer from National Express was announced. DWS Infrastructure has existing UK investments including Corelink, Kelda (the owner of Yorkshire Water) and Peel Ports. It has also invested in Belgian bus operator Hansea. DWS Infrastructure says it intends to focus on long-term sustainable value creation through continued capital investment in Stagecoach’s asset base, supporting the management team in delivering the business plan. It is understood that the deal may involve retaining the Perth group headquarters, something that would have disappeared under the National Express deal. Hamish Mackenzie, head of infrastructure, DWS, says: “Stagecoach is a fantastic busi-
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ness with an exciting future as a central player in a revitalised UK bus and coach market. As a long-term investor in essential services with a strong track record in the UK and European transport sectors, DWS Infrastructure will back Stagecoach to rapidly capitalise on the growth opportunities presented by increased public and private investment in UK bus and coach. We are focused on supporting Stagecoach and its management team to deliver their strategy for the benefit of passengers, local communities and employees, as well as helping achieve ambitious plans for reaching Net Zero. We are pleased the board of Stagecoach has unanimously recommended our offer and we look forward to working with the exist-
ing management team to grow the business sustainably for the long-term.” Martin Griffiths, chief executive, Stagecoach, adds: “We believe it will open a new and exciting chapter for Stagecoach, backed by a team who share our vision for a more sustainable future. We also believe it will deliver positive outcomes both now and in the long-term for all of our key stakeholders: the customers and the communities we serve, the people who deliver our high-quality transport services, our partners in national and local government, and the investors who have supported our continued success over many decades.” www.stagecoachgroup.com www.dws.com
March 2022
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Volvo wins orders for 82 electric buses in Finland
A total of 82 Volvo 7900 electric buses will be delivered to three locations in Finland. Sixty-one of the buses are destined for Helsinki and represent the largest-ever order for Volvo Buses in Finland. Two further orders include 13 electric buses for Joensuu and eight for the city of Savonlinna in the east of the country. “We are delighted that within a short period of time have confirmed three electric orders in Finland,” says Anna Westerberg, president, Volvo Buses. “We are especially pleased with the larg-
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est order for Helsinki, where we are now establishing a strong foothold for our complete electromobility solutions.” In Helsinki, 19 of the Volvo 7900 Electric buses, which will be articulated, will be charged at the end stop on the route with a pantograph, while the other 42 buses will use overnight charging at the depots. The city of Savonlinna is one of the first in Finland to demand full electric buses. The delivery of eight Volvo 7900 Electric for start of operations in early 2023 will be the city’s first electric buses.
“We fully support the city of Savonlinna as it takes its first steps towards electrifying its public transport. “As more and more cities around the world aim to become Zero Cities, these orders show that Volvo Buses is in a strong position to support the same transformation in Finland,” adds Petteri Reku, Volvo Buses country manager, Finland. The buses for Joensuu will start operating in the summer, while those being delivered to Helsinki will start operating this autumn. www.volvobuses.com
March 2022
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Transportation as a Service model in deal with National Express ZENOBĒ is partnering with National Express for the UK’s largest single electric bus fleet transaction, providing 130 double-deck buses to Coventry. Zenobē will be providing Electric Transportation as a Service (ETaaS) to National Express. This model aims to provide reliability and flexibility for the operator, removing the need for the operator to own the electric vehicle fleet and allowing National Express to focus on driving improvements for new and existing customers. Zenobe says that ETaaS contracts are a well-established model for other sectors, including rail, aircraft and shipping which are now available to e-bus operators. In partnership with National Express, Zenobē will finance and manage the full turnkey solution that includes new vehicles, on-board battery replacement, charging and grid infrastructure, a second life battery system at the depot, software to optimise charging, parts, and full operational support. This deal will see over 130 double-deck e-buses, manufactured in Britain by Alexander Dennis in partnership with BYD, enter service in Coventry from early 2023 as a part of the city’s successful bid to become the country’s first all-electric bus city by 2025. The contract bui lds on Zenobē’s existing partnership with National Express, previously providing charging infrastructure and batteries for electric buses in Coventry March 2022
