Network Rail signs £200m British Steel contract extension at InnoTrans
A two-year contract extension continues the close partnership between British Steel and Network Rail.
At InnoTrans 2018, the two British companies rubber-stamped their relationship for the supply of approximately 200,000 tonnes (4,000km) of rail and will run from March 2019 to March 2021.
British Steel’s long rail plant in Scunthorpe, North Lincolnshire has long supplied the rail for Britain’s railway.
British Steel is one of Network Rail’s biggest suppliers and the main rail supplier for maintenance and renewals.
In April 2018, British Steel started building a new facility at its Scunthorpe site to increase its capability to support Network Rail’s requirements for new rail types for a more sustainable railway. Zinoco coated rails are used in areas where corrosion can be an issue, including along coasts, in wet tunnels and on level crossings.
Rob Morton, Supply Chain Operations Director, Route Services, Network Rail, said: “We are proud to extend our historic relationship with British Steel for a further two years. It is pleasing to see two British organisations trading for mutual benefit and for the benefit of the wider British economy.
“This new deal is an example of how we continually review our sourcing options to provide the safest network and maximise value for money for the British taxpayer. We look forward to working together closely with British Steel over the coming years, continuing our innovative and constructive partnership.”
Ron Deelen, Chief Marketing Officer of British Steel, said: “This is excellent news, not only for British Steel but the millions of people who use the UK’s rail network. During the course of the last five years we’ve worked extremely closely with Network Rail, ensuring the on-time delivery of half-a-million tonnes of high quality rails in lengths of up to 216m. Together we’ve helped find solutions to the challenges they face, enabling us to develop and install new products which reduce the need for costly and time-consuming maintenance and replacement works. This allows more traffic with less rail maintenance – major benefits for passengers and freight operators, and provides Network Rail with excellent value for money.”
Ron continued: “We enjoy an excellent partnership with Network Rail and over the course of the current contract, and the new one, we look forward to further strengthening that and ensuring Britain’s railways remain on the right track.”