Flint Bishop

Crossrail cost-saving delay gives time for wider public procurement review

Pictured: Michelle Craven

Confirmation by Crossrail that it has deferred tendering for rolling stock to save money and because of a Government review of public procurement is a welcome move, but a wider overhaul of policy is required if UK based manufacturing is to be safeguarded, says a leading rail lawyer, Michelle Craven.

Crossrail, Europe's largest rail infrastructure project to link Heathrow west of London to the east of the city through tunnels under central London, pushed back the award of a contract for 60 new electric multiple-units to 2014 from late 2013. Rolling stock will now be introduced onto the Great Eastern Main Line from May 2017, rather than December 2016.

Michelle, a director in the Commerce & Technology team at East Midlands' law firm, Nelsons says: "One of the reasons for the delay by Crossrail is to align delivery of the rolling stock with the tunnel construction timetable, ensuring carriages are not delivered before they are needed. It will bring about a significant operational cost saving to the taxpayer, running into tens of millions, and is something to be championed in the rail industry, especially following the publication of Sir Roy McNulty's paper earlier this year.

"It is also true to say that this delay will allow time for the procurement process to be considered to ensure that it takes into account any recommendations that flow from next week's Transport Select Committee."

The review of public procurement by the Transport Select Committee will examine whether the UK is making best use of the application of EU procurement rules and whether the Government can place more of an emphasis on UK interests.  Michelle, in her capacity as vice chair of the Derby & Derbyshire Rail Forum (DDRF), is preparing a written submission to be considered by the Committee. 

"As the controversy around the selection of Siemens as preferred bidder for the Thameslink rolling stock contract continues to be a focal point of many debates, public meetings and protests," continues Michelle, "further investigations will no doubt follow next week's Transport Select meeting before we see recommendations on changes to current policy. Whether the Government's review will go far enough to have a positive impact on the UK is, of course, to be seen.

"It is now 876 days since an actual order has been placed for any new UK trains. An inherent problem since privatisation has been the long periods of no orders followed by a surge of orders all at the same time. This has made forward planning for those involved in the manufacture and supply of rolling stock almost impossible. Both the Thameslink and Crossrail tenders have been the subject of discussion and rounds of previous tendering since the late 1990's, so is there a chance that the tender date for Crossrail will be moved again?

"Whilst we must welcome the delay and any move to implement changes to the current procurement process, until a wider review of public procurement policy has been undertaken and changes made to move away from the feast or famine regime endured by the rail industry for so long, the future for UK based rolling stock manufacture remains uncertain."

It is also worth noting, says Michelle, that despite the controversy surrounding recent procurement decisions, neither contracts for Thameslink or IEP have yet been signed. According to her, just because a preferred bidder is announced, it does not mean that the contract has been signed and work has commenced.

For more information about Nelsons, please visit their website here: www.nelsonslaw.co.uk

 

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Article published by Midlands Business News on 6 September, 2011

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