Tuesday 15th October 2024

There’s been understandable concern raised recently about the future role for Small and Medium sized Enterprises (SMEs) in the bus sector particularly following the franchise experience in Greater Manchester where they didn’t really get a look in and, aside from the University of Hertfordshire owned UNO, the recent withdrawal of the last SME as a contractor to TfL (ie Sullivans).
The age profile of owners of many of the existing SME bus companies also casts a shadow over just how long many of them will continue rather than selling out to bigger players in the market for expansion, notably the Go-Ahead Group on recent form.
It’s therefore always heartening to hear of budding bus executives setting up a new bus company, especially young, keen, enthusiastic entrepreneurs committed to providing a quality service.
I’ve commented before about the impressive expansion Peter Nathanial and his young team at Vectare are achieving and today am giving a shout out to 27 year old Dan Graham who quit his Commercial Development Manager job with Go North East at the beginning of the year to set up his own bus company called Northstar gaining his first temporary contract almost immediately, involving two schools hit by the RAAC (concrete) debacle needing short term transport to alternative facilities.

He was also successful in gaining rail replacement work from Nexus for the Metro with the company’s first journey back in March.

At the company’s launch Dan told the trade press “my aim for Northstar is to combine the best bits of professional standards from large plc operations, with the attention to detail, passion and entrepreneurial flair of the very best independent operators, to deliver to Local Authorities and bus users a high-quality service with care and efficiency.”

That sounded like an excellent objective to me so I was pleased to meet up with Dan last Friday afternoon in Newcastle station to chat about how things are going six months on as well as having a ride on Northstar’s six days a week, all-day route, now running between Sunderland, Jarrow and Hebburn.

Introduced in July, route 599 is a new route added to the North East’s bus network funded by the Combined Authority’s Bus Service Improvement Plan on an eighteen month contract which Dan successfully bid for.
Despite having only six weeks between being awarded the contract and its start date in July, Dan acquired two ex London United Enviro200s for the route, got them painted in the company’s very smart blue livery ready for day one as well as recruiting drivers, buying ticket machines and all the other set up arrangements that go with a new operation for a new company.

Dan also acquired a third Enviro300 (ex Adventure Travel and NatEx West Midlands) as back up which since September is being used on a peak hour commercially operated school contract.
Northstar also operates a second school contract and three tendered services won from Nexus in July. Route 643 runs in the off peak between Sunniside and Metrocentre ASDA and peak hour routes 937 and 939 to Team Valley from Chester-le-Street and Sunderland respectively. These are run with ex Stagecoach East Scotland Alexander ALX400 bodied Dennis Tridents.

It’s not easy running a bus company single handed but Dan is obviously relishing and thoroughly enjoying the challenge. And the result on the road is impressive.

Dan told me he had no problem recruiting the nine drivers he needed for the July expansion with a queue of former colleagues from Go North East excited about joining Northstar and he was in the happy position of being able to hand pick those he knew would share his approach to providing a quality service.
I can testify to that being a successful strategy as the two drivers I met when taking a ride on route 599 on Friday afternoon – Arron relieved Callum when the bus arrived at the bus station – exuded quality, keenness and professionalism.
Despite the timings on the route being tight Arron provided a vey smooth and comfortable ride and on arriving back into Sunderland bus station – two hours after the journey to Jarrow and Hebburn and back – he went immediately back out again on his next trip to claw back some of the late running.

Dan explained he was in discussion with Nexus about them approving a revised timetable for introduction next month with more running time even though peak hour journeys already have additional times built in.

Dan has produced a colourful timetable leaflet and map for the service which, as you’d expect from a quality bus company is available on board the two route branded buses.

It’s too early to tell whether route 599 will become a commercial success, once the initial 18 month BSIP funding ends, but it’s obvious Dan and the team will give it their best shot. Indeed I was impressed we carried nine passengers on the 14:30 outward journey from Sunderland including two who’d been shopping and went the whole way home to Hebburn (over an hour’s journey) and then carried 14 on the return journey.

