Babcock International’s rail division, First Engineering, has been selected as one of four main contractors to deliver track renewals in the UK for Network Rail.
The contract areas awarded to First Engineering are Scotland and the north west of England. According to First Engineering, the award represents a significant increase in existing track renewal business with Network Rail. It comes at the end of a six month process undertaken by Network Rail to reduce the number of suppliers from six to four to improve efficiency.
The contract is expected to have a value of £85m per annum. Network Rail has an option to progressively extend the contract up to 2014. The contract will be effective immediately and it is expected that a number of staff will transfer their employment to First Engineering during the impending transition phase.
Peter Rogers, Babcock’s chief executive, said: ‘We are delighted to receive the news that following a comprehensive review, Network Rail has selected First Engineering as one of its four UK partners to deliver track renewals. We look forward to working with Network Rail to achieve further improvements in the UK’s rail infrastructure.’