HS2 latest: full detail
£6.6 billion of construction contracts are awarded for Phase 1, while routes are confirmed for Phase 2b.
ALMOST £7 billion of construction contracts have been awarded for HS2 Phase 1.
The deals include construction of tunnels, bridges, embankments and viaducts, and the Government has claimed they will support 16,000 jobs across the UK.
Construction of the full HS2 route to the North West and Yorkshire will create a total of 25,000 jobs and 2,000 apprenticeships. A further 3,000 staff will operate HS2, while it is estimated that growth around new HS2 stations will create a further 100,000 jobs.
The winners were announced on July 17. The winning bidders for Area South are split into two deals, with SCS JV winning them both. One is for Euston Tunnels and Approaches, and the other is for Northolt Tunnels. The Joint Venture is made up of Skanska Construction UK Ltd, Costain Ltd and STRABAG AG.
For Area Central three contracts were awarded. The Chiltern Tunnels and Colne Valley Viaduct, worth £965 million, has been awarded to Align JV (Bouygues Travaux Publics, VolkerFitzpatrick and Sir Robert McAlpine).
The North Portal Chiltern Tunnels to Brackley contract and the Brackley to South Portal of Long Itchington Wood Green Tunnel contract have been awarded to CEK JV (Carillion Construction Ltd, Eiffage Geneie Civil SA, Kier Infrastructure and Overseas Ltd), in deals worth £724m and £616m respectively.
For Area North, BBV JV has won both the Long Itchington Wood Green Tunnel to Delta Junction and Birmingham Spur contract and the Delta Junction to West Coast Main Line Tie-In deal. JV comprises Balfour Beatty Group Ltd, VINCI Construction Grands Projects, VINCI Construction UK Ltd and VINCI Construction Terrassement. The deals are worth £2.5bn (the former is £1.32bn and the latter £1.15bn).
“This is a hugely important step in the construction of Britain’s’ new railway, and underlines this Government’s determination to deliver an economy that works for all,” said Secretary of State for Transport Chris Grayling.
“As well as providing desperately needed new seats and better connecting major cities, HS2 will help rebalance our economy. We will now get on with building the railway, while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”
HS2 Ltd Chairman Sir David Higgins said: “This is a huge day for the HS2 project and for the country. These contracts will support 16,000 jobs here in Britain and will create opportunities for thousands of SMEs.”
Higgins said it was always designed to be much more than just a high-speed railway, and that it will spread prosperity and act as a catalyst for investment as well as rebalancing the UK economy ten years before the railway opens.
Grayling confirmed in a statement on July 17 that enabling works for HS2 have now started. He added that construction of Phase 2 will begin in 2019.
Jim Steer, Director of High Speed Railway Industry Leaders (HSRIL), said: “The award of these contracts is a huge step forward for HS2 and represents a £6.6bn Government investment in British industry. Last year, HSRIL published a report showing the HS2 project would create 27,000 jobs by 2020, and these contract awards alone represent 16,000 jobs towards this total. By the end of the decade, HS2 will employ more people than any other infrastructure project in the UK.
“But this is just the start of how high speed rail can change Britain for the better. The connectivity of HS2 will transform regional economies, especially in the Midlands and North where the biggest benefits of HS2 will arise.
“With the award of these contracts, the project can now kick off in earnest. The industry is ready and able to deliver. HS2 is on track.”
Railway Industry Association Policy Director Peter Loosley said: “After a long process of Parliamentary scrutiny, we’re delighted that the HS2 build can now begin. It’s also a fantastic opportunity to showcase British engineering at its very best - delivering high-quality, competitive solutions to create a railway network for the 21st century.
“The Government is putting huge trust in the UK supply sector. Our member firms look forward to working in partnership with the public sector to build the first phase of the HS2 line.”
Clair Mowbray, Chief Executive of the National College for High Speed Rail, said: “We look forward to working with the successful contractors - Align, CEK, BBV and SCS - to help solve the skills gap in the rail industry. While we are in discussions with these suppliers, we are excited about expanding and cementing these relationships, and also working with them to develop relationships with their supply chains as they develop.
“We particularly look forward to progressing talks on how the National College can work with these joint ventures, and their supply chain to train the workforce they will need to deliver this hugely exciting project.”
Balfour Beatty Group Chief Executive Leo Quinn said: “This is a generational engineering project. HS2 will provide vital infrastructure not only to rebalance the economy, but also to fuel growth in skills, jobs and prosperity across the UK for the future.”
Chairman of the board of ALIGN, Geoff French said: “We are delighted that our team’s passion for HS2 and their boundless dedication have been so remarkably rewarded. We are now proudly part of a nationally transformational project that will be a catalyst for growth for the UK, with a mandate by HS2 Ltd and our Government to demonstrate outstanding industry standards to the world, but most importantly to leave a proud legacy for Britain’s future.”
Jerome Furge, Project Director of Align, said: “With this award, Align has an extraordinary opportunity to collaborate with HS2 and some of the greatest civil engineering companies in the world. Using our extensive high speed rail experience gained in France and elsewhere, we look forward to bringing the best of tried and tested innovations, along with the utmost iconic railway design, to the local communities along the HS2 route.”
Philippa Oldham, Head of Transport and Manufacturing at the Institution of Mechanical Engineers, said: “Apart from the potential of directly supporting thousands of jobs, HS2 also provides the step change required to help to remove the bottlenecks in our transport infrastructure by increasing our capacity limits and helping to bridge the North-South divide.
“Creating dedicated high-speed lines not only provides these fast routes, it also frees up paths on the rest of the network for slower, more frequently stopping services and freight trains.
“Increasing UK rail capacity is vital to the country’s economic growth. HS2 is expected to return more than £2 for every £1 invested, boosting annual productivity by over £8bn. HS2 has the great advantage of being designed from scratch for tomorrow’s needs, and will create new demand with the explicit aim of helping to rebalance the economy to cities such as Birmingham, Manchester and Leeds from London and the South East.”
TUC Deputy General Secretary Paul Nowak said: “This is a shot in the arm for Brexit Britain. It will provide thousands of decent jobs, billions in investment, and help close the North-South divide.
“HS2 is a real opportunity for British steel to shine. The next phase of HS2 should bring jobs and investment to the parts of Britain that need them most.
“Government must play its part, working with unions and suppliers to ensure that HS2 and other key infrastructure projects deliver the maximum benefit to the UK.”
RMT General Secretary Mick Cash said: “It is essential that there is no casualisation or cutting of corners on these contracts, and that means that the unions have to be engaged right from the start with full recognition rights at every level.
“RMT notes the names of the contractors involved and their past track record, and we want an absolute assurance that HS2 will be guaranteed as free from any blacklisting of union activists.
“RMT has warned for a long time about the lack of investment in skills and training when it comes to engineering jobs in Britain and that will remain a major factor. RMT is demanding immediate Government action to tackle the skills gap that could compromise infrastructure projects in this country well into the future.”