Department of Transport

Last BR maintenance business sold

date 24 July 1996   source Department of Transport   type Press release

BRs last rail maintenance business - Western Track Renewals Company
Ltd - has been sold to Glasgow based Relayfast Limited, John Watts,
Minister for Railways and Roads, announced today.

The new owner of the company is the same management buy-out team
which bought the very first of BRs Infrastructure Services (BRIS)
business to be sold - Scottish Track Renewals Company Limited - in
February. Western TRC employs 430 people and had a turnover in
1995/96 of #32.7 million

Welcoming the sale of the last of the 13 BRIS businesses, Mr Watts
said:

"I am delighted by the success of this sale and am pleased to see
Relayfast Limited demonstrate its confidence in the future of the
industry in such a positive way. Relayfast bought the first BRIS
business to be sold and now it has bought the last. This sale brings
to a close yet another chapter of rail privatisation. With all the
infrastructure maintenance and track renewals companies now in the
private sector I look forward to a thriving competitive market in
this exciting industry."

Western TRC has a large fleet of on-track plant and is one of the
main track renewals contractors to Railtrack in its Great Western
and Midlands zones. It also provides plant based services to the
Infrastructure Maintenance Companies

Western TRC holds contracts for some important main lines including
those out of Paddington to the West Country as far as Bristol,
Plymouth and Penzance, and to South and West Wales, as well as the
Didcot to Leamington Lines. The company has a wide spread of traffic
on its routes, resulting in varying degrees of wear and tear, and
hence the need for different standards of maintenance. The
headquarters of the company are in Swindon.

Notes to editors

1. Western Track Renewals Company Limited was offered for sale by
Close Brothers (previously Hill Samuel) on behalf of British
Railways Board along with the other track renewal companies in August
last year.

2. The Track Renewal Companies (TRCs) provide specialised on-site
engineering work, undertaking track renewals principally for
Railtrack, and heavy mechanised plant hire as sub-contractors to the
Infrastructure Maintenance Companies (IMCs). The IMCs provide a
comprehensive range of engineering services covering all railway
infrastructure related activities associated with civil engineering,
telecommunications and signals engineering, facilities management,
plant and electrical engineering and project management. The IMCs
are also an important source of skilled labour for the TRcs.

3. It is expected that the business will gain the majority of its
revenue from Railtrack and other rail industry operating companies.
The BRIS companies sold, in order of completion date, are:

BRIS Company Date Sold Purchaser

Scotland TRC 8 February Relayfast Ltd (MBO)
Scotland IMC 14 February First Engineering Ltd (MBO)
Central TRC 29 February Tarmac Construction Ltd
Eastern TRC 15 March Fastline Group Ltd (MBO)
Western IMC 25 March Amey Railways Ltd
Eastern IMC 2 April Balfour Beatty Ltd
SouthEast IMC 2 April Balfour Beatty Ltd with MBO
Southern TRC 2 April Balfour Beatty Ltd
SouthWest IMC 18 April AMEC Ltd
Central IMC 19 April GT Railway Maintenance Ltd
Northern TRC 23 May Fastline Group Ltd.
Northern IMC 18 June Jarvis plc
Western TRC 23 July Relayfast Limited


# = pounds sterling

Railnews Archive ::: 1996-07-24 DoT-001

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