and Birmingham in 2020. The project will be financed partly through the partnership between Zenobē and National Express, with investment also coming from a £50million grant from the Department for Transport, awarded to the West Midlands Combined Authority for Coventry’s all-electric bus city. The project will be implemented in phases with infrastructure works beginning in May 2022 to January 2023, and the first vehicle deliveries arriving at Coventry early in 2023. Steven Meersman, co-founder and director of Zenobē, says: “This really is a globally important deal. We are incredibly excited to be leading the way for the electric bus industry, with ETaaS revolutionising the way fleets are electrified. “By retaining ownership of the vehicles and taking on the risk of
switching to zero-emission, we are giving National Express the use of an electric bus f leet without the hassle of owning one, making the transition to a zero-emission fleet more financially desirable.” Tom Stables, CEO of National Express UK and Germany, adds: “This ground-breaking partnership with Zenobe further demonstrates our leadership as National Express takes another significant step towards our fully zero emission bus f leet ambition. “Through this pioneering new way of working, Zenobe’s innovative solution provides us with the reliability and flexibility we need to accelerate the roll-out of our greener, cleaner vehicles, while we focus on delivering an excellent service for the people of Coventry.” www.zenobe.com
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policy
Clean Cities report shows UK public transport most expensive in Europe A report which highlights public transport affordability in UK cities has been called “a wake-up call for the UK government,” by Campaign for Better Transport. The Clean Cities: Benchmarking European cities on creating the right conditions for zero-emission mobility report, ranked 36 European cities by how much progress they are making towards achieving net zero mobility by 2030, based on measures ranging from more space for walking and cycling to road safety and policies to phase out polluting cars. When ranked by affordability of public transport, London came 36th, followed by Manchester (35th) and Birmingham (34th). The three cities are bottom of the table with residents being asked to fork out 8-10 per cent of their household budget on monthly travel costs. By contrast, in Oslo, which came top overall in the report, passengers spend just two per cent of their household budget on public transport fares. Campaign for Better Transport is calling for more action from central government to make buses and trains affordable, pointing out that helping more people to use public transport is essential to tackling air pollution and traffic congestion in cities, as well as meeting net zero targets. “This report makes clear the link between the cost of public transport and efforts to decarbonise transport and must therefore act as a wake-up call for
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the UK Government,” says Paul Tuohy, chief executive, Campaign for Better Transport. “We currently have a situation where it is often cheaper to drive or fly short distances than take the train or the bus, whereas the greenest option should always be the cheapest. We need more affordable public transport to help us achieve the government’s vision where public transport, cycling and walking are the first choice when it comes to transport.” When ranking overall progress towards achieving zero emission mobility, London came 12th in the overall rankings with a score of 55.8 per cent. Birmingham was 16th with a score of 52.8 per cent and Manchester was 30th with a score of 42.1 per cent. Oliver Lord, UK Head of Clean Cities Campaign, which produced the report, adds: “The only way to address our air pollution and climate crisis is to ensure public transport is a cheap, reliable and accessible alternative to the car. Our new report shows that UK cities have the least affordable public transport in Europe, which will inevitably get worse given this government’s decision to increase
fares in a cost of living crisis. This government should be helping, not hindering, our cities to play their role in meeting the UK’s clean air and climate goals.” Campaign for Better Transport is calling for the UK government to: • Introduce Pay-As-You-Go (PAYG) ticketing with daily price capping within towns and cities as soon as possible • Improve the flexible rail season ticket offer to ensure it provides comparable savings to a full-time one • Expedite the promised reform of rail fares and ticketing to provide more affordable options and eliminate inconsistencies • Improve incentives for bus operators to implement contactless payment options and crossoperator ticketing. Tuohy says: “We are running out of time to tackle the climate crisis. Transport is still the biggest single emitter of carbon in the UK. The government must do more to get people using public transport by making it more affordable and encouraging its use.” cleancitiescampaign.org/city-ranking
March 2022
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Wattsway Travel electric coach backed by Paragon Bank funding
SU R R EY-BASED Wat tsway Travel’s first electric coach followed a six-figure funding package from Paragon Bank, via broker, Stoke Park Finance. A 53-seat Yutong TCe12 electric coach, capable of a range in excess of 200 miles on a full charge, will primarily be used to service contracts for schools in south west London and is the first electric vehicle in the company’s nine-strong fleet. Wattsway Travel estimates that the vehicle will remove 414kg of CO2 compared to a diesel vehicle of a similar size with a Euro
