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Monday 18 Jul 2005

MAINTENANCE MAKES A £58 MILLION A YEAR TRANSFORMATION

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National

Network Rail has today awarded two contracts to Exel and Unipart Rail logistics worth a total of £58 million a year, which will revolutionise the way materials are bought, stored and delivered to work sites and the company’s 15,000 maintenance workers. Director, Maintenance Richard Fenny, said: “The award of these contracts shows Network Rail’s drive to reduce costs and deliver value for money through more integrated methods of working.  This will make better use of resources and will continue the substantial improvements made since maintenance was brought in-house.” A £51 million per annum (including cost of materials) two year contract with an optional extension to five years, has been awarded to Unipart Rail Logistics.  A team of commercial experts will negotiate new prices for every product used in maintenance, buying high volume or high value materials on a national basis.  Exel has been awarded a £7 million per annum contract for a three-year period with an optional extension to five years to handle the nationwide distribution of all maintenance materials for Network Rail from its 100,000 sq ft distribution centre in Worcester.   Exel will be responsible for managing stock at Network Rail’s 323 stores around the country, giving the company a complete picture of all materials at all locations. The contract also includes the operation of operating a call centre in West Bromwich coordinating requests from Network Rail engineers. A dedicated fleet of 22 crane-equipped Network Rail vehicles will move stock from the warehouse to stores or work sites within 24 hours of receiving the order and will collect any surplus materials or repairable items from these locations.