Awards, contracts & appointments

08.05.19

Network Rail announces £136m contract winner to manage its road vehicle fleet

Network Rail has awarded a £136m contract to Hitachi Capital to manage its road vehicle fleet for the next four years.

The railway infrastructure manager described the road maintenance contract as an “integrated one-stop shop” contract and will incorporate Network Rail’s new joined-up way of working.

This will see the supplier overseeing the management of the entire road fleet, which is owned and leased by Network Rail, as well as sourcing and supplying lease vehicles.

Network Rail said the contract moves away from managing 16 road fleets separately to a more effective and cost-effective ‘one-stop shot’ solution which will be provided by Hitachi Capital.

Service, maintenance and repair of all road fleet vehicles will be scheduled as part of the contract, including driver training, vehicle insurance, claims management, and end-of-life vehicle management.

Rob Morton, the supply chain operations director for Network Rail, said the deal “marks a turning point for our road fleet.”

He commented: “Working in partnership with Hitachi Capital, we will focus on providing the professional service that our drivers deserve, tailored to meet their individual needs.

“This will also include urgent replacement of older vehicles and using many local suppliers across Britain, sharing the benefit with regional economies.”

Road fleet contract signing Kenneth-Blackley-Jon Lawes-Willie-Crawford-Arnold Lupunga

Network Rail’s head of road fleet Willie Crawford echoed Morton, stating it was a “significant change” for the company and will “provide the platform for us to more effectively manage our road vehicle fleet across Britain and is tailored to our unique requirements.”

The new integrated fleet management contract provides full visibility of information through one system across the company, promoting the use of local supply chains and supporting local decision-making.

The contract is worth £136m and will run from 1 August 2019 to 31 July 2023.

Jon Lawes, managing director for Hitachi Capital Vehicles Solutions, said the contract was a “fantastic win” and will see it deliver 8,000 new contracts to hire vehicles for the fleet over the next five years.

He said: “Our integrated leasing and fleet management model will focus on choosing the right asset, improving compliance and vehicle availability, which will support Network Rail to improve the safety of all Network Rail employees.”

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