Memorandum by the Department of the Environment
Transport and the Regions (RT 31)
1. The Department welcomes the Select Committee's
inquiry into light rapid transit systems and the Committee's invitation
to submit written evidence.
2. This memorandum sets out the Department's
role in, and policy on, the development of light rapid transit
systems. It deals primarily with light rail systems but covers
the more sophisticated guided bus systems which require significant
investment in infrastructure such as the proposals for the Merseyside
Rapid Transit system being developed by Merseytravel PTE. It does
not cover more modest guided bus measures, such as the kerb guided
systems in Leeds or Ipswich, which generally cost much less and
do not necessarily require approval under the Transport and Works
Act 1992.
3. In general, and outside London where
London Transport have responsibility for public transport, it
is for local authorities to determine the role which light rapid
transit should play in meeting the transport needs in their areas.
Because of the relatively high cost of such systems, and the fact
that they cannot generally be built and operated on a commercial
basis, local authorities require funding from the DETR for such
projects. Grant is available from the Department under section
56 of the Transport Act 1968 and, more recently, from funding
provided to support the local authority Private Finance Initiative.
4. Applications for funding for light rapid
transit systems are subject to appraisal to establish that they
represent good value for money for the taxpayer. This appraisal
ensures that transit systems can bring wider benefits, particularly
in terms of reduced congestion, which cannot be captured in revenue
from the operation of the system, and that they contribute to
the achievement of the Government's overall transport objectives.
5. Light rapid transit schemes generally
require powers under the Transport and Works Act 1992.
6. In the UK five major light rail systems
have opened, with support from the Department, since 1980; a sixth
is under construction and support has been committed to a seventh.
These are described in the following paragraphs.
7. The original Tyne and Wear Metro opened
in stages between 1980 and 1984. It cost £284 million (all
figures in this paper are at outturn prices unless otherwise stated),
some two-thirds of which was met by central government grant.
An extension to Newcastle Airport opened in 1991, most of the
£12 million cost being met by the Passenger Transport Executive
(PTE), which owns the system. In December 1998 the Department
provisionally agreed to fund an extension to Sunderland and South
Hylton, subject to a satisfactory appraisal ensuring value for
money. A final decision on funding will be announced shortly.
8. The first phase of the Docklands Light
Railway in London opened in 1987, the £77 million cost being
met by London Transport with Government assistance. The Bank extension
opened in 1991, and cost £294 million (including upgrading
the system). The Beckton extension opened in 1994, the majority
of the cost of £280 million being met by the London Docklands
Development Corporation from land sales. The Lewisham extension
is due to open by the end of this year.
9. Manchester Metrolink (linking Bury and
Altrincham) opened in 1992. Most of the £140 million capital
cost was met through DETR grant and credit approvals. It is owned
by Greater Manchester PTE, which let a design, build, operate
and maintain (DBOM) contract to a consortium of GEC-Alsthom, Mowlem,
AMEC and Greater Manchester Roadcar. An extension to Salford Quays
and Eccles is due to open later this year (Salford Quays) and
in early 2000 (Eccles). Of the capital cost of £160 million,
the majority came from the private sector, and the rest from the
sale of the PTE's bus companies, Capital Challenge, and the European
Regional Development Fund (ERDF). The contract to build this extension
and to operate the entire system, including the Bury-Altrincham
line, was won by Altram (Manchester), a consortium of Ansaldo
Transporti (an Italian vehicle manufacturer), John Laing, the
Serco Group and the 3i Group.
10. South Yorkshire Supertram in Sheffield
opened in stages in 1994 and 1995. It was promoted by South Yorkshire
PTE. Most of the £240 million capital cost was met through
DETR grant and credit approvals. The system was intially operated
by a PTE-owned company, which was sold to Stagecoach in December
1997. The infrastructure remains under the PTE's control.
11. Midland Metro Line One (linking Birmingham
and Wolverhampton) opened in May 1999. It was promoted by West
Midlands PTE (Centro). A DBOM contract was let to Altram, a consortium
of Ansaldo Transporti (an Italian vehicle manufacturer), John
Laing, and Travel West Midlands (owned by National Express). Over
half of the £145 million capital cost was met through DETR
grant and credit approvals, and most of the balance from the European
Union, West Midlands Passenger Transport Authority, Altram and
the local authorities.
