French firm Transdev could be axed from city's tram project

Published on Thursday 17 September 2009 09:51

THE French firm chosen to run Edinburgh's trams could be ditched from the project.

A cost-cutting shake-up of the 500m scheme could see Paris-based Transdev removed and replaced by a new company bringing together Lothian Buses and Transport Initiatives Edinburgh, the council-owned firm in charge of the project.

Transdev, which runs trams, buses and river shuttles in 70 cities, was named as the operator for the trams in April 2004 after beating rivals First Group to win the multi-million pound contract.

The following year, Michael Howell, the then chief executive of TIE, said some UK tram schemes had been criticised for not having a joined-up delivery process, with the operator being brought in at the end to work a system that has been built without their input. "To counter this problem, we have appointed Transdev to help with design and to work with other stakeholders from the start."

Today, however, senior figures from Transdev were said to be in talks about formally ending its involvement in the project within months. It is hoped an amicable split will avoid costly court action. Tram bosses are currently embroiled in a legal wrangle with German firm Bilfinger Berger, which is leading the consortium building the tram network.

Transdev declined to comment and TIE would only confirm a major review of the project was under way.