Annual Report 2012/2013 5.09 MB - Nobina AB

Nobina NorwayCONTRACT TERMS THE SUPPORTING DOCUMENTS FOR TENDERSSPECIFY THE ROUTES AND SCHEDULES THAT THE TRAFFIC COMPANYMUST COVER. GROSS CONTRACTS DOMINATE REGIONAL TRAFFIC INNORWAY, PARTICULARLY IN THE TRAFFIC AREAS WHERE PUBLICTENDERING HAS RECENTLY COMMENCED. THE TRANSITION TOWARDSMORE INCENTIVE CONTRACTS IS SLOW.For our other existing contracts, we have successfully implementedimprovements in a number of areas. We also strengthened severalof our key figures, such as fuel reduction.ENVIRONMENTNEW CONTRACTS, NEW ECO-BUSESThe environmental requirements have become increasingly detailedin the contracts that Nobina Norway has entered into. For example,we are making the largest investment to date in biogas busesin conjunction with our contract for services in Oslo (West). Thishas involved a major renewal of the bus fleet with a strong environmentalprofile and better comfort for customers. Of the 78 newbuses, 51 run on biogas. The buses have AC and they have also beenadapted to accommodate the needs of people with disabilities.Nobina is also involved in efforts to establish a completely newinfrastructure for reliable gas deliveries and easy refuelling of thebuses that run on gas. We will also soon obtain ISO 9001 (quality)and ISO 14001 (environmental) certification for the Oslo (West)services, just like we’ve done for the other Nobina Norway units.The contract in Tromsö also involves considerable renewal ofthe bus fleet and a stronger environmental profile. For example,100 of the 126 buses have been newly purchased. Of those new purchases,32 are diesel hybrid buses, which means that Tromsö nowhas the largest fleet of hybrid buses in northern Europe.During the last year, we also put a lot of effort into The GreenJourney in order to promote conservative driving, reduce damagesand make the experience more pleasant for passengers.MARKETTOUGH CONDITIONS IN A GROWING MARKETDuring the 2012/2013 financial year, there was public tendering inNorway corresponding to 78 buses and several of these traffic areaswere tendered for the first time. In total, this portion of the busmarket declined by 1.1 percent in 2012. However, the portion of themarket that was open to tender increased by 4.4 percent. Changestaking place in the market have increased the competition and pricingpressure in contracts.During summer 2012, we ceased our own traffic services inHedemark. None or our existing services were up for tender in 2012and Nobina did not participate in any new tenders either.We are involved in long-term efforts to improve the situation inthis industry so that there is more predictability from indexationadjustments for things like salary expenses and fuel prices. This isimportant so that bus operators can gain control of their costs andthereby also profitability. During the last year, a new bus indexationscheme was proposed for the industry. It is administered byStatistics Norway and the intention is for it to be used in new contracts.FUTURE FOCUSMORE EFFICIENT OPERATIONSThe main priorities for the Norwegian business are continuing toimprove the efficiency of operations, along with gaining controlover own operations and existing contracts, Tromsö in particular.During the next financial year, comprehensive changes will beimplemented throughout the Norwegian organization. This willinclude a review of contracts aimed at improving efficiency andprofitability. It involves everything from leadership development,changes to the company culture and ensuring that everyone knowstheir areas of responsibility to good financial control, purchasingpractices and cooperation with PTAs.Over the long term, the calculations for the new contracts inOslo and Tromsö look positive. We will defend our existing contracts,but also participate in new tenders and try to reach highervolumes in the areas where we have competitive advantages.36