LONDON: FirstGroup plc 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, FirstGroup 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.”
FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With £4.8 billion in revenue and around 30,000 employees, we transported more than 1.8m passengers a day in 2022/23.