Railtrack chief exec: 'Jarvis top of the league'

Railway maintenance contractor Jarvis was singled out for praise by Railtrack chief executive Gerald Corbett at the group's annual meeting - shareholders being told that Jarvis was its top-performing contractor.

"We have an extremely good relationship with Jarvis," said Corbett. "Of the six maintenance contractors, Jarvis is top of the league. A company performing as well as Jarvis is good news. The relationship between Railtrack and Jarvis is close at all levels."

Railtrack has increased its investment spend by 15 per cent, to over £1.45 billion for this year, said chairman Sir Robert Horton. Of this, almost £300 million was investment which adds new capacity to the network. "We expect this type of investment [known as enhancement investment] to continue to increase over the next few years, with planned expenditure of around £440 million this year and £500 million next year," said Sir Robert.

He said the Channel Tunnel Rail Link is now 10 per cent complete, running to schedule and within budget.

Railtrack's operating profit was up 8 per cent to £430 million on a turnover of £2.5 billion. "These results enable us to deliver our investment programme," said Sir Robert.

One shareholder expressed worries over Railtrack's level of borrowings if it proceeds with its bid for ownership of a third of the London Underground system, given Railtrack's current CTRL project. Corbett said Railtrack's borrowings would rise to £4 billion in the next four years.

It is critical that the forthcoming regulatory review allows the investments to occur, he added, pointing out that the rail regulator has a duty to enable Railtrack to fund its activities.

Sir Alastair Morton, the newly appointed chairman of the Strategic Rail Authority, has supported Railtrack's modernisation plans, with a call for "investment, investment and investment."

Railtrack's proposals for an upgrade of the London Underground network involve two main elements:

l An east-west integration, allowing through services from Reading, Slough and Heathrow into the City.

l A north/south link-up, creating new journeys between Croydon, Wimbledon, Gatwick and Brighton to Docklands and north London.