Following an extensive tender period, Network Rail has awarded long-term track and rail system contracts to Colas Rail and Aecom (South Alliance) and to Babcock Rail, Arup and Arcadis (Scotland).

This announcement is subject to contract terms being finalised and agreed, with procurement currently at a ‘stand-still’.

The 10-year contracts (initially a five-year period, with an option to extend) are divided into three new geographically focused alliances between Network Rail, designers and construction suppliers: North Alliance (Scotland routes); Central Alliance (London North West, London North East and East Midlands routes) and South Alliance (Anglia, South East, Wessex, Western and Wales routes).

The Central alliance bidding process continues, and a preferred bidder will be announced in due course, following final verification and internal approvals.

The three contracts in Scotland, Central and the South are estimated to be worth £5 billion over the term of the contracts.

Steve Featherstone, programme director (track) (www.networkrail.co.uk), said: “Reaching this important mile-stone ensures that we will have a stable foundation for the delivery of Great Britain’s core railway infrastructure for the next decade.

“Our new strategy allows us to better align to the routes and — ultimately — deliver for customers.”

Jean-Pierre Bertrand, CEO of Colas Rail Ltd, said: “We are extremely proud of our team being recognised for the quality of the tender submission.

“We are fully committed to delivering major improvements to the UK railways in the South, working together with our partners Aecom and Network Rail over the coming 10 years.”

Archie Bethel, Babcock International’s CEO, added: “Building on our long-term relationship with Network Rail, we are delighted to have been selected as preferred bidder for this major programme of railway systems work, with our alliance partners Arcadis and Arup.

“We look forward to working with Network Rail in the new alliance.”