Network Rail has awarded a contract worth £136 million that will provide integrated road fleet management services.
Starting in August 2019 and running for four years, the contract marks a change in the way Network Rail work; now, the winner of this lucrative contract will oversee the management of the whole of Network Rail’s owned and leased road fleet.
As well as this responsibility, Hitachi Capital will be responsible for sourcing and supplying lease vehicles.
The award of the contract to manage road fleet management services is a move towards greater efficiency and a more cost effective approach provided by Hitachi Capital.
Previously, Network Rail would manage 16 separate road fleet contracts directly; that won’t be the case any longer as its road fleet transitions from an owned to a leased model.
The road fleet management services contract supports local decision-making by providing full visibility of information through one system, while promoting the use of local supply chains.
Network Rail’s supply chain operations director, Rob Morton, described this contract as a “turning point.”
He said: “This deal marks a turning point for our road fleet. We have one of the largest fleets in Britain and need to manage it accordingly.
“Working in partnership with Hitachi Capital, we will focus on providing the professional service that our drivers deserve, tailored to meet their individual needs.
“This will also include urgent replacement for older vehicles and using many local suppliers across Britain, sharing the benefits with regional economies.”
As part of the contract, service, maintenance and repair of road fleet vehicles will be scheduled.
Hitachi Capital will also be responsible for driver training, vehicle compliance and insurance, as well as claims management, and end-of-life vehicle management, as part of the comprehensive five-year contract.
It represents a “significant change” for Network Rail, according to the organisation’s head of fleet, guaranteeing a fleet that is tailored to “unique requirements.”
This is yet another important contract awarded by Network Rail, which will continue during CP6.