Amey has today announced that it has reached financial close in the sale of its equity in Tube Lines (Holdings) Limited to Transport for London (TfL). Amey along with its partner in the contract Bechtel has entered into an agreement on 7th May 2010 to sell their interests in Tube Lines to Transport for London (‘TfL’) for a total of £310 million.
The decision will allow TfL more flexibility so that it can manage the project in line with its changing needs.
During the first seven and a half years of the Tube Lines contract with TfL, Amey has been responsible for the maintenance and Bechtel the capital improvements projects on the Jubilee, Northern and Piccadilly lines. On completion of the sale, Amey will continue to manage the delivery of around £300m of maintenance services for Tube Lines per year for the next 7.5 years.
Mel Ewell, Chief Executive of Amey, commented: “Amey is pleased to have reached financial close in relation to the sale of our equity interest in the project and we are very much looking forward to continuing to work with TfL and LU to provide the on-going maintenance and management of the Piccadilly, Jubilee and Northern lines.”
“We are proud of our record over the last seven and a half years and the results we have achieved – these include a significant reduction in delays across all three lines, increased reliability, improved safety and reduced costs. We look forward to building on these achievements and further strengthening our partnership with TfL so that together we can deliver a world-class transport service to the people of London.”
Tube Lines have implemented a number of improvements since the start of the project including:-
- 57% fewer passenger delays across the three lines
- 70% improvement in reliability on the Piccadilly line
- 17% improvement in reliability on the Jubilee line
- 65% improvement in reliability on the Northern line which consistently out performs all other lines on the network
- 88 Tube Lines station upgrades and delivered into service on or ahead of schedule
- 50% and 40% reduction in costs for station upgrades and track works respectively
Tube Lines has also focused heavily on improving the safety standards across the contract and vastly improved safety with employees and contractors working on Tube Lines’ sites now being over 20 times less likely to have an injury than when the contract started.
Notes to editors
Tube Lines
Tube Lines is responsible for the maintenance and upgrade of the infrastructure on the Jubilee, Northern and Piccadilly lines. London Underground is responsible for operating the Underground, for employing drivers and station staff, for ticketing and fares, and for the Tube’s safety regime.
Amey owns two thirds of Tube Lines and Bechtel owns the remaining third.
Key improvements – since beginning the contract in 2003, there now is
57% fewer passenger delays across the three lines
70% improvement in reliability on the Piccadilly line
17% improvement in reliability on the Jubilee line
65% improvement in reliability on the Northern line which consistently out performs all other lines on the network
88 Tube Lines station upgrades and delivered into service on or ahead of schedule
50% and 40% reduction in costs for station upgrades and track works respectively
Safer
Safety on the network has been enhanced. Employees and contractors working on Tube Lines’ sites are now over 20 times less likely to have an injury than they were when Tube Lines assumed responsibility for its three lines, when the lost time injury frequency rate (LTIFR) was 1.40. The LTIFR is now 0.08