Thousands of UK companies are set to benefit, as Network Rail starts its advanced procurement for a multi-billion-pound investment programme for its next five-year funding period, 2019-2024 (Control Period 6 — CP6).
Network Rail’s Strategic Business Plan for CP6 outlines £47 billion of potential expenditure based on the Government’s ‘statement of funds available’ (issued in October).
The Office of Rail and Road will now consider Network Rail’s plan and publish its ‘draft funding determination’ in June, followed by its ‘final determination’ in the autumn.
Network Rail (
www.networkrail.co.uk) commercial director Matthew Steele 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 gives suppliers 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.”
Infrastructure Projects, Network Rail’s delivery arm for renewals and projects, is organised into four regional areas: Scotland/North East, Central, Southern and Western and Wales; there are also national programmes for signalling, track and the pan-regional Northern Programme.
To help improve efficiency for both Network Rail and the supply chain, the tender and procurement process for CP6 has been phased.
Scotland/North East and Southern regions both commenced their procurement programmes in February, with the remaining regions beginning the process between now and June.
For the supply chain, the extensive renewals work-bank should provide opportunities across ‘specialisms’, with signalling (around £4.5 billion) and track (around £3.5 billion) 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 and cost-efficient and to provide additional capacity.
Mr Steels added: “It is important to us to have a profitable and healthy supply chain, with which we can work 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.”