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Capita extends and expands contracts with TfL

By Josh White

Date: Monday 10 Aug 2020

Capita extends and expands contracts with TfL

(Sharecast News) - Capita has secured an extension to its contracts with Transport for London (TfL) to continue to manage London's Congestion Charge, Low Emission Zone (LEZ) and Ultra Low Emission Zone (ULEZ), it announced on Monday.
The FTSE 250 outsourcing giant said the deal is worth £355m, comprising an extension to its work on the existing schemes, from October 2021 to October 2026.

It also consisted of new work associated with the expansion of ULEZ, Direct Vision Standards (DVS), LEZ and their operations to October 2026.

The contracts would see Capita delivering an expanded scope of work, with the company providing further services on TfL's behalf, including managing the expanded ULEZ, scheduled to be operational from October 2021, which would increase from the Central London ULEZ to the entire area within London's North and South Circular roads.

It would also include running the registration and monitoring service for the new DVS scheme for heavy goods vehicles (HGVs).

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

Capita would also be involved in Implementing further London-wide changes to the LEZ's standards for HGVs and buses.

The contracts would involve "transforming and further improving" the efficiency of the ways TfL customers can address their queries about the services, through the introduction of digital technologies.

Under the contracts, Capita said it was employing a number of its digital transformation capabilities, including the migration of the existing technology used to operate the Congestion Charge, LEZ and ULEZ, and which processes an average of 1.5 million roadside images a day, to the cloud.

That was designed to ensure that the operations were more flexible, and should enable the company to scale the service quickly to incorporate the ULEZ expansion being delivered on behalf of TfL.

Capita said it expected to recruit and train an additional 900 staff to deliver the expanded service, with the majority of those employees to have the capability to work remotely, and be encouraged to work from home.

"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," said chief executive officer Jon Lewis.

"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.

"Working with Transport for London, we will roll out new, expanded programmes that reduce the effects of air pollution on Londoners and make the streets safer for all road users and pedestrians."

At 0829 BST, shares in Capita were up 4.19% at 38.6p.

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