English
German
Italian
Portuguese
Spanish
Swedish
Danish
Dutch
Czech
Polish
Hungarian
Slovakian
Transport market characteristics
We work in a variety of different environments, and we have a wealth of experience of different transport markets and their characteristics.
The following market summaries were produced in March 2009.Czech Republic
Population: 10.2 million
Bus
Regional government controls route licensing and maximum fares, and
individual cities are responsible for urban public transport and
its funding. There is currently little competitive tendering, and
direct award of concessions is not uncommon. There are around 250
bus companies operating in the market, many of which are the
inter-urban CSAD companies that were formed in the 1990s as part of
the original privatisation process.
Rail
Regional rail routes have been transferred to local government and
competitive tendering has recently started in some regions, with
the potential to expand in the mid to near future. Rail in the
Czech Republic is dominated by state-owned CD which has a 99 per
cent share of the market.
Future
There is a gradual move towards competitive bus tendering,
particularly in cities such as Prague where the market is growing.
We have built a position around Prague and are well placed to grow
as the market opens.
The government has committed to enhancing the role of the private
sector in the Czech Republic rail market. There has been some
market testing of passenger concessions by regional and central
government.
Denmark
Population: 5.4 million
Bus
The Danish bus market is a mature regulated market. Six Passenger
Transport Authorities have the responsibility for public transport
services, including determining ticket prices, timetables and
contract duration in their regions. Contracts are typically gross
cost, of six years in length. Quality and service incentives
apply.
Rail
The rail market was opened to public tendering in 2000. It is
dominated by state-owned DSB (Danish State Railways), which
operates contracts under direct award from the Ministry of
Transport.
Future
It is expected that one-third of DSB’s regional rail
kilometes will be competitively tendered in the next 10 years, and
there is potential that 25 per cent of DSB will be privatised in
the near future. Our experience means we are well placed to benefit
from the increased levels of rail tendering expected in this
market.
Germany
Population: 82.3 million
Germany is the largest European transport market, and we are developing a network of bus and rail operations across the country.
Bus
The highly regulated bus market is almost three times as big as
that of the UK. It is hugely fragmented and dominated by public
sector companies, including state-owned Deutsche Bahn (DB).
Conditiions differ widely between the regions, and a substantial
proportion of the market is still closed, with the exception of the
federal state of Hesse which has decided on a programme to tender
all bus services between now and 2010.
Rail
The rail market is also dominated by DB, however 20 per cent of the
regional rail network has now been competitively tendered by
regional authorities, with around half of the routes awarded going
to the private sector.
Future
Economic pressures are increasingly driving the need for market
testing in Germany. With high state capital subsidies due to end,
private companies are becoming an increasingly attractive option
for the regional authorities. In rail, it is expected that more
short-distance passenger routes will be put up for tender. There is
much exciting potential for future growth, in both bus and rail, in
this emerging market.
Hungary
Population: 10.1 million
Bus
The national government is responsible for regional public
transport provision, whilst municipalities are responsible for
local public transport, and may provide this through
municipally-owned operators. New contracts may only be awarded to
an operator selected by a tendering procedure, however contracts
signed before 2004 can remain in force for eight years, so there is
currently little tendering. Regional services are primarily
operated by the state-owned Volan companies.
Rail
The Hungarian rail market has not yet opened to liberalisation and
remains dominated by state-owned service providers. The rail market
is not expected to open to competitive tendering in the near
future.
Future
There is potential for city transport companies to introduce
tenders to operate bus services. The Volan companies have committed
to sub-contracting some of their services.
Italy
Population: 59.1 million
Bus
The public transport system in Italy is highly subsidised with low
fares. With competitive tendering yet to emerge fully, the
situation in Italy remains diverse. The market is highly fragmented
with a large number of local operators, owned principally by
regions and municipalities.
Rail
The responsibility for regional rail networks is devolved to local
authorities, however early attempts at competitive tendering have
failed. The state-owned passenger rail operator, Trenitalia, has an
83 per cent market share, with 26 region-owned operators sharing
the remaining 17 per cent. If, and when, competitive tendering
commences in the rail market, we will monitor any regional
developments with interest.
Future
Successive changes in government have delayed the liberalisation
process. Nevertheless, we are constructively working with municipal
companies, and local and regional authorities to find innovative
transport solutions. We continue to believe that further opening of
the market remains in the interests of the authorities, potentially
bringing medium-term opportunities for Arriva.
Netherlands
Population: 16.4 million
Bus
The 19 regional authorities in the Netherlands have had
responsibility for public transport since January 2001 when the
Passenger Transport Act 2000 came into force. The regional
authorities are obliged to organise public transport into
concessions, which are periodically put out to open tender. Three
big cities in the Netherlands, Amsterdam, Rotterdam and the Hague,
are yet to put concessions out to tender.
The market is still dominated by formerly state-owned Connexxion. Arriva is one of the three largest private bus operators in the Netherlands, with approximately 20 per cent of the regional bus market.
Rail
Very little of the rail network has been competitively tendered to
date, but as regional rail responsibility transfers to regional
authorities, this is due to increase. The rail market is dominated
by state-owned NS Rail, and Arriva is the largest private
operator.
