The Anonymous Widower

Financial Trouble At TfL: Can It Stay Afloat?

The title of this post, is the same as that of this article on Railway Technology.

This is the first paragraph.

London’s public transport provider, TfL, is under increasing pressure. Not only has its government operating grant been slashed but a funding freeze is also expected to cost £640m across the course of the current mayoralty. Can TfL create the commercial income needed to keep it afloat or are there serious causes for concern?

The government is cutting subsidy to TfL, but Sadiq Khan knew that when he stood for Mayor.

So what did he do? He offered a fare freeze until 2020.

It looks like more fantasy Socialist accounting to me, to ensure victory in an election.

The article also says this about the future.

Nevertheless, TfL’s hopes for the future are pinned on the completion of its upcoming Elizabeth Line project, scheduled for the end of the year. The £14.8bn project, which will create a brand new line running underground across London, is expected to be a big revenue raiser. TfL predicts that ridership will increase from the current 46 million passengers on TfL Rail, to nearly 270 million by 2022-2023.

If these predictions are wrong, TfL will be in trouble.

For myself, I suspect that Crossrail will suffer with its own version of London Overground Syndrome, with passenger numbers much higher than predicted. In The Scottish Borders Have Caught London Overground Syndrome, I talked about an outbreak in the Scottish Borders, after the opening of the Borders Railway, and said this.

This disease, which is probably a modern version of the Victorian railway mania, was first identified in East London in 2011, when it was found that the newly-refurbished East London Line and North London Line were inadequate due to high passenger satisfaction and much increased usage. It has now spread across other parts of the capital, despite various eradication programs.

But for the Mayor to rely on that, is clutching at straws.

May 15, 2018 - Posted by | Finance, Travel | , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s