FirstGroup awarded London Cable Car contract

[Snow1964]

It has been reported that First Group have gained the contract to operate the London cable car.

FirstGroup Plc - Award of London Cable Car contract – Company Announcement - FT.com

The latest company information, including net asset values, performance, holding & sectors weighting, changes in voting rights, and directors and dealings.

markets.ft.com

FirstGroup plc ('FirstGroup' or the 'Group') is pleased to announce that it has been awarded the contract by Transport for London (`TfL') to operate the IFS Cloud London Cable Car that links the Greenwich Peninsula with the Royal Docks area on the north bank of the River Thames.

The contract will commence on 28 June 2024 and has an initial core five-year term with the option to extend for a further three years. The Group anticipates revenues of c.£60m over the eight-year period of the contract, with patronage risk taken by the authority; there is also limited capital expenditure and contingent capital.

Over the life of the contract, the Group will support TfL in its vision to promote the cable car as a leader in London's leisure market. The Group is already working on plans to improve the service during the period of the contract, as well as creating educational outreach and work placements for school students in the local boroughs of Greenwich and Newham.

 

[JaJaWa]

Privatised?

FirstGroup Plc awarded IFS Cloud London Cable Car contract
March 21, 2024
8:12 am

FirstGroup plc (LON:FGP) has announced that it has been awarded the contract by Transport for London (`TfL’) to operate the IFS Cloud London Cable Car that links the Greenwich Peninsula with the Royal Docks area on the north bank of the River Thames.

The contract will commence on 28 June 2024 and has an initial core five-year term with the option to extend for a further three years. The Group anticipates revenues of c.£60m over the eight-year period of the contract, with patronage risk taken by the authority; there is also limited capital expenditure and contingent capital.

Over the life of the contract, the Group will support TfL in its vision to promote the cable car as a leader in London’s leisure market. The Group is already working on plans to improve the service during the period of the contract, as well as creating educational outreach and work placements for school students in the local boroughs of Greenwich and Newham.

Graham Sutherland, Chief Executive Officer, said:

“We are delighted to have been awarded the contract to operate the London cable car, the only urban cable car in the UK. We are looking forward to working with Transport for London in order to develop the customer proposition for this iconic London experience and landmark and place the service at the heart of its local community.”

“FirstGroup has been one of the largest transport operators in the country for nearly three decades, working with a wide range of partners under various forms of contract types, growing passenger demand, creating economic benefits for our communities and delivering significant infrastructure projects. We are actively pursuing opportunities to grow and diversify our portfolio and earnings through further opportunities in the UK, including participating in TfL tenders such as this.”

Source: https://www.directorstalkinterviews...fs-cloud-london-cable-car-contract/4121148406

 

[Tetchytyke]

£8m a year to run the Dangleway. Boris really is the gift that keeps on giving.

I bet TfL revenue from the Dangleway won’t even touch the sides of that.

ETA: not privatised, like most TfL stuff it has always been run by a private contractor. This seems to just be a change of contractor.

 

[steeevooo]

Privatised?

As far as I'm aware the London Cable Car has been operated by Mace Group since it opened way back when, so this is just a change of operator.

 

[Russel]

Why TfL are funding a fairground ride is beyond me.

Gifting it to someone like Merlin Entertainment would probably be a better long term idea.

 

[ScotGG]

It makes money doesn't it? So why get rid? It's ridership numbers are higher than before covid and given ever more built in the area that'll only increase.

It helps cross subsidise buses etc.

 

[skyhigh]

Gifting it to someone like Merlin Entertainment would probably be a better long term idea.

What, and keeping all the construction debt while someone else gains all the operating income?

 

[Tetchytyke]

It makes money doesn't it?

On ridership, no it doesn’t, not even close. But the sponsorship is enough to allow it to make an operating profit, which is used to repay the £60m cost of building the damn thing in the first place.

I’d agree that giving it away wouldn’t really work; part of the value of that sponsorship is that your name gets to appear on the tube map.

 

[Recessio]

Perhaps we'll see the return of "FCC", with First Cable Car?

 

[Wolfie]

Perhaps we'll see the return of "FCC", with First Cable Car?

That isn't the F which l've heard used in that context, lol....

 

[AY1975]

Slightly off topic and not sure if this belongs here or warrants a separate thread, but does anyone know if paper One Day Travelcard holders still get a discount of about 25% on the IFS Cable Car? I believe that this was the case until recently but I can't find any reference to that facility on the TfL website or anywhere else.

 

[JaJaWa]

Slightly off topic and not sure if this belongs here or warrants a separate thread, but does anyone know if paper One Day Travelcard holders still get a discount of about 25% on the IFS Cable Car? I believe that this was the case until recently but I can't find any reference to that facility on the TfL website or anywhere else.

Ended March 2023 https://www.london.gov.uk/who-we-ar...val-oyster-and-contactless-discount-cable-car (Wiki says Travelcard too)

 

[Russel]

How busy does the cable car get on a Saturday these days?