WMCA eyes up fleet purchase ahead of bus shake-up

Local authority proposals to buy up hundreds of buses from coach firm National Express could be given the green light next week.

The West Midlands Combined Authority plans to franchise bus services in the region in 2027, a move which it describes as the “most significant shake up of services for 40 years”, replacing the existing private-sector led model and forcing private companies to compete for routes.

A potential deal to bring the West Midlands fleet into public ownership will be discussed at a WMCA board meeting next week, which could see ownership of vehicles and leases transferred to WMCA for both diesel and electric vehicles in the National Express fleet.

The authority says that owning its own buses will create “significant benefits for passengers and citizens” and improve access to jobs in the region, while maximising competition for services by opening up routes to greater numbers of potential operators.

Under the deal, the buses would be leased back to service operators, who would also be responsible for maintaining the fleet.

The commercial details of any potential purchase arrangement have been kept secret on the grounds of commercial sensitivity, but papers due to go before the WMCA’s board next week say over 1,000 buses could be brought under the authority’s ownership ahead of the first roll-out of franchised bus services in 2027.

Previously, the authority has placed one-off costs for setting up the new franchised operation and designing the new network at £22.5m over three years.

A report due to go before councillors also sets out plans to modernise the fleet, which is proposed to be all electric by 2036, with replacements taking place at around 90 vehicles per year.

“With well over one thousand buses in the main franchise contracts accounting for over 35% of the cost of these running services, the approach to providing fleet will intrinsically shape the outcomes and benefits of franchising,” said the report.

“The strategic direction and decisions presented in this paper align with the objectives of franchising to deliver improved affordability, passenger outcomes and wider economic impacts for the region.

“Assuming the acquisition of existing fleet can be done at a cost which represents value for money, this approach is optimal as it maximises competition and avoids very high levels of investment at the start of franchising which may be unaffordable. To maintain a strong negotiating position other options will not be completely ruled out at this stage and may be reconsidered if existing assets cannot be acquired at reasonable value for money.”

The proposals will be discussed at a meeting of WMCA’s Board on Friday, 16 January.