IBM wins London c-charge contract

IBM is to take over the running of London’s congestion charging scheme from November 2009 from Capita.

The decision was announced by Transport for London (TfL) today, causing a massive 5.5 per cent drop in Capita’s share price.

IBM public sector executive Paul Robb said: “We look forward to a strong partnership with TfL in which IBM will bring its unique transformational capabilities and extensive experience of road charging and intelligent transportation systems.

“Working with TfL we will provide London with a world-leading urban congestion charging scheme that addresses its congestion challenges now and in the future.”

IBM runs a similar congestion charging regime in Stockholm, Sweden.

A seven-month pilot scheme in that city up to August this year saw air pollution cut by 12 per cent, and public transport use rise considerably.

Graeme Craig, interim director of congestion charging at TfL, explained that IBM had undercut Capita’s price, meaning that more of the proceeds of the c-charge scheme would be available for reinvesting in London transport.

IBM’s contract is to run for five years.