The top 30 executives in the UK’s bus and rail businesses

A group of 30 leading senior executives and managers in the UK’s passenger transport businesses form the core people of this year’s New Transit Power List. There are several changes from last year’s Power 50 as new appointments have lifted individuals into positions of greater responsibility and others have moved out.

Four of the most senior UK passenger transport group heads are featured in our overall top 12 people listing on the previous pages- David Martin at Arriva, Sir Brian Souter at Stagecoach, Tim O’Toole at First Group and Dean Finch at National Express. Also in our top team  is David Higgins, the chief executive of Network Rail. The significance of these men is explored in our introductory feature pages.

 The list of heads of major UK operating groups is completed by the two further leaders of their businesses,  David Brown, chief executive of Go-Ahead Group, and Richard Branson, chairman of Virgin Group. These two did not quite make the top dozen, largely because of their companies’ lack of international transport operations and the relatively small scale of their UK operations. However, both could be at the forefront of shaping future transport services.  Under Brown’s leadership, Go Ahead could lead the way in developing new business models which combine public transport operation with delivering a wider range of local authority services, and provide multi-modal local travel solutions. It may  also be among the frontrunners in creating a new retail-led model for the bus industry. Brown has indicated he could make use of Go-Ahead’s commuter rail expertise to enter Continental markets.

Branson has already hinted at significant innovations being developed in Virgin’s bid to retain the West Coast rail franchise, including locating Virgin Money banks at stations. And he has publicly attempted to influence the UK Department for Transport against awarding contracts to apparently attractive bids from European State-owned operators, whose benefits he believes may turn out to be superficial.

BUS Chiefs The most notable appointment in the past twelve months below the group chief executive level among the business leaders of UK transport groups was arguably Giles Fearnley. He joined FirstGroup as managing director UK bus in February from a leading role at the Confederation of Passenger Transport and a pedigree or successful business leadership in the industry. His mission has been  to cement his reputation by transforming FirstGroup’s bus division from a cost-cutting operation to a commercially focused business centred on customer service. Progress to date appears to have concentrated largely on restructuring rather than delivery. A programme to rationalise the scale of First’s business may assist in the drive for quality.

Other significant developments amongst the leading people in the bus industry saw Arriva managing director UK Bus Mike Cooper announce his intention to expand into new territories, assisted by the creation of a new business, Arriva Transport Solutions, which will focus on becoming a market leader in social services transport, as well as seeking to establish much closer partnership working with local authorities.

At Stagecoach, managing director UK bus Les Warneford again presided over the most financially successful business in the industry, delivering record margins despite charging what are claimed to be the lowest fares. National Express’s managing director UK Bus Peter Coates took up his new role in November after 15 years with the group in senior financial roles, and is charged with taking the resurrection of National Express West Midlands to the next stage. Meanwhile, Andrew Cleaves, National Express’s managing director UK coach, has established his position as the head of Europe’s largest scheduled coach operator through using new yield management techniques to grow revenue significantly in the face of static patronage.

The leading figure in Go-Ahead’s bus division continues to be Roger French, managing director of its pioneering and award-winning Brighton and Hove subsidiary, particularly with the departure fo Peter Huntley from GoNorthEast. French will have a key role in implementing the UK’s first multi-modal smartcard outside London later this year.

RAIL CHIEFS

The key challenge facing the leaders of the transport groups’ rail divisions is preparing for the huge rail franchising programme over the next  three to four years when 15 out of 19 contracts come up for renewal, and competition for them is set to intensify. Developing bid teams with proven records and cutting edge knowledge of technology to drive down costs and improve service will be key factors in shaping their success.

Arguably the biggest task is faced by Go-Ahead rail development director Alex Hynes who will attempt to defend Go-Ahead’s position as the largest UK train operator. As Go-Ahead’s portfolio is dominated by the two huge Southern and Southeastern joint venture franchises, and the company has had a policy of only bidding for commuter franchises, this may be a considerable task.

At FirstGroup, new managing director UK rail, Vernon Barker, will have to defend all four of First’s franchises over the next three years.

Arriva’s rail MD  Bob Holland has a different immediate perspective. He has the best chance for market growth in the short term. The first of Arriva’s three major contracts is up for renewal in 2016, and the DB-owned company has also submitted ambitious open access plans to the regulator. A major priority will be reversing Arriva’s recent failure to make shortlists for major franchises.

