Media centre

Tuesday 11 Oct 2005

ROAD RAIL CONTRACTS DRIVING UP STANDARDS AND REDUCING COSTS

Region & Route:

National

Millions of pounds have been saved following the award of new contracts for road rail plant.  Four companies have been selected from a tough and competitive field in which safety and quality were the top requirements. The new three-year ‘framework’ contracts, with an additional two-year extension option, represent another key element of Network’s Rail’s task of rebuilding Britain’s railway.  They will deliver key cost reductions of up to 30% and will see significant improvements in value for money through: ·         reduction in charges through competitive pricing ·         full involvement of suppliers in the work planning processes ·         standardisation across the country ·         better use of equipment ·         reduction in the age profile of equipment ·         permanent hire of machines where possible ·         closer co-operation and detailed planning Richard Fenny, Maintenance Director, said: “The award of these contracts shows our continuing progress in controlling costs, and getting prices in the rail industry closer to those used in the wider construction industry.  These prices are delivered while providing a safer, more reliable railway infrastructure with better train performance. The huge task of rebuilding our railway is well underway. “We are committed to “raising the bar” on safety and performance across all areas of our business and all indications to date in our Maintenance function point to this being achieved.  We have and want to build good relations with our suppliers.” These contracts are ‘framework’ contracts and thus have no guaranteed work levels. However, estimated values for the first year of the contract are as follows: Contractor Area Est. value per annum L & W Kent Sussex £2.5 million Balfour Beatty Wessex Great Eastern WANLL £2.0 million Hydrex Thames Valley Scotland East Scotland West £2.0 million BCL Wales & Marches West Country West Coast South Manchester Liverpool West Midlands Preston North Eastern Great Northern East Midlands £6.0 million