#UK Eyes Competition in #Rail Signalling Market

The British Office of Rail & Road (ORR), which is responsible for the safety and regulation of the economy of rail and road transport, has published recommendations to improve and develop competition in the rail signaling market in the country, estimated at £ 800 – 900 million. Art. in year. 

The largest ever digitalized rail infrastructure upgrade in the UK is driving a significant expansion of this market.

Currently, more than 40 thousand signals have been installed on trunk lines, 65% of them will need to be replaced within the next 15 years. 

At the same time, the main share of orders (90% in value terms) for Network Rail signaling projects are received by two companies – Siemens and Alstom.

According to the regulator, the infrastructure operator Network Rail, as the main customer of signaling systems, should improve the organization of the procurement process and expand the range of suppliers in order to develop competition and reduce the cost of equipment.

 The customer was advised not to provide most favored nation treatment to a narrow circle of companies with which he constantly works, and to give the opportunity to enter the market for new players. 

To do this, it is necessary to provide suppliers with more complete information about the upcoming scope of work and take measures to reduce risks when introducing new technologies.

The key to ORR’s success is Network Rail’s increased engagement with market players, especially in the regions. Within three months, the operator must provide the regulator with a strategy and plan for the implementation of the recommendations

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