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British Steel wins £200m contract extension from Network Rail

British Steel has secured a £200m contract extension of two years from UK’s rail infrastructure manager Network Rail for the supply of long steel rail.

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British Steel has already supplied more than half-a-million tonnes of rail stretching 9,000km under the current five-year agreement, which will end in March next year.

The extension will run from March 2019 to March 2021 and will involve supplying nearly 200,000t of rail, totalling 4,000km.

British Steel chief marketing officer Ron Deelen said: “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.”

“This allows more traffic with less rail maintenance.”

Long steel rail has been supplied by British Steel’s Scunthorpe plant in North Lincolnshire, which is generally used for maintenance and renewals.

Network Rail route services supply chain operations director Rob Morton said: “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.”

Under the contract, British Steel will supply two long-life rail innovations, HP335 and Zinoco, to Network Rail.

Approved by Network Rail in 2012, HP335 is designed to reduce lifecycle costs and extend rail life.

Zinoco is a corrosion-protected rail designed to support operations at level crossings, tunnels and other aggressive environments.

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