revitalising the transportation market in north america

REVITALISING
THE TRANSPORTATION
MARKET IN
NORTH AMERICA
January 2015
Contents
2
3
3
3
4
4
6
7
At a glance
Stagecoach Group in North America
Safer, greener and smarter travel
Motorcoach travel in North America
Refocusing the business
Revitalising inter-city bus travel
megabus.com: making connections across North America
Businesses factfiles
1 Stagecoach Group
At a glance
Our business in North America
$
Turnover
Employees
Buses and
coaches
Annual
mileage
United States
$601m
4,370
2,140
125.4m
Canada
$85m
500
290
20.6m
Total
$686m
4,870
2,430
146m
Refocusing the business
Revenue
by sector
2005-2006
Revenue
by sector
2013-2014
Charter/tour/casino 42%
Scheduled services/transit 39%
Contracts 12%
School bus 7%
megabus.com <1%
Scheduled services/transit 35%
megabus.com 26%
Charter/tour/casino 24%
Contracts 14%
School bus 1%
Motorcoach market in United States and Canada
United States
Canada
Total
Carriers
Vehicles
Employees
Passenger
journeys
Passenger
miles
3,623
35,354
–
–
–
331
4,253
–
–
–
3,954
39,607
132,900
637.4m
75.7b
2
Overview
Stagecoach Group in North America
Stagecoach Group is one of the world’s largest bus, coach,
tram and rail groups, with major operations in the United
Kingdom, mainland Europe and North America.
We have had a major presence in North America for around
15 years, providing critical local and inter-city transport
services for communities throughout the US and Canada.
Our business owns more than 25 bus carriers in North
America that operate scheduled bus routes, motorcoach
tours, charters, and/or city sightseeing tours.
These local carriers are each independently managed and
have a deep knowledge of their communities and customers
built up over many decades, with some having been
operating for more than 75 years.
Our three key brands – Coach USA, Coach Canada and
megabus.com – collectively operate across more than
40 states in the US and two provinces in Canada.
We are one of the largest transportation operators in
North America, operating more than 2,400 buses and
coaches and employing close to 5,000 people.
megabus.com – our express bus service – provides safe,
affordable and environmentally friendly intercity travel,
connecting around 130 cities across North America.
Safer, greener and smarter travel
Safety is our absolute No.1 priority. We have invested
millions of dollars in new state-of-the-art motorcoaches,
which include seat belts for all passengers, automatic traction
control, electronic stability control, lane-changing warning
devices for buses, and GPS systems. Our team of experts can
monitor safety critical features from our 24/7 control facility.
Each of our operating companies holds the U.S. Department
of Transportation’s highest safety rating and each has
stringent driver training and preventative maintenance
programmes to ensure full operational and legal compliance.
Our employees are subject to random drug and alcohol
testing consistent with federal requirements as well as
periodic safety refresher classes. We have stricter driver
hours of service rules than those required by federal
regulation and have also invested in a hi-tech driver
safety alert system known as Nap Zapper.
3 Stagecoach Group
Training is at the heart of our approach. Our driving team is
one of the best trained in the industry. We have a dedicated
centralised driver training school in Elizabeth, New Jersey, and
new drivers undergo a minimum of 150 hours of classroom
and behind-the-wheel training before they start in service.
Even those with an existing commercial driver’s license are
required to complete more than 90 hours of theory and
practical training.
All drivers passing through the training school undergo the
same training regardless of the vehicle they will ultimately
drive and we use state-of-the-art in-vehicle technology
across our fleet. Even after drivers have qualified, we have
dedicated retraining programmes to ensure our high
standards are maintained.
Across our operations, we are promoting the environmental
advantages of public transportation and aiming to make
our business more sustainable. We have reduced the carbon
intensity of our business (CO2 compared with turnover) by
37% in the United States and by 26% in Canada over the past
four years.
This has been achieved through programmes focused on
improving energy efficiency at our facilities; reducing carbon
emissions from our fleet and helping our customers achieve
greener transportation services. Our megabus.com inter-city
bus service has been recognised as the greenest operator in
the bus industry by the United Motorcoach Association.
Motorcoach travel in North America
The motorcoach market in North America is highly fragmented.
