Bus Services Review
UPDDATE
11 SEPTEMBER 2025 - COUNCIL WORKSHOP
Tamsin Evans, Kaiwhakahaere Matua, Network & Customer
Purpose
To update Councillors on our service design approach to reduce
service costs by $5 million during the 2025/26 financial period
1. Background and recap
2. Work to date
3. Emerging implementation challenges
4. Step back
5. Service reduction principles
6. Opportunities for savings
7. Proposed services review programme
Background
The
2024 Long Term Plan noted:
‘Constrained funding availability may affect the size and
timing of our proposed service design …’ and
‘We will
regularly review the network and the quality and
capacity of our services to ensure that we are delivering
services where they are needed the most.’
In late 2024, Metlink started to review expenditures to determine where efficiencies
and cost savings could be found to reduce the rating increases forecast in the LTP for
the 25/26 Annual plan, including avenues such as bus service level reductions.
During Council workshops on
12 Nov 24 we discussed with Councillors cost savings
options
(see recap slide). Based on this, we have developed a services review
programme proposal.
RECAP: Bus Network Cost Reduction Opportunities
Slide from
12/11/24
The current bus network contains opportunities to reduce cost on services with
poor cost recovery and/or services that exceed RPTP requirements.
Low Impact
Medium Impact
Higher Impact
SAVINGS
$1m
$2.5m
$5.0m
Off-peak - some
Low Impact changes +
Medium Impact changes +
KEY CHANGES
reduction or removal of Further off-peak reduction to some reduction of interpeak
very low use services
days and span of low use and frequency on lower use and
highly duplicated services
duplicated services
Concentrated impact for Impacts for a small number
Impacts more customers
CUSTOMER
a very small number of
of customers affecting
with less frequent service or
IMPACT
customers with no
available days and times of
more need to transfer.
service.
travel.
Limited effect, relatively More driver hour reductions
Greater impact on split
OPERATOR
minor effect on overall
& some effect on split shifts shifts and reduction in driver
driver hours
hours
Work to date
TARGET: save $5M in the 25/26 year from network optimisation
MAY 25
• Context shared with operators, high level approach
socialised
JUNE 25
• Assessment methodology developed, all services
assessed against strict application of RPTP policies
JULY / AUGUST 25
• Worked through application of methodology with one
operator
• Other operators updated on progress
Emerging implementation challenges
Who will be affected?
• Customers and communities
• Operators
What does implementation need?
• Metlink
• Operators
How much change can we deliver?
• Lots of small changes vs fewer big changes
• Perceptions of fairness
How do we do this?
Removing services is not our usual practice – we need a robust process
Have we got enough time?
We started late – is it realistic to find $5M savings this financial year?
Taking a step back
Saving costs by reducing bus services is more complicated than it seemed, but
reducing our rates increases is essential.
We need to: • make changes easy for our customers and ratepayers to understand
• be seen to be even handed with our operators
• do this well
Instead of a one-off $5m cut, we recommend following a deliberate, cost-capping
approach to service design, with a focus on ongoing cost efficiency and cost reduction:
• Using a set of principles to enhance the policies in the RPTP
• Using a standard methodology to identify and quantify potential changes
• Continue the current review to optimise services and make short term savings
• Inform a structured programme of ongoing, area-based service reviews
• Make manageable changes focused on cost efficient services and community priorities
• Identify more significant opportunities to reduce longer term costs through service changes in
future procurement tranches (bus and rail)
Service reduction principles
• Avoid reductions that affect
critical peak capacity and
mode shift.
• Avoid reductions that leave whole communities without
basic coverage and
access.
• Focus on
lower use,
higher subsidy and
overlapping services.
•
Align with rail services
• Apply
RPTP service delivery thresholds:
• Minimum usage (<4 per trip)
• Cost recovery (<20%)
• Catchment thresholds (<2700 population, minimum density and private
vehicle ownership)
• Align to
RPTP Service level guidance for Core and Local services.
What are our opportunities for savings?
Our Bus Operations budget is $125.82 million -
$5mill reduction = ~4%
We have started from an approach of what we must provide (i.e. core network expenditure
required to meet key policy obligations under the RPTP) vs. what we’d like to reduce?
MUST PROVIDE
Impact of inaction
TO REDUCE
Impact of inaction
Core network capacity -
Passenger left behind – longer
Standing on buses – at
Poorer customer
passengers are able to board
term reputation impact on PT
peak and off-peak
experience, but
the bus or train.
network
customers still get to
destinations
Basic network coverage –
Loss of access - Users with no
RPTP aim to bring PT to
transport alternatives lose access
Network duplication to
Slower journeys with
within 5-10 mins walk of
to work, education, shopping etc.
reduce transfers (RPTP
transfer, but customers
passengers.
beyond nearest town and
still get to destinations
city centres)
Seven day a week services Loss of access - Users with no
– RPTP guidance for Core and
transport alternatives lose access
Late night services (RPTP
Reduced travel options,
Local routes
to work, education, shopping etc
Core after 11pm, Local
less support for night
after 9pm)
economy and shift workers
School bus services to
Loss of access – vulnerable users
(Poneke Promise)
nearest and zoned schools
required to transfer, make longer
where no public alternative
journeys and/or significant walk to
Express services (if not
Slower journeys that may
nearest and/or zoned schools.
required for M1 or M2)
affect mode share
Proposed services review programme
SEPTEMBER 2025 – JUNE 2026
Current network wide review activity to
optimise services.
Short term, cost reductions <$5M pa
JANUARY 2026 – JUNE 2027
Programme of detailed reviews to maximise service optimisation
aligned with Transport Services Procurement Tranches.
Long term, greater opportunity for cost reductions
JULY 2026 – ONGOING
Programmed reviews by community area, rail line, and implementation of
Bus Priority Action Plan as per RPTP.
Any cost increases must be offset by reductions unless new funding is
provided.
SEPTEMBER 2025 – ONGOING
Continual operational changes, ie community or operator requests for minor timetable changes, disruption
management etc.
Any cost increases must be offset with cost reductions.
Any questions?
DO YOU HAVE ANY QUESTIONS?
Document Outline
