Westinghouse Rail Systems Limited, is to undertake major resignalling works on the Thameslink project, following the award of multiple contracts by Network Rail.

Westinghouse has entered into three separate contracts for project execution in the initial stages of the core area; this work marking the beginning of a series of signalling projects for the Thameslink development.  Concurrently, the company is executing the GRIP4 works of the programme, covering scheme development for all stage works of the core area.  Overall, the value of future signalling works for Thameslink is estimated to be in excess of £75 million.

In its entirety, this £3.55 billion programme will see new track, stations, extended platforms and improved signalling across the complete Thameslink route - the first phase of which encompasses the core area of the network, bounded by St Pancras and Blackfriars Stations.

Commenting on the announcement, Westinghouse Rail’s Managing Director, Alistair McPhee, said: “We are delighted to have been awarded these contracts, which are an extension to our existing Framework Agreement with Network Rail, secured in 2005. To be working on such a significant project, at the heart of one of London’s major infrastructure schemes, is a great reflection on the quality and commitment of our people, our products and systems.  We look forward to working in partnership with Network Rail to deliver a first class signalling solution.”

Phase I runs from 2008 to 2011, with final commissioning scheduled for completion in advance of the 2012 Olympics in London.

Westinghouse Rail Systems, part of Invensys Rail Group, has commissioned a WESTeX GCP3000 Level Crossing Predictor (LCP) system into operational use for the Finnish Rail Administration Ratahallintokeskus.

Following a period of shadow mode operation, the system was commissioned on 19 March 2008 for a full twelve month pilot trial at Skogby station halt, an existing level crossing site on the Hanko to Karjaa line, in the south west of Finland. On successful completion of the trial, it is expected that the system will receive full Finnish product approval in January, 2009, adding to the Network Rail approval which has already been received.

Finland has over 3,000 open level crossings similar to the trial site in Skogby, the majority of which are unprotected – relying solely on the judgement of motorists and pedestrians to stop.

The WESTeX GCP3000 provides a low cost, elegant and efficient solution for open level crossings such as these; the installation at Skogby provides motorists with both flashing LED units and an audible warning to stop at the level crossing in the event of a train approaching. 

The GCP3000 uses train detection functionality to operate level crossings in a fail-safe manner, reducing the amount of on-track equipment required to a minimum, whilst maintaining absolute integrity of train detection.  All that is required is a single unit at the level crossing, and termination shunts between the rails at the strike-in point.  Through the use of audio frequencies, the LCP is fully compatible with most standard forms of train detection, and provides a complete level crossing solution in one package. In particular, the system is compatible with dc, low frequency and audio frequency track circuits. 

Unlike traditional level crossing systems, the WESTeX GCP3000 is capable of predicting the time at which a train will pass over the crossing, taking into account its approaching speed, and therefore is able to provide consistent warning times, reducing the period for which the crossing needs to be closed and, therefore, motorists’ waiting times.

In order to fully comply with Finnish rules and technical specifications as well as the requirements of the safety case assessment, the Skogby trial installation required a number of modifications to the standard UK location case arrangement.

Of prime importance in the design was the need to allow for Finland’s harsh climate and extreme weather conditions - which can be as high as +30C in the summer, falling to -25C in the winter, accompanied by heavy snowfall.  To help combat this, the GCP3000 has been mounted on a raised platform to avoid the build up of snow around the location case.  The system was also designed for different day/ night conditions, such that the LED units are dimmed and the audible sound intensity is reduced during night operation.

Commenting on the application, Westinghouse’s Project Manager, Vince Dade, said: “Having fully proven its capability in shadow mode, we’re delighted that the WESTeX GCP3000 is now controlling the crossing at Skogby.  Whilst the trial application proved to be quite challenging, we have developed a robust solution that we believe will help  Ratahallintokeskus in applications across the country and look forward to continuing to work closely with the Finnish Rail Administration  as the ‘in service’ trial progresses.”

To monitor the installation and to carry out event logging, Westinghouse engineers are able to dial into the system remotely, through a GSM modem and antenna which have been incorporated into the Installed unit.

