Annual Report 2010/2011 - pdf 7.05 MB - Nobina AB

MArKet OVerVIeW
public transport – an everyday event
Nobina operates in a growing market in transition; public transport has never
been more right. More and more people choose to travel by bus because it
saves time, money and the environment. traffic companies gain more control
over how traffic is designed and tomorrow’s winners are the players who can
offer an attractive, affordable and profitable product to their customers.
THE Traffic TrEND
A GROWING MARKET
Nobina’s largest market is in metropolitan
regions. The majority of people choose the
bus sometimes and about 25% use public
transport every day. Women travel by bus
more often than men, while young people
and pensioners travel by bus most frequently.
The Nordic market for public transport by
bus is expected to grow over the coming years
and generated around SEK 44 billion in 2010,
of which regional traffic accounted for nearly
90% and interregional traffic for slightly
more than 10%.
THE PublIc TRANsPORT TREND Is GROWING,
buT cHANGING HAbITs TAKEs TIME
Environmental considerations, leisure time
and personal finances make bus or train
transport more attractive than driving. Just
five passengers on a bus, irrespective of fuel,
has already contributed to reducing our environmental
impact. But despite the fact that
cars are expensive, create congestion and
have a negative impact on the environment,
driving is increasing at a faster rate than bus
traffic, due to the convenience, in all areas
except metropolitan regions. Most people
who do not use public transport do not know
how public transport works or where it operates.
Prejudices about travel times and disruptions
make the threshold high. Efforts by
politicians and traffic companies have not
managed to increase the market share for
public transport, which has remained at
10 NOBINA | ANNuAl repOrt 2010/2011
about 20% for decades. But a joint change
processes is currently taking place.
A doubling of public transport would
reduce the carbon emissions of passenger
traffic by more than 20% and provide an
economic gain of more than SEK 4 billion.
In early 2008, a united public transport
industry thus presented its ambition to
double the market share of public transport
in the short term, and to double the overall
travel by public transport by 2020 to the
Ministry of Enterprise, Energy and Communications.
In spring 2008, industry associations
presented a joint action plan to the
government, after which doubling work
proceeded with full force through various
sub-projects.
PRIcING AND PRODucT DEVElOPMENT
When times are tough, it is difficult for
the government, municipalities and county
councils to achieve a balanced budget, which
reduces opportunities for public transport
to receive higher appropriations. Economic
development also affects the funding of
buses, which accounts for around 40% of
the costs in contracts. All buses in the market
today are custom-built since requirements
vary from one client to another, and the
continued low number of competing bus
suppliers has a negative impact on pricing
and product development.
In 2010, several international traffic
companies showed low or negative profitability
in their Nordic operations. All players
expect that the price scenario in the Nordic
region will improve for traffic companies.
» environmental considerations,
leisure
time and personal
finances make bus or
train transport more
attractive than driving.