LRT split
Page 21
If you've noticed an error in this article please click here to report it so we can fix it.
NICHOLAS RIDLEY has approved London Regional Transport's plans to form subsidiary companies to run bus, railway and provide bus engineering facilities from April 10.
The new wholly-owned LRT subsidiary to run the buses will be London Buses. London Regional Transport is also establishing LRT Bus Engineering to provide bus engineering and overhaul facilities.
Both the bus operating and the engineering company will be expected to compete with other operators.
LB has already started to bid for bus service contracts from LRT, while BE will be expected to operate without subsidy as soon as possible.
It is to provide services to LB and other operators if possible and will also be able to buy in engineering services from elsewhere if required.
LRT is also expected to decide whether to back plans for a new purpose-built bus overhaul works on part of the present Aldenham bus overhaul site.
The new unit would cover around 18 acres and cost around £12m.
The new project could benefit from funds obtained from developing the remainder of the present 56 acres site. At present the Aldenham works receive 90 per cent of London Buses' work under the terms of a trades union agreement. don Country) which are out to tender at present.
London Country's tenders are understood to be among the lowest submitted by outside operators, although several independents have expressed serious interest in running one or more of the routes.
Others are known to have been deterred, partly by LRT's insistence upon the routes being run as an integral part of its own bus system.
They also fear that it will be easy for London Buses which the law demands should be treated at arms length by LRT and regarded as another independent company to compete against the subcontractors on common sections of routes.
But London Buses insists that it will not feel tempted to compete on the franchised routes if it loses any.
Marketing of the franchised services will be LRT's corporate responsibility as part of its endeavours to make the complete London public transport system known to a wider audience.