Tramlink – operators of Nottingham Express Transit – have announced that they have completed a successful financial restructuring (a deal which has been two years in the making) which will secure the future of the network for the next ten years.
There has been a successful renegotiation of loan terms from lenders and will now mean that Tramlimk will avoid further and ongoing breaches of banking covenants. It means that the concession is in a stable position to move forward, following significant market changes.
NET continues to still feel the effects of the pandemic with passenger numbers still only at 80% of pre-COVID levels. There has also been an increase in electricity costs and a period of sustained hyper-inflation which also combined to lead to challenging circumstances for Tramlink.
Tim Hesketh, CEO of Tramlink, said: “Nottingham’s trams are an integral part of the city’s life, helping to connect thousands of people each day who rely on the network to travel to work, to their place of study, or for days out with family and friends.
“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. 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.
“We’d like to thank the City Council and Department of Transport for all their support as we look ahead to a brighter future for the city.”
It now allows Tramlink to go forward with further improvements such as the investment in new technology, the recruitment of more revenue protection officers and updates to ticketing systems.
Cllr Angela Kandola, Nottingham City Council’s Portfolio Holder for Transport said: “This deal to secure the future of our tram system post pandemic is great news for Nottingham, reflecting the culmination of nearly two years of collaborative effort among Tramlink, shareholders, lenders, ourselves, and the DfT.
“Given the current financial challenge being faced by the city council, it is even more important that we have worked with partners to secure a thriving future for our system – a cornerstone achievement in our mission to offer top-tier public transport, alleviate congestion, achieve cleaner air and less emissions and foster local economic growth. This achievement not only ensures financial stability for our tram network but also empowers Tramlink to focus on making the network even more successful and useful going forwards.”