UKTram – the industry body representing UK light rail – has recently set-up a new working group to help to coordinate efforts to mitigate the impact of rising costs in the sector. The working group will explore joint procurement options for the operators with a hope that this will help to save some money.
UKTram Managing Director, James Hammett, said: “The combined impact of the Covid-19 pandemic and the ongoing war in Ukraine have driven up costs for all sectors of the economy, and high inflation has been raised by our members as one of the most significant challenges that they face. From soaring energy prices to the increasing price of parts for vehicles and infrastructure, operators are reporting significant strains on their budgets, with no sign that prices will level off or fall in the short to medium term.
“In response, we have set up a working group that will look at cross-sector, ‘smart’ procurement that may generate savings for our members. This could include the co-ordination of bulk purchases of parts and equipment that are widely used across the sector, as well as identifying more cost-effective alternatives.”
The group have already met which included representatives from Manchester Metrolink, Nottingham Express Transit, West Midlands Metro and London Tramlink. They will be meeting again in January 2023 to further discuss options.