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“Light rail is good for passengers, good for local economics, good for the local environment and it’s a mode of public transport that passengers really enjoy using.” These were the words of Local Transport Minister, Norman Baker, as he launched the government’s new policy drive on tram and light rail investment. And who can argue with him? Light rail has enjoyed something of a renaissance in the UK over the last thirty years after decades of decline as buses dominated public transport policy.
While light rail has been established and extended in several major cities, its development has still been limited compared with successes across Europe. Norman Baker wants to change that, saying: “I’m committed to doing everything we can to bring costs down to make it a viable option for more communities.”
The need for investment is clear. Not only has the government started to focus heavily on infrastructure as the route back to economic growth in the UK, but cities need new ways to move increasingly dense populations around their centres.
Andrew Boagey, business director with SYSTRA, the railway engineer and transport specialists, explained: “We can see the direction in which urban transportation is headed. Congestion in towns and cities increases and yet, in many cases, there is a legacy of unused heavy rail infrastructure. With careful attention to safety and innovative engineering, this can be put into use to serve new passenger markets and bring economic development.”
The DfT paper recognises that along with the economic activity created by building new light rail routes in urban areas, existing light rail systems have had significant positive knock-on effects on the areas they serve. However, it also notes that there are difficulties for local authorities looking to finance such projects.
There are strict limits on what proportion of a project cost can be met locally. The government is proposing to ease these limits by bringing the rules for light rail and trams into line with other forms of public transport. Since 2000, the DfT has required that 25% of the cost of new light rail projects be met through local contributions, compared to 10% for other modes.
Government is also keen to see the overall cost of light rail bought down. Alongside concerns that infrastructure costs more to build in the UK than across Europe, the report highlights wide variations in the cost of light rail projects within the UK.
While the report itself focuses on how a more uniform approach to design may help reduce costs overall, figures included on cost per mile of track suggest that very short projects may not maximise outcomes. Projects of around five miles in length appear disproportionately expensive, though once a project reaches ten miles of track, the economies of scale no longer appear strong, suggesting there is little additional cost saving from very long lengths of track.
Government also recognises that there have been specific problems with the procurement process for some projects in the UK. To help to overcome this, a new centre for procurement excellence will be established within UKTram. Procurement can prove complex, time consuming and costly for major infrastructure works and moves to resolve that in any sector is a welcome recognition that efficient procurement leads to better outcomes.
One area that the paper leaves unanswered is that of moving utilities such as water pipes and electricity cables away from the routes along which trams will run. However, the concern is not entirely unaddressed. The DfT has announced plans for a consultation on the subject to help bring business, local government and the utility companies themselves to examine possible solutions to a problem that can significantly raise the cost of light rail and trams.
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