Update on DLR contract rebid

RNS Number : 4362L

Serco Group PLC

04 July 2014

 

Update on Docklands Light Railway rebid

4 July 2014

Serco Group plc, the international service company, has been informed by Transport for London (TfL) that it has been unsuccessful in its rebid for the franchise to manage, operate and maintain the Docklands Light Railway (DLR).  The current franchise, which was due to end on 14 September, has been extended to 7 December 2014, at which point the service will transfer to the new franchisee.  In 2013, the DLR franchise generated revenue to Serco of approximately £90m, or 2% of the Group's overall revenues, at a margin that was significantly below the average level the Group achieves on its contracts.

Serco has been proud to operate the DLR since 1997 under two consecutive franchises, carrying over one billion passengers and achieving award-winning improvements in service reliability and customer satisfaction.  It now stands as one of the highest-performing light rail systems in the world, and in the last twelve months has delivered in-service reliability of over 99%.  We are also proud of our flawless delivery of transport services during the Olympics, when we carried more than double the normal number of passengers.

Commenting on the announcement, David Stretch, Managing Director of Serco's Transport business, said: "We are obviously disappointed that we have not been selected to continue to manage and operate the DLR.  I would like to thank all our colleagues who have worked hard to deliver what is a world class service and we are very proud of what we have all achieved for the citizens of London over the past seventeen years.  We remain excited by the opportunities we see to transform services for passengers in the transport market, as illustrated by the recent award of the 15-year contract to run the Caledonian Sleepers service for Transport Scotland.

"We will continue to provide DLR passengers with the best possible service until the new operator starts later this year and we will work closely with them to ensure a seamless handover."

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For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is an international service company, which combines commercial know-how with a deep public service ethos.

Around the world, we improve essential services by managing people, processes, technology and assets more effectively.  We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public.

Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence.  Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors.

More information can be found at www.serco.com

Serco's transport business

Serco delivers innovative transport solutions, whether by air, road, water or rail, to public transport authorities, government departments and commercial enterprises around the world.

Our focus on operational efficiencies and improving sustainability support our customers in meeting their strategic aims and objectives.  Serco's experience in providing a wide range of multi-modal transport solutions in Europe, the Middle East, Asia and North America enables us to tailor our services to meet the needs of a diverse travelling public.  Our aim is to ensure that by delivering high-quality services, we can make a difference to people's journeys and lives.

Serco has a successful track record and compelling offer in both the UK and global light and heavy rail markets.  Most recently we were awarded the franchise by Transport Scotland to manage and operate the new and prestigious Caledonian Sleeper service, worth up to £800m over the 15-year contract period, beginning in April 2015.  We operate Northern Rail, the UK's largest passenger rail franchise, as well as Merseyrail with our joint venture partner Abellio.  Since 1997, Serco has operated and maintained London's award-winning Docklands Light Railway (DLR).  In Australia, we own Great Southern Rail which operates iconic tourist trains - the Indian Pacific, the Ghan and the Overlander.  And in the Middle East we have been operating the driverless Dubai Metro system since its inception 2008 and have recently secured a five-year extension to 2019.

Serco has operated NorthLink Ferries on behalf of the Scottish Government since 2012.  The lifeline ferry service links the Orkney Islands and Shetland Islands with the UK mainland.  Serco has refurbished the three passenger vessels and improved the services with innovative Sleeping Pods, new showering facilities, refreshed menus using more local produce, and better onward public transport connections.  Serco has also invested in a marketing campaign, including partnerships with VisitScotland and local promotion bodies.  Serco created a bold new brand for the service that is designed to excite tourists by using the Viking heritage of the Northern Isles.

Serco operates the iconic Barclays Cycle Hire Scheme in London on behalf of Transport for London (TfL).  Launched in 2010, Serco designed, built and implemented this innovative scheme, in conjunction with TfL.  Today, the scheme has seen over 26 million hires and has been expanded across the capital.  In January 2014 Serco signed a two-year extension to continue running the service until January 2017.

In the USA, Serco provides a bus transportation service to and from Washington Dulles International Airport for the US National Conservation Training Centre.  We also provide on demand and scheduled bus services for the UK's Royal Air Force.

Serco is the only significant non-government provider of air traffic services in the world.  We operate on a global basis and handle about six million aircraft movements each year at airports in Europe, the Middle East and North America on behalf of customers including the UK's Ministry of Defence, the US Federal Aviation Administration and the United Arab Emirates' Area Control Centre in Abu Dhabi.

Serco also recently secured a major US contract to integrate and operate the state of Virginia's five transport operation centres and the contract to operate the Dubai Tramway system.

 

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