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6 engine over a 10-year period, based on 44,000 miles per year. Wattsway Travel was founded in 2017 by Mark Watts who says: “I have been delighted with the performance of the coach and I would like to transition the fleet towards being predominantly electric over the next four to five years. The majority of our work is within urban areas, so they are the ideal solution. “We have a number of contracts with schools and the pupils were increasingly asking why we were using diesel vehicles when electric options were available. As a coun-
try, we are becoming more accepting of – and enjoying – electric vehicles and that is now extending to commercial vehicles.” Paragon Bank’s Fraser Tilley adds: “We were delighted to support Mark and Wattsway Travel with this funding. Companies such as Wattsway Travel are pioneering new ways of operating and making the important steps we require as we move towards net zero by 2050. Paragon is keen to support a range of green assets and this is a great example of how we can support a new type of asset.” www.paragonbank.co.uk
March 2022
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STOAG takes 15 new generation VDL Citeas for Oberhausen
STOAG has ordered 15 new generation Citeas LF-122 for service in Oberhausen where it operates six trams and 131 buses. Four electric VDL Citeas are already running on line 979 between Oberhausen and Bottrop. Boris Höltermann of VDL Bus & Coach Deutschland says: “In Germany, we are one of the market leaders in the field of electric public transport and our expertise is widely recognised. March 2022
The fact that we will be able to further expand our cooperation with STOAG in the future makes us genuinely proud.” The new generation of Citeas are being deployed in a number of cities and areas from this year: Netherlands (Eindhoven), Finland (Kotka and Lahti), Belgium (all of Flanders) and France (Bordeaux). Delivery of STOAG’s Citeas is planned for December 2022. The e-buses have a 429kWh battery pack providing a range of 200 to
300 km. The vehicles are fitted with pantographs for greater operational flexibility. “With the 15 new Citeas from VDL, we’re expanding our electromobility considerably,” says STOAG managing director Werner Overkamp. “In VDL Bus & Coach, we have a partner with whom we already have good experience in the field of electric public transport.” www.vdlbuscoach.com
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GZM Metropolis to take 32 Solaris electric buses
GZM Metropolis, representing municipalities in Silesia, Poland, has signed a contract for the delivery of 32 Solaris electric buses along with charging infrastructure—11 pantograph chargers and 16 plug-in chargers. GZM Metropolis will take 27 Urbino 12 electric and 5 articulated Urbino 18 electric vehicles in 2023. The manufacturer is carrying out a full turnkey e-mobility solution comprising design
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work, securing a permit for land development, project supervision on behalf of the investor and setting up the necessary charging infrastructure. The vehicles to be delivered to GZM Metropolis will be powered by Solaris High Energy batteries with a total capacity of 250kWh in the Urbino 12 electric buses and of 400kWh in the Urbino 18s. They will be recharged both by means of a pantograph and plugin technology. The drive in both
vehicle types will consist of traction motors integrated with a drive axle. The Urbino 12s have capacity for 80 people and the Urbino 18 electric buses can take 115 passengers. Almost 1,200 Solaris e-vehicles have already been delivered to various European cities, including Berlin, Barcelona, Warsaw, Poznań, and Bolzano, Italy. www.solarisbus.com
March 2022
policy
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Liverpool to press ahead with its franchising plans
THE Liverpool City Region is moving ahead with plans for major reform of its buses involving services being taken back into public control. The Combined Authority has voted unanimously to confirm franchising as the region’s preferred future model for running the bus network and services – a move that would reverse the industry’s deregulation in the mid 1980s. More than 80 per cent of journeys on the city region’s public transport network - over 400,000 a day - are made by bus, providing many people with a lifeline to connect them with work, friends and family. The franchising move is a part of Liverpool city region mayor March 2022
Steve Rotheram’s plan to reform the region’s transport by building a London-style system that aims to make travelling in the region quicker, cheaper, greener and more reliable. Under the plans, buses would integrate better with other modes of transport, including the region’s new fleet of publicly-owned trains, and ticketing would be upgraded with the introduction of a tap-andgo system with daily fare caps that will mean passengers always pay the cheapest fare. Steve Rotheram says: “Good public transport is the hallmark of any modern, successful city region and buses are its backbone. Hundreds of thousands of people rely on our region’s buses every single day.
