Information published on 2 October 2018 in the UIC electronic newsletter "UIC eNews" Nr 616.

United Kingdom: Network Rail supports British business with £200m contract

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Network Rail has extended its contract with British Steel for two years in its latest effort to maximise value for taxpayers.

The extension is worth £100m a year and will include the supply of about 200,000 tonnes, or 4,000km, of rail. The contract will run from March 2019 to March 2021, and follows the previous contract signed in 2014.

British Steel already supplies about 95 per cent of our rails – it’s one of our biggest suppliers with its materials used in major projects such as the Borders Railway in Scotland. The Borders Railway reopened a disused line in 2015, bringing more tourism and more affordable housing that has resulted in increased economic and population growth.

In April this year, British Steel began building a facility at its Scunthorpe, North Lincolnshire site to increase its capacity to support Network Rail’s requirements for new rail types. These will enable a more sustainable railway - Network Rail uses specially coated rails in areas where corrosion can cause problems, including along coasts, in wet tunnels and on level crossings.

Rob Morton, supply chain operations director, Route Services, Network Rail, said: “We are proud to extend our historic relationship with British Steel for a further two years. It is pleasing to see two British organisations trading for mutual benefit and for the benefit of the wider British economy.

“This new deal is an example of how we continually review our sourcing options to provide the safest network and maximise value for money for the British taxpayer.”

Ron Deelen, chief marketing officer of British Steel, said: “Together we’ve helped find solutions to the challenges they face, enabling us to develop and install new products which reduce the need for costly and time-consuming maintenance and replacement works. This allows more traffic with less rail maintenance - major benefits for passengers and freight operators - and provides Network Rail with excellent value for money.”

(Source: Network Rail)