NET have released a statement on their social media accounts regarding the issues yesterday:
Unfortunately these sorts of centralised IT systems are somewhat failure prone. I wouldn't be surprised if it was a single server that managed to bring down the radio system - from what I've seen of drivers interacting with it in the cab, it is reasonably sophisticated.
Regarding ongoing maintenance/budgetary issues, it is clear that NET are in a period of adjustment as the oldest track and rolling stock approach their 20th year of intensive operation and begin to show wear. This probably isn't just a budgetary strain, it is also going to be a learning experience for staff and management at the firm.
Regarding Budgetary Issues
Fortunately, large shareholder owned companies in the UK provide public access to their accounts and NET, or Tramlink Nottingham Limited, is no exception:
https://find-and-update.company-inf...c1OWFkaXF6a2N4/document?format=pdf&download=0
One of my friends dug through and made an observation regarding the way NET calculates depreciation:
Note all Phase Two assets are rather crudely calculated to reach the end of their useful life in 18.5 years, presumably once the PFI repayment term ends.
Of course, NET will continue to maintain the infrastructure and keep it in working order over that time, therefore one could make the point that, unless the entire of phase two has been rigged with explosives to detonate exactly 18.5 years after the construction contractors handed it over to Tramlink to operate, this depreciation calculation is somewhat crude and irrelevant. It's more of a paper exercise to keep the investors and their accountants happy. The only caveat is that this charge also counts computers and office equipment, which will probably have a value in the region of £1,000,000. This nets us a yearly depreciation of approximately £333,000. As we'll see in a minute, chump change relative to phase two depreciation 'estimate'.
Here is the profit and loss account for Tramlink in FY 2022. Recorded loss before taxation is £20,424,000. However, let's go to note number 3...
As seen in note number 3, operating profit is stated after crediting and charging the following:
+ £12,559,000 DfT Covid grant.
- £46,000 payable to auditors EY.
- £25,153,000 in estimated depreciation (if phase two was levelled with artillery bombardment exactly 18.5 years following construction).
Let's do some napkin maths:
Removal of depreciation estimate gives us an 'operating profit' of £39,911,000 versus £14,758,000.
This gives us a profit before taxation of £4,729,000 versus £-20,425,000
Remember, this is after repayments on PFI loans are taken off, the lot. So really, the tram system financially isn't in as dire straights as it is often made out to be.
I try and avoid using the tram now especially after the recent reliability issues and price rises. From my house to Nottingham, its almost half the price to get the bus over the tram now
An adult day ticket on the tram is £5, which is £1 more than two £2 discounted bus single fares. That's pretty far off being double the price.
