04.07.14
Serco loses DLR operations to Keolis Amey
Serco, the operator of the Docklands Light Railway (DLR) since 1997, has been beaten in the competition to run it until 2021 by the Keolis Amey joint venture.
It will be paid more than £700m over the contract period, not counting performance-related bonuses or deductions. Keolis Amey Docklands beat Serco and Stagecoach, while a Go-Ahead/Colas JV dropped out before the end of the procurement competition.
The contract begins on 7 December and runs until April 2021, with an option for this to be extended until 2023.
The new operator will have to ensure that the passengers making 100 million journeys a year on the DLR “continue to see improvements to their service”, TfL said.
Its punctuality record is excellent, usually 99%-plus on a three-minute delay measure. TfL said: “The focus for the new franchise will therefore be to maintain this performance in the context of delivering more services to meet growing demand in east London.”
Managing director of London Underground and Rail, Mike Brown, said: “The DLR is a rail network that continues to support regeneration across a huge area of London and the economic growth of the city as a whole. Its connectivity with the rest of the transport network, and its potential to connect jobs and unlock opportunities, is also set to increase further when we start to operate the Crossrail services that will interchange with it in a few years’ time.
“The decision to appoint Keolis Amey Docklands was reached after a thorough and competitive procurement process, which will ensure the DLR continues to deliver an ever-improving high quality, value for money service for Londoners well into the future. I would also like to thank Serco for their support since 1997 in helping make the DLR the success story it is today.”
The DLR began operating in 1987, with 11 trains serving 15 stations and in its first year of operation it carried 6.7m people. Today the railway – which is entirely step-free – has 45 stations, 38km of track and 149 carriages and during the 2013/14 year, it carried a record 101m passengers.
Alistair Gordon, chief executive of Keolis UK, said: “This win is a major achievement for Keolis and we are delighted to be working with Amey and DLRL to deliver the next chapter in the successful history of the DLR. As the world’s largest operator of light rail networks Keolis looks forward to using our global expertise to enhance one of the capital’s iconic public transport networks and we will work closely with all stakeholders to deliver a world class service both during this franchise and beyond for London.”
Mel Ewell, chief executive for Amey, added: “Keolis’ global experience combined with Amey’s UK rail and asset management expertise will deliver a specialist service that provides value and ensures London’s travelling public experiences a reliable and high quality service.”
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(Image: TfL)