Latest Rail News

19.09.18

Network Rail extends two-year £200m British Steel contract

Network Rail has announced a £200m two-year contract extension with British Steel.

The owner and infrastructure manager of Britain’s tracks said that today’s agreement is “continuing a close partnership” between British Steel and Network Rail.

The deal, which was announced at InnoTrans, the international trade exhibition for transport technology, will see British Steel supply around 200,000 tonnes (4,000km) of rail between March 2019 and March 2021.

British Steel is one of Network Rail’s biggest suppliers, and its long rail plant in Scunthorpe has long supplied rail for Britain’s network. It is the main rail supplier for maintenance and renewals and was part of major projects, such as the Borders Railway in Scotland reopening after 50 years.

Rob Morton, supply chain operations director of route services at Network Rail, said: “We are proud to extend our historic relationship with British Steel for a further two years. It is pleasing to see two British organisations trading for mutual benefit and for the benefit of the wider British economy.

“This new deal is an example of how we continually review our sourcing options to provide the safest network and maximise value for money for the British taxpayer.”

He added: “We look forward to working together closely with British Steel over the coming years, continuing our innovative and constructive partnership.”

In April this year, British Steel started building a new facility at its Scunthorpe site to increase its capability in order to support Network Rail’s requirements for new rail types.

Chief marketing officer at British Steel, Ron Deelen, commented: “This is excellent news, not only for British Steel but the millions of people who use the UK’s rail network.

“During the course of the last five years we’ve worked extremely closely with Network Rail, ensuring the on-time delivery of half-a-million tonnes of high quality rails in lengths of up to 216m.

“We enjoy an excellent partnership with Network Rail and over the course of the current contract, and the new one, we look forward to further strengthening that and ensuring Britain’s railways remain on the right track.”

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