News Column

Babcock and Carillion win Network Rail work

May 13, 2014

GUY BENTLEY



NETWORK Rail yesterday announced its preferred bidders for lucrative contracts to run its conventional track renewals and improvement work for the next five years.


Babcock International won work over three of the seven geographic lots to deliver plain line tracks for Network Rail.


The lots are made up of Western, Wales and Wessex; Scotland and LNW South, which are worth 200m over the five year period from April 2014 to March 2019.


"Building on our long term relationship with Network Rail, we are delighted to have been selected as preferred bidder and delivery partner for this major programme of track renewals work which will help to provide a more reliable railway for passengers and freight," said Peter Rogers, chief executive of Babcock.


FTSE 250 company Carillion also said that it had been chosen as a preferred partner by Network Rail to deliver 100m of track renewal work.


The regions in which Carillion will deliver renewals include the Midlands into the North West, and from Kings Cross to the North East of England.


In total, Network Rail is hoping to renew over 7,000km of track in the next five years.


"Working with our delivery partners, we will deliver a massive programme of work to maintain, renew and enhance thousands of miles of track over the next five years, with the goal of providing a more reliable railway for passengers and freight," said Steve Featherstone, Network Rail track programme director.


Shares in Carillion closed 1.3 per cent higher yesterday.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: City A.M. (UK)