Transport Initiatives Edinburgh

Last updated

Tie Limited
Company type Limited company, wholly owned by local government
Industry Public transport
Founded2002
Defunct2011
Headquarters
Edinburgh [1]
,
Scotland
Area served
 Lothian
Key people
Richard Jeffrey, Chief Executive (2009–2011)
Services Project management, transport planning
Owner City of Edinburgh Council
Website Official website (archived)

Tie Ltd. (previously Transport Initiatives Edinburgh Ltd.) was a Scottish company which project-managed large-scale transport projects on behalf of the City of Edinburgh Council, which also owned it. The company was active between May 2002 and August 2011.

Contents

Tie was involved in numerous projects inside and in the vicinity of Edinburgh, including the Ingliston park and ride, the Stirling–Alloa–Kincardine rail link, and the cancelled Edinburgh congestion charge. [2] [3] . However, the organisation would become most well known for its work on the Edinburgh Trams scheme, for which it project-managed and oversaw the appointing of contracts to external parties.

By 2008, the partially-constructed tramway had become controversial and Tie was being publicly criticised over its handling of the project. As both financial and schedule overruns on the tramway became increasingly severe, numerous senior figures chose to abruptly resign from Tie, particularly when contractor Bilfinger Berger chose to halt construction work entirely. During mid-2011, sweeping redundancies were enacted across the company and Tie was effectively dissolved later that year. In its place, Transport for Edinburgh has taken on numerous responsibilities it formerly undertook, including the tramway.

History

Tie was established in 2002 as a move towards a public-private partnership (PPP) to improve Scottish public transport infrastructure development. [4] It was structured as a private limited company, wholly owned by the City of Edinburgh Council, and was operated on a not-for-profit basis. [5] Despite the similar names, it had no connection with Transport Initiatives LLP, a transport planning consultancy based in England that specialises in cycling, walking and travel planning. [6]

During June 2006, Willie Gallagher joined Tie as its executive chairman; he promptly enacted a reorganisation of the company. [7]

In July 2007, preparatory work, including the diversion of underground utilities ahead of track-laying in Leith, started for the Edinburgh Trams scheme. [8] This new tramway project, budgeted at £512 million, was initially managed by Tie, which had also overseen the awarding of the associated contracts. [7] In May 2008, final contracts to build the tram system were awarded to BSC, a consortium of Bilfinger Berger, Siemens and Spanish tram builder Construcciones y Auxiliar de Ferrocarriles (CAF). [9]

As early as 2008, both the under construction tramway and Tie itself was incurring criticism related to delayed infrastructure delivery and prolonging road closures, such as of Princes Street, which had caused economic disruption to several areas of the city. [10] Numerous disputes broke out between the various contractors involved in the construction and Tie, some of which were so severe as to end up in court. Project overruns, both in terms of financial and schedule, were also at least in part attributed to Tie; [10] the organisation having initially denied any such overruns although their reality later became apparent. [7] [10] [11]

Amid this controversy, several organisational changes occurred at Tie. On 13 November 2008, Gallagher abruptly chose to step down as executive chairman amid heavy criticism of his handling of the tram project. [7] He was replaced by David Mackay, then Chairman of Transport Edinburgh Limited, on an interim basis. [12] In May 2009, Richard Jeffrey, the former Managing Director of Edinburgh Airport, was appointed as the new executive chairman of Tie. [13] By December 2009, reported emerged that the tramway's cost was running £545 million over budget and that the system was unlikely to be operational until February 2012 or later. [14]

During May 2011, by which point tramway contractor Bilfinger Berger had halted construction work completely and tensions over the future of Tie had only increased, Jeffrey resigned from the executive chairman position. [15] [16] Shortly after Jeffrey's resignation, four non-executive directors and the communications director also resigned. [17] [18]

