Tube Lines

Tube Lines Limited was a London-based rail infrastructure and asset-management company created to participate in the United Kingdom's public-private partnership programme for the London Underground. It was initially known as Infraco JNP, referring to the Jubilee, Northern and Piccadilly lines that formed its contract area. The company was established in 2000 by a consortium comprising Amey plc, Bechtel and Jarvis plc, during a period when the British government was seeking private-sector investment and management expertise for what it regarded as an underinvested Underground network. Under the PPP model, London Underground services remained in the public sector while private infrastructure companies, known as infracos, were given long-term contracts to maintain and improve the physical railway. Tube Lines became responsible for the infrastructure of the Jubilee, Northern and Piccadilly lines when its 30-year contract took effect at the end of 2002 and operational work began in April 2003. Its responsibilities covered track, trains, tunnels, signals, stations, bridges, embankments, drainage and other civil structures. The company also won a contract to operate the London Underground emergency response unit, serving the wider Underground network and other transport services. Tube Lines' contract included a major investment programme. The first 7.5 years were associated with commitments of approximately £4.4 billion, including the modernisation or refurbishment of 100 stations, replacement of 42 miles of track, improvements to civil structures, refurbishment and reliability work on trains, the addition of a carriage to Jubilee line trains, new signalling for the Jubilee and Northern lines, and a planned fleet of new Piccadilly line trains. The contract also used performance incentives and deductions: failures to meet availability and reliability standards could result in financial reductions, while improved performance could increase payments. The PPP model was controversial from its inception. Critics argued that the contracts were unusually complex, difficult for the public to scrutinise and potentially poor value compared with direct public investment. Parliamentary committees and the National Audit Office questioned whether the arrangements provided certainty that promised improvements would be achieved. Tube Lines generally performed better than the other Underground infraco, Metronet, during the early years. By the mid-2000s, it reported that its major projects were being delivered on schedule and that reliability had improved significantly on the lines under its control, especially the Piccadilly line. Nevertheless, several projects were delayed, modified or cancelled, and the company faced criticism over the disruption caused by weekend and late-night closures during Jubilee line signalling work. The commercial sustainability of the arrangement deteriorated during negotiations over the next phase of the contract. In late 2009, Tube Lines sought an additional £1.75 billion from Transport for London to cover a funding shortfall associated with planned upgrades. TfL rejected the request and referred the dispute to the PPP arbiter, who determined that a smaller additional amount should be provided. Rather than continue the PPP, TfL agreed in May 2010 to acquire the interests of Bechtel and Amey, the remaining shareholders, for £310 million. The transaction ended Tube Lines' role as an independent private infrastructure company and brought the Underground's infrastructure management into public ownership alongside the earlier takeover of Metronet. Following the acquisition, Amey continued to provide management and maintenance services for the Jubilee, Northern and Piccadilly lines under contract to TfL until the end of 2017. Tube Lines itself was subsequently rebranded as part of London Underground. Some planned improvements, including Northern line signalling work, were ultimately delivered, while other projects were delayed or cancelled. The company's history is therefore closely associated with both the ambitions and the eventual failure of the London Underground PPP model.

Tube Lines emerged from the British government's attempt during the 1990s and early 2000s to introduce private capital and management into London Underground infrastructure without privatising the operation of passenger services. The proposed model separated the network into a publicly operated service business and privately managed infrastructure companies. Private contractors would maintain tracks, trains, stations, tunnels and signalling under long-term contracts, while London Underground would continue to run trains and serve passengers. The Labour government pursued the model after the 1997 general election, presenting it as an alternative to full privatisation and as a way to address years of limited investment. The policy became politically contentious. London Mayor Ken Livingstone opposed the proposed PPP, while central government ministers supported it. The bidding process was also affected by wider public concern about private involvement in rail infrastructure following the Hatfield rail crash. Bob Kiley, Transport for London's first commissioner and a prominent critic of the arrangement, was placed in charge of the process and revised the contract requirements, forcing bidders to submit updated proposals. Tube Lines was founded in 2000 by Amey, Bechtel and Jarvis to bid for the contract covering the Jubilee, Northern and Piccadilly lines. In 2001, Tube Lines and Metronet were selected as the preferred consortia. Tube Lines won the 30-year JNP contract, while Metronet received the contracts covering the remaining London Underground lines. Tube Lines began work when its contract entered into force on 31 December 2002, with maintenance, renewal and upgrade activity developing during 2003. The company was expected to deliver a large programme of capital improvements while maintaining existing assets. Its commitments included station modernisation, track replacement, civil engineering works, train reliability improvements, additional capacity on the Jubilee line and new signalling systems. The contract was structured around availability and performance benchmarks. Payment adjustments were intended to reward better reliability and penalise poor results, with deductions for underperformance set at a higher rate than corresponding increases for improved performance. Tube Lines reorganised its procurement and maintenance approach after taking control. It reviewed inherited upgrade plans, sought longer-term framework agreements and attempted to reduce the number of suppliers in order to lower operating costs. It also obtained responsibility for the Underground emergency response unit. Compared with Metronet, Tube Lines was often portrayed as the better-performing infraco. By 2006, it was reported to be delivering projects on time and within budget, while Metronet was experiencing substantial cost overruns. Tube Lines later stated that reliability had improved considerably on its lines, including a reported improvement of up to 70 percent on the Piccadilly line. The PPP nevertheless faced sustained institutional criticism. The National Audit Office described the deals as highly complex and noted that they offered the prospect rather than the certainty of improvements. Parliamentary committees questioned whether the availability benchmarks were sufficiently demanding and whether the public could establish that the contracts offered better value than a publicly managed investment programme. Several Tube Lines promises were delayed or cancelled, and extensive closures required for Jubilee line signalling work generated further criticism. The wider PPP structure suffered a major setback when Metronet entered administration in 2007 and was subsequently taken over by TfL. Tube Lines survived longer, but it encountered difficulties while negotiating the next contract period. In late 2009, it claimed that the existing funding arrangements were insufficient and requested £1.75 billion in additional support. TfL refused the full request, and the matter was sent to the PPP arbiter, who determined that approximately £400 million should be provided. In May 2010, TfL agreed to buy out Bechtel and Amey for £310 million. This transaction, following the absorption of Metronet, effectively ended the London Underground PPP experiment as a system of privately managed infrastructure companies. TfL brought the relevant asset-management responsibilities in-house, although it continued to use private suppliers and contractors. Amey remained involved in management and maintenance of the three lines until 2017. Tube Lines was subsequently rebranded as London Underground, and its corporate identity ceased to operate as a separate infrastructure brand.

