Hitachi Capital Vehicle Solutions is to manage Network Rail’s owned and leased road vehicle fleet under a new £136m deal that marks a new way of working for the public body.
The four-year deal, which starts from 1 August 2019 and includes the possibility of a one-year extension, will see Network Rail move away moving away from managing 16 separate road fleet contracts directly to a ‘one-stop shop’ solution intended to provide cost and efficiency improvements.
It also sees Network Rail’s road fleet transitioning from an owned to a leased model; Hitachi Capital Vehicle Solutions will supply add 8,000 new contract hire vehicles over the next five years.
Service, maintenance and repair of all road fleet vehicles will be scheduled as part of the contract, which also includes driver training, vehicle compliance, vehicle insurance and claims management and end-of-life vehicle management among other services.
Rob Morton, supply chain operations director for Network Rail, said: “This deal marks a turning point for our road fleet. We have one of the largest fleets in Britain and need to manage it accordingly. Working in partnership with Hitachi Capital, we will focus on providing the professional service that our drivers deserve, tailored to meet their individual needs. This will also include urgent replacement of older vehicles and using many local suppliers across Britain, sharing the benefit with regional economies.”
Jon Lawes, managing director for Hitachi Capital Vehicle Solutions, added: “Our integrated leasing and fleet management model will focus on choosing the right asset, improving compliance and vehicle availability, which will support Network Rail to improve the safety of all Network Rail employees.
“As part of this contract we will be supplying Network Rail with our new asset utilisation proposition, including real-time insights from sophisticated telematics systems, which will be a key element in driving improved cost and environmental efficiencies across their fleet.”