Market study into rail signalling systems opened

Signalling accounted for more than £4 billion of Network Rail’s spend over the five-year period between 2014 and 2019. This spend is forecast to significantly increase, as digital technology is rolled out across the network.

This study builds on previous work into signalling, notably ORR’s engagement with the European Commission about the proposed merger of Siemens/Alstom.

The study will:

• Focus on the supply chain for the delivery of significant ‘major’ signalling projects;
• Look at the strength of competition for tenders, and, incentives to compete in the market;
• Consider whether there are any barriers to innovation, or market entry and the introduction of new technology; and
• Look closely at the ability of the supply chain to build up capacity for the rollout of the digital railway.  

Recommendations or interventions arising from this study will ensure the supply chain is fair and competitive, capable of building up capacity for the rollout out of the digital railway, and deliver good outcomes for the ultimate benefit of passengers, taxpayers and other businesses which use the railway.

ORR closed a previous study in April 2020 to ensure efforts were focused on the impact of the coronavirus pandemic. 

Tom Cole, Head of Competition at the Office of Rail and Road, said: