Stagecoach to run Manchester's trams

Published on Wednesday 4 April 2007 11:52

STAGECOACH, the Scottish bus and train operator, has been chosen to run and maintain Manchester's Metrolink tram system, considered to be one of the UK's top tram systems.

The Perth-based group was named preferred bidder for the current four-route, 37 kilometre network which opened in 1992 and carries around 20 million passengers a year, generating revenues of about 22m.

Metrolink owner, the Greater Manchester Passenger Transport Executive (GMPTE), said the contract will run for ten years, with Stagecoach expected to take over within the next three months from present operator Serco, which has run the service since 1997.

The company will also be responsible for maintenance of the track and tram stops for at least the next seven years.

As part of the contract, Stagecoach will also be responsible for operating tram services on the new Metrolink lines to Oldham, Rochdale, Droylsden and Chorlton.

David Leather GMPTE's interim chief executive, said Stagecoach was an experienced tram operator and had been chosen over French firm Keolis.

"Stagecoach already has significant experience of operating a major UK tram system."

The Scottish company already operates Supertram, a 29km, three-route tram system in Sheffield, where it has the concession until 2024.

"We attracted several high-calibre bids from experienced European companies for the contracts to operate and maintain the Metrolink system," Mr Leather noted.

Ian Dobbs, chief executive of Stagecoach's rail division, said: "We are delighted to have been selected as preferred bidder for the contract to run Manchester's Metrolink network, which is one of the UK's premier light rail systems.

"Stagecoach already operates a major tram system in Sheffield, where we now carry 13 million passengers a year and we will build on this operational expertise to deliver a first-class service to passengers in Manchester in partnership with GMPTE."

Also thought to have helped Stagecoach is its successful running of a fleet of around 600 busses in south Manchester.

Stagecoach was launched in the 1980s by chief executive Brian Souter and his sister Ann Gloag with just two buses in the wake of Margaret Thatcher's deregulation of bus services.

Today it has extensive bus and rail operations in both the UK and the US, with its fleet of vehicles running to over 12,000 and employing 27,000 people. Its joint venture with Virgin Rail Group was recently shortlisted for the Edinburgh-London East Coast rail franchise.

Mr Dobbs added: "We have developed an excellent reputation for delivering high-quality bus services in Manchester over the past decade, and we are already working hard on our plans to improve Metrolink's quality of service to customers and attract more people to the tram."

Over the six months to October 31 last year, Stagecoach saw pre-tax profit rise 34 per cent to 77.4m. The company also recently said it would return around 700m to shareholders.