In June 2011, a substantial restructuring of Tie was launched, the cornerstone of which being a voluntary redundancy scheme aimed at halving the company's total headcount. [19] During August 2011, it was announced that further redundancies would be made and that Tie had been relieved of its responsibilities; in its place, an international consultancy, Turner & Townsend, had been appointed to support the Edinburgh Trams project. [11] [20] In the aftermath of this transfer, tramway contractor Bilfinger Berger spoke out about Tie's management of the scheme, expressing the view that Tie had exercised a poor risk management strategy and that it had failed to organise the necessary construction work to relocate various underground utilities prior to commencing construction of the tramway. [21] [22] [23]

Amid the Edinburgh Trams controversy, Tie received heavily criticism from various parties for its handling of the project. [10] [24] During late 2011, Tie was disbanded as a company; Transport for Edinburgh took over responsibility for the Edinburgh Trams scheme from the defunct organisation. [25] [26] Initially, the company chose not to reveal the severance payments that had been awarded to its directors, [27] however, following a Freedom of Information application, it was revealed that the directors of Tie had received compensation totalling £406,635 after they stepped down from the company. [28] The company had also worked to reduce the tax incurred by several of its consultants. [29]

Projects

Tie was involved in several major transport projects in Scotland including: [30]

ProjectDescriptionStatus
Edinburgh Ingliston park and ride.jpg Ingliston Park & Ridea park and ride facility to be integrated with the Edinburgh tram system [31] Operational as a car park
Stirling to Alloa and Kincardine railway under construction.jpg Stirling-Alloa-Kincardine rail link Railway line from Stirling to KincardineOperational
One-Ticket A multi-modal ticketing system for south-east Scotland [32] Operational
Edinburgh guided bus01 2005-01-30.jpg Edinburgh FastlinkA guided bus system in the west of the city, opened in 2004 and closed in 2009 to be replaced with the Edinburgh Trams line.Closed
Edinburgh Airport 1.jpg Edinburgh Airport Rail Link (EARL)Rail link connecting Edinburgh Airport with the main ScotRail network [33] Cancelled
Princes Street, Edinburgh, 29 October 2005.jpg Congestion charging A project to introduce a congestion charge into Edinburgh [34] Rejected in referendum
Edinburgh tram 02.jpg Edinburgh Trams Construction of a new tramway in Edinburgh - Tie dismissed from project, August 2011 [11] Open - limited scope

