Firstgroup Secures Operation Contract for London’s Iconic Cable Car

March 26, 2024

Firstgroup Secures Operation Contract for London’s Iconic Cable Car

FirstGroup has successfully secured the tender to operate one of London’s most renowned transportation and leisure attractions. The IFS Cloud London Cable Car contracts, connecting the Greenwich Peninsula with the Royal Docks on the north bank of the Thames, are slated to commence on June 28, 2024, for an initial five-year term, extendable for an additional three years.

The transportation giant anticipates generating approximately £60 million in revenue over the eight-year contract period. It aims to collaborate with Transport for London (TfL) to position the cable car as a premier destination within London’s leisure market.

Despite experiencing a decline in ridership over the past decade since its inauguration before the 2012 Olympics, TfL data from November indicates a resurgence. Over 1.5 million passengers utilized the East London crossing in the 2022 financial year, marking an increase of 200,000 compared to 2021.

FirstGroup is devising plans to enhance service quality throughout the contract term. It intends to implement educational outreach programs and offer work placements for students from the local boroughs of Greenwich and Newham.

Graham Sutherland, Chief Executive Officer of FirstGroup, expressed delight over winning the contract, highlighting the significance of operating the UK’s sole urban cable car. He emphasized the company’s commitment to collaborating with TfL to enhance the customer experience and integrate the service into the local community.

Sutherland underscored Firstgroup’s extensive experience as one of the country’s largest transport operators, emphasizing its track record of fostering passenger demand, generating economic benefits, and executing significant infrastructure projects.

He further outlined the company’s strategic direction, emphasizing growth and diversification opportunities, including participation in TfL tenders. Firstgroup’s positive trajectory, marked by a 73 per cent increase in share value over the past year, reflects a series of encouraging trading updates fueled by rising demand for public transport services.