Memorandum by Docklands Light Railway
(LR 76)
INTEGRATED TRANSPORT: THE FUTURE OF LIGHT
RAIL AND MODERN TRAMS IN BRITAIN
INTRODUCTION
1. This paper highlights a number of issues
and recommendations arising from the experience of the Docklands
Light Railway (DLR) since it opened in 1987. Transport for London
(TfL) is submitting a separate Memorandum to the Committee, covering
non-DLR schemes and the wider issues associated with light rail
in London and the rest of the UK.
2. With 170,000 passenger journeys on an
average weekday, the DLR in East London carries more people than
any other light rail or tram system in the UK. Docklands Light
Railway Limited (DLRL), a key part of the London Rail group within
TfL, owns and manages the 27 km network. A diagram of the network
is attached in Appendix 1.
3. The railway was owned by London Regional
Transport (LRT) between its opening in 1987 and 1992 when the
railway became the property of the London Docklands Development
Corporation (LDDC). Ownership of the railway was further transferred
by Statutory Instrument in March 1998 from the LDDC to the Secretary
of State for Environment, Transport and the Regions, and then
to the current owners, Transport Trading Limited, a subsidiary
of Transport for London, in July 2000.
4. DLR has played a significant role in
the regeneration of the Docklands area, and while its remit is
still founded on stimulating development in the area, it now has
the task of providing additional transport capacity in line with
current and future levels of demand.
BACKGROUND TO
THE DLR
History
5. London's Docklands suffered high unemployment
and a falling population after the decline of traditional industries
in the area. Between 1967 and the early 1980s, over 150,000 jobs—mostly
port-related—were lost in the boroughs of Tower Hamlets,
Newham, Southwark, Lewisham and Greenwich. 30% of people living
in the Docklands area moved away between 1976 and 1981.
6. Public sector intervention was required
to effectively stimulate regeneration in the area, due to the
high cost of land reclamation, installing infrastructure and providing
essential amenities. In 1981, the LDDC took over the role of managing
redevelopment across an area of eight square miles. It inherited
poor transport links, and realised that improvements were necessary
to encourage development. Planning studies suggested that a railway
would help stimulate new kinds of development (including high-value
commercial activities with a high employment density) rather than
warehousing and distribution. After much debate, it was decided
that a light railway would be the most appropriate solution, as
it would be significantly cheaper to build than an extension to
the Underground network, while offering higher capacity than a
collection of new bus routes. A number of options relating to
the route and specification were considered before the Government
approved a scheme to build the DLR in 1982.
7. The original £77 million network
opened in 1987, and ran between Tower Gateway, Stratford and Island
Gardens. The eleven single-car units were operated automatically,
making DLR the first rail network in the UK to use a computerised
train control system. This released on-train staff from the need
to drive trains, allowing them to concentrate on customer service
and commercial activities.
8. Proposals for the first extension to
the system had been developed before the initial railway began
operating. Between 1985 and 1987, the LDDC's estimates for employment
in the area were increasing, and the developers of Canary Wharf
sought and partially funded a new link to Bank station, which
would provide a significant new interchange with London Underground
services.
9. The Bank extension opened in 1991, and
was followed by a further extension eastwards to Beckton in 1994.
This was aimed at stimulating regeneration and improving links
for existing communities on the north side of the Royal Docks.
The construction coincided with installing a new train control
system manufactured by Alcatel, and the original trains were replaced
by a new fleet of 70 units.
10. In 1996, a private finance initiative
(PFI) concessionaire was appointed to design, build, own and maintain
the 4.2 km extension under the River Thames to Lewisham. The link
opened on budget and ahead of schedule in late 1999. The concessionaire
will maintain the asset for 24.5 years and be paid a fee based
on availability of the infrastructure and the number of journeys
made. Revenue risk for trips on the extension is currently the
responsibility of DLRL, but will be transferred to the concessionaire
in 2009.
11. In 1997, the franchise to operate and
maintain the railway was let after being competitively tendered.
The initial seven-year agreement with Serco Docklands Limited
(SDL) was later extended to nine years, and has offered significant
cost savings over projections for continued public sector operation.
The appointment of a private sector franchisee also allowed targets
to be set for key performance indicators covering reliability,
customer satisfaction and the availability of passenger facilities.
