New Serco blow as £125m DLR contract is lost
Friday 04 July 2014
Serco has lost a £125m-a-year contract to run London’s Docklands Light Railway to a joint venture partly controlled by the French government.
The outsourcing giant had been operating the DLR since 1997 but was beaten by Keolis and Amey Rail in the tendering process. Keolis’ major shareholder is France’s state rail operator, SNCF.
The news is a huge blow to Serco’s new boss Rupert Soames, who this week admitted he expected to write down the value of some of Serco’s largest contracts.
The company, which operates London’s Boris bike scheme, has been under intense pressure since last year when it was found to have overcharged the Government on contracts to tag offenders.
It has already downgraded its 2014 profit forecasts three times and launched a share placing to raise cash.
David Stretch, the 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. 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.”
Serco said the DLR contract had generated about £90m, or 2 per cent, of its annual revenues at a margin “significantly below the average level the group achieves on its contracts”. The seven-year Keolis contract is worth £700m.
Transport for London’s managing director for Underground and rail services, Mike Brown, said that the DLR “supports regeneration across a huge area of London”, and added: “The decision to appoint Keolis Amey Docklands was reached after a thorough and competitive procurement process, which will ensure the DLR continues to deliver an ever-improving high-quality, value-for-money service.”
- 2 The black and blue dress: Makers considering a white and gold version
- 3 This is what it's like to be dead, according to a guy who died for a bit
- 4 PornHub turns masturbation into energy in bid to save the planet
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...