• 2017

  London Underground assumes maintenance management

  [1]Tube Linesen.wikipedia.org

  London Underground Limited replaces Amey in managing and maintaining the three lines.

• 2010

  TfL acquires Tube Lines

  [1]Tube Linesen.wikipedia.org

  Transport for London buys the remaining shareholders' interests for £310 million.

• 2007

  Metronet enters administration

  [1]Tube Linesen.wikipedia.org

  The collapse of the other London Underground infraco increases pressure on the PPP model and leads to its eventual public-sector consolidation.

• 2005

  Jarvis exits the consortium

  [1]Tube Linesen.wikipedia.org

  Jarvis sells its stake in Tube Lines to Amey.

• 2003

  Maintenance and upgrade work begins

  [1]Tube Linesen.wikipedia.org

  Tube Lines begins maintaining, renewing and upgrading infrastructure on three London Underground lines.

• 2002

  JNP contract takes effect

  [1]Tube Linesen.wikipedia.org

  The 30-year infrastructure PPP contract formally begins on 31 December.

• 2001

  Preferred bidder status

  [1]Tube Linesen.wikipedia.org

  Tube Lines is selected as the preferred consortium for the Jubilee, Northern and Piccadilly lines contract.

• 2000

  Tube Lines is formed

  [1]Tube Linesen.wikipedia.org

  Amey, Bechtel and Jarvis establish Tube Lines, initially known as Infraco JNP, to bid for a London Underground infrastructure PPP contract.

A private-sector infrastructure and asset-management partner for London Underground, positioned under the PPP model as a long-term provider of maintenance, renewal, reliability and capacity improvements.

• Rail infrastructure maintenance · 2003

  Jubilee line infrastructure services

  Tube Lines maintained and renewed the Jubilee line's track, trains, tunnels, stations and signalling assets. Its programme included additional capacity through work on the 1996 Stock fleet, station improvements and a major signalling upgrade intended to increase reliability and capacity. The signalling work required extensive closures and became one of the most publicly visible elements of the company's contract.

• Rail infrastructure maintenance · 2003

  Northern line infrastructure services

  Tube Lines was responsible for maintenance and renewal of the Northern line infrastructure, including track, civil structures, stations, trains and signalling. The company planned and delivered elements of a new signalling system, although the wider programme and the ownership transition altered the timing and organisation of the work.

• Rail infrastructure maintenance · 2003

  Piccadilly line infrastructure services

  Tube Lines managed the Piccadilly line's infrastructure and associated reliability programme. Planned work included station and track renewal, civil engineering improvements, train reliability measures and 93 new trains intended to enter service by 2014. The proposed new-train element was later cancelled following the collapse of the PPP structure.

• Emergency transport services · 2003

  London Underground emergency response unit

  Tube Lines won a contract to operate the London Underground emergency response unit. The unit provided response capability for incidents across Underground lines and other transport services, extending the company's role beyond the three lines covered by its principal infrastructure contract.

• 2010

  Transport for London buyoutM&A

  Background

  Tube Lines and TfL were unable to resolve the funding and contract issues surrounding the next phase of the infrastructure PPP.

  Action taken

  TfL agreed to buy the interests of Bechtel and Amey for £310 million.

  Aftermath

  Tube Lines became wholly owned by TfL, the Underground infrastructure PPP structure was effectively ended, and the company was later rebranded as London Underground.

  Acquisition price. £310 million (2010)

  Source

• 2009

  Request for additional PPP fundingStrategy

  Background

  Tube Lines said that its funding arrangements were insufficient to complete the next stage of planned upgrades under the 30-year contract.

  Action taken

  The company requested an additional £1.75 billion from Transport for London. TfL rejected the request and referred the dispute to the PPP arbiter.

  Aftermath

  The arbiter determined that approximately £400 million should be provided. The disagreement contributed to the decision to end the PPP arrangement through TfL's acquisition of Tube Lines.

  Additional funding requested. £1.75 billion requested; approximately £400 million recommended by the PPP arbiter (2009-2010)

  Source

1. 1Tube Linesen.wikipedia.org