The operator of Red Bus in Bateau Bay is taking steps to future-proof its business by consulting with Council over the potential to re-zone some of the land it is currently using as a bus depot.
Red Bus has revealed that it is the first outer-metropolitan operator in NSW to not be offered a contract renewal via negotiation with the NSW government.
Instead, NSW government has signaled its intention to put the Red Bus contract area out to tender, allowing for other companies to tender for it, and the neighbouring contract region, as one.
Red Bus said that this raises the likelihood of all bus services on the Central Coast being contracted to a large foreign-owned multinational as has happened across Sydney and Newcastle.
The company issued notice of its intention to the community in a letter that stated: “Given the uncertainty in the State government funding regimes, the company is looking to the future.”
The planning application would look to rezone the land to R2 low density residential, equivalent to the sites north and south of the land.
In order for the bus depot to remain operational for as long as possible, it is proposed to include a “transport depot” with an Additional Permitted Use.
Community consultation for this stage in the process – a Social Impact Assessment – has now closed, however, Red Bus stresses that this is only the first step in a detailed process.
Red Bus Managing Director John Shore said it is the intention of Red Bus Services to continue operating bus services on the Central Coast and serving the community just as it has done for the past 80 years as a proud, family-run business.
“It is no secret that Red Bus is yet to lock in a new contract with Transport for NSW to keep operating past 2024 but that remains our main aim so that the Red Bus name will continue to be the trusted provider for this region.
“While we do not intend to develop our depot site for a different purpose while we remain the operator, given the lack of certainty that currently exists we must be prudent and look towards the future.
“If a new multinational operator is chosen to replace us as operator they would be responsible for operating a bus fleet and sourcing a new depot,” he said. Despite customer satisfaction of 98%, on-time running statistics of 98%, and being a leader in the adoption of bus technology, the company, based at 682 Coleridge Road, Bateau Bay, is regularly requested to submit tenders to Transport for NSW to operate local bus services.
Red Bus has been operating in the region since 1923 and employs more than 160 local staff.
It holds the current seven-year contract will be forced to compete with multinational companies in an open tender process for the upcoming 2023 contract.
Recent open tender processes, following the privatisation of Sydney and Newcastle bus services, have been awarded to multinational businesses, often resulting in complaints about loss of services.
The tender process is expected to open in the next three months.
Nicola Riches
Red Bus has been an amazing Company, serving a large section of the Central Coast, over so many years. I have always found their buses to be very clean and on time. They are a very caring Company, and deserve to have their Contract extended. There will always be problems with large Bus Companies.