Monday 10 August 2020 10:30 am

Capita extends £355m deal to manage congestion charge

Outsourcing giant Capita today announced that it had extended three contracts with Transport for London (TfL) in a deal worth £355m.

Under the contracts, Capita will continue to run London’s Congestion Charge, Low Emission Zone (LEZ) and Ultra Low Emission Zone (ULEZ) until October 2026.

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Shares in the firm rose three per cent this morning after the announcement.

Part of the deal will see the FTSE 250 firm manage the expansion of the ULEZ to encompass the entire area within London’s North Circular and South Circular roads.

The newly extended zone will be many times larger than the congestion charge zone and include much of the capital.

Capita said that it would hire and train 900 new staff in order to run the expanded scheme, which is expected to be operational in October next year.

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Alongside the ULEZ expansion, the firm will also take on the running of the registration and monitoring service for the new DVS scheme for heavy goods vehicles (HGVs). 

This is an initiative to measure how safely an HGV driver can see through their cab windows and will prevent unsafe vehicles from using London’s roads, with the goal of reducing the number of pedestrian, cyclist and motorcyclist injuries and fatalities.

Chief executive Jon Lewis said: “We are delighted to be continuing to partner with Transport for London, working across Capita’s divisions to manage and administer the Congestion Charge, LEZ and ULEZ.

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“These new contracts will see us build on our existing partnership, which has already seen us launch ULEZ on time and on budget, and will draw on our track record of transformation and digitally enabled services, as well as adding value for our shareholders.”

London’s ULEZ, the first such zone in the world, has already contributed to a reduction of 44 per cent in roadside nitrogen dioxide within its boundaries, while 79 per cent of vehicles entering the area meet its emission standards.