Network Rail Freight Connection Contracts

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Project Outline

The objective of the project was to identify Freight Connection Contracts that were missing and to bring new contracts to freight end users.

The missing connections were contracts that had either not been set up or their owners/lessees had changed, and the agreement had not been updated. This caused a loss of revenue from sites as well as a lack of charging for renewals, and it also posed potential safety risks due to the possibility of missed maintenance/renewal works.

Key statistics

Project Freight Connections
Client Freight team, Network Rail
Services Project / Contract Management
Duration March 2023 – March 2024

Our Service

Mercury3 Consult were enlisted to identify the ‘size of the problem’ as the volume of missing Connection Agreements (contracts) was unknown. We worked directly with Regional Freight Manager teams to resolve outstanding Connection Agreements in their respective regions.

  • ‘Lean Methodology’ was used to assess and identify the number of missing agreements by region.
  • Action trackers and financial summaries were created to track progress and communicate it to senior stakeholders for each location.
  • Process definition documents and process maps were also created, and internal audit teams were closely worked with to ensure that processes are not lost when individuals move on.

I was very happy with the services provided by Mark Preston and the support … from Hayley Robinson … the work was professionally managed and delivered. Any contact with Mercury3 was always helpful, understanding of the client’s needs, flexible and adaptable.

Andy Saunders, Senior Programme Manager

Key Achievements

Successfully negotiated 177 Connection Agreements (contracts), which completed the backlog identified as the scope, and Network Rail removed the risk of being on the Office of Rail & Road (ORR) escalator.

These 177 contracts equate to £2.5m annual revenue, and a further £1m was negotiated as ‘one-off’ backdated charges.

All Network Rail Connection Agreements have now been added to the Horizon finance system, which means that all customers will now be invoiced.

Processes have been agreed upon and documented, and all are now monitored by the internal audit team, which means that Network Rail will not create a backlog in the future.