There are more than 3,600 motorcoach carriers in the United
States operating 35,000 vehicles. In Canada, more than 300
carriers run more than 4,000 motorcoaches.
The industry in North America employs around 133,000
people and is a significant sector of the economy in its own
right. In addition, the motorcoach industry supports supply
chain jobs, helps connect people with work, education,
healthcare and leisure, as well as bringing vital tourism
income to regions across North America.
Passengers made 637 million trips by motorcoach in 2012,
an increase of more than 10 million journeys on the previous
year. Motorcoaches are used by a mix of people, with
students and senior citizens each accounting for around
25% of customers.
Refocusing the business
Revitalising inter-city bus travel
Stagecoach Group’s initial significant entry into the public
transport market in North America was with the £1.2 billion
acquisition of Coach USA in 1999. The business was involved
in multiple market sectors, with a significant proportion
of the operations involving leisure-based tour and charter
services, as well as a major taxi business, contract operations
and school bus services. The business also had a wide
geographic base, with diverse operations across most
states across the United States.
Inter-city bus use in North America has been transformed
in recent years. Decades of decline have been replaced by
consistent annual growth. The catalyst for this transformation
in public transportation has been Stagecoach Group’s
megabus.com travel brand. It has literally changed the
way people travel – from booking to departure to on
board to arrival.
The North America business was restructured in 2003 with
a number of divestments which reduced the size of the
business and its market segments. This allowed the business
to focus more closely on the Group’s key strengths in running
point to point commuter and inter-city services, with a core
presence in the North-East and Mid-West of the United
States. Millions of customers use our commuter coach
services, which include those operating from New York State
and the State of New Jersey to and from New York City.
Many routes serve park and ride locations.
In 2006, we brought our inter-city express brand megabus.com
to North America. The acquisition of a number of former
Coach America operations in 2012 provided a base to further
grow the brand and expand to the West Coast and southern
regions of the United States. At the same time, we continue
to undertake contract work on behalf of public/private sector
clients, including city and state transit authorities, and shuttles
for company employees and college/university students.
Trends in inter-city bus use
Percentage change in annual passenger volumes
9.8%
10%
7.1%
6.9%
5.1%
6.0%
5%
0%
1960 1980
-1.4%
1980 2002
2002 2006
2006
-2007
2008
2009
2010
2011
-1.8%
-5%
-8.0%
-10%
Source: De Paul University’s Chaddick Institute for
Metropolitan Development, 2012.
4
We launched the brand in North America in 2006 after
huge success in the UK in establishing a new market for
budget, high quality inter-city coach travel. Booking is via
an easy-to-use website, with flexible yield managed fares
from just $1. Prices vary according to time of booking and
travel and our product uses higher capacity vehicles than
traditional coaches to keep costs per passenger and fares low.
Detailed research by De Paul University’s Chaddick Institute
for Metropolitan Development in Chicago has identified the
“megabus effect”, highlighting how the brand has kickstarted a new era and growing market for bus travel. It has
grown the overall market for inter-city bus travel, resulting
in lower travel costs for consumers, the emergence of new
low-cost bus operators, hundreds of new jobs, as well as
boosting tourism and the wider economy.
City to city bus transportation is the fastest-growing and
most affordable transportation mode, with the number
of operations nearly doubling between 2010 and 2013.
Consumers have benefitted from this innovation, with lower
prices and more customer-focused services. An independent
De Paul University study in 2014 found that city to city bus
services cumulatively saves American consumers $1.1 billion
a year compared to travelling by other modes, including rail
and airlines. The research also found that, in all regions of
the United States, motorcoach travel is substantially less
expensive than single-occupant driving, even for motorists
who consider only the cost of fuel and tolls and ignore
depreciation on the value of their car.
There has also been a significant growth in daily low-cost
inter-city bus services in recent years, nearly doubling from
around 590 a day in 2010 to more than 1,000 in 2013.
Average fare by transport mode*
$160
$145.23
$140
$120
$100
$80
$64.19
$49.44
$60
$40
$30.53
$20
$0
Intercity Bus
Driving
Intercity Train
Airline
*Based on analysis of 54 city to city routes which included representation
from each of the 50 largest metropolitan areas on the US mainland.
