THE Midlands Metro tram network will be brought back into public control when the current contract with private operator National Express expires next year it has been announced.
Transport for West Midlands (TfWM), formerly known as Centro, will operate the network for the next few years while it undergoes a major expansion with a series of extensions and new lines planned.
The move will also allow TfWM, the transport arm of the West Midlands Combined Authority (WMCA), to invest an estimated extra £50 million profit over 11 years into growing the network.
Already an extension along Broad Street and Hagley Road, another through Digbeth and East Birmingham to the Airport and a further extension from Wednesbury to Brierley Hill are scheduled to be built.
These plans could also be added to after a new West Midlands Mayor is elected in May .
So TfWM bosses argue that taking the Metro in house will give them greater flexibility to alter plans, launch new lines and redirect services without having to renegotiate complex contracts with private sector operators.
Existing and experienced National Express staff will be transferred over to the new public sector Midland Metro Ltd when the private operator’s contract expires in October 2018.
Regional transport chief Roger Lawrence said: “Metro is a fundamental part of our future plans not only for transport but for the West Midlands economy as a whole.
“It is a proven catalyst for economic growth and is critical to best connect and feed into HS2 so we can reap the maximum economic benefits possible from the high speed rail line.
“That’s why Metro is embarking on an unprecedented period of expansion and we believe bringing services in house will provide the extra flexibility and adaptability needed to meet this exciting new chapter while generating millions of pounds for the benefit of passengers and taxpayers.
“I’d like to thank all National Express staff for operating the Midland Metro for the last 18 years. Through their hard work and dedication, tram passenger numbers have grown significantly and they have been nationally recognised for the high level of customer service they provide.”
The combined authority is set to start a number of extensions which will see the network triple in size over the next decade, with passenger numbers forecast to increase from around 6.5 million at present to more than 30 million.
The WMCA board was also told that putting the contract out to tender would cost millions and take time
Colin Saward, general manager of National Express Midlands Metro, added: “It’s disappointing we won’t get the chance to run the tram service when our current contract is up next year. But we appreciate TfWM’s reasons for taking services back in house when the network is about to change so much.
“We will continue to work closely with TfWM to ensure a safe handover that is as smooth as possible for passengers and staff.”
Laura Shoaf, managing director of TfWM, added that seeking another commercial operator would lead to ‘continuous and expensive commercial negotiations’.
She said: “While bringing operations in house is not without risk we believe those risks are far outweighed by the advantages and that ultimately the move is good for passengers, good for taxpayers and good for the future prosperity of the West Midlands.”
The WMCA board last week rubber stamped £59 million funding towards the extension of the Metro along Broad Street, past Five Ways and on to Edgbaston by 2021.
