Originally Posted by dfx-
What if they fulfil the term of this tender - 5 years or whatever it is and then don't operate a day further. What if they give loads of notice and no-one is interested? They're not walking away or breaking any clause, they're just pulling out at re-tendering.
but it doesn't matter whether they ever get near the farebox or not. The general point stands about their income - wherever it comes from, not whether it's from the farebox.
What happens when they pull out at re-tendering? Are we stuck at the stage of "well we'll just see who is interested then".
Looks like we're back to circles again.
There are a multitude of reasons why from six bidders only two remained and every single tender is going to be different for a multitude of factors, be that current company position in Ireland, the location and geographical spread of the routes, the financial health and situation in the companies who may be interested in bidding, local market conditions in their core business, the list is endless.
One of the biggest barriers to entry is that we have one massive transport company that has had so much of the share of the pie for so long that nobody in Ireland has operations of scale or the levels of finance to bid themselves because they never have had facilities built for them and have to start afresh and have never been given the chance to build big scale operations
That's a symptom of how much control CIE have had on transport throughout the years more than anything, the overall domanance of one company who has got given a contract to them every time without anyone else getting a sniff is exactly the reason that no other companies have been able to build up the same scale.
In any case, two bids is certainly better than one and many times better than giving someone a contract without any bids whatsoever and this bundle was always going to be the hardest bundle to operate for a new operator because of all of the factors I've listed above.
As I said before I haven't seen the LUAS walk away from their contract even though they have a very similar arrangement, but lets not allow something based on reality get in a way of what is a bunch of scaremongering and what ifs and maybes that are being constantly trotted out.