Future
We will continue to build on our established position as one of the
leading private bus and rail operators in the Netherlands. Having
developed a strong reputation for operational reliability and
passenger growth, we are well placed to benefit from further
liberalisation in this market.
Poland
Population: 38.2 million
Bus
There are increasing instances of bus tendering and sub-contracting
in the larger towns and cities. The bus market is divided between
167 publicly-owned companies (PKS), providing rural, inter-urban
and long-distance transport, and around 140 municipal bus operators
operating in towns and cities.
Rail
PKP SA, the state-owned railway company, dominates the rail
passenger market. After entering the market in December 2007, with
the start of a three-year rail franchise in the north west of the
country, the Arriva-PCC joint venture is the only other company
currently operating tendered passenger rail services in Poland.
Future
There may be opportunities to grow in bus following the
government’s announcement of its intention to privatise up to
11 PKS companies during 2009.
Regional rail provision has been devolved to the regions,
potentially creating further opportunities in this
market.
Portugal
Population: 10.6 million
Bus
The bus market in Portugal is a regulated market in transition,
with no competitive tendering. Municipalities are responsible for
allocating routes or transport service networks by awarding
exclusive concessions to independent operators, or by delivering
the services directly. The national government is responsible for
setting fares.
Rail
Urban and regional rail services are operated under concessions
allocated by the state, dominated by state-owned Camboios de
Portugal. The first and only private company to hold a rail
concession is Fertagus, owned by Barraqueiro. Through Barraqueiro,
we also have an interest in the Metro Sul do Tejo tram operation in
Lisbon.
Future
Work is underway to alter the legislation in force for bus public
transport provision at a regional and national level. Metropolitan
transport authorities are in the process of being established for
the cities of Lisbon and Oporto.
There are no early signs of a move to competitive tendering in the
rail market, but when changes do occur, we are well placed to
benefit through the established good reputation of Fertagus.
Slovakia
Population: 5.4 million
Bus
Competitive tendering of contracts is not yet common practice in
Slovakia. City authorities are responsible for public transport
provision and funding. In some cities, services are operated by
city-owned companies, in other areas services are typically
provided by the local operators, SADs, through public-interest
contracts, with exclusive rights of up to nine years.
Arriva’s Eurobus business has a 60 per cent interest in two
of these, SAD Novézámky and SAD Michalovce.
Rail
Rail is operated by Slovak Railways, the state monopoly incumbent
rail company. No rail privatisation has taken place.
Future
Privatisation is underway in the bus market, and will remain a
theme in coming years. In rail, regional procurement is due to be
devolved to regional authorities in the coming years.
Spain
Population: 44.5 million
Bus
The urban bus market is operated by private and city-owned
companies, whilst the inter-urban and long-distance concessions are
operated by private companies. Long concessions have typically been
granted, with exclusive rights.
Traditionally the bus market in Spain is diverse, with many
operators. A number of larger bus groups are emerging, however the
market remains fragmented with 4,000 plus small operators,
including a large number of family businesses.
Rail
The rail passenger market is yet to liberalise, and is dominated by
state railway companies, with funding provided for loss-making
regional and urban services. There are no immediate plans to
implement competitive tendering.
Future
Many bus concessions with exclusive rights over long periods will
expire over the next five years, bringing opportunities for bidding
for these concessions. We have focused on building a strong
presence in the greater Madrid area, and we are well placed to
benefit from any market developments.
Sweden
Population: 9.1 million
Bus
Competitive tendering is well established in the Swedish bus
market, after deregulation commenced in the 1980s. Bus contracts
are typically six years in length, gross cost, with quality
incentives and bonus / penalty regimes.
Rail
The rail market is dominated by the state-owned operator, Swedish
Railways. Regional rail contracts are typically gross cost
contracts of between three and five years. Inter-regional services
tend to be net cost, with some awards of between 10 and 15
years.
Future
Transport markets in Sweden have benefited from a significant
passenger increase over recent years, and present a growth
opportunity for both our bus and rail businesses. We will be
working hard to ensure our operations make the most of this
passenger growth and will be looking to expand our bus operations
and build upon our rail presence in Sweden.
UK
Population: 60.5 million
Bus
The UK bus market has two different operating environments:
UK Regions: Outside London, the UK bus market is deregulated, having been privatised in the mid 1980s. Bus companies operate on a commercial basis, providing services where our relationship is direct with the customer, and we take full revenue risk. Where there is deemed to be a social need for services, local authorities may contract out services to operators on routes that would not otherwise be commercially viable.
London: In London the bus market is regulated, and is contracted out by the city’s transport authority, Transport for London (TfL). Contracts specify the required routes, vehicles and timetables and are closely monitored to ensure high quality services, with TfL bearing the revenue risk under gross cost contracts.
Rail
The UK rail market is competitively tendered, with companies
bidding for franchises of set timescales and service provision. UK
rail franchises are generally much larger than their equivalents in
mainland Europe.
Future
In both the UK regions and London, we aim to maintain our bus
market share, whilst working to improve operational performance. In
rail, we will be concentrating on maintaining and improving the
excellent operational performance of our two franchises.
History
and growth 
Find out about our history and growth in our Flash timeline
Senior
management
Find out more about our senior management
