A new contract to increase the number of passengers travelling with public transport in Stockholm

Stockholm County Council Transport Administration has
procured a new contract starting in August 2014 for bus
services in Stockholm City and on Lidingö based on a new
business model. The purpose of the contract is to increase
the ridership in public transport and gain a more efficient
transport supply with environmentally friendly buses.

The Stockholm County Council Transport Administration
just performed a public procurement of bus transport
services in Stockholm City and Lidingö. The contract awarded
by the Council’s Traffic Board was won by Keolis Sweden.
The contract aims to increase the number of passengers
travelling with public transport and to gain a more
efficient transport network using environmentally friendly
buses, and meets the Stockholm County Council’s demands
on energy conservation.

The bus transport these areas involves about 340 buses,
and more than 100 million boarding passengers per year.
The operator has the opportunity to propose changes to
the services and the route network in order to attract
more passengers and make the network more efficient.
Such changes require that the operator consults and
involves the Traffic Board, the affected municipalities, and
other stakeholders.

The contract is based on a new business model, whereby
part of the responsibility for the planning and adjustment
of the traffic is delegated to the operator, providing the
operator with a possibility to increase the number of
passengers as well as a right to market and promote
the services. The business model, where part of the
compensation paid to the operator is fixed and part of it is
based on revenue per boarding passenger, will lead to a
public transport service more in tune with passengers’
demands.

The business model gives the operator a strong incentive
to adjust and optimize the network services to the demands
of the passengers.

“Numerous large infrastructure projects are planned in
Stockholm the upcoming years. These projects, combined
with a growing population, result in a need for fully
functioning and flexible bus traffic services. The new
contract enables the Transport Administration to offer the
citizens of Stockholm a modernized route network and to
service the growing number of passengers” said Anders
Lindström the Administration Director at Stockholm County
Council Transport Administration.

"With this new contract and business model we are
connecting our revenue to the operator’s revenue to create
a strong incentive to focus on the customer and increase
the ridership with public transport in Stockholm" said
Henrik Normark, Head of Business Development at the
Transport Administration.

All vehicles used for the performance of the contract
must be powered by renewable fuel. The operator also
undertakes to maintain property, service depots, and bus
stops owned by the County Council giving the opportunity
for the operator to align maintenance with the transport
supply and thereby be able to take a larger share of
responsibility for the delivery of quality services to the
passenger.

The start of the contract is August 2014. The contract
duration is eight years, with the possibility to extend it for
four years. The contract value per year is around 106
million EUR or one billion Swedish kronor, SEK.

Contact:
Henrik Normark, Head of Business Development.
Stockholm County Council Transport
Administration