Friday 20 Oct 2017
£35 million to be reinvested into the railway as Network Rail sells national logistics centre
Network Rail has generated £35 million from the sale of its National Logistics Centre in Ryton, Coventry to the West Midlands Pension Fund, following a competitive sales process.
Funds generated from the sale will be reinvested into the railway to contribute to delivering the Railway Upgrade Plan. As part of the sale agreement, the National Logistics Centre will be leased back to Network Rail with a 15-year term.
The sale follows external analysis which suggested introducing a new inventory and order system, meaning the site will eventually no longer be needed by Network Rail.
David Biggs, Managing Director of Network Rail Property, said: “Network Rail has decided to raise funds from asset disposals to support our ongoing rail enhancement programme.
“Investment is crucial to improving the railway in Britain. Improvements lead to longer, faster more frequent trains; a better, more reliable infrastructure; and better facilities for passengers, especially at stations.
“The sale of the National Logistics Centre in Ryton is part of this plan to build a bigger, better and more reliable railway which benefits all rail users, and delivers the best value for money for taxpayers.”
About Network Rail
Network Rail owns, manages and develops Britain's railway - the 20,000 miles of track, 40,000 bridges and viaducts and the thousands of signals, level crossings and stations (the largest of which we also run). In partnership with train operators we help people take more than 1.65bn journeys by rail every year and move hundreds of millions of tonnes of freight, saving almost 8m lorry journeys. We employ 38,000 people across Britain and work round-the-clock, each and every day, to provide a safe, reliable railway.
About the Railway Upgrade Plan
The Railway Upgrade Plan is Network Rail's investment plan for Britain's railways. It makes up two-thirds of Network Rail's £40bn spending priorities for the five years to 2019 and represents the biggest sustained programme of rail modernisation since the Victoria era. It is designed to provide more capacity, relieve crowding and respond to the tremendous growth Britain's railways continue to experience; passenger numbers have doubled in the past 20 years and are set to double again over the next 25 years - so we need to continue to invest in building a bigger, better railway. For passengers, that means:
- longer, faster more frequent trains;
- better, more reliable infrastructure; and
- better facilities for passengers, especially at stations.