TfL appoints contractor for East London Line to replace Carillion

Transport for London has appointed Cleshar Contract Services to replace Carillion in maintaining London Overground's East London Line.

TfL said the new contract will start on 1 April and that Carillion's employees will be transferred by Cleshar with their terms and conditions protected.

Until the contract starts, TfL will work with the accountancy firm PwC on a deal that allows Carillion's workers to carry out maintenance on the line and be paid.

Carillion's collapse on 15 January left thousands of jobs and more than 400 government contracts with an uncertain future. The construction and maintenance company made more than a third of its revenue from work for the UK government including the HS2 rail link as well as health, roads and education projects.

The company's chaotic affairs were laid bare as MPs questioned the head of the government's insolvency service on Tuesday. Sarah Albon said Carillion's records were so bad that her team had difficulty working out how many directors the company had. There are not enough assets in the company to cover the cost of winding it up, she added.

Jonathan Fox, TfL’s director for rail and sponsored services, said: “I would like to give my sincere thanks for the continued commitment and professionalism of all employees during this uncertain time and am delighted that we will be able to secure a way forward for this contract and the Carillion staff affected."