Sullivan Buses ceases TfL routes

Sullivan Buses has decided to withdraw from its TfL contracts to run 12 routes in London.

Sullivan Buses was the only SME operator to run bus contracts for the capital’s transport authority. The move comes as the operator says it was owed £130,000 from TfL earlier this year. It estimates the shortfall in income from TfL contracts exceeds £200,000 per month.

The operator says the remuneration for providing the TfL services ‘has not kept pace with the increasing costs of service delivery’. A statement on the operator’s website added: “In addition, financial penalties as a result of an increase in traffic congestion post-Covid has further impacted on the viability of our contracts.”

The operator says that increased rates on new services that would help against any losses experienced on expiring contracts has not been possible. The statement, signed off by Sullivan Buses’ MD, Dean Sullivan, said: “Nonetheless, despite tendering for numerous services, Sullivan Buses has not been successful in renewing our contracts. TfL have also failed to provide us with any meaningful feedback on tenders submitted.”

TfL has told Sullivan Buses it struggles to incorporate small businesses into its corporate model, according to the statement.

Regarding the £130,000 owed to Sullivan Buses by TfL as of June this year, the operator said: “This is a considerable sum of money for a small business and the lack of these funds have undoubtedly impacted upon our ability to deliver the contracted services. Although the matter was resolved shortly afterwards, but not before TfL asked it if could ‘repay in instalments’.”

Sullivan Buses has 230 staff either directly or indirectly employed on TfL work, based at its South Mimms depot.

Despite ending its TfL contracts, Sullivan Buses’ routes in Hertfordshire remain unchanged. It aims to develop its work outside of the capital.

B&CB has contacted TfL for comment.