Bus Franchising in the Liverpool City Region - Category 2 Passport System

On 25 April 2023, LCRCA published an Assessment on Bus Franchising in the Liverpool City Region which sets out the proposed bus Franchising Scheme in accordance with the Transport Act.

In October 2023, the Liverpool City Region Mayor made a Franchising Scheme covering the Liverpool City Region. Franchising is to be introduced over a number of tranches of procurement. Franchised contracts will be let in two categories:

i. Category 1 franchises, which are those Franchise Agreements involving multiple services that will operate from a depot provided by LCRCA. LCRCA will provide the depot from which the services relating to the Category 1 franchise must be operated. LCRCA will predominately provide the fleet that must be used on the Category 1 franchise.

ii. Category 2 franchises, which are those Franchise Agreements which either i) provide services to serve schools or ii) provide other local services. In both cases the franchises will be delivered from an operator’s own depot.

This notice relates to Category 2 franchises. The first tranche of Category 2 franchises are expected to relate to St Helens, Wirral and Sefton and South Liverpool.

Key elements of Category 2 franchises will include:
Delivery of requirement: the operator of each franchise will be required to provide bus services in accordance with detailed individual franchise package specifications.

Revenue risk: the operator will not be required to assume revenue risk. Revenue risk will be primarily taken by LCRCA.

Depots: the operator of each franchise will be required to provide the depot(s) from which the Category 2 franchises will be operated.

Buses: the operator of each franchise will primarily be responsible for providing the vehicles which will operate Category 2 franchises.

Repair, maintenance and servicing of buses: the operator will be responsible for the repair, maintenance and servicing of vehicles whilst ensuring that there are in a roadworthy condition.

Staff: the operator is responsible for ensuring that it has all necessary and suitably trained staff to deliver the requirement detailed in the individual franchise specifications.