Rotala has serious concerns about the proposed tranche-style franchising model proposed for the West Midlands. Despite this, it supports the principle of franchising to reform the bus market in the region.

A consultation on franchising in the region received 3,600 responses from residents, businesses and organisations. Of those who gave a preference, 75% were in favour of bus franchising to create an affordable and reliable bus network.

The results are published ahead of the West Midlands Combined Authority (WMCA) Board meeting next week at which the Mayor will make a landmark decision on whether to franchise the region’s bus services.

Drawing on its practical experience in both the West Midlands and the Bee Network in Greater Manchester, Rotala argues that a route-by-route approach modelled on the London system is better suited to address the region’s transport challenges. It has submitted a full response to the Bus Service Franchising Consultation currently being undertaken in the West Midlands, along with supporting evidence from Oxera Consulting LLP.

Rotala sets out a number of benefits of the route-by-route approach:

 

Lower Cost and Risk to WMCA

A tranche model requires significant capital outlay particularly for depot and vehicle acquisition and exposes west Midlands Combined Authority (WMCA) to considerable operational and financial risks, according to Rotala. In contrast, it says a route-by-route model allows operators to retain ownership of depots and vehicles, reducing upfront costs and long-term liabilities to the authority and, by extension, the taxpayer.

Greater competition and market access

By allowing operators to bid for individual routes, a route-by-route approach encourages wider participation, especially from small and medium-sized operators (SMOs). In contrast, tranche models tend to favour larger operators due to the scale and complexity of the contracts, it says.

Improved operational flexibility and stability

Managing performance issues or service disruptions is far simpler at route level, according to Rotala. Under a route model, failing operators can be replaced without re-tendering entire areas.

Better outcomes for employees and investment

Tranche-based contracts create employment instability due to the TUPE process and discourage operator investment in training and staff retention, says Rotala. A route-based model, by allowing continuity of service and employment, supports long-term workforce development and mitigates driver shortages, it claims.

Enhanced passenger experience

Rotala’s experience in Manchester suggests centralised control under the tranche model has not translated into improved punctuality or customer service. A decentralised, route-level approach supports a more responsive, accountable service aligned with local passenger needs, it says.

Faster, more manageable implementation

Route-by-route franchising avoids the delays and complexity of acquiring infrastructure and enables a more staggered, agile rollout of services, according to Rotala. This lowers implementation risk and facilitates smoother transitions

Encourages long-term operator investment

Rotala says with more frequent and manageable bidding cycles, route-based contracts provide a clearer business case for long-term investment by operators, including in depots, fleets and staff, helping build a stronger, more resilient network.