Global firms line up to take trams to Newhaven

Published on Monday 4 July 2011 16:45

THE Capital's tram debacle has sparked interest from around the world from firms interested in completing the route, it has emerged.

&#149 The tram lines on Princes Street

City leader Jenny Dawe said she had received a number of inquiries from companies interested in completing the line to Newhaven.

It comes after councillors backed a plan to build the tram line to St Andrew Square, leaving officials just two months to make up a 228 million shortfall.

Councillor Gordon Mackenzie, the city's transport leader, said the council was exploring the possibility of a private firm building the remainder of the 11.5-mile route and allowing the council to rent it back.

But any decision on the rest of the route will only be made once officials have a clearer idea of how to fund the stretch between Edinburgh Airport and the city centre.

Councillor Dawe said the focus was currently on finding the cash needed, but said there had been a good deal of interest in the future of the project.

She said: "The challenge now is to find the money. I have to say there are no shortage of ideas coming forward and I have been surprised by the number of e-mails I have had from all over the world - some from well-known companies. Many of these will be complete non-starters, though, because everyone thinks they understand the Edinburgh tram project but often they do not. Nevertheless, there are a lot of people that have a real willingness to help."

A report released in the run-up to last week's council meeting showed a tram line between the airport and St Andrew Square would have a positive benefit/cost ratio of 1.85 - meaning a profit of 1.85 for every 1 spent. However, the figure was based on a calculation which removed "sunk costs" or money already spent on the tram line.

When the cost of the project was included, the benefit/cost ratio fell to a loss-making 0.73.

Councillor Gordon Mackenzie said one of the options being explored for the rest of the route was having a private firm build the line and then rent it back to the council.

He said: "I have had a couple of approaches from different companies. We are happy to discuss it, but our position is that we're not going to actively take any of this forward until we have a clear decision on funding to St Andrew Square."

Last week Transport Minister Keith Brown signalled that the Scottish Government was ready to help fund the trams by letting Edinburgh borrow against future business rate income.