London Underground cuts freesheet contract

London Underground is set to cut the length of its freesheet newspaper contract from 11 years to seven-and-a-half years when it expires in March 2010.

Newspaper groups are expected to start bidding for the contract to distribute free newspapers on the underground, which is currently held by Associated for its morning title Metro, this week.

Transport for London officially issued a tender today asking bidders to compete for the contract, which allows the concession holder to distribute freesheets at 250 tube stations and 20 bus stations across the capital.

The transport body confirmed that the tender would only allow distribution from 6am to 11.30am on Monday to Friday, despite rumours that TfL would split the contract into separate morning and afternoon slots.

News International’s London Paper currently holds the contract to distribute at mainline railway stations during the afternoon but is expected to be interested in TfL’s new underground tender.

Express Newspapers, headed up by Richard Desmond, is also thought to be a contender as it battled it out with Associated the first time round.

London Evening Standard‘s new owner, Alexander Lebedev, could also be in the running after saying he is open to new business models.

Richard Parry, London Underground’s interim managing director, said: “The free morning newspaper is part of the fabric of city life and a success story for the publisher and our passengers alike.

“The contract has generated millions of pounds which have gone straight in to funding transport improvements across the capital.”

Potential bidders have until June 3 to express their interest in the TfL tender.