Emirates Cable Car Now Making Profit Rather Than Losing Money, Say Blogger Darryl

by Benson Agoha | In Greenwich

* Mayor of London, Boris Johnson launched the Emirates Cable Car
Air Line in 2011. (Credit: via 853).

The Emirates Cable Car is turning out to be the strategic investment the builders had in mind after-all, if today's report by 853 holds true.

The new Thames cable car, spanning the river in east London opened to the public at midday on 28 June, 2012.

Called the `Emirates Air Line', it created a direct link between the 02 Arena in Greenwich and the ExCel exhibition centre and can carry 2,500 people an hour.

* Spectacular view of Canary Wharf and North Greenwich's 02 Arena from
where the Emirates Cable Car operates. (Credit: via The Guardian).

The cable had faced the ugly side of many a critic and some have even called for it to be dismantled and relocated elsewhere, after fears emerged that passengers had dried up and the cable was running at a loss. Not anymore.

Because the Emirates is now making money, due largely to reduced operating costs.

"We know that operating costs have fallen - which is why a story last summer that the cable car was losing money fell apart," 853 noted today adding "Transport Commissioner Mike Brown’s most recent report to the TfL board said the Emirates Air Line has made a £1m surplus since it opened."

* Artist's impression of the planned new development by Hong Kong
property tycoon, Henry Cheng. (Credit: South China Morning Post).

[ An analysis of Transport for London’s audited accounts show that, instead of receiving a “subsidy”, the scheme’s fare revenue met or exceeded operating costs in each of the last three financial years.

In its first nine months of operation, the period covered by TfL’s 2012/13 accounts, just under two million passengers were carried, generating fares revenue of £6m.

During 2013/14 passengers numbers, which were boosted the previous year by the scheme’s novelty and London’s hosting of the Olympics, fell to 1.5 million passengers with fare revenue of £5m.

Passenger numbers remained flat in 2014/15 at 1.5 million but revenue increased from £5 million to £6 million ],  Darryl wrote.

 



At the time it was opened, Planning Permission for the new development for the Peninsular had not even been obtained.

But with the turnaround on the finances of the Emirates looking positive, the good news can only be better, especially with the new development for the peninsular.

The new development, a colossus development of its kind, has Hong Kong billionaire Henry Cheng aiming to build Britain's largest regeneration project at the Greenwich Peninsula.

The development in North Greenwich covers an area of 60.7 hectares and will contain up to 15,720 new homes, commercial space and hotels. It will also house London's newest film studio and boast 2.6km of public river frontage.

* Artist impression of the project scale of the new development in North Greenwich,
whose approval has now been obtained. The new development means good
 news ahead for the Emirates Cable Car Air Line. (Credit: RBG).

Of course the Hong Kong property tycoon is not necessarily going solo on the venture. Sammy Lee, vice-chairman of Knight Dragon, told the South China Morning Posts that the firm may look for co-partners to develop Greenwich Peninsula.
"The scale of the project is so big and the capital requirement will build up, so we will see whether we can list [the company] in Hong Kong or London," said Sammy Lee, a vice-chairman of Knight Dragon.

 

Traditionally, the capitals transport network receive a price review on January 1, every year.  This year was no exception and the Emirates was part of that review. Users of the Line now have to cough out 10p more for an adult single trip.

 

The cable car's operating costs are certainly about £5m - but its popularity as a tourist attraction means it's making a sum quite near that back in fares.

 

With operating costs down, the Emirates can already be looking to a good year, ahead of the next review. And the new Greenwich Peninsular development can only mean nothing but good news.