“They are a lifeline for connecting people in our communities with each other and opportunity. “But too many feel left behind by a system that simply does not work for them. In too many places, public transport is too confusing, too unreliable, and too expensive. Liverpool City Centre can sometimes feel as far away as London. “Thanks to devolution we have the power to roll back the 1980s and reverse four decades of disastrous deregulation. “We’re taking back control of our bus network and running it in the interests of local people – not private shareholders.” www.liverpoolcityregion-ca.gov.uk
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All electric travel to Edinburgh Airport
EDINBURGH Trams is joining forces with Ember to provide electric travel between Dundee and Scotland’s largest airport. Electric buses operated by Ember already serve the Ingliston park-and-ride stop, just a short journey by tram to Edinburgh Airport, and a new ticket offer makes planning a seamless journey even easier. Ember tickets are now accepted on the tram for travel to and from the airport, at no additional cost. The tram ‘top up’ is included in the cost of the standard Ember ticket, providing value as well
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as zero emissions journeys to and from Edinburgh Airport. Fares from Dundee to the airport costs £7.50. Lea Harrison, Edinburgh Trams managing director, says: “The electric buses and our trams really do complement each other. Neither produce harmful emissions, and they provide a great way to get around while reducing road congestion. “We are delighted to be working with Ember on this new initiative that will make it easier than ever for people to step off the UK’s first all-electric, inter-city buses and
onto Edinburgh’s popular tram network, which has services from every seven minutes to the airport.” Ember co-founder Keit h Bradbury, adds: “This type of integrated ticketing really gives passengers the best of both worlds. “A relaxed journey to the airport, a seamless interchange and the simplicity of only needing one ticket to get all the way to the terminal, plus the knowledge that it’s all being done with zero emissions”. www.ember.to
March 2022
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Hino admits emissions data manipulation
THE Japanese government has responded quickly to revelations that Hino Motors has revealed cases of falsified engine data over a period of years that is believed to affect as many as 115,000 vehicles, which is double the Toyota Motor subsidiary’s annual sales in Japan. As a result of the investigation, Hino has halted shipments of medium- to heavy-duty trucks and buses with three types of engines linked to the data manipulation. The Japanese ministry of land, infrastructure, transport and tourism said that there was an illegal act in a national examination to confirm the exhaust gas March 2022
performance and fuel efficiency of engines for trucks and buses. It said this damages the trust of users and shakes the foundation of the automobile certification system. The ministry has instructed Hino to carry out a detailed investigation of the facts and study measures to prevent recurrence, and to produce a prompt report. The Hino revelation follows earlier emissions data scandals in the automotive industry, which has involved Volkswagen, Mitsubishi Motors and others. “There was a failure to handle the pressure to reach numerical targets and to strictly adhere to schedules,” admitted Hino presi-
dent Satoshi Ogiso. The manipulated tests occurred at Japanese plants where Hino conducted engine tests. It is reported that in one case, an exhaust system part was replaced during testing until the desired results were achieved. Hino decided to launch an internal investigation into possible irregularities after discovering in 2018 that vehicles bound for the North American market had engines not in compliance with U.S. regulations. It later widened the probe to include engines for the Japanese market which identified issues dating back to at least 2016. www.mlit.go.jp/en www.mlit.go.jp/en/
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