Midland Metro set to be ‘nationalised’ as it grows Transport authority to take back control from National Express
THE Midlands Metro tram network will be ‘nationalised’ when the current contract with private operator National Express expires next year, it has been announced.
Transport for West Midlands (TfWM), formerly known as Centro, will operate the network itself for the next few years while it undergoes a major expansion with a series of new lines planned.
The radical move will allow TfWM, the transport arm of the West Midlands Combined Authority (WMCA), to invest an estimated extra £50 million profit over 11 years into growing the network.
The combined authority is set to start a number of extensions which will see the network triple in size over the next decade, with passenger numbers forecast to increase from around 6.5 million at present to more than 30 million.
Extensions are already in the pipeline along Broad Street and Hagley Road, through Digbeth and East Birmingham to the Airport, and from Wednesbury to Brierley Hill.
However, more plans could be revealed after the new West Midlands Mayor is elected in May.
So TfWM bosses argue that taking the Metro ‘in house’ will give them greater flexibility to alter plans, launch new lines and redirect services without having to renegotiate complex contracts with private sector operators.
Existing staff will be transferred to the new public sector Midland Metro Ltd when the private operator’s contract expires in October 2018.
Regional transport chief Roger Lawrence said: “Metro is a fundamental part of our future plans not only for transport but for the West Midlands economy as a whole.
“It is a proven catalyst for economic growth and is critical to best connect and feed into HS2 so we can reap the maximum economic benefits possible from the high speed rail line. That’s why Metro is embarking on an unprecedented period of expansion and we believe bringing services in house will provide the extra flexibility and adaptability needed to meet this exciting new chapter while generating millions of pounds for the benefit of passengers and taxpayers.”
The WMCA board was also told that putting the contract out to tender would cost millions.
Colin Saward, general manager of National Express Midlands Metro, added: “It’s disappointing we won’t get the chance to run the tram service when our current contract is up next year.
“But we appreciate TfWM’s reasons for taking services back in house when the network is about to change so much.”
Laura Shoaf, managing director of TfWM, said seeking another commercial operator would lead to “continuous and expensive commercial negotiations”. She added: “While bringing operations in house is not without risk we believe those risks are far outweighed by the advantages. Ultimately the move is good for passengers, good for taxpayers and good for the future prosperity of the West Midlands.”
The WMCA board last week rubber stamped £59 million towards the extension of the Metro past Five Ways and on to Edgbaston by 2021.