Oslo Vognselskap is a professional owner of the car stock which Oslo needs in order to transport metro and tram customers in ways that are customer-friendly, efficient and green.
The company must also be a competence-based organisation for efficient administration and renewal of the car fleet. Our skills must help our owners and partners in the public transport family to make the right decisions.
Our core tasks involve procuring, financing, leasing and administering metro cars and trams for use in the Oslo region.
Procuring attractive stock for use for future services is one of the most important competitive advantages of public transport. This is achieved by means of extensive procurement processes demanding outstanding skills and a high level of cooperation between the people who plan the future routes on offer (Ruter), the people who have to run and maintain the cars (Sporveien) and the people who will be the owners of the stock (Oslo Vognselskap).
In 2014, Oslo Vognselskap concluded the biggest procurement of stock ever seen in Oslo. Metro car number 345 arrived in Oslo in the winter of 2014, more than a decade after the contract was concluded and once all potential options had been used. This procurement procedure came in on budget and on schedule, and it was very well received by customers. This is by far the most successful procurement of stock for Oslo in recent years.
Oslo Vognselskap’s procurements are not only limited to new stock, but also include major upgrades and measures to extend the service life of the stock.
The company is subject to the Public Procurement Act.
Our stock is financed by means of loans with the Municipality of Oslo and Akershus County Council. Our SL95 trams were previously leased. This is a form of finance that we have now discontinued in favour of other, more beneficial forms of finance. Other forms of finance may also be relevant in the future.
A significant contribution by Oslopakke 3 is providing a foundation for the Municipality of Oslo’s decision to procure new metro cars. Besides this, the municipality has also contributed significant funds of its own.
Future procurement of trams will also be based on finance via Oslopakke 3, which will help to cover regular (annual) costs involved with running the stock. Ruter is the recipient of such public funding on behalf of public transport in the Oslo region.
Oslo Vognselskap’s job is to finance procurement. This is being achieved by taking out loans and using the company’s capability to self-finance. Thanks to current car leasing principles, the Municipality of Oslo has acquired excellent replacement capability at Oslo Vognselskap. This will make it easier to finance future procurements.
Essentially, the car leasing principle involves paying a regular price for use of the stock throughout its entire service life. This ensures that when the stock is “used up”, the ability to finance new procurement is also taken into account. This allows us to avoid the “all-out effort method” when we need to procure new stock. And we also avoid having to use old stock long after it becomes obsolete and is incapable of meeting customers’ requirements in terms of comfort and reliability. As well as being expensive, this provides poor travel experiences for the public and weakens the competitiveness of public transport. Our model is better!
The company currently leases all car stock to Sporveien. The lease specifies requirements with regard to how the stock is to be maintained. These requirements, together with the principles for calculating car leasing, must ensure:
- That the stock continues to offer satisfactory quality and reliability throughout its entire service life, normally 25-30 years.
- That the replacement capability is taken into account when the time has come to replace the stock, or potentially upgrade it or implement measures to extend its service life.
Leasing takes place on the basis of contracts with terms that correspond to the duration of the operators’ contracts with Ruter.
Good administration of the stock is a significant element in what we do. Extensive monitoring of the stock is required so as to ensure that the service life and quality of the stock correspond to the expectations of the public and safeguards the significant assets that our owners have invested in it.
At the same time, administration of technical stock with a long service life is extremely costly. Viewed from a life cycle perspective, 70-80% of costs will be linked with maintenance. Therefore, it is very important always to go on searching for more effective ways of carrying out sufficient maintenance and finding ways of achieving this which minimise the use of resources and maximise the availability of our expensive stock.
Oslo Vognselskap does not carry out stock maintenance itself. Maintenance requirements are specified through the contract with the lessee. Therefore, good administration requires excellent interaction between the various public transport stakeholders; primarily the maintenance supplier and the operator of the stock.
Good administration includes enforcement and development of maintenance documentation, monitoring the quality of maintenance carried out, monitoring new regulatory requirements, further development of stock and maintenance, including documentation, reporting and registration of maintenance, and monitoring the stock in consultation with the lessee/operator/maintenance provider.