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![]() Railhub Archive | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Department of TransportMawhinney welcomes sale of major rail businesses
welcomed the first of the sales of British Rail's six maintenance depots which between them overhaul 13,500 of BR's fleet of locomotives and carriages. More than 70 organisations expressed interest in the businesses - attracting competitive bids from key engineering companies, train builders and management buyout teams. All six depots are being sold as going concerns. Between them the businesses employ 3,400 people and had a turnover of around #180 million in financial year 1994/95. BR today sold to ABB Customer Support Ltd, a subsidiary of ABB, the depots at Chart Leacon (Ashford, Kent), Ilford and Doncaster. BR hopes to complete this week sales to: Railcare Ltd, a joint venture of Babcock International Group plc and Siemens plc, who intend to buy depots at Wolverton (Milton Keynes) and Springburn (Glasgow); Wessex Traincare Ltd, a management buyout team who intend to buy the Eastleigh (Hants) depot. Welcoming the sale, Dr Mawhinney said: "This is a major step forward for rail privatisation. It is a clear demonstration of the private sector's interest in the process and its commitment to the long term future of the railway industry. "It is good news for the industry and for passengers. I believe that this will result in substantial competition for the maintenance of the rail fleet with companies striving to secure business on quality and price. "For workers in the industry it should forge new links and partnerships with the broader engineering industry. "I hope that placing these businesses in the private sector will bring new efficiencies and new partnerships in the industry. "Operating in the public sector held back the maintenance industry. They were not allowed access to private capital, could not diversify or compete for business with the private sector. "I trust that all that will now change and bring with it new and broader opportunities for the staff." John Welsby, Chairman of the British Railways Board, said: "These sales encourage a healthy and competitive structure for the train maintenance industry linking the skills of the workforce and the opportunities offered by the private sector. I am delighted that the buyers include both highly experienced railway engineering companies and a Management and Employee buyout team. That is a highly encouraging pointer for future sales under the privatisation programme." Dr Mawhinney put today's announcement into the broader context of rail privatisation: "This is a major sale under the Railways Act 1993. Invitations to tender have been issued for the first three passenger train operating companies and we are on target for the first franchises to be awarded by the end of the year. I hope that BR will have completed shortly the sale of six of the seven BRIS design offices and the Occupational Health Unit. "A number of engineering and manufacturing parts of BR are expected to be sold over the summer and the Rolling Stock Companies, British Rail Telecommunications, the track renewal units and the infrastructure maintenance units should all be in private sector ownership by the end of the year." Note to Editors 1. The six depots, formerly known as British Rail Maintenance Limited (BRML) or as Level 5 depots, are at Eastleigh (Hampshire), Chart Leacon (Ashford, Kent), Ilford (Essex), Wolverton (Milton Keynes, Buckinghamshire), Doncaster (South Yorkshire) and Springburn (Glasgow). They service the fleet of rolling stock used by the passenger and freight railway businesses. The depots are engaged in heavy maintenance and repair of traction and rolling stock, and related components and parts. They are capable of handling virtually any type of dismantling, maintenance, modification or damage repair. 2. Their main customers will be the three Rolling Stock Leasing Companies (ROSCOs), who own the majority of BR's passenger fleet. It is intended that the ROSCOs will be sold by the end of this year. 3. The BRML depots also provide maintenance services for various other BR businesses, including the freight companies. # = pounds sterling
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