Network Rail has announced preferred bidders for a £800M five year conventional track renewals and enhancements programme, as well as new plans for bringing its high output track renewals work in-house.
Babcock, Carillion and Colas all won contracts for conventional plain line track works, worth £375M over five years across seven geographic lots. Babcock will be responsible for the Western/Wales/Wessex, Scotland and London North West (LNW) South areas, with Carillion contracted for LNW North, London North East and East Midlands and Colas for Kent/Sussex and Anglia.
Two contracts, the north alliance and the south alliance, have been awarded to AmeySersa (north) and Colas URS (south) for switches and crossings renewals. Worth up to £400M each over the next 10 years, these will be delivered by combining the skills of designer, installer and Network Rail.
Carillion Chief Executive Richard Howson said: “We are delighted to have been selected for this major programme of track renewals. As one of Network Rail's largest suppliers, we look forward to building on our strong relationship by working in partnership to deliver these important enhancements.”
Network Rail has said it will renew more than 7000km of track in the next five years, adding that because of more trains across the network, which are heavier and faster than ever before, more frequent maintenance and renewals are needed to keep tracks in the right condition.
Network Rail also revealed it will take direct control of its national high output track renewals programme by insourcing its principal contractor team when the existing contract expires in March 2015. Bringing in house the high output team employed currently by AmeyCOLAS will create a less complex organisation with greater stability, it said. Around 1200 people work on the high output programme, half of whom are affected by this announcement.