“Network Rail is currently undertaking its ‘biggest investment in rail infrastructure since the Victorian era’, which is driven by capacity requirements and the modernisation of the UK rail network. However, recent delays in engineering works have highlighted continued shortcomings by Network Rail to deliver work on time. The rail operator will now have to demonstrate that it is capable of maintaining a decent service to passengers while enhancement work is carried out. This will - in addition to the higher efficiency saving targets imposed by the ORR for CP5 - put further pressure on Network Rail and its delivery partners to deliver projects more efficiently, on-time and at lower cost.”
– Claudia Preedy - Industrial Analyst
This report addresses the following key questions concerning the UK railway engineering market:
- How has UK rail infrastructure investment developed in the last five years?
- What has been the financial performance of the key players in the UK rail sector’s supply industry in recent years?
- What are the key drivers for UK railway investment?
- What are Network Rail’s expenditure plans up to 2019?
- What is the projected future demand for rolling stock in Great Britain?
Network Rail is currently undertaking its “biggest investment in rail infrastructure since the Victorian era”. The investment is largely driven by capacity requirements and the modernisation of the rail network through enhancement and electrification schemes. Crossrail is set to continue to be the most significant new rail infrastructure project in the UK over the next three years, while the development of the high speed rail network HS2 will have a significant impact on rail infrastructure expenditure over the next two decades.
In its procurement process for CP5, Network Rail has moved away from competitive tendering and towards frameworks and alliances. This will result in the company forming closer, longterm relationships with its contractors, but also in a number of contractors losing work as it works with fewer suppliers. Recent delays in engineering works over the Christmas period in 2014 highlighted some continued shortcomings by Network Rail in delivering work on time. The rail operator will now have to demonstrate that it is capable of maintaining a decent service to passengers while enhancement work is carried out. This will, in addition to the higher efficiency savings targets imposed by the ORR for CP5, put further pressure on Network Rail and its delivery partners to deliver projects more efficiently and and on-time.
This report analyses expenditure by the rail sector in both rolling stock and infrastructure investments. As such, the market includes the following sectors:
- Civil engineering work
- Track and signalling work, including new routes and new electrification
- Rolling stock, including eligible refurbishment work
- Stations, including retail outlet buildings
- Other expenditure associated with the rail business
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