EBS Receives Fines from Amsterdam Transport Region: Update on Potential Million-Dollar Penalties

Bus operator EBS receives two fines from the Amsterdam Transport Region. These were announced in October – before EBS started – because it was expected that EBS would not meet the promised timetable. That has indeed not happened, the Transport Region informed EBS today of the fines, but does not yet want to make public how high they are. It will undoubtedly run into the millions.

EBS has been told that they will be fined for “failed agreements, including in the areas of the use of new zero-emission equipment, timetables (trip cancellations), traveler information and customer service.” EBS will have two weeks to provide its views on this.

The executive board of the Transport Region will make a decision on the fines on April 11. The amount of the fines will only be made public when EBS is aware of the final amount. The Transport Region will investigate how “the money can be used to compensate travelers in Zaanstreek-Waterland for the inconvenience they have experienced.”

Slegers: ‘concerns’

On October 18, director Gerards Slegers of the Transport Region sent an email to EBS CEO Wilko Mol in which he warned him that he would impose fines “if EBS does not meet all the requirements associated with the Concession at the start of the Concession on December 10, 2023. ”

Slegers was already almost certain that EBS would be the winner: “Unfortunately, we have been able to observe few improvements in the implementation process in recent months. In fact, based on the recent schedules you provided, our concerns have only increased.” The promised Zero Emission buses from VDL were not there and the charging station was not ready yet.

Firstly, EBS hangs one Implementation penalty of € 2,000,000 overhead because there are no electric buses, no charging station, no storage facilities, no working website on December 10, not enough (well-trained) staff and no correct travel information at the stops. The Veroer region also accuses EBS of not having fully rolled out the MeerPlus concept. The Transport Region may decide to moderate the fine. The big question is whether they will do that (but for example, not a single electric bus was running and insufficient scores were scored on all other points).

Dropout

EBS won’t lose sleep over those 2 million. It is only a pittance in the budget and if they can prove that bus manufacturer VDL has failed, the fine will simply be forwarded. (That will be a party for lawyers).

The other fine is for the cancellation of trips during the first month of the concession (so for most of January and February a fine can be given again “with regard to trip cancellations and punctuality”). That could be a joke worth millions. And it has nothing to do with electric buses.

UPDATE March 1, 2024: we wrote: “The word ‘fine’ is actually out of place here. EBS receives compensation for rides that they promise to drive and if they do not, it is nonsense to give them that compensation anyway.” That is not correct, this is a real fine, and EBS does not receive any compensation for journeys not made. The carrier therefore receives a reduction in the subsidy. And on top of that the fines are given.

Withdrawal of concession

And that’s not all, in October Slegers himself threatened to withdraw the concession: “The imposition of Fines does not affect our other rights in connection with the Concession, including the right to invoke the bank guarantee and/or group guarantee and the right to revoke the Concession.”

But the Transport Region also writes: “Travellers have not yet been immediately helped with a fine, now that the shortcomings have already occurred. They did not get what they were promised and the timetable will remain below the promised level in the coming months.”

The Transport Region wants to “allow fines to flow back to Zaanstreek-Waterland and invest in a way that benefits the traveler.”

By Piet Bakker. Sources: Press release and letters Transport Region, earlier news on De Orkaan. Photo: The Hurricane.

2024-03-01 17:17:49
#EBS #fines #worth #millions #plural #Orkaan