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Nexus is the Tyne and Wear Passenger Transport Executive who administer funds on behalf of the Tyne and Wear Passenger Transport Authority. RMT members working on the Metro are employed by the Passenger Transport Executive.
The forthcoming modernisation project involves the private sector being enlisted in the delivery of the investment and it now seems likely that the proposal will involve the proposed transfer of some RMT members to the private sector.
The Tyne and Wear Metro was the first new light rail scheme to open in 1980. It converted under used local rail lines into a high frequency operation linked by new city centre tunnels and stations. It is also linked into the local bus network.
Since its opening the Metro has been extended to Newcastle Airport (1991) and Sunderland and South Hylton (2002), the later in partnership with Network Rail. Also some tracks are shared with Northern Rail and freight operators.
Originally there was a £3bn 15 yr investment plan devised by NEXUS to expand the Metro with eight routes into Newcastle city streets but this has now been scaled back in favour of busways.
The Metro stations now require refurbishment and the train fleet will no longer be fit for purpose after 2016. Other investment is required to modernise signalling, stations and ticketing machines.
The intention is to renew as opposed to replace the existing assets as it has been stated that it is too hard to predict future demand. The intention is for the modernisation plan to equip the Metro for a further 20 yrs operation and for a few smaller scale enhancements.
Only undertaking the absolute minimum level of investment to keep the system open will result in deteriorating performance and a growing backlog of maintenance. Tyne & Wear Metro are selling the investment proposal as the best value long term deal for the taxpayer.
Nexus have put forward the following proposal. There are three phases to the project which requires total funding of £600m:
Phase 1 – replacement of ticket machines and gating, (proposals being submitted through a bid for Regional Funding Allocation support).
Phase 2 – A nine period of investment plan that takes place on the basis that phase 1 is permitted. It covers the major operations, renewal and maintenance, including the extension of the life of the Metrocars, (this is the major investment and will cost £390m).
Phase 3 – The remainder of the plan but which will not be subject to economic or financial appraisal until future capacity becomes clearer.
The intention is to seek tenders from the private sector for the operation and/or infrastructure maintenance of the Metro. The project is being sold on the basis that preliminary research has shown that there is scope for better value through a tendering process. Also Nexus have argued that the current annualised funding approach does not provide the certainty of funding which is needed for the major renewal of the Metro, (although in 2006/07 a two yr funding allocation was agreed)
Once the bids come in they will benchmarked against the existing public sector comparator. The tender cannot go ahead until funding has been agreed by the DfT for the nine yr period.
Phase 1
The Regional Organiser has stated that Government funding to renew the ticket machines and barriers at city centre stations is shortly to be released. This will be delivered through a PFI type deal. At the moment the equipment is maintained through direct labour.
At a recent presentation on the project the Regional Organiser sought guarantees for RMT members future employment within the Passenger Transport Authority. He did not receive these and so refused to sign a pledge of support for the bid for Government funding, (AMICUS signed the pledge whilst Aslef failed to turn up).
