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Thursday 22 Feb 2018

Sale secures Carillion rail contracts

Region & Route:

National

A significant number of Carillion’s Network Rail contracts have today been acquired by Amey Rail Limited, after the company went into liquidation last month. The successful sale provides reassurance to many in the rail industry and continuity for projects around the country.

The transfer of Network Rail contracts operated by Carillion Construction Limited to Amey Rail Limited includes projects in the East Midlands, London and North West England.

For many of the Carillion employees working on and supporting Network Rail projects, this is good news as the sale is likely to safeguard over 700 jobs and provide security for many other companies within the rail industry supply chain.

Matthew Steele, commercial director Network Rail said “This is a positive step for the industry, ensuring the delivery of a number of major rail projects across the country whilst safeguarding an expected 700 jobs and the wider supply chain. We look forward to working with Amey to enable a smooth transition and ensure the ongoing safe working on our sites.”

“We do recognise that this has been a very unsettling period for the employees of Carillion and would like to thank them for the continued commitment to the delivery of these projects.  We remain focused on the transfer of remaining projects and employees to new arrangements over the coming weeks and months.”

Network Rail continues to work closely with the Official Receiver’s special manager - PwC - to seek long term transition arrangements for the remaining contracts and staff. Whilst this process is ongoing, the remaining contracts continue to be delivered under our arrangement with PwC to enable an orderly transition.

Last month, it was agreed that PwC will pay Carillion employees’ wages for work done on and supporting Network Rail’s contracts until after Easter and many of the construction companies smaller rail suppliers were paid the arrears they were owed to ensure the continued delivery of important projects.