Latest Rail News

02.05.12

Network Rail reforms – more competition and less control

Simon Kirby, head of Network Rail’s infrastructure business, has told the Financial Times that a “major target” is for it to win a lead role in the construction of HS2, competing against other businesses.

Structural changes at Network Rail mean that it expects more work and responsibility to be outsourced to other companies, with its own infrastructure business eventually spun out as a separate legal entity that can compete for tenders on the open market.

Kirby told the FT that the “real driver” behind the planned spin off of the business unit was efficiency, with hopes it can benchmark itself against the best third party companies. He said the Network Rail board was considering a proposal to allow it to offer advisory services abroad to generate revenue.

The outsourcing plans – which would reduce the level of Network Rail input and control – would only apply to lower-risk projects worth under £30m, he suggested, with bigger projects and track maintenance remaining under direct Network Rail control.

This is being piloted over the next two years, he said, and is a direct result of the calls in Sir Roy McNulty’s value for money study for greater decentralisation, alliancing, and private sector involvement. Network Rail is already making progress in these areas, having devolved power to the route managers and launched its deep alliance with South West Trains.

Tell us what you think – have your say below or email us at opinion@railtechnologymagazine.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

Rail industry Focus

View all News

Comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >

'the sleepers' blog

Network Rail’s Anna-Jane Hunter on, NPR, TRU, HS2 and supply chain opportunities

12/08/2019Network Rail’s Anna-Jane Hunter on, NPR, TRU, HS2 and supply chain opportunities

Anna- Jane Hunter, is a ‘proud northerner’ and is passionate about continuing the investment and success story of rail across the North.  She plays a key role in working with government and northern leaders to enable the network... more >
read more blog posts from 'the sleeper' >

Interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he would not rule out his organisation issuing future r... more >
Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

24/06/2019Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

Ahead of his appearance, Malcolm Holmes spoke with Rail Technology Magazine about what key leaders in the industry were doing to improve rail in the Midlands. He said: “It’s very... more >