Transport for London is to sell the capital’s only publicly owned bus operate East Thames Buses to the Go Ahead Group, it was announced this afternoon.
The company, which was formed following the demise of the Harris Bus Company Ltd in 1999, operates routes , 42, 108, 132, 180, 185, 201, 661, 669 and N1.
TfL says it will now be transferred to London General will all routes having been granted new five year contracts, with optional two year extensions based on performance.
Although the sale’s value has not been released by TfL, the capital’s transport authority claims the transfer “will save TfL more than £30 million over the next nine years”.
David Brown, Managing Director for Surface Transport, said: “The operation of ETB is not a part of TfL’s core business and this deal represents much better value for money for fare and taxpayers. We are confident that London General will deliver improvements in service for passengers on the nine routes currently operated by ETB, at a reduced cost.”
TfL expects to complete the transfer of all operations by early September 2009. Projected savings are based on the elimination of vehicle maintenance and reduced costs for corporate support services.
A TfL spokesperson confirmed to this site that nine companies who met pre-qualification criteria expressed an interest in purchasing the company, with two compliant bids being submitted, from which London General’s was then successful.
