Balfour Beatty announced as preferred bidder in £1.5bn rail contract
Infrastructure group Balfour Beatty has been selected as preferred bidder for Network Rail's £1.5bn ‘Central Track Alliance’ contract, it announced on Thursday.
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The FTSE 250 company said it had an 80% share in the 10-year alliance, which would be responsible for the development, design and delivery of track renewals and crossings, as well as associated infrastructure works across the London North West, London North East and East Midland routes.
Atkins and TSO held a 10% share each.
Balfour Beatty said the new geographically-focused alliance model would promote greater collaboration between Network Rail and its partners.
It explained that the model would focus delivery partners on specific regions, in a bid to ensure dedicated attention on regional-specific rail requirements and works.
The board said the alliance would also bring together the “deep domain knowledge and experience” of the firms in critical rail infrastructure and track renewals, deploying “innovative working methods”.
Those methods would include a digital management platform, incorporating mechanised processes and digital solutions to realise efficiencies and create a more reliable railway infrastructure.
The full contract award was expected in the second quarter of 2019, with works due to begin later this year.
“As one of the UK's leading rail infrastructure suppliers, Balfour Beatty is proud to be part of the alliance appointed to ensure reliability of the UK's rail network,” said Balfour Beatty Group chief executive Leo Quinn.
“Our expertise will be focused on driving innovative solutions that deliver sustainable, safer rail infrastructure.”
Quinn said the company believed that industry collaboration was the way to drive higher efficiency and service standards.
“Network Rail's new alliance model is a great step forward in rail contract procurement.”