Tube Lines Limited - Tube Lines Performance and Criticism/Takeover by TfL - B

Tube Lines Limited - B

Tube Lines Performance and Criticism

• In June 2004, the National Audit Office criticised the complexity of the PPP deals, noting they offered "the prospect, but not the certainty" of improvements. In March 2005, the House of Commons Transport Select Committee noted that "Availability is the most important factor for Tube travellers. All the infracos needed to do to meet their availability benchmarks was to perform only a little worse than in the past. On most lines, they did not even manage that."
• In March 2005, the House of Commons Public Accounts Committee, charged with ensuring value for money in public spending, published a report concluding that it was "impossible to determine" whether the PPP was better value than a publicly run investment programme.
• By November 2006, Metronet, the other PPP consortium, was £750 million over budget, where as Tube Lines was delivering projects on time and on budget. Chief Executive of Tube Lines, Terry Morgan, noted the use of competitive procurement to minimise costs, unlike the closed shop approach of Metronet. In July 2007, Metronet collapsed and was placed into administration. Metronet was subsequently taken over by TfL in 2008.
• By 2008, Tube Lines was negotiating the next part of the 30-year contract. It noted that all of its major projects had been delivered on time (unlike the Metronet consortium), and that Underground lines it managed were now significantly more reliable - up to 70% more reliable on the Piccadilly line, for example.
• In 2009, Tube Lines had encountered a funding shortfall for its upgrades and requested that TfL provide an additional £1.75 billion to cover the shortfall. TfL refused, and referred the matter to the PPP arbiter, who stated that £400 million should be provided. Tube Lines was also criticised over the number of weekend and late night closures required to upgrade the Jubilee line signalling system.

Tube Lines Takeover by TfL

On 7 May 2010, Transport for London agreed to buy out Bechtel and Amey (Ferrovial), the shareholders of Tube Lines for £310 million, formally ending the PPP. Commentators blamed the complex and "onerous" contracts for its failure. Combined with the takeover of Metronet, this meant that all maintenance was thereafter managed in-house, despite TfL using a large number of private suppliers and contractors. Some of the improvements promised by Tube Lines were subsequently delivered (such as new signalling on the Northern line), while other improvements were subsequently cancelled or delayed.

Amey continued to provide TfL with management and maintenance services for the Jubilee, Northern and Piccadilly lines until the end of 2017, when London Underground Limited took over from Amey. Tube Lines itself now been rebranded as "London Underground"

Tube Lines Overview

Tube Lines Industry: Railways
Tube Lines Founded: 2000
Tube Lines Fate: Sold to Public Sector on 7 May 2010, Equity acquired by Transport for London
Tube Lines Headquarters: 15 Westferry Circus, London, United Kingdom
Tube Lines Key People:
Brian Sedar (Bechtel)
Lee Jones (Ferrovial)
Terry Morgan Chief Executive
Tube Lines Number of Employees: 3500 (initially)
Tube Lines Parent:
Bechtel
Amey
Jarvis