Network Rail has announced it will open itself up to competition and list the opportunities for outside private companies to directly build and invest in Britain’s rail infrastructure.
The move is part of plans to open up the network to more competition and innovation. They will publish a pipeline of opportunities by the end of this year for firms to bid for.
Schemes will initially be smaller scale like new stations, depots, car parks and new local lines.
This is not a paywall. Registration allows us to enhance your experience across Construction Management and ensure we deliver you quality editorial content.
Registering also means you can manage your own CPDs, comments, newsletter sign-ups and privacy settings.
Winning bidders who save Network Rail money through innovation will also share in the proceeds.
According to Network Rail chief executive Mark Carne, the changes present a “raft of opportunities” for other companies to work directly on UK railway projects.
Carne said: “A growing railway drives the economy, jobs and housing and by welcoming open competition into the core of our business we will increase the pace of innovation, creativity and efficiency and could deliver even more improvements to our railway and for the people that use and rely on it every day.
“I am determined to create an environment where innovative third-party companies can compete for and directly deliver railway projects.
“These reforms mark the next stage of Network Rail’s transformation having already decentralised into nine devolved individual businesses.”
These reforms also aim to unlock new sources of funding, with potential investors able to choose who delivers projects for them.
This is intended to reduce the burden on central government and taxpayers.
“I am also determined to find ways for the private sector to directly invest in railway projects,” Carne said.
The reforms have been welcomed by infrastructure giants Balfour Beatty and Costain.
Leo Quinn, Balfour Beatty group chief executive, said: “The changes set out are designed to unlock exciting opportunities to invest and improve the UK’s rail network.
“At the same time this should provide a steadier flow of investment, moving away from the stop-go nature of a regulatory cycle, and helping the rail supply chain to invest in the skilled workforce necessary to build world-class railways.”
Andrew Wyllie, chief executive of Costain, added: “As a major engineering solutions provider to Network Rail, I welcome the proposals which represent innovative thinking in the way critical rail infrastructure is delivered in the UK.”
One of the first examples of railway projects being privately financed in an innovative way is Network Rail’s new two-year deal with Resonate – the British signalling and train control specialists.
The deal sees Resonate introduce its new, digital traffic management system into the signalling and control systems for the main lines out of London Paddington that could reduce delays by up to 15%.
The supplier will also finance and bear the risk of introducing the new technology, but it will reap rewards from the savings made in reducing delays.
