Transport chiefs to give Euro bike rental idea a spin

The initiative, based on similar schemes on the Continent, would initially focus on the trams route, but could later be extended to the New Town, Stockbridge, Marchmont and Merchiston with up to 2500 bikes in operation.

Bikes would be available to rent from secure docking stations, with payments only accepted by credit card, which would deter vandalism as users could be traced.

If the Edinburgh scheme mirrored examples in other cities, the first 30 minutes would be free with charges then rising by around 2 an hour. There would also be a small subscription fee to help cover running costs. It is unlikely helmets would be provided.

A 20,000 study has estimated a demand in the Capital for 12,000 individual bike hires per day from a mix of students, tourists, commuters and office workers.

Councillors are now set to call in external consultants to help draw up a business plan, which will focus on ways to raise the 2.8m set-up costs. Options will include advertising on the docking stations, sponsorship of the bicycles, and financial assistance from developers involved in the Leith Docks regeneration plans.

Marshall Poulton, the council's head of transport, said: "The results of the feasibility study show an appetite for a bike sharing scheme for Edinburgh.

"The idea certainly fits in well with our local transport strategy which is being implemented to improve the transport mix in the city in a sustainable way.

"There are significant cost implications associated with such a scheme. It is not realistic to assume these costs could be fully borne by the council.

"The next stage of work will be to look at how such a scheme would be implemented."

The study analysed 15 European schemes, including ones in Brussels, Paris and Barcelona. The Brussels scheme is the cheapest – 1.60 for up to three hours' hire – while Paris is the most expensive at 12 for the same period.

Dave du Feu, a spokesman for cycling lobby group Spokes, today urged the council to press ahead with the plans "hard and fast", though he said: "The overall cost is very high in relation to the amount of money spent on cycling in Scotland.

"The council has to look at (raising money through] advertising very carefully, and shouldn't turn it down out-of-hand.

"It's really important that if bikes are being offered to visitors, then the cycle routes have to be as welcoming and safe as possible."

Bike sharing was part of the Conservative's local election manifesto, and the new study was carried out on the back of a motion from group leader Iain Whyte.

He said today: "I'm delighted that this is moving in the right direction, and I hope the council will continue to do the research.

"I came across a bike station scheme in Lyon and they managed to do it without a huge injection of public cash – it was mainly paid for through advertising. Hopefully we can make this cost-effective, as it will be very useful for people living and working in Edinburgh, as well as tourists."