Network Rail signs new five-year rail supply deal

16 October 2013  •  Author: Network Rail

Network Rail has signed a deal with three steel manufacturers to supply rail for the next five years as the company continues its work to renew and enhance Britain’s 20,000 miles of railway.

The largest part – about 95 per cent – of the framework agreement will see Tata Steel’s Scunthorpe plant supply around 140,000 tons of rail per year, depending on consumption. ArcelorMittal and VoestAlpine are also part of the deal, which will see a variety of rail types supplied to keep Network Rail’s programme of improvements rolling for the next five years with an option to extend for a further five years.

On signing the contracts, Patrick Butcher, Network Rail’s group finance director, said: “We are renewing and enhancing more and more of Britain’s railway over the next five years and it’s crucial that we have a trusted and secure supply chain to help us achieve that safely and efficiently.”

Network Rail’s plans for control period 5 (2014-19) include £10bn of core renewals and a further £10bn of enhancements.

Henrik Adam, chief commercial officer of Tata Steel, said: “This is fantastic news. I am delighted the rail network in Britain will continue to be made and maintained with our UK rail.”

The latest Network Rail deal will account for around 5% of the annual steel output from Tata Steel’s Scunthorpe site and will include some of the latest, harder-wearing high performance rail.

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