The price of the new Metro fleet could spiral because of Brexit, transport bosses have warned.

Nexus says that the continuing uncertainty over the UK’s exit from the European Union poses a “significant threat” and could cause costs to escalate.

Five firms have now submitted bids to take on a £500m contract to build and maintain the new Metro trains, as well as building a new depot in Gosforth.

And while bosses say the bidding process remains on track so far, there are fears that a drop in the pound’s value post-Brexit could pose problems for the much-needed upgrades.  

Nexus documents state that rising prices “could result in Nexus having to reconsider the scale of the procurement”, while any delay to the project would also place a heavy burden on the deteriorating trains currently in use.

Tobyn Hughes, managing director of Transport North East, told a North East Joint Transport Committee meeting on Thursday: “It is not a particularly bad state of affairs because it is currently going according to plan. We are very pleased with progress. Just over a week ago we received bids from interested parties which are now being evaluated.”

He added: “The Brexit situation gives rise to a lot of uncertainty in the economic environment and the trading environment.

“We look at Merseyside and they were affected by the pound devaluing immediately after the referendum when they were in fleet procurement. That affected the price they paid.”

Five companies have put themselves forward to build the new fleet of trains: Bombardier; CAF, Hitchachi; Stadler; Downer EDI/CRRC Changchun. Nexus staff are now working to whittle those bids down to a top three, before putting their preferred choice to the government later this year.

Mr Hughes said he was “confident” that good bids have come in, but warned that the price of the new trains may vary depending on post-Brexit exchange rates.

The first of the new trains should start arriving in the North East in 2021, with the entire fleet deployed by 2024.

Nexus bosses want the new models to have London Tube-style seating to make the trains more spacious, as well as wi-fi and air conditioning.

Huw Lewis, Nexus customer services director, also told councillors on Thursday that Brexit may also cause maintenance problems for the existing Metro trains – which are based on a German design – and the Shields Ferry if there are supply chain disruptions between the UK and Europe.

He said he was confident that appropriate measures were in place to manage the situation, but admitted that it could become more difficult to keep the ageing fleet running.

Nexus is currently investing £1.3m in upgrades to its existing Metro trains, in the hope of improving their reliability by 10%.