Media centre

Monday 20 Mar 2006

ACTION STATIONS FOR NETWORK RAIL

Region & Route:

National

Network Rail continues with its drive to improve rail stations today, by announcing the appointment of professional services firm Ernst & Young as its principal financial adviser for Network Rail’s station development programme. The contract runs initially for three years with an option to extend for ten. Ernst & Young will provide advice on deal structure, bid evaluation, financial modelling and bidder due diligence in support of Network Rail’s programme. The need for up to £4bn of additional private-partner investment in stations across the UK has been identified by Network Rail. This programme will upgrade stations by leveraging that private-sector investment through commercial development. John Pike, Network Rail’s Director, Commercial Property, said: “Rebuilding our train stations – the shop windows of the rail industry – is a big task. We must meet the challenges of higher passenger numbers and public demand for new and upgraded amenities. With Ernst & Young on board we will move more quickly in the market and accelerate this vital job.” Dougald Middleton, Ernst & Young’s Head of Transport added: “We are delighted to have been chosen by Network Rail to work with them on their massive and visionary project. It will transform stations across the UK to the benefit of the travelling public. The combination of Network Rail's commitment to realise the value of its real estate holdings and the development expertise of the major players in the real estate world is a powerful force for change. It is a very exciting assignment for us." Under the station development programme, Network Rail has already short-listed seven high-calibre property developers for schemes to revamp both Euston and Victoria. Later this year, Network Rail will invite expressions of interest from developers to upgrade Waterloo. In addition, up to 50 larger regional stations will benefit from this improvement programme. As will hundreds of small stations which will be bundled together over the next few years into clusters as invitations for development. Network Rail selected Ernst & Young through the OJEU tendering process (see notes to editors) in a tough competition involving major financial institutions, both banks and accountants.