There are some projects to which the labels “troubled” and “controversial” become routinely attached. Edinburgh’s tram is one of them.
Years overdue and millions of pounds over budget, the tram is now set to be up and running by 2014. Original plans were for around 18 miles of track, linking Newbridge in the west of Edinburgh to the Port of Leith in the north, with a loop around the city. What Edinburgh will get is a single eight-mile line linking the airport to the city centre.
Edinburgh council has justified the circa £800m cost of the tram, arguing that it will boost the local economy, enhance the city’s image and improve the environment. Detractors disagree and evidence that trams promote regeneration is sparse.
Mention the tram in Edinburgh and the response ranges between fury and derision. One developer, who doesn’t want to be named, calls it “a travesty”.
“There are good road, rail and bus links to the west of Edinburgh already. It’s a complete waste of money,” he says.
However, the scheme does have its enthusiasts. Tiger Developments is building The Haymarket, a £200m mixed-use scheme in the city centre, and development director Simon Fox says the tram will have a positive impact.
“Our site is adjacent to a major train station and has plenty of car parking. It’s on a big transport node and the tram will add to that,” he says.
But asked whether Tiger would have developed Haymarket if the tram had not been in prospect, he says: “We would have, but the tram has certainly assisted our development.”
One scheme that may benefit from the tram is Edinburgh Park, a 58-hectare business park to the west of the city with occupiers including BT, HSBC and AstraZeneca. Edinburgh Park will get three tram stops, including one on land yet to be developed. “It will be positive for Edinburgh Park. Tenants there are screaming for car parking space,” says Bryce Stewart of Colliers International.
There is no evidence yet of an increase in uptake at Edinburgh Park, which lost several tenants in the recession and now has around 500,000 sq ft of space vacant. Only 7,000 sq ft was let at the park in 2012, and no significant lettings have been reported so far this year.
Indeed, the council itself was unconvinced the tram would boost Edinburgh Park. The council was joint development partner with Miller Developments on Edinburgh Park, but it withdrew funding last year saying it could not justify any more money. The joint venture, set up in 1990, went into administration owing £18m to the Bank of Scotland. It had not carried out any development for 10 years.
The council’s head of economic development Greg Ward points to development plans along the tram route at the airport and, at the other end of the line, Tiger’s Development’s Haymarket scheme and a number of hotel developments around St Andrew Square, the tram’s penultimate stop.
But he concedes: “Who is to say whether any of this is directly related to the tram? But the sense is, thank goodness we are getting to the end of the construction period and we will soon have an operating tram service.”
Trams and economic growth – the evidence
Researchers have reached mixed conclusions about the contribution trams make to economic development. There is frequently an increase in house prices close to tram stops, although this may not be a desirable outcome in prosperous residential areas. There is little evidence to suggest a tram service alone will boost commercial activity.
A University of Leeds study found no indication that Manchester’s Metrolink or Sheffield’s Supertram had any impact on retail or the office market, although it conceded the research was carried out during a recession.
One study in Dallas found the value of commercial properties along the DART light rail line increased by 13.2% more than equivalent properties between 1994 and 1998, but this impact has not been observed or recorded elsewhere.
“The stimulation of development is a key objective for the building of many light rail systems. A new light rail system will not, on its own, induce development, but it can form part of a package to facilitate development,” says the Leeds study.
Turkish researcher Ela Babalik, a world expert in tram systems, drew up a matrix to determine whether tram projects could contribute to economic growth. Requirements included high local support, integration with urban regeneration projects and a significant improvement in accessibility.
Asked what regeneration the council had to support the tram project, head of economic development Greg Ward says: “We are promoting the tram route pretty vigorously. We took it to real estate fair MIPIM and have a promotion called ‘Connect’ to draw investor attention to West Edinburgh.”