These targets have been increased over time, with the vast majority
being met. The franchisee holds the revenue risk for trips made
on the railway, excluding those made on the Lewisham extension.
12. The graph in Appendix 2 shows how patronage
on the railway has increased over time, and shows projections
for the future. Since the early 1990s, patronage has grown on
a rapid and sustained basis; 8.3 million journeys in 1990 grew
to 30 million in 1999 and exceeded 50 million in 2004. By 2009,
80 million trips are expected to be made annually.
13. From its inception, the DLR has been
a fully accessible railway, with lifts or ramps provided at each
station. Provision for wheelchairs and pushchairs on trains was
also an early feature of the DLR. This continues today, and new
infrastructure is designed to be compliant with the requirements
of the latest Disability Discrimination Act.
14. Services are currently operated with
two-car trains, each of which has a capacity of 360 passengers.
Current peak frequencies provide a capacity of over 9,000 passengers
per hour in each direction, representing a six-fold increase over
the original design capacity. The morning peak period sees over
10,000 people alighting at Canary Wharf station alone. By comparison,
a two-minute double-deck bus service could not offer a practical
capacity of more than 2,000 passengers per hour.
Future DLR extensions and enhancements
15. The 4.4 km London City Airport extension,
which runs from Canning Town to King George V, is currently under
construction. When complete later this year, it will dramatically
improve access to existing communities in the Silvertown area,
the airport, and major future commercial and residential developments
along the corridor. A DLR trip from London City Airport to Bank
is expected to take 22 minutes, which represents a significant
improvement on the current public transport journey time. This
link will have taken only seven years from inception to public
opening.
16. DLR will cross the River Thames for
a second time when the City Airport route is extended from King
George V to Woolwich Arsenal. Construction will begin in summer
2005, and the link is expected to open in early 2009—again
offering public opening within seven years of inception with the
benefit of a relatively swift decision on the Transport and Works
Act (TWA) application by government. It will significantly improve
access for communities in Woolwich, Silvertown and North Woolwich,
and the journey time from Woolwich Arsenal to Bank will be 26
minutes. Both the London City Airport and Woolwich Arsenal extensions
are being implemented through PFI contracts, with similar arrangements
to those agreed for the Lewisham extension but without any transfer
of revenue risk to the infrastructure concessionaire.
17. Planning approval will be sought to
extend the network further by taking over the North London line
between Canning Town and Stratford, and adding a new link to the
CTRL International station. National Rail services currently operating
on the route run at low frequencies (two trains per hour during
off-peak periods) and with low levels of reliability. DLRL is
proposing to add three new stations on the existing line (plus
another at the International station) and operate trains at much
higher frequencies (at least six trains per hour). This will improve
public transport links within Newham and provide connections to
Central London, and form an important component of London's Olympic
and legacy development.
18. Additional passenger capacity to meet
increased passenger loadings is needed on the busiest parts of
the railway. DLRL is therefore seeking TWA approval to undertake
the works necessary to operate three-car trains on the route between
Bank and Lewisham, which would increase passenger capacity by
50%. The elements of the scheme include extending platforms, strengthening
viaducts, purchasing new rail cars, and expanding depot facilities.
Three-car trains will be operating by 2009.
19. The projects listed above all have provision
for funding in TfL's 5-Year Investment Programme. In addition,
other schemes are currently being developed. Planning studies
are ongoing to progress an extension to Dagenham Dock, which would
serve proposed large-scale housing developments. A strategic appraisal
of further potential development projects—the Horizon
Study—is also being carried out to look ahead until
2020, and has included the consultation of major stakeholders.
Options currently being considered include extensions to the west
beyond Bank, and to the north to Hackney Wick and Tottenham Hale.
THE COSTS
AND BENEFITS
OF LIGHT
RAIL
20. Given its capacity and the number of
passenger journeys, the total cost of the existing DLR network
(including the Lewisham extension) compares favourably with alternatives
such as heavy rail or metro schemes. At £1,121 million (the
current value of the existing network at 2004 prices), DLR costs
the equivalent of £42 million per kilometre, although it
is reasonable to assume some savings could have been achieved
were the original system to have been built with a greater capacity
or provision for expansion. By comparison, the Jubilee line cost
in excess of £170 million per kilometre. Further comparisons
are made with other existing and proposed light rail systems in
London in Table 1 of Transport for London's general memorandum.
