Network Rail takes all maintenance in-house

Network Rail will take all infrastructure maintenance contracts back in-house.

In a statement released to the City this morning, Network Rail said creating a single integrated rail maintenance operation will deliver three key benefits:

• Consistent application of high standards of rail maintenance across the network.
• Significant efficieny savings to be delivered from the annual maintenance budget.
• Continued improvement in track-side safety standards.

The final process and exact timing of taking each of the 20 contracts back is subject to negotiations with the seven infrastructure maintenance contractors: Amec, Amey, Balfour Beatty, Carillion, Jarvis, First Engineering (owned by Peterhouse) and Serco. Network Rail expects the transfers to be complete by the end of summer 2004.

The current tendering process for the combined Bristol, Gloucester and Exeter maintenance area has now ceased, as will discussions to convert existing contracts to the controversial new maintenance programme.

In future, there will be a single management structrure with "clear lines" of accountability and a "simplified" relationship between operations and maintenance.

A permanent workforce of "well-trained" staff will carry out the maintenance work. A total fo 18,500 workers will be transferred from the private sector back to the public sector.

Rail renewal contracts will remain unaffected.