Arriva to start negotiations on public transport privatisation

Arriva was selected as the preferred bidder following a tendering process that gave it a total of 327 points out of a maximum of 500, compared to Transdev Plus’s 197 points.

Arriva, whose partner is the Tumas Group and bus drivers from the public transport association, were awarded 122 points on technical evaluation (out of 185) while Transdev got 177. But it was awarded 250 out of 315 for its financial offer, while Transdev only got 20 points.

At the bidding stage, Arriva notified that Malta Land Transport plc, a company owned by a number of bus drivers, holds an option to purchase a maximum of 10% of the shares in the new company.

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. Arriva is a public company quoted on the London Stock Exchange that in 2009 registered revenues of GBP 3,147.8 million.

“Arriva brings to Malta, expertise and professional management, as well as €47 million investment in a sector where it is sorely needed,” transport minister Austin Gatt said. “Arriva has far exceeded the minimum expectations set out in the tender published by Transport Malta, which required as a minimum buses that were not older than 15 years and a minimum Euro III standard with air conditioning and accessibility for persons with disability.”

The fleet being provided by Arriva will cost €35 million at the start-up of the new service; include 230 brand new Euro V buses; include an additional 86 buses all with Euro V engines that are between 2 and 7 years old; ensure improved accessibility and comfort: the entire bus fleet will be wheel-chair accessible and air conditioned in addition to the improved safety standards of contemporary bus design that only a fraction of today’s bus fleet is equipped with; the new vehicles will 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.

“This 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. Quite apart from this, a new bus fleet will in and of itself signify an improvement to the quality of our air,” Gatt said.

The new bus service is expected to be rolled out 6 months after a successful conclusion of

the negotiations that are expected to commence in earnest in the coming days.

An independent report commissioned by the ministry predicts that when compared with the current bus fleet, a bus operation running with a Euro V engine standard will lead to a 48% reduction in hydrocarbons, a 94% reduction in particulate matter, a 70% reduction in

oxides of nitrogen and a 55% reduction in carbon monoxide.

Arriva has also undertook in their submission to make the Malta project a model of sustainable development. Their target is to increase bus passengers by 54% over current levels of use by the end of the 10 year contract term but also undertook to reduce the carbon footprint of Malta’s bus operation by 15% in 2017 over 2011 numbers.

Arriva will also employ around 1,100 people in Malta’s public transport operation, more than double existing numbers, creating new jobs for hundreds of people never before connected with the transport industry.

Arriva Malta has also said it would support, with maintenance facilities and volunteer labour, a heritage bus museum for retired traditional buses if one was to become established.