Travel in London Travel in London

5. Operational efficiency, public transport fares, asset condition and payment technologies
stood at 8.0 per cent higher than in 2008, but showed no increase over the
most recent year.
• The contactless payment card has become the preferred option for travel for a
large and steadily increasing number of TfL customers. Since its launch in
September 2014 on the Tube, trams, DLR, London Overground and most
National Rail services in London, TfL has become the fastest growing
contactless merchant in Europe, with the number of contactless transactions
growing by about 11 per cent per month.
5.3 Transport operational efficiency and asset management
Seeking ways to reduce operating and other costs is important as it contributes to
the aim of improving value-for-money, limits the demands made upon tax and fare
payers, and helps to ensure that TfL has a budget that balances income against
costs. In a similar way, management of the assets which TfL owns and which
underlie services is crucial to ensure that TfL can meet its objectives of operating a
safe, secure and reliable network, while also optimising investment decisions about
asset maintenance and replacement.
Operational costs (gross and net expenditure per passenger kilometre)
Table 5.1 shows a segmental analysis of TfL’s expenditure on public transport
services for the most recent five years. In table 5.1, gross costs are total costs, and
net costs are gross costs less fares and other income. Net expenditure effectively
corresponds to public transport support provided by TfL to keep services running.
Data prior to 2010/11 are not available in comparable form owing to a change in
accounting conventions.
Looking across all five years, gross operating costs per passenger kilometre have
been broadly stable, lying in the range of 22 to 23 pence. Net costs per passenger
kilometre have however fallen over the review period, from 4 pence in 2010/11 to 2
pence in the latest year.
Table 5.1 TfL’s expenditure and revenue on public transport services. 2010/11-
2014/15.
Passenger
kilometres*
(millions)
Gross
expenditure (£m)
Gross expenditure
per passenger
kilometre (£)
Net
expenditure
(£m)
2014/2015
London Buses 1 8,417 2,068 0.25 493 0.06
London Underground 10,847 2,296 0.21 -114 -0.01
Net
expenditure
per passenger
kilometre (£)
Docklands Light
-30 -0.05
Railway 594 116 0.20
London Tramlink 160 31 0.19 6 0.04
London Overground 861 205 0.24 46 0.05
All above modes 20,879 4,716 0.23 401 0.02
98 Travel in London, Report 8