Network Rail takes over maintenance work
Network Rail announced this morning that it plans to bring all track maintenance work in-house.
The not-for-dividend owner of the nation’s rail infrastructure made the declaration following analysis of a six-month review. That suggested in-house maintenance would be safer and more efficient.
The firm was created to replace Railtrack, the failed private monopoly created at the time of privatisation, and this decision represents the biggest change in how the track is maintained since before privatisation.
At present, contracted engineering firms conduct maintenance of much of the track, though some sections are already run in-house.
Today’s news means that 18,000 people are being permanently transferred from one employer to another. The timescale for this shift will depend on commercial negotiations with the various firms involved.
Both the Association of Train Operating Companies, and the RMT union, which represents much of the rail industry’s workers, have leapt to support the move, claiming it will lead to improvements on the railways.
Ian McAllister, Chairman of Network Rail, explained the decision, saying: ‘Rail maintenance is a central part of Network Rail’s operation. We have completed a detailed assessment of railway maintenance and obtained a clear understanding of the reasons why costs have risen in recent years.
‘Bringing maintenance contracts in-house will ensure greater consistency of maintenance standards and help deliver efficiency savings far more quickly than would otherwise have been possible.’
Network Rail has made a point of distancing this decision from the recent news that it is to bring Jarvis’ operations in-house. A recent agreement with Jarvis was to expand in-house work to more than a quarter of the network as Jarvis left the market.
Jarvis has suffered a stream of poor publicity as a result of several high profile accidents on sections of the track that it was responsible for. However, until now it was possible that Network Rail would put Jarvis’ operations back out to tender.
While Serco, like Jarvis, was to have operations brought in house in 2004, today’s news means Network Rail will also take over the operations and staff of five other firms. These are Amec, Amey, Balfour Beatty, Carillion and First Engineering.
The Strategic Rail Authority has warned against viewing this as a step towards re-nationalisation, while the Government has rejected suggestions of a return to the days of British Rail.
