Babcock wins rail deals

Babcock International's First Engineering Rail business has won two contracts with Network Rail worth £50m a year until 2009.

First will operate System 3 high output track renewals and also gained a three-year extension to its System 2 contract. These contracts were awarded on the basis of the "demonstrable efficiency gains during the first year of operation of System 2". Both contracts were secured through First's jv First Swietelsky, and will operate on the East Coast Main Line and the Great Western region. The combined value of these two contracts is £50m a year until 2009.

First has also won £10m of contracts for signalling upgrade and replacement in Network Rail's North Western and Scottish regions.