Source: De Paul University’s Chaddick Institute for
Metropolitan Development, 2014.
Total daily discount city-to-city bus operations
1200
975
1000
748
800
600
1,014
589
400
200
0
2010
2011
2012
Source: De Paul University’s Chaddick Institute for
Metropolitan Development, 2014.
5 Stagecoach Group
2013
Madison
M1A
M4A
VG
4
M9
L4
L4
M51
5
M3
M38
94
M25
23
M
M96
M3
1
M
N
CA
M7
M3
1
M98
4
M4
M2
1
M3
1
M3
2
M31-M37
M21-M31-M32-M44
94
1
M
M37
M72
L4
M7
2
M9
6
AUSTIN
M9
M3
M3
M74
L4-M38-M93-M94-M95-M96-M97
BALTIMORE
Hampton
M31
M94
M77
BATON ROUGE
WASHINGTON D.C.
Mobile
M21-M31-M32-M36-M37-M38-M44
Jackson
Durham M31-M97
M7
L4
M74-M94
Gainesville
Fayetteville M97
M38
6
M9
5
M97
94
ORLANDO
FL
6
M9
M98
Athens M97
ATLANTA L4-M38-M93-M94-M95-M96-M97
M
Birmingham M93
M76
Columbia M97
M97
M9
L4
M7
M93
Oxford
M93
M7
M94
Montgomery
M96
M71
M96
M76
NEW ORLEANS
9
M98
DALLAS
M97
M74
M96
M71-M74-M77
95
M
SAN ANTONIO
M
M72-M73
HOUSTON
M73
Chattanooga
M74
CHARLOTTE
M
94
M72
Jackson M98
M98
M84-M94
Mobile
2
M7
M74
M77
M71
AUSTIN
Baton Rouge
M94
M84
84
M84
M74
M7
M71-M74-M77
M74-M84-M94
M84-M96
Gainesville
6
84
M
M84-M8-M86-M96
85
M
M85
Tampa
M86
FL
5
M8
megabus.com has also been recognized for its environmental
performance since 2009 through the University of Vermont’s
Green Coach Certification program (GCC). Participating
companies are provided “Green Coach Certified” ecolabels
which can be placed on qualifying vehicles to highlight their
environmental benefits.
M86
College students and other young professionals (aged 18-34)
are the largest customer segment. Families, seniors and
business travellers are also fast-growing segments, sharing
a quest for high-value travel.
M9
M73
M72-M73
industry peers after an extensive review of operations,
including megabus.com’s commitment to environmentally
friendly ways to drive, the use of anti-idling techniques when
ORLANDO
the bus
is not in use, the safest and greenest ways to recycle
oil and other engine fluids and overall business practices that
promote environmental protection and awareness.
Jacksonville M96
M
M74
M74
2
Tallahassee
M84
M96
Los Angeles, New York, Orlando, Philadelphia, Pittsburgh,
NEW ORLEANS
San Francisco,HOUSTON
Texas Triangle (Dallas/Fort
Worth, Houston
SAN ANTONIO
and San Antonio), Toronto and Washington, D.C.
