Docklands Light Railway: Franchising Operations in the Context of the Lewisham Extension Concession



Docklands Light Railway: Franchising Operations in the Context of the Lewisham Extension Concession

Authors

MAIER H, TecnEcon, UK

Description

This paper intends to outline the factors needing to be considered by the private sector and government agencies, in understanding and defining the financial and institutional interactions between different parties in the development and operation of a gr

Abstract

This paper intends to outline the factors needing to be considered by the private sector and government agencies, in understanding and defining the financial and institutional interactions between different parties in the development and operation of a growing railway.

The Docldands Light Railway (DLR) was planned as the public transport spine for the regeneration of the London Docklands area. The initial network of the railway was opened in 1987. Extensions to Bank and Beck'ton were implemented in 1991 and 1994 and the whole railway was progressively upgraded to provide more capacity for the growing development aspirations in Doc!dands. The idea for a further extension, under the River Thames to Lewisham is as old as that of the initial railway, but the scheme took much longer in the plarming phase. The concession to finance, build and operate the infrastructure of the Extension was signed in October 1996. In parallel, a franchise to take over the operation of the Railway was negotiated, and awarded to a management buy-out team in the spring of this year.

The franchise negotiations had to take account of the Lewisharn contract and were complicated by the formula derived for the Lewisham incremental revenue.

Publisher

Association for European Transport