The French group selected to operate the Luas system will bid to run bus routes in Dublin when the market is eventually liberalised. Connex, a subsidiary of Vivendi Environment, sees its operation of the light rail system in Dublin as a precursor to further involvement in the Irish market, writes Arthur Beesley
The group would also bid to operate long-distance coach services and rail services if these services were opened to competition.
Its chief executive Mr Antoine Frerot said its interest in developing the business beyond Luas would be an incentive to make the light rail system a success.
"For us it's up or out," Mr Frerot said. "We feel that there could be a lot more business for us if we transform this first step. My feeling is that if we succeed we will have a lot of opportunities - this will open doors for us. If we fail, the door will be completely closed."
Connex was successful in a tender earlier this year by the Railway Procurement Agency (RPA), which is managing the construction of the €675 million system. Dublin Bus, representing CIÉ, was among the unsuccessful participants in the tender.
The RPA will regulate the service when it commences around mid-2004.
The latest start date is some months later than the 2003 target projected in a high-profile advertising campaign in advance of the general election.
Connex projects revenues of about €70 million over the five-year duration of its first operating contract. But it would turn a profit only if it surpassed basic performance targets - on punctuality, cleanliness and usage.
Mr Frerot said Connex could generate annual profits in the region of €500,000 if Luas performed "splendidly".
If it performed "very badly", Connex would incur an annual loss of up of €500,000. The service would only break even if basic performance targets were met.
He said: "From us you can expect a comfortable service, punctual, and - more than that - a friendly service."
No decision has been taken on fare structures yet, but Mr Frerot said he hoped for an integrated ticketing system enabling passengers to transfer onto other modes of public transport.
Connex plans to employ up to 190 staff in Dublin when the service is fully operational. It will operate 40 trams on the two lines linking Sandyford and Tallaght with central Dublin.
Connex had a global turnover of €3.1 billion last year from operations in 21 countries in Europe, Asia, America and the Middle East. The group is among the first to express an interest in running private bus routes in Dublin according to a plan recently published by the Minister for Transport, Mr Brennan.
Mr Frerot said: "For this first contract if we succeed - and I'm sure we will - we hope to develop the businesses as a big private operator for public transportation system in Ireland."
He added: "It's not that we'll be doing our job regulated just by the law of the market but it is a regulated system because it [the RPA] is a public authority governed by elected people which defines the level of service and the patronage and the fares."
