Serco Group secures extension of Docklands Light Railway contract

British government services company Serco Group has secured an 18-month extension of its Docklands Light Railway (DLR) contract with the Transport for London.

Serco's extension to operate, maintain and market the busiest light railway in the UK is valued at £100m and will run from April to September 2014.

The FTSE 100 company has worked on making improvements to the service of DLR under two consecutive contracts since 1997.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The contract extension comes after Secro was named Light Right Operator of the Year as it upgraded services of the DLR during the Olympics when the railway carried 7.2m passengers.

The upgrades during the sporting event included new timetables with three-car trains on all routes from January 2012, improvements in passenger information and staffing, a new control centre at Beckton, 10 bespoke timetables for the Olympics and extended services supported by 45,000 extra staff hours.

DLR Director Jonathan Fox said: "I am pleased to announce the extension of this contract and the continuation of a successful working partnership that has seen the DLR expand its network, increase its capacity by 50% and successfully meet the challenge of the Olympics, when the network carried more than 100% more customers than normal."

Christopher Hyman, Chief Executive of Serco Group, added: "We are delighted

that our performance has been recognised with this 18-month extension of the DLR contract.

"We have a strong track record of delivering high quality rail services in the UK and internationally, with our award-winning services recognised for their high levels of performance, punctuality and passenger care. The commitment, dedication and innovation of our people have delivered an outstanding service, particularly during the Olympics."

Shares climbed 0.82% to 556.50p at 9:35 Monday.

RD