Transport for London Capital Investment Strategy
London, United Kingdom
Client: Transport for London
Parsons Brinckerhoff Role: Strategic Consulting
Transport for London (TfL) is responsible for managing nearly all transport services in London. As it began to develop and finance its first consolidated capital program, TfL turned to Parsons Brinckerhoff for guidance on its financial policies, organization, planning and decision-making. Until 2004, TfL's sole external funding source had been central government grant money. In 2004, TfL was authorized to pursue long-term capital financing with private investors, but to take advantage of that authority TfL had to demonstrate to investors that it was capable of executing its five-year £10 billion ($19 billion) capital program as planned. Just eight months after getting the approval to establish a borrowing program, TfL raised £200 million ($385 million) in the capital markets with a AA rating from Standard & Poor’s.
While these efforts were underway, TfL’s Major Project Business Unit Interchange Program recognized a need for more effective delivery of its diverse project portfolio. The portfolio included a range of projects at different stages that required different levels of management to complete. Each development typically had multiple sponsorship and most others were in the early definition stage with long gestation and definition timescales. Parsons Brinckerhoff worked with TfL to establish a baseline program, identify the organizational structure, resourcing and funding required to support program delivery, and identify any processes, tools and training that could further enhance the delivery of the program. Recommendations were made to enhance operations, including organizational design and the roles and functions of staff, improved management capabilities and oversight and governance procedures.