Stock Market News
Keolis Amey Docklands beats Serco and Stagecoach to DLR deal - UPDATE
04-07-2014 07:16
Add To Google +1 | Tweet |
A consortium including the UK arm of French railway SNCF and support services group Amey has won the contract to run London's Docklands Light Railway, beating off competition from support services group Serco and transport group Stagecoach.
Transport for London (TfL) said it had chosen Keolis Amey Docklands (KAD) to run the light rail network in east London from December until 2021.
TfL said it would work with KAD to ensure good interchanges between the DLR and London's new Crossrail service, which should open in about three years' time.
TfL's Managing Director of London Underground and Rail, Mike Brown, said: "The decision to appoint Keolis Amey Docklands was reached after a thorough and competitive procurement process, which will ensure the DLR continues to deliver an ever-improving high quality, value-for-money service."
The announcement will come as bad news for rival bidders Serco and Stagecoach.
Serco, which has been embroiled in a controversy over prisoner tagging in the UK, said the DLR deal was worth about £90m in revenue to it in 2013, or 2% of the group's overall revenues, at a margin that it said was "significantly below the average level the group achieves on its contracts".
David Stretch, Managing Director of Serco's Transport business, said the company was disappointed by its failure to renew the contract.
But he pointed out that Serco, which also runs regional rail services in northern England, has just won a 15-year deal to run sleeper train services between London and Scotland.
"We remain excited by the opportunities we see to transform services for passengers in the transport market," he said.
A Stagecoach spokesman said: "We are disappointed not to have won the DLR franchise. We submitted a strong, customer-focused bid, which we believe delivered good value to the taxpayer.
"We always look to submit bids we feel are financially and operationally deliverable. As a matter of course, we will seek feedback from TfL on our bid as part of our evaluation of the outcome."
PW
Transport for London (TfL) said it had chosen Keolis Amey Docklands (KAD) to run the light rail network in east London from December until 2021.
TfL said it would work with KAD to ensure good interchanges between the DLR and London's new Crossrail service, which should open in about three years' time.
TfL's Managing Director of London Underground and Rail, Mike Brown, said: "The decision to appoint Keolis Amey Docklands was reached after a thorough and competitive procurement process, which will ensure the DLR continues to deliver an ever-improving high quality, value-for-money service."
The announcement will come as bad news for rival bidders Serco and Stagecoach.
Serco, which has been embroiled in a controversy over prisoner tagging in the UK, said the DLR deal was worth about £90m in revenue to it in 2013, or 2% of the group's overall revenues, at a margin that it said was "significantly below the average level the group achieves on its contracts".
David Stretch, Managing Director of Serco's Transport business, said the company was disappointed by its failure to renew the contract.
But he pointed out that Serco, which also runs regional rail services in northern England, has just won a 15-year deal to run sleeper train services between London and Scotland.
"We remain excited by the opportunities we see to transform services for passengers in the transport market," he said.
A Stagecoach spokesman said: "We are disappointed not to have won the DLR franchise. We submitted a strong, customer-focused bid, which we believe delivered good value to the taxpayer.
"We always look to submit bids we feel are financially and operationally deliverable. As a matter of course, we will seek feedback from TfL on our bid as part of our evaluation of the outcome."
PW
Related share prices |
---|
Serco Group (SRP) share price |
Stock News is provided by Digital Look Corporate Solutions from Sharecast news. Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- RBS share price
- Diageo share price
- Standard Life Share Price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- Morrisons Share Price
- Aviva Share Price
- LGO Share price
- Tullow Oil Share Price
- SXX Share Price
- Easyjet Share Price
- Next Share Price
- Thomas Cook Share Price
- SSE Share Price
- IAG Share Price
- Bat share price
- Monitise Share Price
- Kingfisher share price
- Dragon Oil share price
- UKOG share price
- SOLG share price