Network Rail has started its advanced procurement for the multi-billion pound Strategic Business Plan, which will benefit thousands of UK companies.
Announced in the second week of February, the Strategic Business Plan sets out expenditure for Control Period 6 (CP6), which runs from 2019 to 2024, and is an important step in determining funding requirements for that particular five-year period.
A potential £47 billion of expenditure was outlined, based on government’s statement of funds, which will now be reviewed by the Office of Rail and Road (ORR), who will then publish its draft determination on funding in June.
Procurement will benefit thousands of UK companies, according to Network Rail, with many of their supply chain partners gaining investment for their organisations while carrying out important work for the rail operator.
The Strategic Business Plan will result in upgraded railways and stations, while unlocking the construction of homes too. This will provide opportunities for thousands of UK companies.
Infrastructure Projects (IP), Network Rail’s delivery arm for renewals and projects, organises into the four regional areas of Scotland North East; Central; Southern; Western and Wales. They also organise into national programmes for signalling, track and the pan regional Northern Programme.
Network Rail say that Scotland North East and Southern regions will see more than £5 billion of renewals in each region in CP6, as well as other substantial network-wide upgrades.
The tender and procurement process for the next control period will be phased; Scotland North East and Southern regions will commence procurement now, and the other regions will do so before June 2018.
Supply chain specialists in signalling will have access to approximately £4.5 billion of projects, while track specialists will be able to bid for projects totalling £3.5 billion; these represent the largest areas of expected spend in CP6.
Elsewhere, opportunities will be available on projects such as buildings, electrification and structures.
Matthew Steele, Commercial Director of Network Rail, said: “Significant investment in the country’s rail network will continue in the five years ahead, giving thousands of companies – and our hugely important supply chain partners – the surety they need to invest in their people, innovation and value for money.”