FINANCIAL SETTLEMENT AGREED WITH FIRST ENGINEERING FOR TAKING RAIL MAINTENANCE IN-HOUSE

Monday 28 Jun 2004

FINANCIAL SETTLEMENT AGREED WITH FIRST ENGINEERING FOR TAKING RAIL MAINTENANCE IN-HOUSE

Region & Route:: National

Network Rail today confirmed that a full and final financial settlement had been reached with First Engineering in relation to the Company’s decision to bring all rail maintenance in-house. This settlement relates to the three contracts held by First Engineering that cover West and East Scotland and Manchester. The contracts, which were due to run until 31 March 2006, have seen almost two thousand people transfer to Network Rail along with assets and equipment and now sees almost 70% of rail maintenance under direct Network Rail control. The total package of some £20 million includes payment for assets and equipment, compensation for loss of profits and costs of transfer and incentive payments for meeting performance targets, reducing train delays and delivering the transfer on time.

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We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.

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