M72-M77
M96
M9-L4
M37
L4-M38
M74
M37-M95
9
M
MEMPHIS
Little Rock
M76
M7-M71-M72-M76
Knoxville
2
M7
M97
TN
NC
AL
SC
GA
MS
megabus.com now serves more than 130 destinations
We are also supporting a cleaner environment. In 2014,
across North
America,
carrying
over
10
million
customers
we received the American Bus Association’s (ABA) Green
TX
LA
a year. It has major hubs in Atlanta, Cleveland, Chicago,
Operator Award. megabus.com was selected by motorcoach
M7-M76-M93-M98
M7-M76
M72-M77
Co
GA S
ATLANTA
M23-M29-M31-M32-M44
Atlantic
City M25
M94 Montgomery
M97
Athens M97
Jackson M98
Richmond
L3
M7
M
7
M5
M44
M7
M1
A
5
M
M7
M24
L3
M36
M4
M5
7
Birmingham M93
PHILADELPHIA
5
M9
M97
M93
6
M
Secaucus Junction M32
M21
DE
7
M38
NEW YORK 100-M3-M20-M21-M22-M23-M24-M25
M26-M27-M28-M35-M35A-M54-SL17
M9
Christiansburg
95
M
L4
M21
L4
NASHVILLE
M31
M21
M9-L4 Chattanooga
New
Haven M51
Ridgewood M27
M93
9
M38
2
M3
2
M3
Knoxville L4-M38
Fairhaven M20
M
WV
4
M4
8
M3
TX VA
LA
L4
4
RI
M20
Providence M20
2
M2
9
MD
M36
M32
51
M
M
Morgantown
M76
M4
M29
M98
KY
M9-M92
Harrisburg
M31 Newark
53
M32-M22
New Brunswick
Princeton 100
M98 Oxford
M31
Lexington
M28
M28
CON-M51-M53-M22-M32
TN
AL
NJ
MS
CT
Hartford
M38
BOSTON
CON
Louisville
M3
KY
M51
M20
4
M7
M71
OK
DALLAS
7
M
AR
M9-M92
CINCINNATI
M7-M71-M72-M76
6
M7L3-L4-M6A
M71
MO
M36
M29
M35
ST. LOUIS M5-M7
IN
M4
M76
M29
M28-M29-M36
L4
M5
Memphis
M7-M76-M93-M98
State College
Little Rock
M28
PITTSBURGH
Columbus L3-M6B
A
M9
KS
Columbia M5
17
M3-M28-M30
M7-M76
M6
M6A-M6B-M9
SL
W
Lexington L4
M
M9-M92 Nashville
Amherst
M35-M35A-M51
M31
INDIANAPOLIS
PA
Binghamton
CLEVELAND M3
M3
35
M6B
KANSAS CITY M5
M5
OH
M
AR
L3
Toledo M3
MA
M35
SL17
Erie L3
NH
Morga
Portland CON
M
M6B
M24-CAN
L3
DETROIT M1
Albany M27
M54
6A
9M
Buffalo
M27
M1-M1A-M3-M4-M4A
M5-M6A-M6B-M7-M7A
M8-M9-VG
CHICAGO
Rochester M24
Syracuse M24
Buffalo Airport
CAN
4
IL
CAN-L3-M24-M44
M3
M3
TORONTO CAN-M24-M44
Saragota
Springs
M2
Des Moines M8
OMAHA M8
Niagara
Cincinnati L3-L4-M6A
Burlington M35-M53-M54
M9-M92 Louisville
4
M8
CAN
M54
M28-M2
M36
ME
NY
CAN
Scarborough
OK
M3
M8
MO
ST. LOUIS
KINGSTON
PITTSBU
Columbus L3-M6B
A
MONTREAL CAN
M2
Iowa City M8
CAN Kirkland
M5
Brockville
OH
M6
M6A-M6B-M9
M53
CAN
CAN
M5 -M7A
CAN
Ann Arbor
M1
Whitby
4
4
Columbia M5
M4
M1
M
M6B
M54
Madison
VG
M8
CAN
Milwaukee M4A Grand Rapids M1
East Lansing M1
M4A
NE
IA
4A
M4-VG
M5
MI
M
WI
6B
AM
M6
IN
VT
M5
7
M
MN
St. Paul M4-M4A
M9
INDIANAPOLIS
KS
M4
M46
M8
EASTERN TIME (0)
M4A
CLEVELAND
M3
M3
M9
MINNEAPOLIS
M3-M46
M3-M46
Des Moines M8
OMAHA
DETROIT
M3
5
M8
KANSAS CITY
M4-M4A
M1
Toledo
megabus.com: making connections
IL
across North America
CANADA
CENTRAL TIME (-1)
Ann Arbor
M1-M1A-M46
CHICAGO
M8
Iowa City M8
M8
M1-M46
M1-M1A-M3-M4-M4A
M5-M6A-M6B-M7-M7A
M8-M9-VG
M
M
NE
IA
Grand Rapids M1A
East Lansing M1A
Milwaukee M4A
M1
A
M4-VG
MI
A
WI
M8
5
M85-M86
In addition to affordable fares, megabus.com offers
customers state-of-the-art, green-certified and wheelchairaccessible double-decker buses. On board facilities include
free Wi-Fi, power outlets, and restrooms.
