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2 November 2011 | Angeline
The National ExpressGroup
is on target to save $40 million (£25 million), chiefly thanks to fuel
efficiencies linked to the procurement of global positioning systems (GPS)
installed in buses in the US.
The international bus and coach operator’s third quarter financial results,
published yesterday, reveal that the installation of route planning equipment
has led to better fleet management and reduced fuel consumption.
The GPS devices are being installed on more than 16,500 of
the group’s buses to cut down journey times. The efficiency benefits mean
National Express is on track to achieve its savings goal for North America by
the end of 2011.
The company, which is based in
the UK, said the US procurement team’s aim to achieve cost savings from more
efficient use of fuel resulted in the function’s purchase of GPS devices.
The group’s third quarter financial report said: “Ongoing cost control and targeted
investment programmes have ensured that group profitability has improved, in
line with the board's expectations.”
The company said that during the third quarter it had invested £125 million in capital for
fleet replacement and growth in school bus contracts. Revenue in the North
America school bus business rose by 10 per cent in the quarter, thanks to a successful
bid season that brought about contracts wins.
National Express has achieved continuing growth with revenue
up 5 per cent on the previous year.
Dean Finch, group chief executive said: “We have continued the strong
performance reported at the half year in the third quarter. We have delivered
good revenue growth and further improvements in efficiency and we have clear
plans to continue to improve revenue and profitability in the future."
As well as having a growing market in North America, the company
operates buses, coaches and rail in the UK and has operations in Spain and
* See the fuel efficiency feature in the upcoming November issue of SM