Network Rail was prepared for disruption affecting steel production, it has emerged, after a weekend in which Parliament passed a Bill allowing the government to take control of the British Steel works in Scunthorpe.

Because it was not clear whether the Chinese owners of the Scunthorpe works would allow the two blast furnaces to continue production, Network Rail built up an emergency stock of rails, which would meet its needs for the coming year.

More than 80 per cent of the rails bought by Network Rail come from Scunthorpe, and the stocks now in store at various depots around the country would give Network Rail time to find new suppliers if Scunthorpe did close.

This seems less likely after business secretary Jonathan Reynolds was able to direct British Steel to buy the raw materials needed to maintain production.

In the longer term rails could be produced using electric arc furnaces which do not rely on coal, although the changeover could take several years and production would need to be controlled tightly to avoid impurities in the steel.

Network Rail has already tested rails produced in an electric arc furnace.

It said: ‘We do not expect the announcement to have any impact on the continued delivery of reliable rail services for passengers and freight users. We are continuing to work with government and our suppliers, and we have comprehensive contingency plans to ensure the continued supply of rail needed to fulfil our operational needs.’

A new centre for storing newly-manufactured lengths of rail was opened by British Steel in Scunthorpe last November, to ensure continuity of supply for Network Rail.

The new hub can hold around 25,000 tonnes of rails, and has 11 multi-gantry hoists to lift the finished rails on to wagons.

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