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References

  1. ↑ "Transport Initiatives Edinburgh Limited: Company no. SC267186". Companies House . Retrieved 29 February 2024.
  2. ↑ Ferguson, Brian (4 October 2003). "Tolls U-turn is set to cost city millions". Edinburgh Evening News. Johnston Press plc. Retrieved 1 December 2007.
  3. ↑ Halstead, Sam (17 October 2003). "Road tolls start-up bill soars by £1.16m". Edinburgh Evening News. Johnston Press plc. Retrieved 1 December 2007.
  4. ↑ "A window on developments in Scotland". PublicService.co.uk. 31 July 2003. Retrieved 22 June 2012.
  5. ↑ "Our Company". TIE official website. Archived from the original on 5 December 2008. Retrieved 21 June 2012.
  6. ↑ http://www.transport-initiatives.com Transport Initiatives LLP website
  7. 1 2 3 4 Liegis, Lidija (23 November 2008). "Edinburgh tram boss resigns". Edinburgh: The Journal. Archived from the original on 17 February 2010. Retrieved 15 January 2010.
  8. ↑ "Work begins on city tram project". BBC News. 9 July 2007. Retrieved 18 October 2013.
  9. ↑ Rowson, Jessica (16 May 2008). "Final contracts awarded for Edinburgh Tram". New Civil Engineer. Archived from the original on 6 February 2015. Retrieved 21 May 2010.
  10. 1 2 3 4 ""Hell on wheels": The Miserable History of the Edinburgh Trams project, 2001 to the Present". retrospectjournal.com. 14 March 2021.
  11. 1 2 3 "Edinburgh trams project to be managed by new firm". BBC News. 18 August 2011.
  12. ↑ "Interim Chairman appointed for Edinburgh Trams" (PDF). Transport Initiatives Edinburgh. 21 November 2008. Archived from the original (PDF) on 6 October 2011. Retrieved 15 January 2010.
  13. ↑ "Edinburgh Tram Project Appoints New Chief Executive" (PDF). Edinburgh Trams. 1 April 2009. Archived from the original (PDF) on 6 October 2011. Retrieved 15 January 2010.
  14. ↑ Henderson, Damien (12 December 2009). "Edinburgh trams saga is far from over". The Herald. Retrieved 15 January 2010.
  15. ↑ McCulloch, Scott (11 December 2014). "Edinburgh trams Inquiry: Key figures 'point-blank' refused to co-operate". BBC News.
  16. ↑ "Richard Jeffrey quits as Edinburgh tram chief executive". BBC News. 19 May 2011. Retrieved 19 May 2011.
  17. ↑ Marshall, Chris (31 May 2011). "TIE bosses 'quit en masse' as trams shake-up looms". The Scotsman. Edinburgh. Retrieved 11 June 2011.
  18. ↑ "Mandy Haeburn-Little to leave Edinburgh Trams project". BBC News. 7 June 2011. Retrieved 11 June 2011.
  19. ↑ Dalton, Alastair (11 June 2011). "Half of staff facing axe at troubled tram firm". The Scotsman . Edinburgh. Retrieved 11 June 2011.
  20. ↑ "Turner & Townsend to manage Edinburgh Tram". New Civil Engineer. 22 August 2011. Archived from the original on 13 July 2015.
  21. ↑ Keysberg, Jochen (11 October 2011). "Edinburgh trams: What went wrong?". BBC Scotland Investigates: The Great Tram Disaster (Television interview). Interviewed by David Miller. BBC. Retrieved 22 June 2012.
  22. ↑ Wright, Robert (16 February 2010). "Extra cost of Edinburgh tram line fuels dispute". Financial Times. Retrieved 17 February 2010.(subscription required)
  23. ↑ Henderson, Damien (16 January 2010). "Council loses crucial trams dispute". The Herald. Archived from the original on 9 August 2014. Retrieved 16 January 2010.
  24. ↑ Hutcheon, Paul (9 October 2011). "'Trams body talked rubbish', says Swinney". The Herald . Retrieved 16 October 2011.
  25. ↑ "Transport for Edinburgh: New body to oversee trams and buses". BBC News. 15 August 2013.
  26. ↑ Henderson, Damien (26 August 2011). "After eight years of chaos, city's £700m trams project is stopped in its tracks" . Retrieved 22 June 2012.
  27. ↑ Miller, David (8 March 2012). "Edinburgh trams: No details of pay-off for TIE boss Richard Jeffrey". BBC News. Retrieved 20 June 2012.
  28. ↑ "Edinburgh tram project bosses payments revealed". BBC News. 20 June 2012. Retrieved 20 June 2012.
  29. ↑ Drainey, Nick (25 June 2012). "Trams company 'helped consultants to save tax'". The Times.
  30. ↑ "Achievements". TIE official website. Archived from the original on 5 December 2008. Retrieved 21 June 2012.
  31. ↑ "Ingliston Park & Ride". Transport Initiatives Edinburgh. Archived from the original on 4 June 2008. Retrieved 12 January 2010.
  32. ↑ "Company Structure". One-Ticket website. Archived from the original on 8 February 2011. Retrieved 21 June 2012.
  33. ↑ "Edinburgh Airport Rail Link". Transport Initiatives Edinburgh. Archived from the original on 4 August 2007. Retrieved 21 June 2012.
  34. ↑ "Edinburgh Congestion Charge". Transport Initiatives Edinburgh. Archived from the original on 5 December 2008. Retrieved 12 January 2010.
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