A focus on marketing the product through social media
and a college campus ambassador programme has helped
the brand grow rapidly. By 2013, the brand’s social media
outlets, including Facebook and Twitter, had more than
300,000 fans/followers as the geographic footprint of the
service has continued to grow from East to West Coast.
Miami
Safety is at the heart of the megabus.com operation. We
have equipped every bus purchased since 2006 with threepoint lap/shoulder seat belts for our customers. megabus.com
maintains the highest safety compliance rating with the
Federal Motor Carrier Safety Administration. Transportation
Safety Exchange (TSX), an independent organization that
provides safety ratings of more than 300,000 passenger and
freight carriers, announced in January 2014 that all megabus.com
carriers are TSX-approved. megabus.com is the first carrier
group to achieve TSX approval, demonstrating the most
stringent safety standards in the industry.
6
Businesses factfiles
Company name:
Area of operation:
megabus.com
48 states in US and two
provinces in Canada
Base:
Elizabeth, NJ
Director of operations:
Bryony Chamberlain
Market:
City-to-city express service
(130 cities)
Vehicles
Employees
Annual
mileage
252
750
38m
Company name:
Area of operation:
All West Coaches, Inc.
Base:
Sacramento, CA
Primarily: CA, NV, OR;
Occasionally:
AZ, NM, WA, UT
Market:
General Manager:
Eric Lea
Contract, Charter,
Group Tours
Vehicles
Employees
Annual
mileage
37
80
2m
Company name:
American Coach Lines
of Atlanta
Base:
Norcross, GA
Market:
Area of operation:
Primarily: GA, FL, AL, SC;
Occasionally:
Lower 48 states
General Manager:
John Garrett
Commuter, Charter,
Minibus
7 Stagecoach Group
Vehicles
Employees
Annual
mileage
96
350
3.3m
Company name:
Area of operation:
Butler Motor Transit Inc.
/Coach USA
Primarily: PA;
Occasionally:
Lower 48 states
Base:
Butler, PA
General Manager:
Tim Boden
Market:
Charter, Tours
Vehicles
Employees
Annual
mileage
56
111
2.3m
Company name:
Area of operation:
Central Cab Co.
Base:
Waynesburg, PA
Primarily: PA;
Occasionally:
Lower 48 states
Market:
General Manager:
David Mansberry
Contract, Charter, Tour
Vehicles
Employees
Annual
mileage
140
206
7.2m
Company name:
Chicago Trolley & Double
Decker Co.
Base:
Chicago, IL
Area of operation:
Illinois
General Manager:
Jim Schwartz
Market:
Sightseeing, Charter,
Commuter Contract
Vehicles
Employees
Annual
mileage
65
225
1m
8
Businesses factfiles (continued)
Midway To Indiana
Company name:
Coach Indiana
/ Airport Supersaver
Area of operation:
Illinois and Indiana
Base:
General Manager:
Gary, IN
Mark Anderson
Market:
Airport Shuttle from
Chicago O’Hare,
Vehicles
Employees
Annual
mileage
16
90
2.1m
Company name:
Area of operation:
Community Coach
Base:
Paramus, NJ
Primarily: NJ, NY;
Occasionally:
Lower 48 states
Market:
General Manager:
Commuter lines, Contract
with NJ Transit, Charter
Derrick Kazimierski
Vehicles
Employees
Annual
mileage
130
249
5.8m
Company name:
Area of operation:
Base:
General Manager:
Coach USA Elko, Inc.
