‘The market break can only fight’ – Financieele Dagblad (Registration)

“I’m stunned. Allow real with my mouth full of teeth. ‘ Veolia CEO Manu Lageirse is never a witty remark towards competitors TNS shy. But now he knows just how he reacts to the news that a former employee of his transport company confidential information by playing on railway subsidiaries Qbuzz and Abellio. Abellio used this information to bid on public transport in Limburg. A contract with a value of almost € 2 billion and a term of 15 years who won Abellio in February this year. “We assume that the county will re-do the contract,” says Lageirse.

The news about the transmission of information is a striking plot twist in the Limburg tender which in recent weeks been in a legal dispute threatened to result (see box). When the province was already an object of Veolia which the company argues that Abellio won the concession unjustified. If the province this objection overrides, or concession awards to the number two, Arriva, Veolia goes to court. A process that could take months.

Competition impossible

Lageirse think you have a good chance to win such a lawsuit. “It’s not a done deal.” The Fleming is encouraged by a report from supervisor Authority for Consumers and Markets (ACM) on the tender in Limburg. The ACM Presents therein that the NS has done to Veolia no reasonable offer for services such as ticket machines, service points and travel information. According to the regulator, the NS thus undermines fair competition, because Veolia for these services depends on the NS. “If what the NS does there may, it is almost impossible for us to compete even at the regional track.

The offer of Veolia in Limburg was declared invalid. The company asked for more subsidies than to pay the county was prepared. ‘Because we much information NS did not get, we had a lot of risks inclusion that came on top of the price. “For Veolia was the loss more painful because it still operates part of the concession.

Manu Lageirse

Dutch Height

No fait

According to the Volkskrant Veolia sends a lawsuit to be able to continue as long as possible run on the lines that the company now. Lageirse denies. “The effort of such a lawsuit would be huge to get there in six months. This is a concession of € 2mrd. I want a new opportunity to bring in for 15 years.

Lageirse stops late May as Director of Veolia. He is head of procurement processes and parent company Transdev, which operates in twenty countries and has a turnover of € 6.6 billion. But the battle for Limburg he continues to lead. The stack of files of fights, but also agreements with NS are almost a meter high according Lageirse. “This knowledge is not just about wearing.”

The discussion with NS were often conducted on the razor’s edge, in the media, courtrooms and parliament. “Naming and shaming, I do it when it is needed. Because I want only one thing and that is to break open the market. This can be done only by fighting. “

Customer satisfaction

Het most of the track, the so-called national rail network, has been awarded to 2025 to the NS. For the other lines, but also to bus transport, it is competing. Market forces, according Lageirse good for public transport, passengers and taxpayers. “Studies show

that competition makes for 30% more efficiency. And it can do much better. Research also shows customer satisfaction is higher in lines auctioned. “

Meanwhile, Veolia few remaining in the Netherlands, as Limburg is permanently lost. The Limburg concession expires in 2016 and earlier Brabant was already lost. In Haaglanden the carrier runs as yet though.

Lageirse see that as a personal mistake? “No. I was brought in to make the company healthy again. In that setup, I succeeded. When I became CEO in 2009, we had the year before turned a loss of € 28 million. We ended last year with € 7.5 million profit, with the same “scope” as then. After the merger with Connexxion each may defend its market share and Veolia could barely make bids. “

Unreliable government

Completely satisfied Lageirse is not, he admits. “I’d like to have Limburg already won. Brabant I want to win. But the debate about market forces on the track lives to the full. “That debate has been through over the years, however, become much more positive about market forces. Certainly not in politics, Lageirse outlines itself: “In the 2000s Netherlands was a forerunner in the field of competition on the track, but is gradually turned everything again.” The concessions were in the big cities, in contrast to earlier plans nevertheless be directly awarded to former municipal transport. And the NS may also compete on regional lines, if there is concurrence with the intercity network. “But we can not compete for the national rail network.”

“The government shows itself by changing policy an unreliable partner” says Lageirse . “That makes it difficult to determine a long-term strategy. You chase away businesses.

Nevertheless Lageirse is convinced that there is a future for competition on the track. Only he does not believe more than the salvation will come from politics. “No it is technology, innovation and empowerment of the couple who break open the market. Look at what Uber does in the taxi market, Airbnb in the hotel market. Our market is set to change: by Uber, auto parts and the collection of public transport data. There is public transport so much inefficiency. And if somewhere is air, are found solutions.

The procurement of public transport in Limburg already had a troubled history. The ACM investigated after a complaint from Veolia whether there was a level playing field. The leaked ACM report is owned by the FD.

The ACM writes NS Veolia has done no reasonable offer for services such as ticket machines, service points and travel and this has disturbed fair competition. Veolia according to the ACM for these services depends on the NS. The ACM also find that NS delivering information has delayed unnecessarily. Abellio daughter did get timely information.

The NS fights the conclusions of the ACM and appeals against the decision to the Appeals Tribunal for business. “All operators are treated equally and for facilities not dependent on NS” says a spokesman. Also try NS publication of the report through to avoid a lawsuit because the company would contain confidential information.

About the imposition of any fine ACM has not yet decided. It is up to the province of Limburg to decide on the basis of the report and the news about the leak of information or the concession must. If the county does not allow this decision Veolia gets to court.