I am very pleased to announce that we have successfully completed the acquisition of Jarvis’ interest in Tube Lines having paid a £95.5 million initial cash investment. The total transaction value is £160 million with the remainder as letters of credit for future commitments. This purchase of an additional one third makes us the significant shareholder in one of the most important infrastructure projects in the UK.
Our interest in Tube Lines, Europe’s largest Private Finance Initiative (PFI) now amounts to two-thirds (66%). This is a highly significant development for Amey as it further consolidates our position as the leading UK provider of Infrastructure Services. As a founding member of the Tube Lines Consortium, we possess the knowledge and expertise to deliver upon the Tube Lines’ objectives of improving the infrastructure of the London Underground and offering a better service to the travelling public.
What is Tube Lines?
Tube Lines is a 30 year contract with London Underground, through which we are responsible for the upgrade, renewal and maintenance of the Jubilee, Northern and Piccadilly lines infrastructure, including over 200 miles of track, 251 trains, 100 stations, 2,395 bridges and structures, 71 lifts and 227 escalators. In the first 7½ years of the contract Tube Lines will fund a £4.4 billion investment in these assets to improve the journey of 600 million passengers each year.
Our acquisition means that we will work closely with Bechtel, our Tube Lines partner, to ensure Tube Lines’ continuing success. Bechtel is well known in the UK for its work on the Jubilee Line extensions and the Channel Tunnel. The joining of Amey and Bechtel brings together some of the most experienced providers of infrastructure services with specialist skills in the rail industry, including track and signal renewals, plus project and operational management. Combined with the 2,500 strong workforce, who transferred to Tube Lines from London Underground, we bring the skills and resources to support and deliver the vital modernisation
Amey – a growing business
The last 12 months have seen very positive growth across Amey, and following this further investment in Tube Lines, our turnover now stands in excess of £1.1 billion per year. This demonstrates the outstanding progress we have made over the last 18 months through continual, controlled growth in line with our core capabilities and the long term stability we now enjoy as a result. Against this background, and in the light of a promising pipeline, we can look forward to further successes.