In addition, Table 2 in the same document provides indicative
operating costs compared with those for other public transport
modes. DLR operating costs per vehicle kilometre are of a similar
level to those for buses and trams in London, and lower than buses
per passenger place kilometre. The DLR now covers its operating
costs with fares revenue.
21. Since opening in 1987, the DLR has proved
highly successful in promoting economic and social regeneration
in East London. The improved access provided by new transport
links has stimulated residential and commercial developments,
which in turn have provided a larger market for the railway as
more passengers are wishing to travel. At the heart of this development
has been the Canary Wharf estate. It welcomed its first tenants
in 1991, and has since seen employment grow to around 70,000.
Further increases are expected to see job numbers increase to
over 100,000 by 2010, although enhancements in public transport
capacity (including the DLR three-car upgrade) will be necessary
to sustain this growth. A quarter of all people entering Canary
Wharf during the morning peak period currently do so by DLR, and
80% do so by all modes of public transport. Between 1994 and 2004,
the proportion of trips by cars, vans and motorcycles to the complex
decreased from 50% to 14%.
22. On a broader scale, the London Plan,
published in 2004, describes aspirations for a total of 210,000
additional jobs and 52,000 new homes in East London by 2016. Many
of these will be located in areas where public transport accessibility
has been (or will be) greatly improved by the proximity of DLR
stations. In the Royal Docks, 11,000 new jobs and 5,500 new homes
are expected to be built by 2016—a scale of development
that would not have been possible in the area without DLR's London
City Airport extension. The majority of these new homes and jobs
are likely to be in mixed-use or town centre-style developments
around West Silvertown and Pontoon Dock stations, at sites including
Minoco Wharf, Peruvian Wharf and Silvertown Quays.
23. Since DLR deposited an application under
the TWA for powers to construct the Woolwich Arsenal extension
in 2002, there has been notable evidence of regeneration in Woolwich
Town centre. The first of 4,000 homes on the former Royal Arsenal
site have already been completed and, over the past three years,
rental values for retail units around the DLR station site have
increased by in excess of 60%.
24. The DLR Stratford International extension
will play an important role in moving people to and from sports
venues in Docklands should London host the 2012 Summer Olympics.
However, it has a wider role to play in the longer-term regeneration
of 400 hectares of land in the Lower Lea Valley. Newham's Unitary
Development Plan (UDP) identifies sites the Council would like
to see redeveloped (Major Opportunity Zones), and acknowledges
DLR's role in encouraging high quality developments with "a
sense of place". The extension will also serve the planned
Stratford City development, which will provide 5,000 homes and
34,000 jobs over the next 15-20 years in the former Stratford
rail lands.
25. Amidst headline figures relating to
large-scale developments, DLR's importance in serving established
communities and locally based businesses should not be forgotten.
Following the decline of traditional employment sectors, the railway
has performed a significant role in improving accessibility to
jobs and services, supporting the Government's objectives of reducing
social exclusion. This is reflected in the new UDP for Tower Hamlets,
which sets out its aims for "local residents benefiting from
the growing prosperity of the borough through access to increased
modern employment and training opportunities". DLR will assist
in creating jobs in the creative and cultural industries and tourism
sector.
26. DLR's role in development and regeneration
has been assisted through the co-ordination of light rail development
and land use planning. In the 1990s, the LDDC, as owner of the
DLR as well as the planning authority, was able to co-ordinate
land use with transport infrastructure. Major development was
located close to the DLR, which, over time, has helped maximise
the proportion of journeys made by public transport. The London
Development Agency (LDA) has now taken over this role, and, as
part of the Mayor's group, development synergies have been realised.
WHAT LIGHT
RAIL SYSTEMS
NEED TO
BE SUCCESSFUL
Service reliability
27. An important factor behind the success
of DLR is the high level of service reliability and the customer
satisfaction arising from this. As the DLR has developed, one
of the major priorities has been to manage the performance of
an expanding and more intensively used network.
28. Levels of service reliability (a measure
of the number of trains starting their journey no more than the
scheduled interval plus three minutes after the previous train)
are shown in Appendix 3. The level currently stands at around
97%.
