Network Rail targets 10% savings in £47bn CP6 plan

Aaron Morby 7 years ago
Share

Network Rail has set its sights on an extra 10% of cost efficiencies across its maintenance and renewal operations in its latest five-year business plan.

The Control Period 6 spending plan, published today will see Network Rail deliver its largest ever spend of £47bn.

Crucially, the plan recognises the important role that Network Rail’s 4,000 suppliers will play in delivering this work efficiently.

Out-going chief executive Mark Carne, said: “We must deliver efficiently to drive down costs. Over CP4 and CP5 we have reduced the operating and maintenance cost per passenger kilometre by around 40%.

“In this plan we will achieve a further 10% improvement in real terms efficiency, offset by cost pressures of 2%.”

He added: “Significant improvements in our business planning at a route level will drive more efficient delivery in CP6. Efficiency savings will also be achieved through smarter working, more efficient use of the railway and better technology.

“We will ensure that the optimum life cycle cost balance is achieved between maintenance and renewals using asset management techniques and that gross renewals efficiency improves by 11%.”

The plan notes the challenges that occurred in the last five years, where workloads were uncertain for industry, leading to inefficiency and cost pressures.

It calls for stable and consistent activity levels to allow contractors to maximise the efficiency of delivery.

Importantly the plan also commits Network Rail to sustain its strong record on health and safety, looking for a halving of lost time injuries during the five years.

This compares with the expected 37% reduction in the current CP5 spending period.

The Plan does note a significant drop off in spending on enhancements projects in CP6.

This is driven by the decision by the Department for Transport to deal with enhancement projects on a case by case basis, rather than fund through the control period settlement.

It states that because of a focus on delivering schemes deferred from CP5, few new enhancements will be considered for funding in the early years of CP6.

“The potential pipeline for development and delivery of enhancement schemes in England & Wales will be set out in a plan for rail investments to be published by DfT in due course.

“The potential schemes for development in CP6 reflect some of the most pressing issues for the railway for which delivery funding is not yet available.”

Network Rail intends to develop early contractor involvement and collaborative working arrangements to deliver efficiencies.

“We will continue to drive change through collaboration, cross industry engagement and improved communication of our expectations for behaviours, competence and performance, using national performance metrics and efficiency targets,” states the report.

“We will reinforce standard approaches to improve cost control and benchmarking, and build a culture of commercial accountability for what rail works ‘should, will, did cost and why’.”

CECA chief executive Alasdair Reisner said: “The rail sector is the single largest driver of activity for the UK’s infrastructure contractors. As such, members will welcome the additional clarity that has been provided by the publication of today’s Strategic Business Plan.

“The last five years have proved challenging for industry due to volatility in the flow of work in the sector. Network Rail has recognised that this uncertainty needs to be addressed if we are to deliver an ef cient and affordable service to the travelling public.

“Industry is ready to deliver the CP6 programme. We look forward to working with Network Rail to achieve this, while also making the case for further investment in enhancements.”

Latest news

Thames Water seeks tunnelling contractors

Bidding launched for £242m Teddington drought resilience scheme
2 days ago

UK’s biggest data centre plan breaks cover in Lincolnshire

Plans submitted for £7.6bn AI hyperscale build near Scunthorpe
2 days ago

Government seizes control to fast-track £5bn reservoir plan

Ministers bypass local planners for Lincolnshire and Fens reservoir projects
2 days ago

London council unveils £150m housing estate revamp plan

Hackney gears up to deliver 341 infill homes at De Beauvoir estate
2 days ago

Worker injured during prep work at Persimmon site

Houlihan & Co worker airlifted to hospital
3 days ago

Morrisroe sales slide 15% but group edges back into profit

Turnover hit by safety regulator brake on new high rise resi projects
3 days ago

First platforms installed at HS2 Old Oak Common station

Balfour Beatty VINCI SYSTRA starts station fit-out work: Video
2 days ago

Murphy hikes profit 25% to £84m as orders smash £5.4bn

Order book jumps by nearly two-thirds as firm extends global reach
3 days ago

Cladding specialist EAG files administration notice

Sister firm of failed contractor Alucraft lodges court notice
3 days ago

John Lewis wins battle to build four resi towers above store

Ardmore in frame for landmark £240m Ealing towers plan above new Waitrose
3 days ago

Restructure pays-off for HG Construction

Turnover down but profit up as Building Safety Act delays schemes
3 days ago

Mace confirmed for £100m Natural History Museum job

Construction to start imminently at Thames Valley site
3 days ago

McAleer & Rushe starts £90m Birmingham student rooms job

Selly Oak project will transform derelict supermarket site
3 days ago

20 firms win £577m public estate maintenance framework

Procurement Assist signs off four-year framework for cyclical works
3 days ago

Cubby in talks over rescue restructure after civils job setback

Carlisle contractor hit by Carlisle Southern Link Road losses
4 days ago

Rayner rips up rules to get small builders building

Wildlife habitat rules and building safety levy dropped on sites up to 49 homes
4 days ago

Cladding costs recovery helps Willmott Dixon return to profit

Contractor claimed back £20m from third parties last year
4 days ago

£35m Hereford Western Bypass job to go to tender

Phase 1 tender set for September with design element included
4 days ago

GEG Capital swoops for high-voltage cable contractor APS

Inverness investor continues market expansion with deal for St Helens cable firm
4 days ago

Blackburn seeks bidders for £250m framework

Council starts tender process for major eight-year deal
4 days ago

House builders to face fines for dragging feet on site starts

New powers will let councils penalise slow developers and reclaim stalled plots
5 days ago

HS2 investigation into labour supply pay rates

Probe follows claims that self-employed workers were charged out at PAYE rates
5 days ago

Rydon narrows losses as £27m spent on fire safety repairs

Post-Grenfell work provisions increased to £19m
5 days ago

McLaren lands Boxing Academy school

Contractor starts work on East London site
5 days ago

Firms wanted for £1.5bn green housing retrofit deal

Procure Plus opens bidding for low-carbon housing upgrades framework
5 days ago

Waterloo Station revamp plan advances with new regeneration pact

15-year improvement scheme back on track with new partnership deal
5 days ago

Groundworks firm Corbyn goes under

£33m-turnover specialist now in hands of administrators
1 week ago

Home office says sorry to FP McCann after site raid

Precast concrete contractor wins damages over "entirely erroneous and unfounded allegation"
1 week ago

Race on for £60m London Gateway container yard job

Civils and M&E job up for grabs at Berth 5
1 week ago

How Construction Enquirer can boost your business

Promote your business to a vast industry audience
1 week ago

Contractor services