National Express UK trains director Andrew Chivers faces arguably the toughest task among the leaders of the UK groups’ rail visions. He claims that the DfT holds no lasting prejudice against National Express following the East Coast debacle. However, to some , NEG’s failure to even make the shortlist to retain the Greater Anglia Franchise, may suggest differently. With NEG’s last remaining franchise, c2c, up for renewal in 2013, there has been speculation that he may need to form a partnership with another company to improve NEG’s chances of remaining in the rail business.

Virgin Trains chief executive Tony Collins will also need to retain his sole franchise to keep Virgin in the rail industry against tough international competition.

Stagecoach does not have a divisional rail leader, but there is little doubt that Tim Shoveller, who has moved from managing director of East Midlands Trains to lead the UK’s largest franchise, sister company SWT, is a key influence on Stagecoach’s rail operations and strategy. He is regarded as arguably the most able of the new generation of rail industry executives.

Deutsche Bahn/Arriva aside, the foreign group with the largest presence in the UK is Abellio which owns both bus and rail companies. A reorganisation following the successful bid for the Greater Anglia rail franchise has seen Dominic Booth’s role redesignated as managing director UK, rather than group chief operating officer, and a new UK structure created in recognition of the importance of the market to the Dutch group. 

Meanwhile, former Go North East managing director Paul Matthews has made a return to senior executive level in the transport industry, as  chief executive of RATP Dev UK. The UK subsidiary of the Paris-based RATP was formed as part of the unwinding of its 25% share in Transdev, following Transdev’s merger with Veolia. At the time Matthews headed Transdev’s London United Bus business. He won a vote of confidence from RATP, and now leads its UK portfolio. He immediately capitalised on his expansionist remit, with the acquisition of the Manchester Metrolink operation.

For Veolia Transdev UK chief executive, Nigel Stevens, it has been a year dominated by French politics. He has overseen the transfer of former Transdev businesses to RATP and Veolia’s low quality Welsh bus companies apparently kept outside his remit. It is now unclear how his operations and his future will be affected by Veolia’s decision to put its stake in Veolia Transdev up for sale.

At Keolis UK, it was a year of achievement for chief executive Alistair Gordon. As part of the Tramlink consortium, he won the new contract to operate the Nottingham light rail system and build the Phase 2 extension. Keolis also made the shortlist for the West Coast franchise in a new partnership with its majority shareholder SNCF, rather than regular UK partner Go-Ahead. Keolis has further strenghtened its UK business by the appointment of former BAA chief executive and TfL board member Mike Hodgkinson  as its chairman.

A key achievement in 2011 for Serco managing director UK transport Jeroen Wiemar was the extension and expansion of the Barclays cycle hire scheme contract in London where it joins the group’s responsibility for the Docklands Light Railway. The company’s operations in the UK includes light rail, rail, social services bus and traffic management. It remains to be seen how Wiemar will leverage this unique portfolio.

Rail Infrastructure Chiefs

In the rail infrastructure sector, the two most significant members of Network Rail’s Board below David Higgins are arguably network operations director Robin Gisby and investment projects director Simon Kirby. Both will drive forward major reforms outlined in the McNulty review of the rail industry to deliver efficiencies, improved service and project management. In the case of Gisby, major initiatives include creating a devolved management structure and alliances with operators, while Kirby’s responsibilities include forming new ways of working with contractors to drive down the cost of infrastructure works.

A significant new responsibility within Network Rail is the leadership of its infrastructure consulting business. Nigel Ash has landed this task which will see Network Rail seeking to grow its international activity. Ash brings his skills as previous chief executive  of the MVA Consultancy.

Another key reformer in the rail industry is London Underground managing director Mike Brown, who is developing plans for driverless trains and working with international operators to bring best practice technology and efficiency programmes into LU’s multi-billion pound upgrade programmes. He has on-going battles with the rail unions to handle however.

Meanwhile, Nicola Shaw, chief executive of Channel Tunnel Rail Link concession owner HS1, may play a substantial role in encouraging the start of competition on Europe’s long distance rail routes. She is actively courting new operators to run through the Channel Tunnel to London taking advantage of new EU rules to liberalise markets. She claims interest has extended significantly beyond the plans announced by DB to run into Britain with its ICE trains.