29. Appendix 4 illustrates the impressive
levels of passenger satisfaction for overall service performance,
as recorded in quarterly passenger surveys. Fluctuations generally
reflect those in the service reliability indices, confirming passengers'
appreciation of high levels of reliability. Survey results also
show high levels of satisfaction for safety and security, service
information and staff performance—areas closely focused
on by DLRL and the franchisee.
Appropriately specified system and application
of technology
30. There are a wide range of transport
systems falling under the "light rail" umbrella. These
have their own characteristics relating to cost, capacity and
geographical and operational flexibility. It is important to have
an understanding of the merits and potential problems relating
to each. TfL's general submission highlights in more detail the
general issues associated with street running and these are not
duplicated here.
31. The DLR network is completely segregated,
and employs an automatic train control system (which can only
be used on a segregated network). Both contribute to the high
levels of service reliability attained, although will have increased
initial costs. The discrete nature of the railway means many of
the problems experienced by road-running trams (in terms of priority
at junctions and obstructions on the track) are avoided. Meanwhile,
automatic train control provides benefits in terms of flexibility.
The ability to reverse and reschedule trains quickly means the
service can rapidly recover from incidents of disruption. Transit
systems employing vehicles operated by drivers are constrained
in the time it takes for units to be reversed.
32. The Canadian City of Vancouver has a
light rail system similar in age and technical specification to
DLR, known as the Skytrain. This segregated and fully automated
railway opened in 1986 as a single-line route, running mainly
on viaducts to minimise conflict with roads. It has since been
extended (introducing some of the operational complexities with
which DLR is familiar) and now has a total length of 32 km. 300,000
passenger journeys are made per day, with minimum headways of
75 seconds. Like DLR, Skytrain demonstrates the benefits of light
rail, and automatic train control. Other segregated automated
light rail systems, such as the 29 km PUTRA line in Kuala Lumpur,
the 23 km BTS network in Bangkok and the expanding Copenhagen
Metro, also operate at extremely high levels of reliability.
Strong local relationships
33. A major point that should not be overlooked
is the good relationship DLR has enjoyed with local stakeholders,
including councils, schools and residents. This continues, with
DLR supporting local events, voluntary initiatives and partnership
organisations. In addition, it should be noted that the relevant
London boroughs have strongly supported DLR enhancements and extensions
in their areas.
THE EFFECTIVENESS
OF INTEGRATING
LIGHT RAIL
WITH THE
WIDER TRANSPORT
SYSTEM
34. The DLR experience strongly suggests
there are significant benefits to be gained from integrating transport
services in three main areas. First, participating in an integrated
fares and ticketing system (unique in London as a UK city) has
undoubtedly contributed to the DLR's success. Tickets are based
on zonal boundaries, and are available for travel to and from
London Underground destinations. Through tickets to and from locations
outside London have also been developed in partnership with ATOC
and the individual operating companies. DLR stations are equipped
with the hardware related to TfL's Oyster card system—smartcard
tickets that can store both season ticket and pre-pay information.
35. Secondly, controlling competition from
parallel bus routes has helped maximise ridership. DLR has had
the benefit of integration with (rather than competition from)
local buses. In this respect it has been more fortunate than light
rail systems elsewhere in Britain. While there is a comprehensive
bus network in Docklands, this is largely complementary to the
railway.
36. Thirdly, restrictions on parking and
or road charging has controlled unrestricted car use and encouraged
people to use public transport. The effectiveness of this has
been illustrated as the Canary Wharf complex has developed. While
the complex has been extremely successful in terms of the quantity
and quality of its development, and employment has increased by
more than six times in the last 10 years, car commuting (limited
by road and parking capacity) has remained relatively static.
37. There should also be an emphasis on
facilitating physical interchange. A new multi-modal interchange
at Canning Town and off-peak cross-platform interchange between
services at Poplar are two successful examples from the DLR.
BARRIERS TO
THE DEVELOPMENT
OF LIGHT
RAIL
38. One barrier to the implementation of
light rail schemes has been the TWA process. While recent experience,
particularly with the Woolwich Arsenal Extension, demonstrates
that this can be operated in a manner that does not unduly delay
well-developed schemes, some of its requirements can be cumbersome
and may represent bigger impediments to larger single schemes.
