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Concession/franchise specification & bidding

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We help clients in developing all forms of concession/franchise specifications and franchise bidding processes. We advise governments, financiers and concession companies. The services we offer include concession structuring, tolling and pricing strategies, revenue forecasting, operational matters, risk analysis and due diligence services.

The central issue for those involved in the concession and franchise specification and bidding process are the robustness of demand and revenue forecasts. Traffic levels will affect the revenue stream and the operating costs. The quality and accuracy of traffic and revenue forecasts are therefore critical to the financial success of concessions or franchise bids.

Our consultants can provide advice throughout the rail franchise bid process helping to analyse the business case, undertaking market research into on-train product design, preparation of demand and revenue forecasts, development of pricing strategies, operations planning and evaluation of timetabling options, staff resourcing and assessment of the effects of new revenue management systems.

Toll road concessions are another area where our advice has helped our clients to deliver winning bids. We are skilled in developing tolling strategies for optimising revenue and minimising operating costs and toll plazas. A recent example is the assistance provide by us to a UK concessionaire in the development of the client’s traffic and revenue forecasts for a New Tyne Crossing public private partnership project.