Network Rail has awarded new contracts for the first phase of a new nationwide traffic management system for Britain's railways.

Thales UK has secured a £28.8 million deal to deploy traffic management technology at Network Rail's Cardiff and Romford operating centres by December 2015. The firm has been working with Network Rail since 2012 to develop and test a traffic management software prototype.

Robin Gisby, Network Rail's managing director of network operations, said: "The traffic management which will be deployed on the network uses tried and tested technology used on railways around the world to help deliver a leaner, more efficient and reliable network."

The technology is designed to consolidate control of Britain's rail network from more than 800 signal boxes into 12 state-of-the-art rail operating centres over the next 15-30 years.

Network Rail says that once the technology is fully implemented it will reduce the cost of operating the UK's railways by £250 million per year.