It’s unanimous. Even the local operators who gained routes through the school bus consortium’s tender process are not happy with the outcome.
“It was a silly process,” said Doug Sargent, president of Brenmar Transit in Harriston, which increased its routes from 28 to 48.
“[The consortium is] not going to have as good of service in the future as they had in the past.”
In late December, Wellington-Dufferin Student Transportation Services (WDSTS), which is in charge of school buses for the two counties, went to tender on 342 routes – the remaining 75% – for the 2010-11 school year.
Last spring, when the consortium – one of three in the province selected to participate in a pilot project – put 25% or 105 of its routes to tender for the 2009-10 school year, Brenmar Transit lost all eight of its pilot routes.
Yet despite Brenmar’s net gain of 20 routes this time around, Sargent finds it hard to enjoy the accomplishment.
“A lot of people have offered congratulations, but it doesn’t feel like that sort of atmosphere,” Sargent said solemnly.
“We want to stay in business, but we don’t want to do it at the expense of our friends.”
Sargent explained Brenmar Transit will take over some of the routes currently held by Epoch’s Garage in Kenilworth, Cook Bus Lines in Mount Forest, Cherrey Bus Lines in?Drayton and Dave and Anna Langdon, of Alma.
It appears Sargent’s November prediction will be realized, as up to four of the local providers – Cook’s, Epoch’s, Doug Akitt of Belwood and Dave and Anna Langdon – could be out of business as a result of the consortium’s tender process.
Doug Akitt (two routes) and the Langdons (three routes) did not participate in the second round of tenders, while Cook’s lost 15 routes and Epoch’s lost eight routes. Both Cook’s and Epoch’s are left with just one route each within the consortium.
“It’s such a tragic loss to have these local companies forced out of the business,” Sargent said. “No one cares more than them about what happens in their communities.”
Sargent calls the situation “a blow to the industry” and something which former Education?Minister Kathleen Wynne specifically promised would not happen.
“We’re out of business, basically,” Rod Cook, owner of Cook Bus Lines, told the Advertiser.
He said his company will try to maintain its remaining route, though that could be difficult considering most business costs will remain the same, while company revenue will be diminished 16-fold.
Cook added it may even be difficult to maintain the driver base necessary to satisfy the company’s charter demands. However, at the end of the day, charter work “doesn’t pay the bills” anyhow, he said.
Joyce Marshall, part owner and operations manager of Denny Bus Lines Ltd. near Ospringe, said Denny’s came out of the tender process with a net gain of 22 routes, for a total of 56 routes within the consortium.
“We drastically lowered our prices,” Marshall said, adding she’s unsure if the company would be able to offer a similar price when the contract expires. The current contract is for five years, ending in June 2015, with a chance for three one-year renewals thereafter.
And despite Denny’s apparent success in this round of tenders, Marshall also expressed frustration with the entire process.
“I don’t believe this is the right way to do business,” she said. “I know what I felt like last year [when Denny’s lost all 10 of its pilot routes]. My heart goes out to those companies that lost routes this year.”
Akitt, whose two routes were won by First Student, did express frustration with the process. However, he said he is in a bit of a different situation, as he likely would have retired within five years anyhow so he decided not to participate in the tender process.
While Cook is glad some local operators managed to maintain or even gain routes, he said it may come at a cost.
“I’m a little concerned the drivers won’t get what they deserve,” he said, explaining lower tender prices mean drivers likely won’t be getting any raises.
Cook echoed the concerns of every local operator surveyed by the Advertiser when he concluded, “I’m very suspect of how fair [the tender process] is.”
Greg Seguin, general manager of WDSTS, said he understands the concerns of local operators, but the consortium still feels the tender process was a success.
“But it is with mixed feelings,” he said, alluding to the loss of some companies. “We always held our small operators in high regard – and we still do.”
Seguin noted the consortium is always open in the future to working with any of the companies who lost routes, but stressed Cook’s and Epoch’s still have one route each, so “from our perspective they’re still in business.”
Unlike the first round of tenders, this time around huge multi-national companies were not the biggest winners.
Student Transportation of Canada Inc., a subsidiary of a U.S.-based company which operates locally under the name Elliott Coach Lines, last year had a net gain of 37 routes, but this time around lost 98. And Stock Transportation, another multinational firm, last time had a net gain of 25 routes, but this time around lost 15.
“It is the smaller companies that excelled this time around,” Seguin said, adding he knows that’s likely little consolation to those that suffered big losses.
“They aren’t happy, we know that … It was a difficult process for everyone.”
In total, Seguin estimates both rounds of tenders will result in about $1.25-million in savings, though the figure could vary depending on fuel prices over the next five years.
He said it will be up to the local school boards to direct the savings as they see fit, though the consortium would like to see the funds directed back to students transportation, which has been “underfunded” for several years.
Calls to Epoch’s Garage were not returned by press time, and Allan Cherrey of Cherrey Bus Lines – which lost its two routes within the consortium – did not want to comment.
