London Underground (LU) needs to offer “significant commitment and investment” in the Jubilee line to Canary Wharf or it will deter future occupiers, claim property analysts at Merrill Lynch.
In their latest UK property report, analysts Alec Pelmore and Robert Fowlds, said: “The main problem both now and for the future is the lack of alternatives if the Jubilee Line fails to operate or has running problems on any day. The DLR can only take part of the diverted demand, and certainly wont be able to in four years’ time.”
LU transports 9,000 passengers per hour to and from Canary Wharf at peak times. This is set to rise to 15,000 in 2005 and 20,000 in 2007. However, the workforce at Canary Wharf is set to grow to 80,000 by 2005.
The report said: “The key issue for employers will be regularity of service, and what delay that implies in staff arrival times. Regular and significant delays for large proportions of staff will be disruptive to tenant business.”
LU is in formal arbitration with property group Canary Wharf over the quality of the Jubilee Line service to the Docklands development. Canary Wharf has already paid £350m of a promised £400m to LU for the Jubilee Line extension.
Only improvement to the Jubilee line, such as better signalling, frequency and extra cars, will ease the congestion as the Docklands scheme expands, said Fowlds and Pelmore.
EGi News 20/08/01
