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Network Rail contracts - 6 to 4
After a six-month assessment of track renewals, Network Rail cut the number of maintenance suppliers from 6 to 4 to attain a “leaner and meaner” supplier set-up.
By Max Reimpell
Edition: Planes, trains and automobiles.
Why rationalise?
“It’s serious for Grant Rail.”.

The awarding of points & crossings as well as ordinary track work to the same provider in each area is expected to achieve big efficiency gains. These are passed to Network Rail.

What it means

The two losers lost out big. Carillion Rail lost over 20% of steady revenues and Grant Rail nearly 70%. Carillion can cope. The implications for Grant Rail may be more serious.

First Engineering’s gain includes the transfer of 250 employees. The firm will take over Carillion’s Midlands switchings & crossings contracts.

Balfour Beatty’s contract remains largely unchanged. AmeySECO was the biggest gainer, taking over London North Western contracts from Carillion and Grant Rail, amongst others.

Jarvis records a modest gain of £15m as it loses in Scotland (to First) but gains Grant Rail’s London North Western contract.

Jarvis needed this badly.

Max Reimpell is an Associate Consultant at Credo
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