The largest bus operator in Scotland, McGill’s, is “seriously considering” bidding for Malta’s public transport service tender following Arriva’s exit, The Sunday Times of Malta has learnt.
Earlier this month the government took over the bus service, which is now being run by Malta Public Transport Services, until a new operator is in place. A call for expression of interest is expected to be issued this week.
McGill’s managing director Ralph Roberts confirmed with this newspaper when contacted yesterday that his firm was “seriously looking at the opportunity of operating the public transport system on Malta and Gozo”.
In the industry since 1942, the company currently operates over 350 buses covering a geographical area approximately 20 times the size of Malta.
We have a plan, we know it works
It took over the bus service in Scotland in March 2012 after Arriva pulled out of the market, turning the ex-Arriva business into a “profitable enterprise using the McGill’s business model,” Mr Roberts said. The company presently received a one per cent route subsidy “so we are very adept at making our services commercially attractive”.
Mr Roberts, who worked for Arriva for 10 years before leaving in 2010 to join McGill’s, said his company had informed the Maltese government of its interest. It also opened discussions with local companies and has since formed a consortium with Maltese partners.
He was reluctant to reveal who these partners were but just said these were “significant figures in Malta who wish to see stability in the public transport system and believe in the concept and demonstrable track record that McGill’s have”.
He said that the government was aware of its interest and understood what the company could offer in relation to public transport.
“The main thing is that we have a plan, we know it works and only the Maltese government can decide the direction in which it will all go,” Mr Roberts said.
Turning to his experience, Mr Roberts said that for a number of years with Arriva, he had been heavily involved in mainland European public transport “so I am well aware of the challenges faced in a regulated and franchised environment”.
He said he was “an expert” in the fully commercial environment “where subsidy is minimal and customer satisfaction is paramount. “I believe I can bring both together to reduce subsidy from the Maltese public and drive up standards of delivery to, as yet, an unseen level within Malta,” he said.
Mr Roberts said McGill’s was an ambitious company which wanted to grow.
“We see Malta as a good fit within our business because of the size of the market and the issues you face. It is our area of expertise. However, we are realists and we prefer to do business with realists. This means that the Maltese government would have to be honest and realistic about what it wants from its public transport system.”
When Arriva took over the service in July 2011, the government had said that Arriva would receive €6 million a year, down from the €10 million which the previous operator received in its final year.
However, by the end of last year the annual subsidy had increased to about €8.5 million as Arriva had to be compensated for the additional buses and extra routes which were later introduced.
The annual subsidy is set to rise by a further €6 million, following the scrapping of the two-tier pricing structure through which foreigners used to be charged more than Maltese citizens, and the introduction of new routes.
The Sunday Times of Malta has already reported that local bus firm Paramount Coaches would be interested in taking over the bus service.
Sources said the majority of coach operators have been holding preliminary meetings to explore the possibility of setting up a consortium and bidding for the tender.