Network Rail regulation and performance

30.01.19

Network Rail unveils winners of 10-year contracts for £5bn rail system upgrades

Network Rail has announced its preferred bidders to deliver track and rail system upgrades over the next 10 years in the south of England and in Scotland, worth an estimated £5bn.

The contracts, initially five years with the option to extend to 10, have been awarded to Colas Rail and Aecom for upgrades in the south, and to Babcock Rail, Arup and Arcadis in Scotland.

Network Rail has divided the next decade of rail system upgrades into three geographical alliances which are the Northern Alliance in Scotland, the Central Alliance (which includes London and the Midlands) and the South Alliance consisting of the south east, western and Welsh routes.

The remaining central alliance bidding process is still underway, but the total work of the three contracts is £5bn over the time-period.

Track programme director Steve Featherstone said: “Reaching this important milestone ensures we will have a stable foundation for the delivery of the Great Britain’s core railway infrastructure for the next decade. Our new strategy allows us to better align to the routes and, ultimately, deliver for customers.”

Commenting on the contract, Colas Rail’s CEO Jean-Pierre Bertrand said: “We are extremely proud of our team being recognised for the quality of the tender submission.

“We are fully committed to delivering major improvements to the UK railways in the south, working together with our partners Aecom and Network Rail over the upcoming 10 years.”

This was echoed by Aecom’s chief executive Colin Wood who said it was “extremely pleased” to win the contract to work with Network Rail.

The deals are still subject to contract terms being finalised and agreed whilst procurement currents goes through a standstill period.

Babcock Rail, Arup and Arcadis will deliver upgrades in Scotland in a three-way joint venture. Babcock’s CEO Archie Bethel said it was delighted to be selected as the preferred bidder alongside its alliance partners.

Earlier this month, Network Rail announced its final multi-million contract winners for CP6 renewals and improvements in the north east and in Scotland, following two previous announcements regarding contract winners in December.

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