Tram-train scheme costs quadruple

4th Jul 2017

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Costs associated with the Sheffield to Rotherham tram-train pilot have quadrupled and the scheme is over two years behind schedule, according to the National Audit Office which has published findings from an investigation into the project.
 
Modifying rail infrastructure to accommodate the project is now expected to cost £75.1M and the scheme is likely to open next May. When the programme was approved by Ministers in May 2012 the cost was put at £18.7M and the scheme was to be completed by December 2015.
 
Sheffield to Rotherham is set to be the first transport service in the UK to use both street tramway and national rail. According to the National Audit Office the benefit/cost ratio for the scheme started out at 1.0 but has now dropped to 0.31.
 
Its findings conclude that in November 2014 the Department for Transport gave approval for the project to continue, despite rising costs, and the following year introduced new arrangements to strengthen its governance of the project.
 
Last summer Network Rail reported that forecast costs had risen further and established that works were more complex than had been anticipated at the design stage.
 
Last July the then Permanent Secretary recommended stopping work on the scheme, but in September a Minister asked Network Rail to meet the funding shortfall.
 
Responding to the investigation, a Department for Transport spokesman said this is the first project of its kind in the country, adding that there will be uncertainty when developing new innovation and technology.
 
“We are disappointed that the cost of work increased and the scheme was delayed,” the spokesman added. “But this ground breaking project is now on track and Network Rail has learned important lessons that will help the rollout of similar schemes that will bring all of these benefits to more passengers in the future.”
 
Network Rail’s route managing director Rob McIntosh acknowledged that the scheme is “an ambitious pilot” and continues to be “complex and challenging” but added it will “deliver real benefits for thousands of daily commuters”.
 
He added that a new project team is now in place and good progress is being made to complete the project.
 
(Photo: South Yorkshire Passenger Transport Executive)
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