As importantly, uncertainty over timescales and unexpected delay
in granting Powers (such as was the case with London City Airport
Extension) can potentially disrupt and render the procurement
process less efficient.
39. Impediments to many schemes would appear
to be the absence of conditions listed in the "successful
application" section above—the absence of integration
with land use planning and with other transport services, for
example.
40. The development of schemes is—by
comparison with bus-based arrangements—comparatively lengthy
and costly in terms of up-front expenditure on initial design,
accumulation of powers and the tendering and procurement process
itself. It is therefore particularly important that clear parameters
and scope are established early on in the process and that subject
to remaining within such parameters schemes proceed smoothly through
the procurement process.
41. Following the well-publicised failure
of several schemes to proceed there may well be a credibility
gap in terms of bidders, confidence which, whilst it does not
apply to DLR, does represent a risk (and a potential additional
cost) to other schemes.
THE EFFECT
OF DIFFERENT
FINANCING ARRANGEMENTS
42. Contractual arrangements are likely
to affect the overall operating and construction costs of light
rail schemes. DLR's contractual structure is represented in Appendix
5. The experience suggests:
— The wholesale transfer of revenue
risk to the private sector may not represent good value. However,
DLRL has successfully transferred a large proportion of the revenue
risk to the operator over the relatively short-term duration of
the franchise agreement (although there is some degree of sharing
as DLRL is responsible for the revenue risk on the Lewisham extension)
— There can be benefits of a franchise
contract for operations and routine maintenance over the term
of a relatively short-term contract. The separation of infrastructure
construction and operations can allow a degree of flexibility
that is both beneficial and cost effective
— The development of the railway has
been more manageable with incremental increases in infrastructure.
Many of these have used private sector finance (through concession
agreements) but the same result could also be achieved through
incremental publicly funded works
— Incremental development may be desirable
in terms of affordability, geographical variations in the speed
and nature of land use changes, and to allow lessons to be learned
and recycled into future development. In addition, a "production
line" of extensions can improve client skills and market
appetite
— There have been advantages in having
an "intelligent client" (DLRL). With engineering, finance,
and planning departments, its role is to manage the franchise
and concession agreements, to safeguard the railway's assets,
and to plan future development projects. The co-location of DLRL
with its franchisee at the heart of the railway has been of benefit
to all concerned
CONCLUSIONS AND
RECOMMENDATIONS
43. The DLR experience suggests that light
rail can deliver high-quality public transport services, good
customer satisfaction ratings, and, in time, operating surpluses.
However, to be successful, the mode must be applied in appropriate
circumstances. Suggested corridor flows are covered in detail
in TfL's submission, but there are a number of other important
conditions that appear necessary for it to be successful:
— There should be an emphasis on the
co-ordination between light rail development and land use planning,
with major development located close to stations
— There needs to be customer-focused
emphasis on service reliability, safety and security, service
information, and staff performance
— The nature and technical specification
of the system should be carefully specified. The light rail experience
in the UK and abroad suggests a high degree of segregation may
be desirable to achieve high levels of reliability, although not
at the expense of simply bypassing major "attractors",
which may increase initial costs. The heavy prioritisation of
street-running systems has proved difficult to implement. Discrete
systems (notwithstanding their higher initial cost) provide the
opportunity to use automatic train control, which brings further
benefits in terms of flexibility and reliability
— Strong relationships with local stakeholders
are likely to contribute to success in terms of patronage and
implementing development projects
— The wider transport context within
which the transit system operates should be considered. Advantages
can be gained from participating in a fully integrated fares and
ticketing system, controlling competition from parallel bus routes,
and re-assessing restrictions on car parking and road charging
to control unrestricted car use
— Contractual arrangements need to
be carefully developed on a scheme-specific basis. Whilst all
contractual structures have drawbacks, DLR has obtained a combination
that functions effectively
44. For the reasons above there may be a
number of locations in which light rail development is appropriate
in terms of conversion of infrequent, high cost, locally focused,
heavy rail routes. The future development of light rail may be
as much in this context as in its more common manifestation as
a largely street-running alternative to the bus.
February 2005
| 
