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

NOBINA – BuSINeSS AreAS
Nobina Norway
In preparation for a market in strong movement, focus in the Norwegian
operations has been on improving the internal processes and creating
the right conditions to win profitable contracts. during the year, a
new management was appointed with the focus of improving quality
in all phases from traffic planning and bus optimization to damage
management and driving style.
Sales 783 SeK M (733)
Operating profit 21 SeK M (21)
market share 17%
Number of
passengers 12.8 million
Average number
of employees 1,157 (771)
Number of buses 451
millions of kilometers
traveled 25.2
New/expired
contracts 2/2
Share of
group sales
(12%)
11.7%
40 NOBINA | ANNuAl repOrt 2010/2011
deVeLOpMent duRing the yeaR
The Norwegian operations had sales of SEK
783 million (733) with an unchanged operating
profit at SEK 21 million (21). Like the
other Nordic countries, Norway was struck
by a harsh winter with extreme temperatures
throughout the country, which had a negative
impact on profitability through higher
costs of fuel and maintenance.
In the next few years, large parts of the
market are expected to be subject to competition,
which means considerable opportunities
for Nobina in Norway. As a part of the
ongoing changes on the market, tough
competition and downward price pressure
characterize the procurement processes.
tendeRS
Regional bus service in Norway comprises a
total of around 6,200 buses in 19 counties.
During the year, a number of public procurements
were conducted in several service areas
that were previously covered by concession
contracts. This is a clear consequence of the
European ordinance on public transport that
is increasingly applied and will open up the
market. In addition, new legislation entered
into effect in 2009 with regard to the forms
of public procurement, which is also a step in
the development towards more public procurements.
The share of service up for public
procurement will exceed 50% in the first half
of 2011 and will then increase by 500–800
buses annually in the next few years.
The Norwegian market is fragmented with
about 100 different bus companies. State-
owned Nettbuss is the market leader,
although it has a weaker position on the
market for contracted bus services. There,
Nobina Norway had a market share of
around 13% in 2010 through ten contracts
with six public transport authorities. The
traffic is concentrated to eastern Norway and
Hordaland on Norway’s west coast.
In the past fiscal year, traffic services for
1,000 buses were up for procurement in Norway.
Since some of these contracts were subject
to public procurement for the first time,
there was a lack of valuable supporting data in
the form of documentation and timetables,
which made the tendering work more difficult.
Nobina Norway lost two of its existing
contracts, which were discontinued at the
beginning of 2011, comprising ten buses in
Lillehammer and 60 buses in Östfold. No
new contracts were added. In 2011, several
procurements are expected, some of which
concern Nobina Norway’s current services.
The development of Norwegian public transport
is behind that in Sweden and does not meet
today’s transport needs. The railway network is
less developed than in Sweden and with an
expected population growth of 40% in and
around the major cities in the next few years,
public transport is under considerable pressure.
During the year, the main organization for bus
traffic companies and the association for public
transport authorities met to discuss a doubling
project and a sustainable development for Norwegian
public transport, in part through clearer
incentives for the traffic companies to develop
and increase public transport.