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Carillion and Grant Rail lose Network Rail contracts - Network rail has cutback rail renewal contracts to improve the efficiency of its renewal work

Contractors Carillion and Grant Rail this week lost their lucrative £100M a year contracts with Network Rail when it cut the number of firms carrying out track renewals from six to four.
The remaining contractors –Amey SECO joint venture, Balfour Beatty, First Engineering and Jarvis – will see Carillion and Grant Rail’s renewal work carved up and gradually passed to them over the next few months until handover completion in February 2008.
Carillion and Grant Rail employees will be transferred to the remaining firms following consultation with trade unions. Approximately 16 major depots are likely to change hands.
Network Rail made the changes in a bid to improve efficiency and boost its ability to plan and coordinate renewals work.
It has been carrying out a six-onth long assessment of the existing renewals regime and contractor performance since announcing plans to streamline
it maintenance in January
(NCE 11 January).
The rail operator predicts that the cull of contractors will cut the cost of its renewals
programme, delivering 23% efficiency savings over five years, compared to a forecast 18% using six firms.
Carillion’s loss of work was far more sizeable than Grant Rail’s and included the loss of a monopoly over switches and crossing work in North West England and Wales.

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