Big Investments on Track

Big Investments on Track

Thousands of UK companies are set to benefit as Network Rail starts its advanced procurement for a multi-billion pound investment programme

Network Rail has already issued its Strategic Business Plan (SBP) for CP6 outlining £47bn of potential expenditure based on the Government’s statement of funds available issued in October. The Office of Rail and Road will now review and consider Network Rail’s plan and publish its draft funding determination in June, and its final determination in the autumn.

Matthew Steele, commercial director, said: “Significant investment in the country’s rail network will continue in the five years ahead giving thousands of companies – and our hugely important supply chain partners – the surety they need to invest in their people, innovation and value for money.

“The beginning of our CP6 procurement activity provides suppliers with a real opportunity to secure substantial work-banks and be part of delivering essential improvements that will help shape the future of Britain’s railway.”

Network Rail’s delivery arm for renewals and projects, Infrastructure Projects (IP) organises itself into four regional areas; Scotland North East, Central, Southern, and Western and Wales, and national programmes for signalling, track and the pan regional Northern Programme. The Scotland North East and Southern regions are anticipated to hold the most significant work-banks for the coming five year control period, with over £5bn of renewals spend estimated per region in addition to substantial network wide upgrades.

To help improve efficiency for both Network Rail and the supply chain, the tender and procurement process for CP6 has been intentionally phased. This month, Scotland North East and Southern regions both commence their procurement programmes, with the remaining regions beginning the process between now and June 2018.

For the supply chain, the extensive renewals workbank should provide opportunities across specialisms, with signalling (around £4.5bn) and track (around £3.5bn) representing the largest areas of expected spend. Considerable expenditure is also expected within structures, electrification and fixed plant, buildings and telecoms. This significant investment in the renewal of railway infrastructure forms part of Network Rail’s Railway Upgrade Plan to make Britain’s railway more reliable, cost efficient and provide additional capacity, while building on our reputation as the safest railway in Europe.

Mr Steele concluded: “It is important to us to have a profitable and healthy supply chain with whom we can work in partnership to deliver the improvements we need for Britain’s railway.

“For our part, we must remain a client of choice that engages with its supply chain in a mutually beneficial relationship, especially in what is poised to be a rapidly growing infrastructure market.”

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