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| EWS DISPOSALS
POLICY FOR LOCOMOTIVES |
| This section is intended to make clear EWS
policy with regards to disposal of redundant
locomotives. EWS policy is to promote growth
and expansion of the UK rail industry and
will not support restrictive or anti competitive
action by any party. |
| EWS operates in a free market without government
grant or subsidy and will process the disposal
of surplus assets in a way that encourages
re-use of the vehicles or components whilst
recognising commercial reality, safe practices
and the market value of the assets. |
|
| Regulatory Authorities
|
| The operation and disposal of locomotives
is overseen by a number of government bodies,
who have a role to ensure that such disposals
take account of: |
- Safety implications
- Environmental effects
- Non discrimination
|
| The regulatory bodies have enforcement
powers, which may be used if EWS fails to
comply with legislation or licence conditions.
|
| This code of practice sets out in an open
and transparent way how EWS intends to dispose
of its surplus locomotives; it sets out to
satisfy the various regulatory authorities
that the duties and constraints imposed by
Health and Safety Legislation, Train Operator's
Licences and current Competition Law are met.
|
|
| Scope |
| The Code of Practice sets down: |
- the categorisation of unused locomotives
- the marketing process for locomotives
available for sale by general tender
- tender policy
- safety and environmental considerations
- residual risk and liability
|
| Availability and Categorisation
of Locomotives |
| To effect a timely and controlled withdrawal
and disposal process, EWS categorises locomotives
as follows: |
- Group 1 Active and Stored Serviceable
(Locomotives in a condition that are either
in service, or can be put back into active
service quickly, should operational requirements
demand).
- Group 2 Stored Unserviceable
(Locomotives in a condition where minimal
care and maintenance is performed, but
could be returned to serviceable status).
- Group 3 For component recovery
(locomotives used to provide a source
of components as may be required to satisfy
EWS's operational demands and the demands
of maintenance agreements entered into
by EWS).
- Group 4 Surplus to Requirements
(Locomotives available for sale and/or
disposal).
|
| The decision to relegate or promote vehicles
from one category to another may be driven
by a number of factors often similar to those
detailed above and as detailed below at 4.
Only locomotives in Group 4 would be considered
for sale or disposal in accordance with this
policy. |
|
| Marketing of Stock |
| Locomotives held in Groups 1and 2 will be
assessed on a quarterly basis in relation
to type of Locomotive, current demand, and
duration of future need. As a consequence,
Locomotives shall then be, as appropriate: |
- put back into serviceable status, or
- retained in Group 1 or 2, or
- placed into Group 3 for component recovery,
or
- deemed to be no longer required by EWS
and placed in Group 4 - "Surplus
to requirements".
|
| Locomotives may become available for disposal
for a variety of reasons including: |
- Major component failure
- Damage caused by fire, collision or
derailment
- Legislative changes
- Displacement by new or alternative stock
- Obsolescence
|
| Locomotives relegated into Group 4 are
available for disposal by sale and their reinstatement
to Group 1, 2 or 3 would only occur in extreme
circumstances, such as catastrophic or unforeseen
loss (e.g. derailment, collision, fire, etc.).
|
|
| Criteria for identifying
method of disposal |
| In general terms, surplus locomotives,
as defined above shall be disposed of in a
manner which is fair and non-discriminatory
and by a method which generates the best return
to EWS. However, this shall be in compliance
with safety and environmental considerations,
and take account of other relevant factors,
including asbestos removal. |
|
| Advertising of Available
Stock |
| EWS shall offer for sale, surplus locomotives,
(those in Group 4), in accordance with this
Code and on the disposals EWS website (www.ews-railway.co.uk).
Such advertisement shall include, but not
be limited to, provision of details of available
locomotives, their location and applicable
tender details. |
|
| Tender Policy |
EWS shall offer its surplus locomotives
for sale by means of competitive open tendering,
accompanied by this Code, without conditions
that restrict further use, and in a manner
intended to realise maximum return.
(Note: EWS reserves its right to dispose of
locomotives outwith this policy when this
involves: |
- Donation
- Transfer within the EWS Group
- Swap or exchange deals
|
| the incidence of such circumstances being
subject to review by the Office of Rail Regulation). |
| Contracts for sale shall be awarded to
the Tenderer with the highest present value
offered. In addition speed of sale/site clearance
and payment terms may also be taken into account. |
| All Category 4 sales shall be concluded
in accordance with this Tender Policy. |
| All tendering activities and subsequent
sales shall be (i) under the authority of
the EWS Disposals Manager (telephone 01332
265419; fax 01332 265285) and (ii) subject
to preservation of strict confidentiality
as may be detailed and necessary for the due
performance of a given contract. |
|
| Safety and Environmental
Considerations |
| In order to ensure that locomotives are
(i) not sold on for future use on rail without
proper checks and safety certification and
(ii) that locomotives that are sold by EWS
comply with current legislation appertaining
to Asbestos (Prohibitions) Regulations 1992.
EWS shall adopt the following Procedures: |
- Locomotives shall be deregistered from
the industry's Rolling Stock Library (R.S.L.)
and offered for sale accordingly. (Note:
Locomotives in Group 4, may be in poor
condition and possibly lacking components).
|
| EWS gives no warranties and it shall be
the sole responsibility of the Buyer of the
locomotive (or component, as applicable) to
verify its condition and to demonstrate to
the satisfaction of the appropriate Authorities
that it is in such a safe condition as may
be demanded, and where appropriate, to secure
re-registration to the R.S.L. (Note: The Rail
industry has acceptance procedures to control
the re-instatement and registration of vehicles
on the R.S.L. and Buyers will be responsible
for making their own arrangements. Details
of approved Vehicle Acceptance Bodies, of
which EWS is currently one, can be obtained
from Railway Safety and Standards Board, Evergreen
House 160 Euston Road, London NW1 2DX). |
|
| Environment |
| With reference to (ii) above, EWS undertakes
to comply with the provisions of the Asbestos
(Prohibitions) Regulations 1992 and shall
ensure, prior to completion of any sale of
a surplus locomotive that asbestos is either
removed at a suitably registered site, or
as appropriate an exemption is obtained from
the Health and Safety Executive, prior to
sale. |
|
| Residual Risk and Liability
|
| The Contract for sale does not contain any
warranties for fitness for purpose of locomotives
disposed of and EWS shall not bear any liability
arising from the use of the locomotive in
question or any of its parts. |