• Cash settlement of £95m from Bombardier following rescoping of work on the London Underground
• Around £180 million of continuing work on Victoria and Sub Surface Lines and significant opportunity to win rescoped contract
• Rail Group double digit revenue growth outlook unchanged and margin outlook improved materially through to 2010

Summary
As part of the arrangements being put in place following Metronet entering into administration last year, London Underground Limited (LUL) has decided to rescope the new signalling work for the Sub Surface Lines (SSL).  This has resulted in a cash payment due today from Bombardier to Invensys of £95 million and a reduction in the Westinghouse Rail Systems Limited (WRSL) order book of £550 million in respect of work that would have been carried out mainly in the period 2010 to 2014.  This development has provided Invensys with a significant opportunity to win the rescoped contract when it is retendered in accordance with public procurement rules.  Invensys has the certified engineering capacity and the capabilities to meet LUL’s vision for the London Underground.  Invensys’ other signalling work on the SSL and the Victoria Line, representing around £180 million of revenue, is unaffected by this change.

Ulf Henriksson, Chief Executive of Invensys, commented:

“We view this development as a great opportunity to demonstrate our commitment to LUL and share a vision with LUL of developing an efficient solution that meets the needs of LUL and the people of London.  Our work so far on the SSL and Victoria Lines is on or ahead of schedule which demonstrates WRSL’s reputation for delivery.

“In addition to our ongoing involvement with LUL, I expect the Rail Group to make continued progress throughout its business with double digit revenue growth and materially improved margins over the next two years.

“For the Group as a whole, we have made further progress in the final quarter of our financial year and we remain confident that we have a sound platform for growth next year.”

Background and contractual changes
Following Metronet entering into PPP administration on 18 July 2007, Westinghouse Rail Systems Limited (WRSL), part of the Invensys Rail Group (IRG), has now reached a series of agreements in respect of all its contracts with Bombardier, a member of the Metronet consortium, for signalling on the London Underground.

WRSL’s existing contract with Bombardier for work to install new signalling on the Victoria Line will remain with Bombardier and is expected to be transferred intact as part of the statutory transfer of Metronet in Administration to ‘new’ Metronet.  Work remains on schedule for delivery of the planned performance upgrades in 2012.  WRSL’s signalling upgrade technology (Distance To Go – Radio) was successfully trialled during engineering hours on 7 February 2008 and is due to be trialled during passenger hours in summer 2008.

WRSL understands that, in order to reduce future maintenance and driver training, LUL has decided to rescope the new signalling work for SSL.  As a result WRSL’s existing contract with Bombardier for SSL signalling has been rescoped and LUL has asked WRSL only to continue to work on changes to SSL’s existing signalling system to allow new trains to operate on those lines.  WRSL’s existing contract with Bombardier will be novated to Metronet and amended to reflect the agreed rescoping, resulting in a cash settlement due today of £95 million from Bombardier.  The revised contract will then be recommended for transfer to “new” Metronet.  The new contract for the upgraded SSL signalling will be retendered in accordance with public procurement rules and WRSL fully intends to participate in the future retendering which LUL has strongly encouraged it to do.  

The ongoing contracts are subject to the successful implementation of the statutory transfer scheme being proposed by the Administrator of Metronet, including approval of the High Court.  LUL has agreed to recommend the proposed transfers and a copy of a joint LUL, Bombardier and WRSL press release is attached.

Tim O’Toole, Managing Director of London Underground, said:

“I look forward to the successful commissioning of WRSL’s new signalling system on the Victoria Line and to the completion of its work on the existing signalling system on SSL and hope WRSL will participate in the re-tender of the signalling system for SSL.”

Disposal
On 31 March 2008, IRG sold its North American rail logistics business Burco to a US company, Railroad Controls Limited, for $31 million.  Burco was not core to IRG’s signalling and related systems operations.  In the year ended 31 March 2007, Burco reported external revenue of $128 million and operating profit of $5 million.  Burco will be treated as a discontinued operation in the Group’s results.

Overall financial implications
The cash payment from Bombardier to WRSL of £95 million will be treated as operating exceptional income in the Group’s income statement.   However due to the rescoping of the planned new signalling work on SSL and prior to the retendering of this work, WRSL’s long term order book will be reduced by around £550 million in respect of work that would have mainly been carried out in the period from 2010 to 2014.  IRG’s order book remains strong at around £700 million and IRG believes that there is a significant opportunity to win the rescoped contract for the SSL signalling system.

IRG expects that these changes to its contractual arrangements will have no effect on its expectation of achieving double digit revenue growth from continuing operations in 2008/09 and 2009/10.   With the disposal of Burco and improved sales mix, IRG expects a material improvement in operating margin during this period.