Elko, Nevada
NV, UT, ID, CA
Ryan Veater
Market:
Contract, Charter
9 Stagecoach Group
Vehicles
Employees
Annual
mileage
140
206
7.2m
Company name:
Dillon’s Bus Service
Base:
Hanover, MD
Market:
Area of operation:
Maryland and District
of Columbia
General Manager:
Ron Dillon Jr
Commuter, Charter
Vehicles
Employees
Annual
mileage
150
285
6m
Company name:
Hudson Transit Lines
Base:
Chester, NY
Market:
Area of operation:
New York, New Jersey,
Pennsylvania
General Manager:
Nashat Harb
Commuter, Tours
Vehicles
Employees
Annual
mileage
202
228
11.5m
Company name:
Kerrville Bus Company
Area of operation:
Base:
Kerrville, TX
Primarily: TX, OK, AK, LA, TN;
Occasionally:
Lower 48 states
Market:
General Manager:
Scheduled Service,
Charters, Casino,
Convention Shuttles
Rich Funke
Vehicles
Employees
Annual
mileage
95
190
2.6m
10
Businesses factfiles (continued)
Company name:
Area of operation:
Base:
General Manager:
Lakefront Lines
OH, MI, PA, IN, KY
Cleveland, OH
Chris Goebel
Market:
Charter
Vehicles
Employees
Annual
mileage
110
300
10.5m
Company name:
Area of operation:
Lenzner Coach Lines/Coach
USA Pittsburgh
Pennsylvania
General Manager:
Charles Lenzner
Base:
Sewickley, PA
Market:
Commuter, Charter,
Sightseeing, Shuttle, Tours
Vehicles
Employees
Annual
mileage
50
235
3.3m
Liberty International
Airport
Company name:
Olympia Trails/ Newark
Airport Express
Area of operation:
New Jersey, New York
Base:
Elizabeth, NJ
General Manager:
Jim Rutherford
Market:
Airport Shuttle to New
York City from Newark
11 Stagecoach Group
Vehicles
Employees
Annual
mileage
12
45
0.9m
Company name:
Area of operation:
ONE Bus (Orange,
Newark, Elizabeth)
New Jersey
General Manager:
Jim Rutherford
Base:
Elizabeth, NJ
Market:
Commuter lines
Vehicles
Employees
Annual
mileage
58
125
2.1m
Company name:
Pacific Coast Sightseeing
Tours & Charters
Base:
Anaheim, CA
Market:
Sightseeing, Tours,
Airport Service, Charter,
Amtrak Throughway Bus,
Disneyland Resort Express
Area of operation:
Primarily: CA NV;
Occasionally:
Lower 48 states
General Manager:
Kristin Martinez
Vehicles
Employees
Annual
mileage
73
220
4.6m
Company name:
Powder River
Transportation
Base:
Gillette, WY
Market:
Area of operation:
Primarily: MT, WY;
Occasionally:
Lower 48 states
General Manager:
Eric Waters
Contract, Charter
Vehicles
Employees
Annual
mileage
56
103
3.1m
12
Businesses factfiles (continued)
Company name:
Area of operation:
Base:
General Manager:
Rockland Coaches
New York, New Jersey
Westwood, NJ
Dennis Rocco
Market:
Commuter for Northern
NJ to NYC
Vehicles
Employees
Annual
mileage
103
111
4.7m
Company name:
Area of operation:
Suburban Transit
Base:
New Brunswick, NJ
Primarily: NJ, NY;
Occasionally:
Lower 48 states
Market:
General Manager:
Scott Sprengel
NJ Transit Contract,
Commuter Lines to NYC,
Charter Service
Vehicles
Employees
Annual
mileage
150
285
8m
Company name:
Area of operation:
Trentway Wagner/ Coach
Canada
Quebec
General Manager:
John Emberson
Base:
Montreal, Quebec
Market:
Sightseeing
13 Stagecoach Group
Vehicles
Employees
Annual
mileage
27
60
0.8m
Company name:
Area of operation:
Base:
General Manager:
Coach Canada
Quebec, Ontario
Peterborough, Ontario
John Emberson
Market:
Charter, Commuter,
Sightseeing
Vehicles
Employees
Annual
mileage
270
440
16.9m
Company name:
Area of operation:
Van Galder Bus
Base:
Janesville, Wisconsin
Primarily WI;
Occasionally:
Lower 48 states
Market:
President/General Manager:
Charter, Commuter, School
Buses, Airport Services,
Tours
Allen Fugate
Vehicles
Employees
Annual
mileage
102
175
6m
Company name:
Wisconsin Coach Lines
Area of operation:
Base:
Waukesha, Wisconsin
Primarily: WI and IL;
Occasionally:
Lower 48 states
Market:
General Manager:
Commuter, Charter,
Daily Scheduled Service
to O’Hare Airport
Tom Dieckelman
Vehicles
Employees
Annual
mileage
46
100
2.8m
14