4th Feb 2014 10:29
LONDON (Alliance News) - Balfour Beatty PLC and Carillion PLC joint venture, CarillionPowerlines, have been appointed as framework suppliers by Network Rail for its GBP2 billion National Electrification Programme.
The seven year framework will see more than two thousand miles of railways lines across England, Wales and Scotland electrified in order to provide faster, quieter and more reliable journeys for passengers and freight users, while also reducing the associated running costs of the railway.
The successful bidders for the six nationwide frameworks were Balfour Beatty, CarillionPowerlines, AmeyInabensa, and ABC Electrification.
The Network Rail programme will see key routes in England, Wales and Scotland electrified for the first time, through the awarding of six geographical contracts, each with a defined work bank of schemes. This approach has been endorsed by the supply chain and industry groups such as the Railway Industry Association, said Network Rail.
Simon Kirby, managing director of Network Rail?s infrastructure projects division, said, ?Our work to electrify two thousand track miles represents the biggest programme of rail electrification in a generation and will provide faster, quieter and more reliable journeys for millions of passengers every week while cutting the cost of the railway.
?Thanks to a firm commitment from government to invest in electrification schemes across the country, we are transforming the railway and providing Britain with a sustainable, world-class transport system that is fit for the future. To deliver this work in the safest and most efficient way possible, we need to make the most of the huge potential within our supply chain," he added.
Once electrification schemes including the Great Western and Midland main lines, Liverpool to Manchester and Preston, the Valley lines in south Wales and the ?electric spine? from Southampton docks to the West Midlands and Yorkshire are complete, more than half Britain?s rail network will be electrified with electric trains accounting for three-quarters of all traffic, said Network Rail.
Under the terms of the deal, Balfour Beatty's contract is anticipated to be worth in excess of
GBP75 million, and will cover the Central Region - London North Western, North. The contract covers the design and installation of all electrification equipment for the Northern Hub programme for routes between Manchester-Preston-Blackpool and Manchester-Stalybridge.
The contract win follows the contractor's involvement in the first two phases of the programme, covering the Liverpool-Manchester route. As part of these works, Balfour Beatty has already introduced a number of High Output plant solutions to provide safer, more efficient delivery of electrification works, it said.
CarillionPowerlines, a 70:30 joint venture between Carillion and Austrian-based SPL Powerlines, has been awarded two of the regional frameworks, Central (East Midlands Region) and Scotland and North East Region.
Upon completion, these electrification schemes, which include the Great Western and Midland main lines, Liverpool to Manchester and Preston, the Valley lines in south Wales and the 'electric spine' from Southampton docks to the West Midlands and Yorkshire, more than half Britain's rail network, will be electrified with electric trains accounting for three-quarters of all traffic.
Carillion provided no financial details regarding the framework.
AmeyInabensa has been awarded the Southern region, and ABC takes on the Central (London North Western, South) and Western & Wales region.
Commenting on the contract win, Balfour Beatty Chief Executive Andrew McNaughton said, ?We remain committed to working within the UK rail market and Network Rail on core projects such as these in the UK. This builds on our well established relationship and allows continuing collaboration with the Network Rail team and our supply chain to deliver the biggest programme of rail electrification in a generation.?
Carillion Chief Executive, Richard Howson said, "I believe this reflects the investment we have made, and continue to make, in creating the skills and resources necessary to deliver programmes of this kind and our absolute focus on safety and quality. We look forward to building on the strong partnership we already have with Network Rail, as we work together to deliver these vital improvements to the UK rail network."
According to Network Rail, "Electrifying key railway routes will improve services for thousands of passengers and help support economic growth across many of our cities and towns. It will mean faster and quieter journeys with more seats on trains and improved reliability on some of the busiest routes," it said.
In a statement, National Rail said that the inclusion of a significant number of committed projects within each framework will support investment in the training and development of the resource pool, including supporting the proposed development of a Network Rail Electrification Training Academy, as well as providing the investment needed to develop innovation and improvements in the reliability of electrification technology.
Shares in Balfour Beatty were trading down 0.04% at 282.9 pence per share Tuesday morning while Carillion shares were trading up 0.30% at 33.8 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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