It has been revealed in local media in the Scottish capital that Edinburgh Trams has made a net loss of \u00a344 million since the original line opened at the end of May 2014. The loss is mainly down to borrowing costs with the construction of the tramway and an operating profit has only been seen in two years according to the figures held at Companies House.<\/p>\n
<\/p>\n
Edinburgh Trams did made an operating profit in both 2016 (\u00a3250,000) and 2017 (\u00a31.6 million) but since then losses have been posted of between \u00a37.62 million and \u00a310.9 million. In total the net loss is \u00a344.19 million.<\/p>\n
The City of Edinburgh Council have said that these figures include an annual asset fee of \u00a38.5 million (introduced in 2018) to help offset additional borrowing costs of the construction of phase one of the network. Of note is that this is a total of \u00a342.5 million which shows that the majority of the net loss can be put down to the borrowing costs.<\/p>\n
Cllr Scott Arthur, Transport Convener on the City of Edinburgh Council, said: \u201cIn the ten years since the original line between Edinburgh Airport and York Place was built, the tram service has flourished to become a hugely successful transport route for thousands of residents and visitors each day. This year we expect it to carry one million passengers per month. I am proud that Edinburgh Trams has developed into a multi award-winning company, offering a reliable and fast service, allowing residents to move around sustainably and efficiently, and with some of the cheapest fares in the country.<\/p>\n
\u201cThe successful completion of the line to Newhaven last year has brought huge economic, social and environmental benefits to Leith, north Edinburgh and to the city as a whole – demonstrating that the value that trams bring to the city go far beyond the cost or profit of the company.<\/p>\n
\u201cEdinburgh has one of the UK\u2019s best public transport systems, and I want it to be even better. That\u2019s why we\u2019re now looking at expanding the network further and will soon be launching a consultation on a north-south tram line between Granton and the BioQuarter, which has the potential to turbocharge the regional economy.<\/p>\n
\u201cInvestment in public transport in Edinburgh is key to cutting congestion and accommodating up to 37,000 homes we expect to see built in Edinburgh in the coming years. The tram, alongside our wider public transport and active travel networks, remain key to creating a better connected, environmentally-friendly and sustainable city for all – and to meeting our ambitious 2030 climate targets.\u201d<\/p>\n
In response to the figures, Sue Webber, Conservative MSP for the Lothian, said: \u201cThese eye-watering losses only add insult to injury for those living and working in the capital. They already had to endure the construction bill for the trams spiralling out of control and reaching over \u00a31 billion. The least they would have expected is for the trams to now be turning a profit.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
It has been revealed in local media in the Scottish capital that Edinburgh Trams has made a net loss of \u00a344 million since the original line opened at the end of May 2014. The loss is mainly down to borrowing … Continue reading