Network Rail’s plans to invest almost £2billion in six major signalling schemes took a major step forward today with the award of four multi-million pound signalling ‘framework’ agreements.   

The new signalling systems will deliver substantial benefits to passengers and freight users, increasing reliability and reducing delays.  Cost reductions around 26% for unit costs over the next three years are anticipated.

Network Rail’s Director, Major Projects & Investments Simon Kirby said: “This is great news for millions of passengers who will find their journeys significantly improved. Investment on this scale will reduce delays by improving the reliability of the railway.  This will mean long-term benefits from a better rail network for different regions across the country. “Delivering efficiently, with the right supplier is hugely important.  We have made long-term commitments to suppliers, giving them the opportunity to invest in the development of technology.   In return, we have received long-term cost guarantees, helping us to achieve our cost targets.”

Upgrades, such as bridge improvements and track renewals work, will take place alongside signalling work to maximise use of the access to the track and minimise disruption for passengers. The new signalling systems, which will replace systems dating back decades, will be designed by Network Rail’s specialist in-house team.

Estimated values for works in the first three years of the framework agreements are as follows:

North Thames - Alstom Transport - £50m
South Thames - Siemens - £48m
East Midlands - Westinghouse Rail Systems Ltd - £73m
West Midlands  - Westinghouse Rail Systems Ltd - £105m
Glasgow - Westinghouse Rail Systems Ltd - £42m
South Wales - Atkins Rail Ltd - £95m

The £2bn investment plans over the next five to eight years are outlined below, bringing benefits to passengers and freight services:
• £500m in the South West
• £400m in South Wales including Newport and Cardiff
• £350m in the West Midlands; the first phase will be in Leamington followed by Water Orton
• £250m in the East Midlands; the first phase is in North Erewash followed by South Erewash
• £250m in the South East; Colchester to Clacton is the first scheme to go ahead.  The next phases are in East Kent, Canterbury West and North London Line.
• £200m in Scotland beginning in Glasgow

More than £160 million of work has already been awarded for schemes at Port Talbot, Portsmouth, Coventry and Basingstoke to ensure the prompt delivery of passenger benefits. 

The ‘framework’ status means that there are no guaranteed work levels. Network Rail’s ‘initial strategic business plan’, signals the beginning of a two year process to determine the needs of the UK’s railway network in the five year funding period - 1 April 2009 to 31 March 2014. The submission is made to the Office of Rail Regulation and then involves an iterative process between Network Rail, the Office of Rail Regulation (ORR) the Department for Transport (DfT) and Transport Scotland that looks to determine how much money Network Rail will receive to operate, maintain, renew and enhance the nation’s rail infrastructure in what’s called ‘Control Period 4’ (CP4) - April 2009 to March 2014