The route passes the huge Nissan factory as well as IMAP (International Advanced Manufacturing Park) where we only picked up one passenger in each direction but at shift change times I should think there’s potential for many more. The 599 also serves the Sunderland Royal Hospital, Enterprise Park and North Hylton Retail Park.
I asked Dan if he had any concerns about Northstar’s future bearing in mind the North East Combined Authority’s Mayor Kim McGuinness and Nexus are certain to introduce bus franchising in the next couple of years and he pointed out there’s likely to be a different approach taken than in Greater Manchester with SMEs not sidelined in the way they have been there.
I very much hope he’s right as there’s no doubt the SME sector plays a vital role in the British bus industry and it’s great to see Dan picking up the baton at such a young age to take that success further forward.
All the very best to you Dan and many congratulations on a fantastic start to your venture.

Roger French
Blogging timetable: 06:00 TThS
Comments on today’s blog are welcome but please keep them relevant to the blog topic, avoid personal insults and add your name (or an identifier). Thank you.

Does this operation have submarine intentions? If not, why have nine divers been recruited?
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They’ve got this service, an hourly off peak service to a big ASDA and no fewer than eight schools services. Nine doesn’t seem excessive at all.
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I note the company-related number plate on the vehicle. Has he re-registered his whole fleet —NST to match? He’s even managed route-specific vehicle allocation (K99— on the route 599)
I’ll pass this on to a friend who works for Nissan as a possible route to their Sunderland site.
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Five of the fleet have cherished registrations currently (the rest to follow).
The two buses used on the 599 service have matching plates – K99 and M99NST. The Enviro300 is E24NST.
Two Tridents are registered D22/D24NST.
Other plates to be assigned are G23NST, T70NST and T80NST.
Dan Graham
Northstar
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Two typos: divers and vey.
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Thanks.
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Well they could be useful for driving buses to Mersea Island on High Tides
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And to Lindisfarne when the causeway is under water
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One can only hope that the attitude of the NECA when franchising is different from Manchester, or the SMEs may as well sell up now. SME operators will probably have greater success away from the metropolitan areas threatened with regulation again, particularly as the coming financial constraints on the public purse may see the large groups contract and opt out of marginal services.
Interesting that Driver recruitment, presumably keen to leave Go North East, was not a problem, and one can only hope Northstar can survive the coming choppy waters. A new bus company these days is a rare as hen’s teeth and deserves success!
Terence Uden
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Re SMEs and franchising. Could the SMEs form a co-operative to bid, with each SME providing services on a part of that bid?
MotCO
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No reason as to why not but getting multiple small operators working t6ogether might be complex
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GoAhead have taken a hit in he East having lost the Norwich Park and Ride Contract which has gone to First Bus and Central Connect
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Nice smartly presented buses and publicity. Hopefully thr company will grow and flourish, especially if the local franchising process looks after SMEs as they should.
Peter Brown
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With Dan’s good hand and extensive local knowledge and prior experience in GNE, Northstar would success. The Northeast used to be a good bus territories, while I am not sure if it still holds, since there were numerous cuts on routes and frequencies of GNE and other operators. It is also a difficult time for GNE, which is struggling to turn around the P&L, and to upkeep the service standard, not sure if Roger get the chance to sample the GNE service this time and could give some thoughts on it. The 599 is a BSIP contracted route, so I would wonder if it is a revenue protected contract, or Northstar should try hard to attract every passenger. The route itself provides lots of connection including the express from Castletown, Sunderland to Jarrow, direct journey to S Tyneside from Nissan and Royal Hospital, etc. From my understanding certain Nissan shifts run into mid-night, it is difficult fit into current timetable, and it is also uneasy to have driver to do a single trip at night serving the Nissan, hence it would be a difficulty to get the Nissan worker on bus if they could not get the bus for both to/from the work place. Dan’s experience in previous tending of Sunderland Connect must have known that the 599 also serving some campuses and student accommodation of Uni of Sunderland, I am not sure if it can be getting any support from the UoS onwards, besides they have contract on the Sunderland Connect services. The 599 recalled my time in Sunderland, which I used to stay in the Millfield, and worked in Nissan for sometimes.
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In recent times NEXUS seem to have had an unwritten policy of regularly changing the contracted operators on renewal of contract services. For example the scholars service that passes my window twice a day has just been taken on by Stagecoach (using a double decker) having previously been operated by A-Line, Go North East and Henry Cooper Coaches over the past decade.
Whether this continues as the mayor looks to a fully “contracted” bus network (I avoid the use of “franchised” as the operators aren’t paying for a franchise in the normal way this business model normally works, e.g. running a McDonalds) we’ll have to wait and see.
