A new business unit within Network Rail has been launched to deliver infrastructure projects worth £2bn a year.
Network Rail Infrastructure Projects (NRIP) is organised into four regions with directors responsible for delivering major renewal and enhancement works in their areas.
They will manage their own profit and loss and will be charged with winning work under a proposed competitive structure that will see a new ‘client’ function within Network Rail defining the outputs it wants from projects and working with delivery organisations from an early stage.
In most instances the delivery organisation will be NRIP, but some lower risk projects will be tendered to the market in order to benchmark the company’s capital project delivery.
Three major programmes that span multiple regions will be managed by their own directors.
These are FTN-GSM-R (fixed and wireless communications), Thameslink and signalling.
The plan is for NRIP to become a separate legal entity in 2013, so it can start to bid against competitors for some of Network Rail’s capital programme for Control Period 5 (2014-19), as well as for other UK off-network projects.
Simon Kirby, Network Rail managing director, investment projects, said: “It is clear that capital investment in infrastructure must be delivered as efficiently as possible.
“Our focus over the next few years will be on improving and becoming more efficient at delivering projects in a commercial environment.
“In the longer term, the goal is to be the leader in providing rail infrastructure solutions in Britain.”