The UK’s Office of Rail and Road (ORR) announced that it has found that the current railway signaling market isn’t competitive enough, and that it is publishing recommendations aimed at opening up the railway-signaling market.
The current signaling market in Great Britain is valued at £800-900 million (US$1.08-1.2 million) per year. As Britain’s railway infrastructure undergoes one of the most significant modernization programs in its history as it increasingly adopts digital technology, the market is expected to expand significantly.
For change on this scale to be delivered affordably, Network Rail as the main buyer of signaling systems needs to transform its approach to procuring and delivering signaling projects.
The ORR has found that the current market is not competitive enough; with too few suppliers, high costs, and Network Rail not having the procurement practices in place to benefit from its considerable buyer power. As a result, the ORR has made a number of recommendations aimed at attracting more suppliers to the market, in order to stimulate competition and achieve better value for money when procuring signalling equipment.
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