UK: Tramlink Nottingham Ltd has completed a financial restructuring following a two-year renegotiation with its lenders. The Nottingham Express Transit tram concessionaire said this was necessary to avoid further and ongoing breaches of banking covenants, and puts the concession in a stable position ’following significant market changes’.
Tramlink said ridership is now around 80% of pre-pandemic levels, and the impact of rising electricity costs and high inflation are contributing to ‘a changing market dynamic’.
In 2011 Nottingham City Council entered into a private finance initiative contract for Tramlink to build Phase Two of the NET light rail network and operate the expanded routes. The Tramlink consortium includes Alstom, Vinci, Keolis and Trent Barton, as well as financial investors Meridiam and Aberdeen Investments.
The city council has a range of financial commitments, including annual payments to NET for ongoing operation and maintenance.
‘This new financial restructuring has been an ongoing project we’ve been working on for two years following the challenges we faced during the pandemic’, said Tramlink CEO Tim Hesketh on December 20.
‘There will be no changes to our customers in terms of how they use the trams as a result, and they can still expect the same great service from us. However, it gives us a secure financial position which will ensure we can keep on providing the people of Nottingham with reliable, convenient and sustainable travel for many years to come, whilst also allowing us to make key improvements across the whole network.’
Tramlink’s future areas of focus include investment in new technology, the recruitment of more revenue protection officers and improvements to ticketing systems.
