Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Railtrack warning over supplier price increases

RAILTRACK THIS week warned suppliers that its investment programme will run out of money if they push up prices to exploit looming skill shortages.

Railtrack's own spending plans, coupled with those of the rail regulator, shadow Strategic Rail Authority and government, will put huge pressure on industry capacity, said its supply chain director Les Mosco.

As clients compete for the best suppliers prices could increase dramatically.

'But Railtrack does not have unlimited funds. The regulator and shareholders give us money to spend and if the unit price starts to escalate we don't have an unlimited pot. If we don't meet our performance targets then our funds go into a downward spiral, ' said Mosco.

'If contractors and suppliers seek to take advantage (of capacity problems) they may well kill the goose. Jointly we need to manage this quite carefully.'

Railtrack is hoping long term alliances with key suppliers will help keep a lid on prices.

Supply chain and contract supply organisations are being merged next week into Mosco's supply chain directorate. Former contract and supply director David Meek has moved to the commercial directorate as director, risk management.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.