Manchester Trams Contract at Risk

The latest Companies House report reveals that RATP Dev Ltd, the current operator of Manchester’s Metrolink network, is not the preferred bidder for the upcoming contract renewal. This development could see a new contractor take charge of the city’s trams from July next year.

For a deeper look at the bidding process, see our detailed analysis of Metrolink contract bids.

RATP Dev’s Ten-Year Tenure

Since May 2007, global transport giant RATP Dev Ltd has operated the Metrolink network under a 10-year agreement with Transport for Greater Manchester (TfGM). When the contract was set to expire, four companies were shortlisted to bid for a new seven-year deal beginning July 2017:

• RATP Dev Ltd
• KeolisAmey
• National Express
• Transdev

Key Financial Findings

The strategic report up to December 2015 highlights:

• A pre-tax loss of £3.6m, largely attributed to the maintenance element of the contract amid major expansion works.
• Plans for the Metrolink branch to be “wound up”, with staff potentially transferred to a new operating company if RATP Dev loses the contract.

It remains unclear whether any jobs will be at risk when the new operator takes over.

Union Reaction

Stephen Morris, General Secretary of the Workers of England Union, expressed shock that such information was published before employees were informed:

“As a trade union official, we want to ensure that employees are informed. They have been on tenterhooks the last few months. They could see that RATP Dev officials had been visiting from the Paris head office and they have been concerned about their jobs. We don’t yet know if jobs are at risk.”

Next Steps in the Tender Process

A TfGM spokesperson confirmed that KeolisAmey, National Express, Transdev and RATP Dev all pre-qualified to bid for the new contract. While the selection of the preferred bidder is nearing completion, TfGM has not yet made an official announcement.

Once awarded, the new contract will coincide with the Metrolink’s 25th anniversary and the completion of the Second City Crossing — the final piece in an expansion that has tripled the size of the original network. The Trafford Line extension also received government approval this month.

Looking Ahead

RATP Dev’s parent company remains one of the world’s five largest transport operators, running 12% of London’s 8,600 buses for Transport for London and 4,500 buses in Paris. Should they lose the Metrolink contract, RATP Dev UK has indicated plans to pursue opportunities in franchised bus services under a future Manchester mayor.

For more on Manchester’s tram developments, check out our piece on the Manchester tram network extension.