Trondheim Tramway Controversy - Merger

Merger

After the city owned both tramway companies, Graakalbanen and Trondheim Sporvei, after 1966, it was decided in 1969 to merge them as well as the newly purchased Bynesruten into Trondheim Trafikkselskap (TT). Organized as a limited company, the merger took effect on 1 January 1972. However, this occurred just while public transport was becoming commercially unprofitable, and the city had was forced to give subsidies for the first time. Two years later, the private bus company Trondheim Bilruter was nationalized along with the Trondheim operations of Klæburuten and NSB Bilruter. On 1 January 1974, all the bus and tram transport throughout the city was organized in one entity.

Arne Watle, since 1951 CEO of Trondheim Bilruter, was appointed CEO of the new company. Odd Hovdenak, former CEO of both Trondheim Sporvei and Graakalbanen, became CFO. In the beginning there was also problems with two very different corporate cultures. TT established itself at Sorgenfri, after the administration of the former companies had been scattered around town. Trondheim Sporvei had long had ambitions to also become a bus company; while it had captured a few routes, this ambition was merged into the new company culture.

During 1973 and 1974, the oil crisis had encouraged people to start taking more public transport. With high capacity, the trams were better suited than buses to cope with the 10% ridership increase, in particular on car-free Sundays. Other new concepts were monthly passes and senior discounts. During the early 1970s, the interest for environmentalism and people-friendly cities grew. Some politicians and activists demanded that decision processes be made open, and to reduce the massive plans for motorway construction throughout the municipality. In 1976, ridership increased by 12%. 6 million people were transport by two tram lines, while 14 million were transported on 38 bus lines.