TRAIN and bus company Arriva has reported good progress in markets across Europe in a year in which the Sunderland company was taken over by German firm Deutsche Bahn.
Deutsche Bahn took over the company last August in a £1.6bn deal, turning the stock market-listed company into the passenger transport division for the German giant. This meant it took on responsibility for services such as Chiltern Railways, and the operation of the Tyne and Wear Metro on behalf of Nexus. However, Arriva had to sell off transport operations in Germany worth £400m in turnover per year under EC competition rules.
A month after Deutsche Bahn reported a 17.3% rise in turnover to £30.5bn, Arriva said its revenue excluding Germany was £2.7bn for 2010, with a 2.2% rise in its order book to £13.3bn.
Arriva chief executive David Martin said 2010 was a significant year of change for the company.
He added: “Our strategy remains unaltered. Arriva will continue as an agent of change in the market, maintaining its flexibility to adapt rapidly to opportunities and grow profitably, with the additional financial strength that comes with being part of the combined group.”
Arriva has reported contract wins in Malta, Denmark and the Netherlands during the year, while retaining contracts in Denmark, Poland, Slovakia and Italy. Arriva head of communications Francis King said the company would be taking over operations in Malta on July 3, and had already received its order of buses from China.
He said: “We’re completely modernising a system that’s been running on 1950s buses and putting in state-of-the- art vehicles and GPS. It’s a complete revolution.”
The company also said it had maintained its passenger revenue growth from Arriva UK trains, and its order book of Transport for London contracts had risen by 15% to £1.1bn.
King said: “Over the last year we’ve won back the vast majority of our contracts that were up for renewal, as well as a significant number of additional ones. We’re one of the two biggest operators in London by market share.”
Last month, chief executive David Martin said the company would be in the hunt for five British transport franchises as well as overseas groups over the next 18 months, with a reported £2bn war chest for acquisitions. In its latest update, it has said its strong local knowledge and deep pockets put it in a good position to capitalise as the transport market across Europe continues to liberalise.
King said: “We’re looking to help transport authorities in government to deliver their transport service effectively and efficiently at a time when they are under increased financial pressure.”
