5.2 Blackpool to Fleetwood Tramway

Cross Border Scheme in Partnership with  Blackpool Borough Council

Tram travel for business, leisure and commuting purposes is an established component of the busy public transport network on the Fylde Coast. Its availability, uninterrupted over the last 120 years, has had a profound influence on the scale, density and form of urban development and today it still provides vital links between residents and jobs; holiday makers and holiday attractions.

Regeneration of Blackpool's resort economy now sits high on the agendas of the Borough Council, the North West Development Agency, the DTI, and the ODPM. Regeneration of the resort core now benefits from the focused attention of the Development Agency, English Partnerships and the board of ReBlackpool, the recently formed Urban Regeneration Company.

The Blackpool and Fleetwood tram system has unfortunately deteriorated and will, without major investment, very quickly cease to operate as a legitimate public transport system. The 18 km long tramway will close in stages, beginning next year, and will reduce over a 4/5 year period to a 3 km long tourist ride within the resort core.

Regeneration on the scale anticipated in the Masterplan, Regional Economic Strategy and Northern Way Growth Strategy is dependant upon continuing access to a mass public transport system in the form of a modernised Blackpool and Fleetwood Tramway.  Blackpool is determined to ensure that the current, once in five generations, opportunity to regenerate the economy is maximised and the perverse prospect of growth in travel demand and decline in capacity for mass travel on the public transport network is avoided.

This determination is reflected in the revised proposal embodied in this major scheme bid.  This is a pragmatic and very individual response to the challenge put to Blackpool DfT, which was to;

• produce an affordable proposal with a high benefit to cost ratio
• retain an integrated tram and bus operation on the Fylde Coast
• introduce contemporary business management and operational practices.

The revised proposal is simpler, presents less risk than other UK light rail schemes and produces a robust Benefit to Cost Ratio as;

• the Right of Way and other key assets are already provided
• there is an existing operator and patronage base from which to predict future performance
• the promoters are the planning and highway authorities
• the historic alignment is free of utilities equipment
• the project can be phased and each increment will bring benefits, unlike completely new schemes
• the cost of £5.1m per km is a fraction of typical modern light rail projects

Scheme Description and Costs

The preferred option presented in this business case comprises investment in the entire length of the existing alignment (trace, retained stops and associated highway works), including;

• provision of platforms at a reduced number of stops to provide level boarding
• track relay to maintainable tramway standards and removal of redundant points etc.
• tram priority at highway junctions
• procurement of 16 Skoda Astra single ended vehicles for provision of core services at increased frequency
• additional timetabled services to be provided by single-deck, single car refurbished units coupled to low-floor trailers
• special excursion services to be provided by refurbished (non-RVAR compliant) heritage units at the commercial risk of the operating company
• upgrade to overhead electrical infrastructure to accommodate the new vehicles and extension of power supply upgrade to the Northern section
• redeveloped depot to accommodate/maintain active service vehicles.

The forecast outturn cost of the scheme is £95.9 million, of which 25% will be funded locally. This application therefore seeks £71.9 million of Central Government Funding for the proposals.

 Table 5.2a Forecast Outturn Costs (£000)

	2006/07	2007/08	2008/09	Total
DfT Central Government	£8,182	£25,960	£37,775	£71,917
Blackpool Borough Council	£1,364	£4,327	£6,296	£11,986
Lancashire County Council	£1,364	£4,327	£6,296	£11,986
Total	£10,910	£34,613	£50,367	£95,890

Funding is urgently required to prevent the closure of sections of the system and there is, therefore, no flexibility in the start date. However, there is some flexibility in the phasing of costs and the promoters welcome discussions over this with DfT. The forecast outturn values are only valid for the assumed phasing presented in this report. Should the proposed implementation be delayed for any reason, increased funding would be required.

Progress Since Previous Application

A great deal of progress has been made since the 2001 application was eventually rejected in July 2004. This progress includes both physical renewal works extending the life of the most critical sections of the infrastructure, and, importantly, developing knowledge and experience of implementing the type of works which make up much of this application.

A number of development studies have also been undertaken, including a full assessment of the condition of the track. Studies examining the options for rolling stock upgrade, depot rebuilding, upgrading of electrical infrastructure and procurement have also been undertaken and these are all detailed in this application.

However, track and electrification surveys undertaken to inform this bid show that the condition of key elements of the infrastructure has continued to deteriorate. The level of intervention required is well beyond the ability of internal resources to fund.

Unless immediate investment decisions are taken, it will be necessary to move quickly to a reduced length of system, to ensure that the minimum extent can be properly maintained. Any delay in a decision on this bid will prejudice the making of investment decisions, in the light of uncertainty regarding the future of the system.

Aims and Objectives of the Proposal

The appraised options for the future of the Blackpool and Fleetwood tramway were selected to;

• guarantee the future of the historic Blackpool and Fleetwood tramway as a competitive part of an integrated transport network
• make best use of the existing segregated track alignment
• make a positive contribution in the delivery of LTP2 shared priorities, objectives and targets in Blackpool and Lancashire
• play a major part in enhancing the Fylde Coast as a destination for tourists
• provide a sustainable means of transport through Blackpool and in Fleetwood
• support the sustainable regeneration of the Fylde Coast's deprived areas.

Strategic Conformity

The proposals demonstrate excellent strategic conformity with national, regional and local policies and objectives. The preferred option demonstrates the greatest contribution towards meeting LTP targets and satisfying the objectives set for the scheme.

Table 5.2b Appraisal and Value for Money

	Preferred Upgrade Option
Journey Ambience	£93.7
Accidents	£2.0
Business Users and Providers	£41.1
Present Value of Benefits (PBV)	£211.7
Present Value of Costs (PVC)	£135.1
Net Present Value (NPV)	£76.6
Benefit to Cost Ratio (BCR)	1.57

It is clear from the appraisal that the performance of the preferred option is superior in all respects to the alternative options. The proposal represents medium value for money and the economic appraisal is robust to changes in the underlying growth assumptions as well as variations in key parameters.

State of Readiness

The proposals are at an advanced state of readiness. Planning permission is required for some minor elements of the scheme but there is no reason to believe that this will not be forthcoming. The promoters have recent experience of procuring and managing upgrades to the tramway, have proven partnership-working experience and are advised by a strong team of lawyers, consultants and technical specialists.

Procurement Strategy

Following DfT advice, the scope of the scheme has been developed in a way that is most likely to control the costs and risks involved with the investment.  This has involved comparing the procurement of the upgrade through a DBOM consortium with the letting of separate contracts.  Because of the straightforward nature of the civil engineering required and the limited number of rolling stock options, it is clear that the latter approach retains the best control of costs and the most transparent risk allocation.

The promoters have engaged with DfT on the production of two fully evaluated options for procurement of an operator, based on the clear benefit  both to the scheme and to the local public transport network of retaining a single bus/tram operation.  However, the transport company asset is also key to delivery of Blackpool Council's local contribution to the scheme costs, and political support has been gained for radical options, provided the outcome is a fully renewed tramway.

Options of almost full disposal of the company, and funding of Prudential Borrowing against future revenue streams from the company have been investigated. Whilst further evaluation of financial outputs is required, with input from DfT advisors, both options still seem to meet minimum criteria. In terms of performance against scheme objectives, the Prudential Borrowing option is marginally preferred, due to the integration benefits for public transport policy and operations overall.

Back to Top