The new alliance set-up, known as Southern Integrated Delivery, or SID, will be part of a new enterprise model based on the Institution of Civil Engineers’ Project 13 principles, developed following significant cross-industry consultation over the last two and a half years.

The model will replace the existing Regional Asset Management and Capital Delivery operating structure and will require a fundamental shift in leadership, governance, behaviours, and skills.

Work is underway deciding the renewals budget for CP7 (2024-2029) as Network Rail works to agree a final settlement with the regulator. The alliance deal will also cover CP8 (2029-34).

With the SID, the Southern Region seeks to make a transformational change in how renewals work is delivered by merging the capabilities of Network Rail and its supply chain to develop an integrated and coordinated approach to delivery.

Through tying efficiency savings found by partners to increasing the workbank, and linking profit to extra work delivered, the SID has been shaped to make the best use of resources, maximise efficiencies and be collectively incentivised to deliver value.

Ellie Burrows, managing director for Network Rail’s Southern region, said: “I am really excited for the future of project delivery in the Southern Region – the rail industry has consistently demonstrated that when it comes together, it can do amazing things – this transformational step will bring all those ingredients together for the long-term delivery of renewals and make a tangible difference to passengers and freight-users alike.”