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Zero-Emission bus routes (2)

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Meeting: MQT on 09 September 2021
Session name: MQT on 09/09/2021 between 10:00 and 13:00
Reference: 2021/3429
Question by: Unmesh Desai
Organisation: Labour Group
Asked of: The Mayor
Category: Transport

Question

Zero-Emission bus routes (2)

TfL stated in a Freedom of Information request they have recently purchased 20 double deck hydrogen buses and leased them to Metroline for route 7. TfL have been using the same arrangement by directly purchasing 1,000 New Routemasters and leasing them to private operators to use for their routes. Why hasn't TfL made direct purchases of new electric buses and leased them to private operators for their routes, for the purpose of reaching their target of 100% zero-emission bus fleet?

Answer

Date: Tuesday 14 September 2021

Officers are preparing an answer.

Date: Friday 17 September 2021

The default position – where the bus operators and lease companies invest in buses meeting London’s requirements – has been demonstrated to be a particularly cost-effective and efficient way to continually upgrade the fleet. This model has enabled the introduction of nearly 600 zero-emission buses comprising many makes and models, with more in the pipeline. There is currently no need for Transport for London (TfL) to make direct purchases and, if there was, this would entail significant capital expenditure which TfL does not have available through its temporary funding deal with Government.

TfL’s previous direct purchases were limited to vehicles designed exclusively for London use such as the New Routemaster (NRM). The bespoke nature of these buses made them highly unlikely to find extended service lives outside of the capital and therefore buying them directly was more economic.

Direct purchase was deemed appropriate in the case of the 20 double-deck hydrogen fuel cell buses being deployed on routes 7 and 245 through the JIVE (Joint Initiative for Hydrogen Vehicles across Europe) project because this involved a much smaller number of vehicles, a unique grant funding arrangement with the European Union and the Office for Low-Emission Vehicles, a technology very much in its infancy where operators were unable to justify taking on the risk of purchase and lease companies unable to offer competitive terms.

Demand for electric buses now extends well beyond London with a significant UK and worldwide market for many makes and models. This means that electric buses are readily available for purchasing or leasing at competitive prices and their use is not limited to London. TfL’s funding position is also now markedly less healthy, making large capital purchases unaffordable for the foreseeable future without external support.

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