Business

Next Luas operating contract on track for €1.75bn

Proposed 4km extension of Dublin’s light rail service is expected to connect the western suburb of Finglas from as early as 2028

The Luas service delivered 48.2 million passenger journeys in 2023. Photograph: Matt Kavanagh

Gordon Deegan
Thu Apr 4 2024 - 16:13

It will cost an estimated €1.75 billion to run and maintain Dublin’s Luas light rail service over the duration of its next operational contract, according to Transport Infrastructure Ireland (TII).

In new tender documents, TII anticipates the period will begin sometime around the middle of 2026 for a period of seven years with an option to extend by up to a further five to seven years.

Last year, the Luas service delivered 48.2 million passenger journeys, while the tender documents state “further expansion of the system is anticipated”.

TII has issued an “information memorandum and pre-qualification questionnaire” in order to screen candidates. Those seeking to pre-qualify to tender, including consortiums, must have annual revenue in excess of €200 million averaged over the last three audited financial years.

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The documentation states that following the qualification stage, TII intends to shortlist a minimum of three to a maximum of five candidates who will be invited to tender.

Luas is currently operated by the French company Transdev, as Transdev Dublin Light Rail Ltd.

Its contract is due to expire in November 2025 and the National Transport Authority and TII expect “to extend this contract to accommodate this reprocurement process”.

Outlining an indicative timetable for the award of the tender, TII states the deadline for pre-qualification submissions is July 31st. They will then be evaluated between August and October. An invitation-to-tender notice will be issued to the shortlisted candidates next January.

TII states the deadline for tenders is June 2025 and the contract is set to be awarded the following November.

A spokeswoman for Transdev said last month that the company “looks forward to the launch of the tender process for the new Luas contract and will assess the proposed new contract once published”.

The Luas consists of separate red and green lines, covering 42.5km of track with a fleet of 81 light rail vehicles.

The documentation states that Luas Finglas is the next planned extension of the green line and will create a new public transport connection between the communities of Charlestown, Finglas village, Finglas west, St Helena’s, Tolka valley and the city centre.

The proposed route is 3.9km in length and the expected opening date is between 2028 and 2032.

The most recent accounts for Transdev Dublin Light Rail Ltd show it recorded revenue of €59.47 million in 2020 and recorded Covid-19-related pretax losses of €3.2 million.

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