Media centre

Wednesday 19 Sep 2018

Network Rail supports British business with £200m British Steel contract extension

• Two-year contract extension worth £100m annually
• For the supply of long steel rail, largely for maintenance and renewals
• Around 95 per cent of Network Rail’s rails are from British Steel
• Previous contract between the two companies was signed in 2014

A two-year contract extension continues the close partnership between British Steel and Network Rail, owner and infrastructure manager of Britain’s railway. British Steel’s long rail plant in Scunthorpe, North Lincolnshire has long supplied the rail for Britain’s railway.

The two British companies have rubber-stamped the relationship today (Wednesday 19 September) at InnoTrans, the international trade exhibition for transport technology. The contract is for the supply of approximately 200,000 tonnes (4,000km) of rail and will run from March 2019 to March 2021.

British Steel is one of Network Rail’s biggest suppliers and the main rail supplier for maintenance and renewals. This includes major projects such as the Borders Railway in Scotland, which reopened in 2015 after 50 years, bringing more tourism and more affordable housing that has resulted in increased economic and population growth.

Specialists at the Scunthorpe business dedicated to working with Network Rail to deliver tailored solutions to the challenges of the railway. In April this year, British Steel started building a new facility at its Scunthorpe site to increase its capability to support Network Rail’s requirements for new rail types for a more sustainable railway. Zinoco coated rails are used in areas where corrosion can be an issue, including along coasts, in wet tunnels and on level crossings.

Rob Morton, supply chain operations director, Route Services, Network Rail, said: “We are proud to extend our historic relationship with British Steel for a further two years. It is pleasing to see two British organisations trading for mutual benefit and for the benefit of the wider British economy.

“This new deal is an example of how we continually review our sourcing options to provide the safest network and maximise value for money for the British taxpayer.

“We look forward to working together closely with British Steel over the coming years, continuing our innovative and constructive partnership.”

Ron Deelen, chief marketing officer, British Steel, said: “This is excellent news, not only for British Steel but the millions of people who use the UK’s rail network.

“During the course of the last five years we’ve worked extremely closely with Network Rail, ensuring the on-time delivery of half-a-million tonnes of high quality rails in lengths of up to 216m.

“Together we’ve helped find solutions to the challenges they face, enabling us to develop and install new products which reduce the need for costly and time-consuming maintenance and replacement works. This allows more traffic with less rail maintenance – major benefits for passengers and freight operators, and provides Network Rail with excellent value for money.

“We enjoy an excellent partnership with Network Rail and over the course of the current contract, and the new one, we look forward to further strengthening that and ensuring Britain’s railways remain on the right track.”

Notes to editor:

• The Route Services function supplies Network Rail’s route businesses with critical services they decide are best provided from a national team. This includes IT services and equipment, supply and operation of Network Rail’s rail fleet, materials including rail and ballast, contract management and procurement, and shared services including finance, HR and training. Working as a single, service delivery directorate, Route Services allows Network Rail to benefit from economies of scale and greater efficiency from specialised delivery.