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ABC Operator Showcase results show zero emissions move is taking its time

In the 2023 Operator Showcase, ABC surveyed 43 Australian bus operators about their thoughts on the current landscape of the bus and coach industry.

Recent years have given bus and coach operators plenty to consider about the state of the industry.

As part of the ABC Operator Showcase for 2023, more than 40 operators around the country, spanning metro, outer metro and country regions, shared their thoughts on key issues affecting their businesses and the industry as a whole.

The Operator Showcase process started with a call out for participants in ABC Magazine and via busnews.com.au.

This was followed up in November and December with further advertising, emails directly to operators and phone calls to potential participants alerting them to the Operator Showcase project and offering the chance to be involved.

Those that took part in the survey were presented with a series of questions about their business and its history to feature in the Operator Showcase tables presented in previous pages.

The participating operators were then presented with extra questions about current issues affecting the bus industry and encouraged to share their thoughts in writing.

For 2023, 43 operators completed the survey, allowing ABC Magazine to provide insight into what this cross-section of the industry has to say about current issues. The survey results represent a snapshot of these participants’ views. While the results are certainly informative, they do not represent any attempt to speak to a general Australian industry view in any way.

THE ZERO EMISSIONS MOVE

The survey says around 83 per cent of respondents have no zero emissions vehicles in their bus or coach fleets at the time of the survey.

A further 10 per cent of respondents say they have between one and 10 per cent of their fleet filled with electric or hydrogen buses, and just under five per cent of operators report having between 11 and 20 per cent of their fleet made up of zero emissions vehicles.

Only two per cent of those surveyed say they have 31 to 40 per cent of their fleet running on green energy.

On the question of whether they intended to transition to zero emissions buses and coaches in the near future, 32 per cent of respondents say yes and 22 per cent of operators say no.

The majority of respondents, accounting for 46 per cent, were not certain either way, saying they were “unsure” about whether or not they would add zero emissions vehicles to their fleet or not.

When asked about fuel source preferences for their fleets, 71 per cent of operators in the Showcase say they will stick with diesel vehicles, 22 per cent say they prefer electric power and two per cent express a preference for biofuels.

OVERCOMING GREEN CHALLENGES

Among the 43 operators who took part in the Showcase, a range of attitudes on the zero emissions transition were presented.

The survey says 24 per cent of respondents are challenged by the price attached to buying zero emission vehicles and installing the infrastructure required to operate them.

Another 15 per cent of operators say they lack the space to install the charging infrastructure to successfully operate zero emissions services and 17 per cent say their concerns over the range capacity of these new energy buses is stopping them from making the change.

Other participants say they are waiting until electric mini bus options are available, while regional respondents say they don’t see zero emissions vehicles as a viable option for charter and long distance services at this point in time.

A common theme among the operator responses received is a desire to wait for the range of zero emission vehicles to broaden and after-sales service and support to improve before investing.

Another concern the survey raises is around the ability of the new vehicles to handle the poor road surfaces in parts of our country.

For those who have already considered the zero emissions switch, only a few say they have constructed transition or training plans to accommodate for the fuel change.

Around 80 per cent of respondents have no intention of creating training plans anytime soon, while the other 20 per cent have considered a range of ideas for the uptake of electric and hydrogen buses.

For this 20 per cent of respondents, the main ideas focus on training staff to understand the differences in zero emissions fuel technology when compared to traditional combustion engines, and how they must work differently with the new age vehicles. These operators are also working with technical and service crews to develop zero emissions bus capabilities so they are able to troubleshoot any safety issues.

FUEL ISSUES AND OTHER CHALLENGES

From the survey, we can see that 2022 presented a myriad of challenges for participating operators in the Showcase. When it came to fuel shortages and the resulting price hike, respondents felt the sting.

According to the survey, which closed in December, 56 per cent of Showcase operators say they were anticipating their fuel costs to have increased by 25 per cent from 2021 to the end of 2022, while another 10 per cent expect their costs would have risen by more than 40 per cent.

Around 12 per cent of operators who filled out the survey expected their fuel costs to have increased by more than 50 per cent between 2021 and the end of 2022, highlighting the crippling impact rising fuel costs have had on the industry.

The survey found two per cent of respondents thought their fuel costs would’ve decreased throughout 2022, while 20 per cent expected the two years to be on a par.

When asked to identify the biggest issue facing the industry, participating operators say skilled worker and driver shortages top the list.

Many operators who filled out the survey say they have struggled to recruit and retain staff, especially when it comes to skilled drivers.

An overall increase in costs not just limited to fuel has also hurt many Showcase operators, while some say they continue to feel the after-effects of the COVID pandemic.

Respondents say that new workers, especially drivers, remain the best way to solve the worker shortage issue and instil new blood into the sector for a successful future.

Any operators looking to get involved in the next edition of the ABC Operator Showcase, should keep an eye out for more details on the 2024 Operator Showcase survey throughout this year. 

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