Bus firm to pull trams out of hole

Published on Wednesday 8 December 2010 14:47

LOTHIAN Buses could be handed control of the Capital's tram line in a radical new move being considered by transport bosses.

&#149 Work has stalled on the tram project

Council chiefs are set to review how the project will be run when finally finished, and that may mean that there is no longer any need for Transport Edinburgh Limited (TEL), the firm which had been expected to integrate Edinburgh's buses and trams.

The development comes ahead of the publication of a long-awaited report on the future of the project, which is set to back mediation with contractor Bilfinger Berger rather than termination of the contract.

The original plans involved TEL integrating operations with French firm Transdev.

&#149 Should Lothian Buses take over the running of Edinburgh's tram line?

But with the whole project radically changed and scaled back since its inception, there is a belief that Lothian Buses could run the tramline as another one of its routes.

Councillor Gordon Mackenzie, the city's transport convener, said: "The assumptions that were used when we set up TEL was that we would have tram lines 1, 2 and 3, EARL (Edinburgh Airport Rail Link] and the park and ride sites.

"Clearly, a lot of that has changed and we need to review what the role is for TEL and Lothian Buses going forward."

He said disbanding TEL was likely to be one of the options under consideration.

He added: "It's been apparent to me for some months that the arguments originally there for TEL are no longer there and Transdev is no longer part of the picture either."

A new business case for the tram project is also set to be published, and crucial details about patronage levels are set to be withheld from the public.

There have long been fears that Lothian Buses would be forced to bail out the tram project to the tune of around 5 million a year.

It is understood that tensions between Lothian Buses and TIE helped lead to the departure of joint-chairman David Mackay last month. Lothian Buses is said to favour running the tramline as long as it is not saddled with any debt accrued during construction.

The new report, which had been expected to recommend tearing up the contract with Bilfinger Berger, has been branded a "whitewash".

Sources close to the consortium of which Bilfinger Berger is part have suggested that TIE is deliberately stalling any decision about the future until after May's Scottish elections.

One insider said: "It doesn't make sense. We've gone through all this four times.

"Any decision now would be a step forward, but they're merely treading water."