Cooper Associates

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Sustainable Public Transport Framework

Andrew led the implementation of the Sustainable Public Transport Framework (SPTF) for Waka Kotahi New Zealand Transport Agency. The SPTF implemented reforms comprising operational policy and legislative changes governing how public transport services are contracted and delivered across New Zealand.

The SPTF established a new set of objectives for public transport, replacing those previously introduced under the Public Transport Operating Model (PTOM), with a broader focus on prioritising mode-shift, fair and equitable treatment of employees, and improved environment and health outcomes. 

The SPTF introduced the following objectives: 

  • public transport services supports mode-shift from private motor vehicles, by being integrated, reliable, frequent, accessible, affordable, and safe 
  • employment and engagement of the public transport workforce is fair and equitable, providing for a sustainable labour market and sustainable provision of public transport services 
  • well-used public transport services reduce the environmental and health impact of land transport, including by reducing reliance on single-occupancy vehicles and by using zero-emission technology 
  • provision of services supports value for money and efficiency from public transport investment while achieving the first three objectives. 

As Programme Director, Andrew liaised with the Ministry of Transport in the drafting of legislative changes and led the development of operational policy to support the legislative changes and other non-legislative objectives.

Engagement and buy-in from the sector was critical to the reform programme and Andrew established a range of working groups and stakeholder forums comprising representatives from the public transport authorities (PTAs), public transport operators and unions representing the public transport workforce.

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Rail franchise procurement

Andrew led the rail franchising process resulting in reform of the integrated above rail delivery of Auckland’s metropolitan rail services, resulting in the appointment and successful mobilisation of the Auckland One Rail consortium under a 13 year contract valued at circa $2 billion. As programme director, Andrew was responsible for leading the design and development of the franchise scope and specification, commercial framework, contract form and drafting, and the subsequent tendering, negotiation and appointment process.

The previous contract governing the metropolitan rail services in Auckland had been in place since 2004, with only minor modifications during that time. Consequently, the operating and commercial model, risk allocation and incentive mechanisms were no longer considered optimal for the purpose of delivering a modern metropolitan rail service in which customers are at the heart.

Development of the new rail franchise has enabled Auckland Transport to implement a new rail delivery model that reduces organisational interfaces, provides a more appropriate allocation of risks across the rail system and will deliver improved efficiency, customer and safety outcomes.

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Bus contract procurement

The Greater Wellington Regional Council (GWRC) is responsible for the planning, marketing, management and procurement of public transport services in the Greater Wellington region.

Legislative changes in New Zealand in 2014 created a new framework for the procurement and governance of public transport services – the Public Transport Operating Model (PTOM). PTOM aimed to build long-term commercial partnerships between regional authorities and public transport operators, to improve services and grow patronage.

The PTOM framework provided an opportunity for the GWRC to tender bus service operating contracts across the region for the first time in decades. Coupled with the need to replace Wellington’s ageing bus fleet and a bus service that was at capacity in Wellington city, the implementation of PTOM provided an opportunity to take a fresh look at how bus services are delivered across the region.

Five principles underpin the provision of public transport by GWRC on which the procurement process was based:

  • GWRC and public transport operators should work in partnership to deliver the public transport services and infrastructure necessary to meet the needs of passengers.
  • The provision of services should be coordinated with the aim of achieving the levels of integration, reliability, frequency and coverage necessary to encourage passenger growth.
  • Competitors should have access to regional public transport markets to increase confidence that services are priced efficiently.
  • Incentives should exist to reduce reliance on public subsidies to cover the cost of providing services.
  • The planning and procurement of services should be transparent.

Under PTOM, services are grouped into ‘units’ of routes, each an exclusive contract with an operator. The Wellington region comprises 16 bus units. Seven of these units were directly appointed by negotiation to incumbent operators, with nine units tendered.The procurement of the sixteen bus operating contracts, valued at circa $80 million pa was led by Andrew Cooper.

The tender process included many features to reduce barriers to entry and is regarded as a benchmark for industry engagement which resulted in an attractive and competitive tender opportunity.

Twelve local and international bus companies participated in the pre-tender engagement process providing valuable input to the tender and contract design. Industry input to the process resulted in a strong performance-based contract, with appropriate allocation of risks between the transit agency and operators.

Nine of the original twelve bus companies submitted a total of 86 tenders covering a variety of individual and bundled tendered bids.

The final tender outcome awarded the nine tendered contracts to two new entrants, with the tender result yielding strong savings against expectations which were set by a ‘shadow bid’.

This case study was presented to the Thredbo international transport conference held in Singapore in 2019. Read more here.

Evaluating low emission bus fleets
The successful pricing of harmful emissions contributed to a tender outcome that has delivered 100% new buses to the tendered contracts, 95% of which will be Euro VI (the latest in diesel emission reduction technology). The outcome saw an initial ten battery electric buses enter service in 2018, followed by the planned phased introduction of a further twenty-two electric buses over the following three years of the contracts. Read more about the pricing of emissions in a practice paper presented to the Australasian Transport Forum here.

