17.10.17
No reason why schemes can’t be funded with more private cash, says Siemens
Siemens has signalled its willingness to work on future electrification and resignalling programmes following the government’s announcement of £48bn available for CP6.
The hints build on Network Rail chief executive Mark Carne’s pledge to increase private railway investment, backed by the Hansford Review earlier this year. Carne has also suggested that a supplier incentive scheme could be rolled out to reward companies based on how much they’re willing to invest in the railway.
Gordon Wakeford, managing director of Siemens UK’s mobility division and industry chair of the Rail Supply Group, said the DfT’s funding pledge, which includes £35bn in direct grants, was a step forward for the industry.
“We also welcome the government’s apparent willingness to find new and innovative ways to deliver major rail upgrade projects,” he added.
“There’s no reason why major electrification and re-signalling projects can’t be delivered and financed with more private sector involvement, and Siemens would be happy to play its part, alongside Network Rail and other partners.”
The comments come in an important year for Siemens, during which it committed to a major merger with Alstom expected to see the two benefit from a revenue of £1.6bn. It has also been building a name for itself across the north in key projects such as the Ordsall Chord and the incoming TransPennine route upgrade.
They also build on last week’s findings from the Rail Industry Association (RIA) which showed that while government funding was down by almost 13% compared to the previous financial year, private investment had a real-term increase of 13.2%.
“These figures from the ORR are great news,” said Darren Caplan, chief executive of the RIA. “They show increasing private investment delivering upgrades to the UK’s rail system, ensuring even better service for lower cost.
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