12. In addition, Croydon Tramlink (linking
Wimbledon, Croydon and Beckenham) is under construction and is
due to open later this year. It is being built under a DBOM contract
won by Tramtrack Croydon (a consortium comprising CentreWest,
McAlpine/Amey, Bombardier and Royal Bank of Scotland), at a cost
of £200 million of which £125 million has been provided
by the DETR.
13. The Department announced in December
1998 funding of £167 million for a new tram system in Nottingham
(Nottingham Express Transit) under the Private Finance Initiative.
The preferred bidder is Arrow, a consortium of Tarmac, Adtranz,
Transdev (a French transport operator), and Nottingham City Transport
(a bus operator owned by Nottingham City Council). Negotiations
between the City Council and Arrow to finalise the deal are continuing.
14. From the provisional local transport
plans recently submitted by local authorities, the Department
is aware of the following proposals for light rapid transit schemes
in England:
|
| Scheme | Type of System
| Statutory Powers Obtained?
|
|
| Manchester Metrolink extensions to Oldham and Rochdale, Ashton-under-Lyne, Manchester Airport, Lowry Centre, East Didsbury and Trafford Park
| Light rail | Yes
|
| Midland Metro extensions in Birmingham city centre, from Wednesbury to Merry Hill and Brierly Hill, and loop around Wolverhampton town centre
| Light rail | Yes
|
| South Hampshire Rapid Transit initially linking Portsmouth, Gosport and Fareham
| Light rail | Inquiry held.
Inspector's report submitted to DETR
|
| Leeds: proposals subject to consideration of funding sources including revenue from road user charging
| Light rail | Yes
|
| Bristol and South Gloucestershire linking central Bristol and Almonsbury
| Light rail | No
|
| Merseyside Rapid Transit | Being reviewed
| Order refused |
| Central Hertfordshire Passenger Transport System linking Watford, St Albans and Hatfield
| Possibly guided light transit
| No |
|
15. A separate memorandum from London Transport describes
the possibilities for various new schemes in London.
16. The Government's policy on light rapid transit was
set out in the White Paper on Integrated Transport "A New
Deal for Transport: Better for Everyone" published in July
1998.
17. In essence, the Government recognises that light
rapid transit can have a part to play in integrated transport
strategies in urban areas. But with their high costs, particularly
for conventional light rail schemes, and other pressures on the
Department's local transport capital budget, the White Paper warns
that priority will be given to funding packages of more modest
transport measures which spread benefits more widely, and that
light rapid transit systems will only be supported if they represent
good value for money and form an integral and necessary part of
a strategy in a local transport plan.
18. The introduction of powers for local authorities
to introduce road user and workplace parking charging schemes,
and the commitment to ring fence revenues from such schemes for
improvements to local transport, offer the prospect of significant
additional resources for local authorities, and the White Paper
encourages authorities planning to develop light rapid transit
systems to consider funding them from the revenues generated by
such charging schemes.
19. This approach to future support for light rapid transit
systems was reflected in the guidance issued to local authorities
on provisional local transport plans in April this year.
20. The Department monitors the impact of light rail
schemes which it has funded. The results of research jointly commissioned
with Greater Manchester PTE into the impact of Manchester Metrolink
were published in 1996 (Metrolink Monitoring Study: an independent
report by Oscar Faber). A similar study on South Yorkshire Supertram
is due to be published shortly and studies are being carried out
on Midland Metro and Croydon Tramlink.
21. The Department collects information on the use of
light rail systems which is published annually in Transport Statistics
Great Britain (Tables 5.20 to 5.24 in the 1998 edition).
22. The Department also supports some research and development
work on light rapid transit systems. It has commissioned work
on the range of technologies available for moving people in cities
comparing capacity and whole life costs for a range of transport
modes (Review of PeopleMover Technologies in Urban Areas, March
1997), and on appraisal methods, financial support mechanisms,
performance, and the use of complementary measures, for a range
of light rail systems around the world (Light Rail and Complementary
Measures, by Environmental and Transport Planning, May 1998).
23. The Integrated Transport White Paper identified a
role for new technology in delivering transport solutions and
committed the Government to supporting promising technologies,
trials, and pilot implementation projects. In the field of light
rapid transit, the DETR has set aside funding of £2.7 million,
spread over three years, to assist in developing innovative systems
beyond the design stage. Having invited expressions of interest,
the Department has invited two applicants to submit full bids.
These are Alsthom, for an electronic vehicle guidance system for
use with buses, and Bristol University, for a personal rapid transit
system using automatic vehicles on a guideway.
October 1999
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