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Programme Director – Bus Services Transformation

Greater Wellington Regional Council is responsible for the provision of public transport services in the Greater Wellington region.

As Programme Director of the Bus Services Transformation Programme, Andrew was responsible for delivery of a number of projects providing a step change in the service performance, cost effectiveness and ease of use for customers of bus services in the region.

These projects included:

  • Implementation of the Public Transport Operating Model (PTOM) for bus and the associated procurement of 16 bus operating contracts across the region to the value of circa $80 million pa. The objective of PTOM is to deliver a competitive public transport operator market, with enhanced service levels and value for money for the public purse by tendering new performance based contracts. The successful implementation of PTOM is critical to the delivery of a range of interdependent transformational initiatives that will change the way PT services are delivered in Wellington in the future.
  • Fleet transition – incorporating the transition from trolley buses and old diesel fleets to a low emission bus fleet and ultimately an all electric bus fleet in the region.
  • New bus network – incorporating implementation of the new Wellington city bus network and the associated communication and transition arrangements with customers, bus operators and other stakeholders.

Andrew designed and led the procurement process for sixteen 9 and 12 year bus operating contracts. Under PTOM, services are grouped into ‘units’ of routes, each an exclusive contract with an operator. The Wellington region comprises 16 bus units. Seven of these units were directly appointed by negotiation to incumbent operators, with nine units tendered. The tender process included many features to reduce barriers to entry and is regarded as a benchmark for industry engagement. The result was a highly competitive tender process with nine local and international bus operators submitting tenders.

To meet Council aspirations for a low emission bus fleet, the tender process featured an industry-first quantitative assessment of bus fleet emissions using an economic cost to society approach to monetise bus emissions. This feature contributed to a tender outcome that has delivered 100% new buses to the tendered contracts, 95% of which are Euro VI, plus an initial ten battery electric buses which will be followed by the phased introduction of a further 22 electric buses over the first three years of the contracts. The resulting environmental outcomes are delivering improved air quality across the region with emissions of harmful pollutants reduced by 38 per cent in Wellington city and 84 per cent in the Hutt Valley conurbation. Read more here.

Andrew’s responsibilities also included the implementation of a redesigned bus network in Wellington city featuring a more integrated and connected system of bus routes designed to provide greater coverage and reach, while reducing route duplication and bus congestion in the central city. The new network features greater use of connecting services requiring the construction of 7 bus hubs at key locations across the city.

Stakeholder engagement has been a key area of focus throughout the project, requiring close working relationships with the NZ Transport Agency and Ministry of Transport. In addition to meeting governance requirements through the course of the project, Andrew regularly briefed the GW Council, together with other stakeholder TLAs, in particular Wellington City Council.

While the tender process met objectives for enhancing competition, delivering value for money and substantially improving bus fleet quality, the transition was particularly challenging. The new contracts, featuring two new entrants, new fleet and new depots were implemented at the same time as a radically new bus network, expanded and upgraded ticketing system, upgraded real time information system and a substantial change programme for the Regional Council, involving new roles, systems and processes.

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Performance Manager – NZ Transport Agency

Andrew led the establishment of a Performance Management function for the Highway and Network Operations (HNO) Group for the NZ Transport Agency (NZTA). This new team is responsible for the monitoring, measurement and bench marking of the Agency’s maintenance, operations and renewals activities.

A key outcome of the role has been to develop the Agency’s commercial intelligence and measurement and monitoring capability with respect to the cost of maintenance and renewals to assist the Agency become a more informed purchaser, and to ensure national planning is effective and investment is directed at the right places and at the right times.

Andrew provided direction to the setting of the Performance Framework for the Network Outcomes Contracts and the development of the measurement and bench marking tool for capturing this information.

Within this role Andrew also led a supply chain review of the maintenance market to inform the understanding of the drivers of market behavior.

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Commercial Lead – Metro Rail Rolling Stock Procurement

As Commercial Lead on the Auckland EMU procurement project, Andrew brings the experience and learnings from one of the largest and most complex transport procurement projects in New Zealand in recent years, the procurement of Auckland’s first electric train fleet and long term maintenance arrangements.

Andrew was involved in all areas of procurement team responsibilities including:

  • Input to procurement documents and procurement strategy
  • Development of the evaluation strategy and evaluation criteria
  • Review and input to supply and maintenance contracts
  • Oversight of financial modelling for the supply, maintenance and depot scenarios
  • Member of 4 person TET
  • Formulation of an availability and performance regime under the long term maintenance contract
  • Developing the negotiation strategies and leading the commercial aspects of the negotiations with the two shortlisted bidders

As the lead commercial advisor Andrew was responsible for managing a team of senior financial and commercial advisors from tier 1 and tier 2 Australian and NZ firms.

In leading the commercial work stream, he oversaw the financial modelling for the project. These financial models were used, inter alia, to model the whole of life costs of the rolling stock and maintenance services and to determine the Price Estimate, required for the NZTA prescribed Price Quality (PQ) evaluation methodology.

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