In the UK, Metronet, the company that maintains two thirds of the London Underground rail lines announced a pre-tax profit of US$93M for its first year of operation, ending 31 March 2004. This equates to nearly US$1.8M profit per week for the company.
Metronet’s shareholders consist of the companies Atkins, Balfour Beatty, Bombardier, EDF Energy and RWE Thames Water. Under a Public-Private Partnership (PPP), Metronet Rail is responsible for maintaining, replacing and upgrading all infrastructure on nine of London Underground’s tube lines.
The company has two operating divisions, Metronet Rail BCV Ltd. and Metronet Rail SSL Ltd. The former is responsible for the deep tubes lines of the Bakerloo, Central, Victoria and Waterloo & City lines and made a pre-tax profit of US$44.3M. With activities associated with the Metropolitan, District, Circle, Hammersmith & City and the East London lines, Metronet Rail SSL Ltd. announced a pre-tax profit of US$48.7M.
Metronet has committed to spend US$31bn on upgrading and maintaining the lines and rolling stock over its 30 year contract. Of this, US$13bn is planned to be spent in the first seven and a half years to boost the system. Metronet is expected to announce its half yearly performance figures shortly, which will no doubt be scrutinised in light of the rich profits the company has listed.
