Crossrail delayed again until 2022 as costs top £19bn

Crossrail bosses have confirmed the project will not now be ready until 2022 at the earliest and total costs have broken the £19bn barrier.

The latest update comes as the Crossrail Board said: “Delivery of the Elizabeth line is now in its complex final stages and is being completed at a time of great uncertainty due to the risks and potential impacts of further Covid outbreaks.”

The board said the central section between Paddington and Abbey Wood will be ready to open in “the first half of 2022.”

The line was originally due to open in December 2018.

Latest budget estimates show that the cost to complete the project could be up to £1.1bn above the latest agreed finance package taking the total beyond £19bn.

Crossrail said it is planning to start intensive operational testing “at the earliest opportunity in 2021.”

The board blamed the latest delays on:

  • Routeway: we have had lower than planned productivity in the final completion and handover of the shafts and portals. The shafts and portals form a critical part of the routeway and contain many of the complex operating systems for the Elizabeth line. We have now completed handover of eight of the ten shafts and portals to TfL and will complete handover of the final two this autumn.
  • Stations: as more detailed plans for the completion and handover of the ten central section stations have developed, we have revised our previous schedule assumptions about the pace at which these large and complex stations can be handed over to TfL. The completion and handover of all the stations in the central section is a monumental task – in our updated plan we have phased the transfer of stations to take account the scale of this undertaking.
  • COVID-19: Covid has further exacerbated the schedule pressures due to a pause of physical activity on sites during lockdown to keep the workforce safe and significant constraints on ongoing work and productivity due to the reduced numbers that can work on site to meet strict social distancing requirements. We now have a maximum of around 2,000 people on our sites, less than 50 per cent of our pre-Covid complement.

Crossrail said it is undertaking “a period of intensive construction activity during August and September to complete the remaining construction works in the routeway for Trial Running.”

Mark Wild, Chief Executive, Crossrail Ltd, said: “Our focus remains on opening the Elizabeth line as soon as possible. Now more than ever Londoners are relying on the capacity and connectivity that the Elizabeth line will bring, and we are doing everything possible to deliver the railway as safely and quickly as we can.

“We have a comprehensive plan to complete the railway and we are striving to commence intensive operational testing for the Elizabeth line, known as Trial Running, at the earliest opportunity.

“Delivery of the Elizabeth line is now in its complex final stages and is being completed at a time of great uncertainty due to the risk and potential impacts of further Covid outbreaks.

“We are working tirelessly to complete the remaining infrastructure works so that we can fully test the railway and successfully transition the project as an operational railway to Transport for London.”

Andy Byford, London’s Transport Commissioner, said: “It is very disappointing to receive confirmation from Crossrail Ltd that their plan for opening the Elizabeth Line now has a date of the first half of 2022.

“The line will transform travel across London and is vital to supporting jobs, homes and businesses across the capital. I will now work with my team and the DfT to review Crossrail’s plans.

“I have been very clear that I am committed to getting this railway open safely and reliably as quickly as possible for the benefit of London and beyond.”

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Inland Homes to buy Irish Guards base for £600m scheme

Inland Homes is set to buy one of the largest brownfield sites in London from the MoD for a major housing scheme.

200 year-old London cavalry barracks includes 14 grade II listed buildings
200 year-old London cavalry barracks includes 14 grade II listed buildings

The specialist brownfield developer is in talks with Defence Infrastructure Organisation chiefs to buy the 36.7 acre Cavalry Barracks in Hounslow West London.

Completion of the deal is subject to vacant possession and anticipated to be in August 2021.

Inland Homes expects to make a planning application for a residentially led mixed-use scheme of over 1,000 homes within the next six months.

The Group will manage the planning and development process on behalf of the equity investors on this project and will be entitled to receive a significant share of the development profit from the £600m development.

The site currently operates as an occupational military barracks and is the home of the Irish Guards who are relocating to Aldershot.

The site is a historically important military establishment with a formal parade ground, specifically built to house soldiers and stable horses.

The Barracks comprises over 37 acres of land and includes 14 Grade II listed buildings and 19 locally listed buildings together with over 439 existing residential accommodation units.

The entire site is allocated for a major mixed-use development via a development brief adopted by the London Borough of Hounslow.

Inland chief executive Stephen Wicks said: “This is our fifth MOD transaction and the largest to date.  We have an excellent track record in the early delivery of homes on sites such as this, a significant proportion of which will be affordable, which is particularly important in London Boroughs like Hounslow.”

Barney Hillsdon, Principal at Avison Young who acted on behalf of the DIO added: “This is a fantastic result for both the DIO and Inland during a very difficult time in the market.

“The site will deliver much needed private and affordable homes for London and will offer a diverse range of product to the market due to the retained heritage buildings on the site”.

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Covid-19 delays London Super Sewer 9 months

Completion of the London Thames Tideway tunnel project has been pushed back into 2025 because of the Covid-19 outbreak.

Work has started fitting secondary tunnel lining
Work has started fitting secondary tunnel lining

Thames Tideway has now assessed the impact of the lockdown and more restricted working practices on the vast project.

It has warned shareholders that the project will be pushed back nine months into the first half of 2025.

Project engineers now estimate that Covid-19 will add £233m to costs, taking the expected final project budget to £4.13bn.

Tideway is in discussions with regulator Ofwat over a package of measures to mitigate the financial impact of Covid-19 on the company.

“We are making progress in these discussions and we expect to reach a full agreement in the coming months,” said a spokeman.

Following a temporary pause of all but essential works at the start of the lockdown, construction work recommenced on the majority of Tideway’s worksites in May, but at a lower level of activity in order to comply with social distancing requirements.

The project is approaching 60% completion and still in peak construction.

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