Pros and cons of investing in a transport co-operative?

Mids_Costcutter

A new open access operator, Go! Co-operative, plans to run trains between Yeovil and Birmingham from December 2011:

http://www.go-now.coop/workspace/uploads/files/offer_document_2010_web.pdf

Unlike other train operating companies this would be run on a mutual interest basis. Projected rates of return for investors and further info. are shown in the above document. There are also plans to operate light rail, bus services and car clubs with the aim of integrating other modes of transport better with rail services on this line.

Despite the recession, travel on the rail network continues to grow. Last October figures from the Office of Rail Regulation show total passenger kilometres travelled in 2008-09 increased by 3.4 per cent on the previous year to 50.7 billion: an all-time record in peacetime. However the DfT may impose restrictions on stations where the new operator may stop where it competes with an existing franchise such as Cross Country. This is the case with another open access operator Wrexham & Shropshire which cannot stop in Birmingham, Birmingham International or Coventry en route from Wrexham to London.

What do others think about the pros and cons of investing in this as a co-operative? I'm not looking for a yes or no here!

glider3560

I've considered this too. I may be eligible for the reduced £100 investment but am still unsure as to whether the route is very popular.

I haven't had a chance to find out, but I might see if I can find information about passenger flows on this route before I decide to make an investment.

Reaper

I only skim read it but one thing leapt out at me - at general meetings 50% of the votes would come from passengers. That means it might turn out to be difficult to get price rises approved if they turn out to be necessary. For example they are planning to use all refurbished stock but it it turns out to be too unreliable new stock might need to be bought.

I like the idea in principle and it makes a refreshing change to see joined up transport thinking (so many train companies seem to think they are in the train business, when they should be thinking they are in the transport business). However I would want more details - the PDF is too skimpy.

Mids_Costcutter

glider3560 wrote: »

I haven't had a chance to find out, but I might see if I can find information about passenger flows on this route before I decide to make an investment.

Good luck, but I imagine that any franchise holder on a section of the route e.g. Cross Country, FGW won't release passenger numbers due to 'commercial confidentiality'? I'm sure that the industry experts who prepared the proposal have done the best research based on data available.

glider3560

Mids_Costcutter wrote: »

Good luck, but I imagine that any franchise holder on a section of the route e.g. Cross Country, FGW won't release passenger numbers due to 'commercial confidentiality'? I'm sure that the industry experts who prepared the proposal have done the best research based on data available.

Passenger numbers and information about the flow is available from the DfT. They publish statistics on the number of tickets bought to/from individual stations and estimates on the passenger flow on particular routes. Although the train companies are privately owned, all tickets sales go through ORCATS so are recorded centrally for administration and financial reasons.