Business newsline by Tony Seymour

Railtrack is looking overseas for off-the-shelf equipment for its signalling equipment projects, which could have long-term effects on UK signal companies.

Tendering activity on resignalling by the infrastructure giant responsible for tracks, signalling and stations, is slowing down, following a report by consultants McKinsey, advocating "rehabilitation rather than replacement" of signalling equipment.

The £2.5 billion turnover company, which was privatised in 1996, is currently undertaking a £1.5 million regeneration programme at York Station.

In addition, Railtrack is actively looking overseas to equip smaller signalling projects in the Norfolk and Dorset to see if technology from abroad can be utilised.

An article in Modern Railways magazine says: "While the McKinsey strategy is good news for maintenance firms, the signalling majors are looking for a piece of the £140 million action on installation of the train Protection & Warning System."

Meanwhile, rationalisation of signal boxes in the North-East and North-West cost more than budgeted and failed to achieve the expected results, leading to scaling down of further phases, says the report.

A Railtrack spokesman said: "We're not rushing out and replacing signalling wholesale, but looking to see what really needs to be done. In some cases, Railtrack believes that schemes which had earlier been earmarked for wholesale replacement, can last another ten years.

"One of the problems is that UK signalling has to be made to measure, but other 'less-dense' off-the-shelf pieces can be purchased much cheaper abroad."

Westinghouse, which has 130 employees in York, is "expressing concern" over Railtrack's decision. A Westinghouse spokeswoman said: "In the short-term we have been successful in gaining two new contracts - Euston and Dartford. However, Railtrack's judgement may have long-term implications for the company."

Westinghouse, formerly known as Signalling Control, adopted its present name on January 1, 1998.

Adtranz, which has 22 employees in York, has just won Railtrack's contract for Leeds West End. An Adtranz spokeswoman said: "York is doing pretty well at the moment because the Leeds project team will be based at Rawcliffe."

However, only another two contracts are in the offing: Glasgow Central and North Staffordshire.

A bid by Adtranz to replace semaphore signalling at Shrewsbury with low-cost Swedish technology as another demonstrator project was unsuccessful.

Railtrack has also shelved the DART radio system, for which Siemens had a development contract.

Adtranz - formerly ABB - axed four jobs from its 26-strong workforce at the York site last year, owing to lack of success in securing contracts from Railtrack. At the time, 86 jobs went at five other branches - Derby, Birmingham, Reading, Plymouth and Glasgow.

Established in York in 1997 at Holgate Road, Adtranz moved to the former site of Clifton Hospital, Rawcliffe, last year. Prior to ABB, the company was called Interlogic.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.