Jarvis Rail secures position as one of Network Rail’s four primary contractors for track renewals

Jarvis plc is pleased to confirm that its subsidiary Jarvis Rail Limited (“Jarvis Rail”) has been selected by Network Rail as one of four primary contractors for its track renewals programme.

Jarvis Rail will retain its existing contract for plain line and switch and crossing (“S&C”) renewals in the London North East territory and has gained the plain line and S&C track renewals work in the East Midlands area. This is expected to result in a net increase in turnover of approximately £15 million a year and as under the terms of the existing framework contract they have the potential to be extended to 2014.

As part of Network Rail’s rebalancing of geographical workloads Jarvis Rail will transfer its existing S&C work in Scotland to another contractor. The decision does not affect Jarvis Rail’s existing project and enhancement contracts, whether in Scotland or elsewhere. Jarvis Rail’s team in Scotland continues to perform extremely well and remains focussed on delivering its existing workload safely and efficiently.

Steven Norris, Executive Chairman of Jarvis plc, said: “This decision shows the confidence Network Rail has in Jarvis as a leading supplier of track renewals. It adds to the contracts worth more than £150 million that we have already secured this year in freight, project, enhancement and high output renewals on high profile schemes such as Airdrie to Bathgate, Glasgow Airport Rail Link and Rugby Station Remodelling.”

“This is another key step in our strategy to focus on our core competencies and to maximise our increased opportunities following the unveiling of Network Rail’s programme of rail expansion earlier this year and the doubling of annual investment on enhancement schemes to more than £2.4bn over the next two years.”

Peter Henderson, Network Rail Group Director, Infrastructure, commented on today’s announcement by saying: “Longer-term security for the successful contractors, coupled with improvements in our ability to define and plan the work, will enable us to create an environment whereby we can all plan work with confidence, promote innovation and invest in equipment and people.”

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For further infornation please contact:

Toni Jackson – Group Communications Manager
T: 01904 712667
M: 07921 939031

Isabel Podda – Buchanan Communications
T: 020 7466 5000

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