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.”
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 3 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
- 4 Vagina canoe artist defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...