Business Development and Contracts
description
Transcript of Business Development and Contracts
Business Development and Contracts
Jens Plambeck
Director Strategic Development Stockholm County Council Transport Administration
April 2013
22/04/23
1Transport AdministrationStockholm County Council
Agenda
Facts and figures
Earlier contracts
New approach
Conclusions – so far
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The public transport system in short
Contractstraffic op. and maintenance:
13,5 bn SEK/year
Boardings:2,5 million/day
Bus line 4has as many
passengers/day as SJ
About 80%of the system
runs on renewable fuel
80% market share in the
morning peak in Stockholm
About our passengers
74% satisfied customers
739 000passengersevery day
10 000 ”färdtjänst”
travelsevery day
sl.se has130 000 visitors
every day
The infrastructure in shortThe infrastructure in short
900 000 m2
property1 000
rolling stock244
stations167
bridges
233 kmtrack
Infrastructurevalue
100 bn SEK
32depots
1993 – 2002 From “in-house” to outsourcing Main target – low cost
Lowest price in procurements Contracts based on production Procurement effect~10%
Results of early procurements Contracts where under priced Focus only on cost reduction Quality issues Did not align with all out targets No economic incentives Lack of customer focus Lack of systematic work and focus
on
enhancing the system efficiency
The history of our traffic contracts 2002-2012
More of economic incentives Heavy focus on customer satisfaction Increased degree of co-
operation
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Strategic analysis
Passengers
Traffic supply
Customer satisfaction
SL employees
Total cost
Population
Costs, SL employees and customer satisfaction has increased during the period 2000-2009
The number of passengers has not increased enough in relation to costs, satisfied customers of even the population growth…
Transport AdministrationStockholm County Council
Case 1: The metro contract development- E17
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Development – dotted line shows the start of the new contract Facts
Operator MTR
Reimbursement model Production based
contract
Incentive share 6%
Responsibility Traffic operations Maintenance Depot operations• Passenger environment• Customer service
Costs per year (MSEK) 2524
Contract E17 - Metro
Costs Passengers
Customer satisfaction
(CS)
Newcontract
CS
Transport AdministrationStockholm County Council
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thinking new…
Transport AdministrationStockholm County Council
Strategic principals – a selection Supplier perspective
Increased responsibility to the market
Financial incentives towards our goals
Correct risk sharing
Function related demands
Increased cooperation
Proactively work from the early stages
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The remuneration of the newer traffic contracts is based to a large extent on the incentives to achieve targets
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Share of incentives in 11 traffic management contracts
Completed Existing New contracts
Transport AdministrationStockholm County Council
The degree of responsibilities passed to the operator has increased along with the incentive share
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Incitamentsandel vs ansvarsförskjutning till trafikoperatörer i 11 stycken trafikdriftsavtal
Share of incentives vs increased responsibility in 11 traffic management contracts
High
Low
Responsibilityto the operator
High
Incen
tive s
hare
Verified Paid Boardings (VPB)
contracts
Transport AdministrationStockholm County Council
Low
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Consultation and
coordination
Follow-up
Traffic planning
Environment & Energy
Traffic information
Security and safety
Passenger environment
Stops
Technical systems
Vehicles(Buses)
Real estate(depots)
Areas of responsibility
Handicap avvailability
Personnel and training
Revenue Assurance
VandalismOperations and
organisation
Customer service
Marketing & Brand
Supply of information
Rapports
Traffic production
Traffic management
Contract phasing
Larger total commitment and responsibility to the operator in our new business
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Two examples of the new reimbursement model
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Operator Keolis
Reimbursement model Quality Incentive
Agreement
Incentive share 27% (depending on
performance)
Responsibility Traffic operations Maintenance
Cost per year (MSEK) 1343 (prognosis)
Contract E19 – Bus for municipalies Nacka, Värmdö, Huddinge, Botkyrka och Söderort
Development E19 Facts
Case 2: Development of traffic contract E19
Costs Passengers Customer satisfaction
(CS)
Newcontract
CS
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Operator• Nobina
Reimbursement model
• Travel Incentive Agreement
Incentive share• 50% VPB
Responsibility• Traffic operations• Maintenance• Depot management• Passenger
environment• Customer service
Cost per year (MSEK)• 261 (prognosis)
Contract E19 B – Bus Norrtälje (municipality north of Stockholm)
Development of E19B Facts
Case 3: The development of traffic contract E19B
Passengers Customer satisfaction
(CS)
Newcontract
CS
Transport AdministrationStockholm County Council
Costs
Conclusions – so far The increased costs in the contracts we have
studied depend on:– Shift of responsibility- vehicles– Shift of responsibility- (ie. maintenance for depots)– Increased prices i.e index– Increased offers i.e more traffic, new lines etc.– Environment and accessibility measures
for passengers with disabilities – Incentives
Incentives influence both costs and results. As for the E19 contract (quality incentive)
passenger volumes have increased in accordance with historic numbers, strong continued increased customer satisfaction.
As for the E19b contract (passenger based incentive) passenger volumes have increased more than historically, customer satisfaction has increased to very high levels (85%)
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Thank You!