Transport for Edinburgh

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City of Edinburgh Council is set to create Transport for Edinburgh integrating Lothian Buses and Edinburgh Trams.

The Council report sets out a company structure and financial model which incorporates Lothian Buses (referred to in the business plan as Busco) and Edinburgh Trams (Tramco) into an arrangement where both companies report into Transport for Edinburgh (Topco). The 15 year financial model shows a positive outlook with a forecast profit of £3.7m over the period with an operating surplus in the fourth year of operations. The tram on its own is forecast to run with a £42m operating surplus. Maintenance and refurbishment costs for the tram system (totalling £87m and which isn’t part of operating costs) would be covered by an infrastructure access fee of £39.6m payable to the Council by Tramco and through the dividend of £55.2m paid to the Council by Lothian Buses and Tramco. There is potential for additional funding from advertising and ticket optimisation.