THE #2200m West Coast main line modernisation moved ahead yesterday with news that US engineering giant Brown & Root is to join Railtrack in managing one of Britain's most challenging engineering projects.

It was also disclosed that GEC Alsthom is the preferred bidder for the proposed state-of- the-art on-train signalling system upon which the whole upgrade will depend.

Railtrack indicated that the radio-based train control system contract would be worth between #500m and #1000m, although the precise price of the new signalling and train control system is still being thrashed out prior to signing on July 1.

The system represents a major part of the proposed upgrade of the West Coast line services between London, the Midlands, North-west England and Scotland operated by Virgin Rail. It will allow Virgin to run trains at up to 140 miles per hour along the route by 2005, according to GEC-Alsthom, a joint venture between GEC and France's Alcatel which is shortly to be floated off.

The new system, which should bring increased line capacity, train speeds, safety, reliability and flexibility while reducing costs, represents a new generation of signalling technology based on systems introduced recently by GEC Alsthom, Seimens and Alcatel in France, Italy and Germany.

Railtrack said its partnership with engineering and contracting group Brown & Root, part of US conglomerate Halliburton, would operate on a ''shared risks and rewards'' basis.

Brown & Root has been working on preliminary preparations for the upgrade on a consultancy basis since 1994, but the partnership will give it joint responsibility and financial incentives to deliver the project on budget and on time.

Railtrack said the agreement showed it was moving away from the traditional confrontational approach of contracting towards shared responsibility.

''Combining our expertise will ensure robust planning processes are in place for the major programme of engineering work,'' said Middleton.

Trevor Noble, managing director of Brown & Root Engineering and Construction in Europe and Africa, said he welcomed the link-up which will oversee GEC-Alsthom's train control system.

Charles Burch, managing director of GEC-Alsthom Signalling Group, said at the press briefing that the new train control system would eventually make travel on the line faster and safer.

It will be built to new European Union standards which are to be introduced on the West Coast route before being extended to other parts of the Railtrack network and eventually create ''a seamless signalling system across the EU region from the north of Scotland to the southern tip of Italy''.

''We will be supported by Siemens AG and (one of its parent companies) Alcatel which worked in the previous development phases. Both will be working for GEC-Alsthom as sub-contractors,'' said Burch whose company is also part of the consortium chosen to build and maintain 54 high-speed tilting trains for Virgin's proposed 140mph services between London and Glasgow.

Railtrack shares closed at 1166p, down 4p, a fall which might have included reaction to the rejection of the company's ''final'' pay offer by some 4000 employees.