1995-11-09 Britain creates new train leasing market with #1.8 billion sale (Department of Transport)

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date 9 February 1996
source Department of Transport
type Press release

note 42

John Watts, Minister for Railways and Roads, today announced a major
step forward in the Government's rail privatisation programme.

The Scotland Track Renewals Company Ltd. has been sold to Relayfast
Ltd., a management and employee buy-out team, funded by Hambro
European Ventures Ltd. It is the first of the thirteen British Rail
Infrastructure Services (BRIS) companies to be privatised.

Mr Watts commented:

"This is another important day for rail privatisation. The
restructuring of the British Rail Infrastructure Services in
preparation for their transfer into the private sector has been a
remarkable achievement. Infrastructure services are a vital part of
the rail industry, and this sale is a key moment in a process which I
am sure will bring great benefits to Britain's railway."

The BR infrastructure services companies comprise six track renewals
companies and seven infrastructure maintenance companies. They had a
combined turnover of over #1 billion in the financial year 1994/95
and employed approximately 24,000 people.

Approximately half of Railtrack's costs relate to infrastructure
maintenance and renewal. The thirteen infrastructure maintenance and
renewal companies carry out the majority of this work.

Turning to the company itself, Mr Watts said:

"The Scotland Track Renewals Company provides services in an
area with some 2,600 track miles, including the West Highland line,
and the Tay Bridge, one of Europe's longest rail bridges. I am
delighted that the management and staff of this company have taken
this opportunity to invest in their own future."

The Scotland Track Renewals Company Ltd. specialises in the provision
of a comprehensive range of services and resources, focusing on the
activities associated with both track renewals and the construction
of new railways in a geographic area covering over 30,000 square
miles. It employs approximately 280 people and has a budgeted
turnover in 1995/96 of #21 million.

Negotiations on the sales of the remaining track renewals companies
and infrastructure maintenance companies are continuing, and further
sales are expected soon.

Notes to editors:

1.Scotland Track Renewals Company Ltd., a subsidiary of SCTRCo was
offered for sale by Hill Samuel on behalf of the British Railways
Board, along with the other infrastructure maintenance companies
(IMCs) and track renewal companies (TRCs) in October last year. Final
bids for the company were received on 11 December 1995.

2.Track renewals companies provide on-site engineering work,
undertaking track renewals, particularly for Railtrack, and heavy
mechanised track maintenance, principally as sub-contractors to the
IMCs. Specific activities include:

- large and small scale track renewals
- track maintenance using large mechanised plants
- minor track layout design
- track engineering for special projects
- maintenance of large and small items of mobile plant
- safety management

3.This brings the total number of BR businesses that have been
transferred to the private sector to thirty-three.

# = pounds sterling

Railhub Archive ::: 1996-02-09 DoT-001