Over 700 jobs have been safeguarded as Carillion’s Network Rail contracts have been acquired by Amey Rail Ltd.
The transfers come after Carillion went into liquidation last month, and will provide reassurance to many in the industry, as well as continuity for projects across the country.
The Network Rail contracts, which were operated by Carillion Construction Ltd, includes projects in the East Midlands, London and the north west.
Network Rail has been working with the Official Receiver’s special manager (PwC) to seek long-term transition arrangements for the remaining contracts and staff.
While this process is ongoing, the remaining contracts continue to be delivered under its arrangement with PwC to enable an orderly transition.
Last month it was agreed that PwC will pay the wages of Carillion employees for work done on and supporting Network Rail contracts until after Easter, with many smaller rail suppliers paid the arrears they were owed.
Matthew Steele, commercial director at Network Rail, said: “This is a positive step for the industry, ensuring the delivery of a number of major rail projects across the country whilst safeguarding an expected 700 jobs and the wider supply chain.
“We look forward to working with Amey to enable a smooth transition and ensure the ongoing safe working on our sites.”
He acknowledged the unsettling period Carillion employees have had and thanked them for their commitment to the delivery of these projects.
Chief executive of Amey, Andy Milner, added: “We are excited to be taking on these rail contracts that form a key part of Network Rail’s vision for the country’s modernised rail network.
“With a deep understanding of these operations, we are perfectly placed to become the new contractor for these projects. This will mean that our rail business will grow significantly, as we support Network Rail to deliver critical milestones.
“We look forward to welcoming the employees to our business, and further strengthening our relationship with Network Rail.”
Post from www.railtechnologymagazine.com