Capital confirms bus and tram merger

Published on Friday 6 March 2009 00:33

COUNCILLORS in Edinburgh will be asked next week to press ahead with the planned merger of Lothian Buses and the capital's tram firm pending resolution of the tram construction row, The Scotsman has learned.

A new company is due to be formed within 18 months to combine the city's main bus operator and TIE, the city council's tram developer, and create an integrated service when trams start operating in 2011.

Phil Wheeler, the council's transport convener, said: "It has always been our intention to bring trams and buses together under one operating company.

"However, we have a number of significant legal, financial and governance requirements which must be addressed in the interim, including seeking ministerial consent to the transfer of shares in Lothian Buses."

The move comes as talks continue between TIE and Bilfinger Berger, which heads the tram line construction consortium which has demanded up to an extra 80 million to complete its 240 million contract.