GO-OP: Sustainable Public Transport Cooperative

1. A public transport cooperative run by its users and employees • 1

2. Mission Statement To reduce the social and environmental impacts of travel by providing mutually owned, high quality, inclusive public transport services that encourage people to choose more sustainable options • 2 • 2

3. RAIL: The territory • Highly regulated and complex • Dominated by large owning groups and state owned rail operators • Lack of accountability to users • Fiscal constraints on Government spending • Strong and suppressed demand growth • 3 • 3

4. RAIL: The process • GO-OP is applying for a Track Access Contract and becoming a Licensed Train Operating Company • Detailed evaluation of capacity and demand by external Consultants completed • Existing methodologies mitigate against new routes • Must not ‘cherry-pick’ prime routes from Franchises • Must pass ORR ‘not primarily abstractive test’ • Process ongoing – seeking a negotiated Contract with Network Rail under Section 22 of the Act • Ultimately ORR will determine the application • 4 • 4

5. RAIL: Route 1aWestbury – Swindon – Oxford - Birmingham • This route stood out because it: • served poorly served but populous locations • addressed known lack of connectivity • met a number of known capacity gaps Demand seemed strong in 2011 – in 2017, better yet. • 5 • 5

6. To begin with, we will lease older, loco hauled sets – either HSTs or carriages pulled by a Class 67. Once we have better trading history we would ideally commission new 100mph 17x hybrid DMUs 5 sets to operate three diagrams, 2 cars per set Trains • 6 • 6

7. RAIL: Service • Regular interval – trains every 2 hours initially • Additional services in the morning and evening peaks • Limited on-train catering – aiming to provide a quality affordable service at selected times rather than a poor offering all day • Multi-skilled and empowered staff • Reliability important so robust contingencies in place . • 7 • 7

8. RAIL: Route 1 • Direct service from Swindon to Oxford and Birmingham will be popular with commuters. • Melksham is a town of 22,000 and growing – we would operate virtually all its departures. • We may expand our service to Yeovil in the future, but we have so far been unable to prove sufficient demand. • A new station at Wantage and Grove is a long term aspiration. • 8 • 8

9. Route 1a: Financial Summary • Break-even forecast in FY 2 • ROCE to be in range 30-80% pa • Capital requirements set out by ORR mean that we must be able to prove we can finance early losses • Initial returns based on Route 1a only, scope for increased return when multiple routes are operational and greater economies of scale are achieved • 9 • 9

10. Melksham shuttle from Dec 2016; Full service begins May 2017 Track access contract; deposit on DMUs

13. Route 1a: next steps • Agree Contract with NR (autumn 2015) • Secure capital funding with an issue of commmunity shares • Secure trains with a deposit • Between ordering and receiving trains, we will enter the service delivery phase which will include: • Recruitment of senior staff, train crew and support staff • Set up and implement internal and industry integrated systems • Set up Admin HQ and other facilities • Commission Trains and ‘shadow’ running • Commence initial Service Operation • 13 • 13

14. Light Rail and Bus Feeders • Investigating ultra light rail routes in Devon, Wiltshire and Oxfordshire • Bus feeder Routes planned to interconnect with Rail Route 1a • 14 • 14

15. Ticket booking • Coachfairer now fully operational • Our partners are Atomised – a Scottish workers co-op • 15 • 15

16. Why a co-operative? • GO-OP Constitution based on International Co-operative Principles • Co-ops successful in other capital intensive and highly regulated sectors – e.g. telephony and wind farms • GO-OP is the first co-operative to apply for Open Access and to become a Train Operating Company • 16

17. A multi-stakeholder co-operative • Membership: customers, employees and investors • Two types of shares: • Open membership share offer for Users (customers and employees), minimum investment £50 • Time bound offers for Non-users (investors), minimum investment £500 • Investors 25% votes - higher return on investment • Customers - 50% votes - limited return on investment • Employees 25% votes – limited return on investment • 17

18. The GO-OP board • Jean Nunn Price MBE – Midcounties Co-operative • Alex Lawrie (CEO) – Ecological Land Co-op and Somerset Co-op CLT • Sandra Aldworth (CFO) – Brendon Energy • Andy Spring - former Network Rail manager • Chris Phillimore – rail engineer • Barbara Ranford – Midcounties Co-operative • Kate Whittle (Secretary) • 18

19. Financial Returns • Shareholders can earn EIS (up to statutory limits) worth 30% over three years • On top of that, interest on share capital is intended to be 6% pa • 19

20. Social Returns • Users Control the Company at a Corporate level • Members elect Directors and can stand for election themselves • GO-OP encourages staff to use public transport • Reduction in carbon emissions from transport • Supporting community development along our routes • Requirement for social audit written into GO-OP Constitution • 20

21. Medium & Long-Term aspirations • Additional Routes • Add-ons to existing Route 1 • New unconnected routes • Additional Bus Feeder Routes • Additional Light rail / feeder schemes • 21