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Do my local operators in Walton on Thames (Falcon and White Bus) have the SME status, please? How does one qualify for this status please?
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| How does one qualify for this status please?
By not being one of the big PLCs, one would assume.
SME is only a description of the company size, it doesn’t imply anything else.
A Nony Mouse (who can’t log in any more because WordPress keeps telling me my password is wrong even though it isn’t!)
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What was being referred to was SME’s contracted to TfL. There are of course other SME’s operating in parts of London but they are not contracted to TfL
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SME simply means “Small or Medium sized Enterprise” so is just a description of the size of the business in comparison to the national market generally based on a comparison made on turnover or staff numbers. For the bus industry it tends to encompass anyone below those owned by multi-nationals or are current or past PLCs. So big national players Stagecoach, First, Arriva, Mobico/National Express, Go-Ahead, Transdev & Rotala plus multi-national groups but smaller UK players ComfortDelGro/Metroline, Ascendal, RATP & Tower Transit are big businesses and so definitely not SMEs. Whether you add Transport UK Group (formerly the UK operations of Abellio but now management owned – it would have been when foreign owned), McGills or Wellglade as larger medium sized groups to the exlcuded list would be a discussion whilst smaller medium sized groups like Centrebus/D&G are right on the boundary of that categorisation officially but probably on the SME side for these purposes even if not in a purely legal definition of stats.
Dwarfer
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An SME is defined by statute, recently changed. Look on the gov.uk website. Falcon and White Bus would definitely be SME’s
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What an awesome achievement to get a depot , buses and drivers so quickly – not to mention an O licence .
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The o licence was prob the easiest I presume Dan got his CPC previously then you plan the licence and its needs then source your vehicles and staff.
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One minor point is that the web site states the 599 runs on Mon-Fri but the leaflet says it also runs on Sat, i believe being a typo
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Hi Roger, would be interesting to get a update on how on Transdev Blazefield are doing in the current climate, from latest companies house submissions, their financials over last couple of years are a interesting read, from what I can tell the parent company and banks have had to fund them to keep them as a going concern. Thanks
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All the best to Dan and Northstar. It sounds like an excellent operation they have going.
Go Ahead must be kicking themselves for losing such a talented young bus manager.
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Rotala of course lead the way as an premium quality example of how there is still space amongst the large grouping for independent UK owned bus operators with its first class operations across the West Midlands & beyond.
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Not sure my friends in Kidderminster, Redditch and Stratford upon Avon would quite agree that Rotala’s performance over the past five years matches your description of a Premium Quality Example! Nevertheless I do agree there is a need for operators other than the big four groups both inside and outside the coming “Franchised” Metropolitan counties.
Adam Yates
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I personally regularly use the bus network provided by Rotala in Kidderminster & Redditch. Quite simply the level of local authority funding for public transport is at the most desiry & Diamond Bus operate the best network possible mainly commercially given the somewhat limited resources available in Worcestershire.
Services within the West Midlands County are far more heavily resourced giving a better quality experience in the main in partnership with Transport for West Midlands.
Interestingly whilst in Solihull on Thursday Evening the Landflight Service A12 failed to run whilst the Diamond Bus Service A15 was smack on time. As ever armchair pundits woefully criticising Rotala no doubt never actually use thier services in the West Midlands County even on the trunk 4 services between Walsall & Blackheath Diamond Bus usually uses vehicles 10 years younger than National Express West Midlands & are far more punctual with National Express West Midlands constantly running short “Es” on its share of the partnership route due to its abject vehicle shortage.
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BDIP Report Evaluation of bus service improvement plan (BSIP) phase 1 interventions (publishing.service.gov.uk)
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Rotala’s ‘Premium Quality Example’ has recently been evidenced by a letter from Staffordshire County Council to scholar passholders acknowledging the unreliability of Diamond East Midlands schoolbuses and promising improvements.
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Since when was Diamond Bus East Midlands the same operation as Diamond Bus West Midlands. My comments clearly state ” West Midlands ” If you can dispute my comments about Rotalas operations in the West Midlands County please provide the evidence.
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“Beyond” is somewhat subjective
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“West Midlands & beyond” is the exact quote.
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The best advice I can give is not to expand too quickly; something many others have found out when it’s too late. The extent that Vectare have expanded over a relatively short time could well be problematic.
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Another relatively new company with an interesting story.
https://www.route-one.net/features/behind-the-scenes-at-electric-intercity-coach-operator-ember/
Peter Brown
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