Transport for London seek next Docklands Light Railway operator

The search for a company to operate the Docklands Light Railway is underway at Transport for London.

KeolisAmey currently operate the network and have for a decade now since 17th July 2014 with control over “train and passenger service operations and maintenance of rolling stock and infrastructure on the DLR network”.

A TfL meeting this past week noted the current agreement will expire on 1st April 2025.

The next contract will run for eight years with an options for a two-year extension.

Contracts

While KeolisAmey run the trains and undertake maintenance, they do not carry revenue risk, substantial capital investment nor advertising, marketing, and commercial development.

Sections of the network built under a 1990s Private Finance Initiative contract which ended in 2021 have reverted to TfL since the least contract awarded. That’s the extension to Lewisham and TfL have since blamed issues including escalator faults at Cutty Sark on the PFI.

Three years after the PFI ended and escalators are still out of order – as this image taken last week shows.

In addition, while most trains are ultimately owned by TfL that excludes “24 of the existing vehicles are owned by the Royal Bank of Scotland and leased under a lease signed in April 2005”.

If we think back to the 2000s, then-Chancellor Gordon Brown and colleagues were supportive of PFI, PPPs and private involvement in rail and other public assets as well as leasing stock. It kept costs of the books short term – but long term was a drain on public resources. The government won a court case to force through private involvement in the tube. That then failed costing the taxpayer billions.

Even where it didn’t collapse such as the DLR extension which ran for 25 years, it’s not remembered with much fondness with problems reverberating for some time after it concluded.

It’ll be interesting to see if the new Labour government again goes down a similar path.

Contract changes

The DLR’s forthcoming contract sees some changes compared to the previous ten years. The report states:

“The New Agreement contains additional requirements that will enable DLRL to monitor and influence some input measures, in addition to the output-based performance regimes.

“This will enable DLRL to improve decision making regarding capital investment projects and develop a long-term asset management and renewal strategy which will remain the responsibility of DLRL across multiple contract terms.”

“The network is currently seeing testing of new trains which are running late. Due in service before April 2024, the latest estimate is the end of 2024.

New trains will enable timetable improvements as noted: “The New Agreement specifies timetable improvements from the current service. Once sufficient new trains have been delivered into service, the supplier will operate new service patterns that see higher frequencies and longer trains on many routes”.

There was previously plans to build over Poplar DLR depot with possible new builds and improved links between Canary Wharf and areas to the north. That now appears to have been dropped for now.

Three bidders had responded to the tender by April 2024 with an award yet to be announced.