Luas operator may have to reduce costs as passenger numbers fall 8%

THE Railway Procurement Agency (RPA), the body in charge of Dublin’s Luas, said it may have to take further action this year to reduce costs as passenger numbers fall.

Luas infrastructure activities delivered a surplus before interest and taxation of €2.7 million last year, compared with €6.2m in 2008.

The company said the operating surplus was achieved by “tight control of costs and very limited reduction in service frequency”.

It said the downward trend has continued into 2010, adding that it may have to take further action to contain costs this year.

“The board and the management of RPA continued to seek increased productivity and maintain strong financial control over the agency’s payroll and expenditure budgets,” it said.

Luas passenger numbers fell 8% to 25.4 million last year, from 27.3m in 2008.

The agency attributed this to a decline in the number of people at work and the reduced consumer spending in retailing and entertainment.

The RPA said 13.6m passenger trips were on the Red Line and 11.8m on the Green Line. The surplus generated from Luas infrastructure activities was 11 cent per passenger trip, compared to 23c in 2008.

The company said the case for Metro North remains strong.

It said the contribution that this project can make to economic competitiveness is “as important today as when the project was first proposed”.

Chief executive Frank Allen said: “The Railway Procurement Agency’s annual report for 2009 reflects a more challenging economic environment than for any year since the agency was established. However, the financial statements show strong performance by Luas against difficult market conditions and excellent progress in implementing our projects as mandated under Transport 21.”