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20.10.17

Network Rail confirms year’s largest property sale

Network Rail has pocketed £35m from the sell-off of its National Logistics Centre in Ryton – representing the organisation’s largest-value property sale this year.

The deal is part of NR plans to sell off infrastructure in order to raise extra funds, as well as release underused land for housing developments.

External analysis suggested that the site could be phased out of the national railway system with the introduction of a new inventory order and delivery system over the next few years. As part of the deal, the site will be leased back to Network Rail for the next 15 years while changes take place.

“Network Rail has decided to raise funds from asset disposals to support our ongoing rail enhancement programme,” commented Network Rail Property managing director, David Biggs.

“Investment is crucial to improving the railway in Britain. Improvements lead to longer, faster, more frequent trains; a better, more reliable infrastructure; and better facilities for passengers, especially at stations.

“The sale of the National Logistics Centre in Ryton is part of this plan to build a bigger, better and more reliable railway which benefits all rail users, and delivers the best value for money for taxpayers.”

The announcement forms part of the infrastructure owner’s plans to sell its assets in order to generate extra funding and plug existing cash gaps.

The organisation has also been considering selling off its electrical power networks and even some of its 18 major stations, potentially including London Waterloo, Manchester Piccadilly, Birmingham New Street and Edinburgh Waverly – although not much has been said on these proposals since last year.

These efficiency drives are fuelled by fears that the UK’s infrastructure manager could be in as much as £50bn of debt by the end of the decade.

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Comments

Tarka Man   20/10/2017 at 13:23

If TOC's paid the true price for track access Network Rail would not be in debt by so much; but then no one would bid for non profit making franchises. So funds that could support the infrastructure go to pay profits for other state governments...the system is mad :(

Ampox   20/10/2017 at 13:31

Need to make sure that careless sell-offs do not compromise future expansion needs - rail is a growing industry!

Jerry Alderson   22/10/2017 at 20:01

Greater Anglia were well and truly 'upset' that Network Rail had sold off so much of Chesterton Sidings, next to the new Cambridge North station, as they would have stabled trains there overnight. Passengers might have got a better service as well. However, it's not all bad news as the land will be used for a hotel right next to the station (just as they have done at Cambridge), along with apartments and offices, so that will attract a lot of rail users and make the new station well used. When a land sale allows patronage on the railway to grow then I am not generally concerned by it.

Andrew Gwilt   23/10/2017 at 12:26

What about the brand new £70million 50-acre brownfield site is where the new Network Rail Derby Triangle development is likely to take place or to be built in Derby in the East Midlands that will create about 3,300 new jobs in Derby and across the East Midlands and beyond. https://www.networkrail.co.uk/feeds/derby-triangle-development-set-to-create-3300-permanent-jobs/ https://www.constructionnews.co.uk/companies/clients/network-rail/boost-for-network-rails-huge-derby-triangle-scheme/10021589.article http://www.constructionenquirer.com/2017/07/13/plans-approved-for-70m-derby-triangle-scheme/

Andrew JG   24/10/2017 at 01:01

That new National Logistics Centre is on the outskirts of Coventry. Which is good for new jobs to be created in the West Midlands. Aswell for Warwickshire and nearby towns and neighbouring counties. https://www.railstaff.uk/2017/10/20/network-rail-sells-national-logistics-centre-coventry-35m/

Burtocf   14/11/2017 at 17:55

Re Tarka Man: trouble with increased Track Access Charges they take no account of Netw.R's efficiency or otherwise, and would be inflationary which politicians would especially hate. But cash certainly needs to found from somewhere if only to undertake vital maintenance, crucial to a reliable timetable.

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