Council backs business case for trams to Newhaven

The Outline Business Case for the £165.2 million, 2.8-mile extension taking Edinburgh Trams to Newhaven was approved by the City of Edinburgh Council on September 21.

A tendering process will now begin to appoint a potential contractor for the project. A final decision on whether to go ahead with the project will be made in autumn 2018. It is estimated that construction will take three years, including 18 months on Leith Walk, as well as four months of testing and commissioning.

Patronage is forecast to almost double in the opening year, to 14 million, and the OBC claims that for every £1 spent the economic return to Edinburgh will be £1.64.

The next stage will enable the project team to allow affordability based on testing of tender prices, to provide a further 12 months of evidence using tram patronage, to allow the project to consider lessons learned from the Edinburgh Tram Inquiry that is currently under way, and to undertake detailed work on traffic management arrangements and measures to mitigate disruption.

Council Leader Adam McVey said: “Given the rate of growth forecast for Edinburgh over the coming years, we simply cannot stand still. And yet we can’t proceed with work to take trams down to Newhaven unless we’re 100% certain that we’ve rigorously scrutinised the business case and taken on board crucial lessons from the first phase.”

Transport Convener Lesley Macinnes said: “For the people of Leith, having a direct tram link to the city centre and other key employment and travel hubs would be hugely beneficial. That said, we are acutely aware of how challenging the construction period would be, which is why we’re developing a compensation scheme to help those most affected.”

The OBC highlighted that in the next decade Edinburgh and the surrounding areas are expected to house the fastest-growing population in Scotland - an additional 47,000 residents by 2024 and an extra 102,000 by 2039, according to the National Records of Scotland.

The number of households is forecast to increase by more than 38,000 by 2032, and a quarter of that is forecast for Leith Docks and Western Harbour areas.