Edinburgh is again talking trams – and again the price tag is making eyes water.
The latest consultation for a north-south extension puts the possible cost at almost £2.9billion, up from around £2bn just last year. In other words, a near billion-pound jump before a spade even hits the ground.
From a business point of view, that sets alarm bells ringing. Whenever numbers climb that fast, you need to pause and ask – what’s the return on investment?
Trams are not a bad idea in themselves. Edinburgh is growing. The population is expected to swell by 60,000 over the next two decades. We know the BioQuarter, Granton Waterfront and existing city centre are all hotspots for jobs and housing. Connecting them properly with fast, clean transport makes good sense.
But sense and spending are two different things. At £2.9bn, we have to ask the hard questions. What will we get back? Will trams unlock new economic activity, new housing growth, more visitors, more jobs? Or are they just a shinier, more expensive way of doing what buses already do?
Investment must deliver. Otherwise, it’s just money burned. We also have to think about opportunity cost. If we spend nearly £3bn here, that’s £3bn we can’t spend elsewhere. Think about what that money could do for our hospitals, our schools or our digital infrastructure.
Edinburgh buses carry more people every day than the trams ever will do, so what if we invested heavily in making that network even more efficient and reliable?
The risk is that we back the wrong horse, chasing prestige and the new over practicality.
Private sector investors would never just wave through billions without guarantees. They’d insist on clear business cases, fixed budgets and penalties for overruns. And, let’s be honest, Edinburgh’s track record doesn’t inspire lots of confidence. The first tram line took years longer and cost far more than expected.
Across Scotland, we’ve seen the CalMac ferry fiasco, hospitals running way over budget, and big capital projects that become cautionary tales. Taxpayers are rightly wary.
If this project goes ahead, there must be iron-clad controls in place. Fixed-price contracts with builders. Independent scrutiny of costings. No blank cheques.
Let’s look at who benefits. Developers with land at Granton and elsewhere stand to make millions when new tram stops appear nearby. The taxpayer obviously benefits with a better public transport system, but there must be serious conversation about mechanisms such as land value capture, levies, or direct investment from those who benefit most. Edinburgh Council should not be shy about bringing private money to the table.
The good news is that there are smarter choices within the consultation. Take the Roseburn Path option: lower cost, faster journey times, more passengers forecast, and a direct link from Granton to the airport.
On paper, it looks like the better bet than the Orchard Brae route, which costs more and carries fewer people.
If this were a boardroom decision, you’d back the more efficient option – even if it means making compromises, like the Western General not getting a tram stop right at the door.
But the most important thing is user demand. At the end of the day, will enough people actually use the trams to justify them? If they’re cheaper, quicker and more reliable than the car or bus, then yes. If not, passenger numbers won’t materialise and the whole thing collapses.
I’m not anti-tram. Quite the opposite. I believe world-class cities need world-class infrastructure. If Edinburgh wants to remain competitive as a hub for finance, tech, tourism and life sciences, it needs mobility. But mobility has to be delivered in the smartest, most cost-effective way.
That’s why I say don’t dismiss the trams, but don’t just wave them through either. Treat this like a business investment. Scrutinise it, stress-test it, and make sure it pays back more than it costs. If that can’t be proved beyond doubt, then the city should think again.
We risk pouring billions into shiny steel tracks and being left with yet another Scottish mega-project that looks more like a warning than a win.
Side (235 words)
First impressions are hugely important in business.
That includes what a customer sees when they walk into your premises, visit your website, or the welcome they get from staff.
That principle should apply to all industries, transport included. And while I’m pleased there are further upgrades being made to Glasgow’s Queen Street train station, I think we’re missing a trick.
Network Rail has unveiled plans to further develop the station, which sits right on George Square, improving entry points and adding new office and retail spaces.
This is terrific investment for Scotland’s biggest city, signalling another important step in its regeneration, but I do wish they’d do the same for the country’s busiest train station – Glasgow Central.
While a lot of money seems to be getting invested in the area surrounding Queen Street, such as the new look George Square and ‘The Avenues’ public realm programmes in the heart of the city, the area around Central paints a dire picture.
Strewn with litter, tired shopfronts, deprivation and pollution, it is not the image we want to project to tourists as they take their first steps onto Glasgow soil. Indeed, it’s not what we want for locals either.
Whether passengers are stepping onto the platform at Central after landing at Glasgow or Prestwick Airports, or they’re simply coming into the city for a day out, the current first impression doesn’t do much to inspire repeat visits.
Laugh (129 words)
Sweet tooths rejoice – Haribo is opening a dedicated flagship store right here in Scotland.
Next week will see the German confectionary company open its first Scottish outlet at Glasgow’s Silverburn Shopping Centre.
I must admit I do find it remarkable that there’s this much hype over gummy snacks, but I suppose we should never underestimate peoples’ appetite for sugary snacks.
With more than 40 varieties of Haribo and Maoam products on sale, the days of the much-anticipated childhood trip the sweetie shop are back in business – and I suspect it won’t just be for the kids either.
The first 75 customers who take pics with the mascot and post on socials with designated hashtags will scoop a “mystery bag”. This savvy brand knows how to keep the hype going.
Weep (120 words)
A damning report into the economic outlook in Scotland’s rural communities has me concerned.
The findings predict depopulation in Dumfries and Galloway over the next 20 years could leave the area facing a socio-economic crisis.
The region has already seen a 2.5 per cent decrease in its population in the last decade, with numbers expected to fall below 140,000 for the first time by 2043.
An aging population is partly to blame, as well as slowing birth rates, but I can’t help but feel there’s a lack of infrastructure and economic opportunities compelling people to stay.
I hope local decision makers can get their heads together to address this and allow the proud and historic region to once again thrive.
