Central Railway

Huge new construction project put out to tender

Central Railway has put the construction of a new independent railway from Liverpool to Lille in northern France out to tender.

Construction companies have been invited to pitch for the £5bn project, which will be one of the largest transport projects put out to tender in the Official Journal of the European Communities (OJEC). They have also been invited, as part of the tender process, to contribute funds for the approval stage of the project, which will ultimately be given the go-ahead in a parliamentary vote.

"This sort of tender process with a funding tie-in is unprecedented. We decided to approach it in this way because some construction companies expressed an interest in financing the project, but were concerned about the risk element of the subsequent formal tender process. Tying the two together in this way makes sense for them, and it makes sense for us."

Central Railway intends to enter into a number of works, supply and services contracts (or framework) agreements for investment in and design, equipment purchase and construction of, approximately 600km of railway. Equipment contracts will include procurement, installation and commissioning of civil and railway works and rolling stock (locomotives and wagons). Linear civil works will be tendered in lots for both project route segments and tunnels and major civil works.

"Putting the Central Railway project out to tender in this way has focussed minds on a real transport infrastructure investment which will mean real jobs and real profits. As the project moves toward reality, we see it as paramount that the railway industry works together."

The news of the tender process follows on from the publication earlier in the month of an independent report by international transport consultants Roland Berger which showed that the new freight link would take around 2.5 million lorries per annum (up to 25% of the UK continental freight market) off Britain's congested roads. The Road Haulage Association announced its backing of the project, adding to a list of supporters that includes big businesses, local councils and environment groups.

Central Railway estimates that construction work will begin in 2003 and that the project should be completed and open by 2008. Expressions of interest should be with Central Railway by the end of January, 2000. The outcome of the tender process is likely to be announced shortly afterwards.

Central Railway is proposing to design, build and operate a new rail link connecting the North West to northern France. The line will run from Liverpool, via Manchester, Sheffield, the Midlands and London, through the Channel Tunnel to Lille in Northern France. The railway will be primarily for freight. In constructing the new line it is intended that a majority of the track will be existing or disused railways. The railway will create a unique link into Europe as the only railway able to carry standard European freight and passenger trains (as well as any UK train) and nearly all standard road haulage equipment. The construction cost is estimated at just over £3 billion in constant money terms and Central Railway is projected to produce a commercial rate of return enabling it to be built with private money.