Byers set to appoint new rail chief

Richard Bowker: a controversial choice?

The 35 year-old co-chairman of Virgin Rail has emerged as the front-runner to become one of the most powerful men in the struggle to overhaul the UK's ailing rail industry.

Virgin's Richard Bowker is being widely tipped to replace Sir Alistair Morton as chairman of the UK's Strategic Rail Authority (SRA).

Transport Secretary Stephen Byers is expected to confirm the appointment on Tuesday.

The future chairman of the SRA will oversee the workings of Britain's rail network, including the operation company being created from Railtrack, which was put into administration earlier this month.

He or she would also oversee the publication of the eagerly-awaited strategic plan for the railways expected in the near future.

Railtrack successor

Mr Byers is expected to lay out plans for the not-for-profits company that will replace Railtrack when he confirms the appointment.

A government spokesman has confirmed that the new firm, dubbed Newtrack, will work with the government on a 10-year plan that will allow the government "influence but not control".

Newspapers have reported that the government will give Newtrack a loan of between £600m and £1bn to ensure the firm wins the confidence of the private sector.

But Mr Byers is also rumoured to be considering a bid from the private sector.

The German bank, West LB, is reported to have put in a takeover approach to turn the collapsed Railtrack around.

Controversial choice?

Mr Bowker is thought to be well respected amongst his industry peers for his work at Virgin Trains.

But rail companies are reportedly furious about the alleged choice, thinking that Mr Bowker could give preferential treatment to Virgin.

And the owner of Virgin, Sir Richard Branson, is understood to be making a last-ditch attempt to hold onto Mr Bowker.

The job is rumoured to carry a salary of £500,000 a year.

Mr Bowker began his career as a development manager at London Underground, before becoming a consultant and then the commercial director of Virgin Rail.

Sir Alistair last week announced that he would be retiring on 14 December.

Watering down investment?

It also emerged on Monday that cash-strapped rail chiefs may try and save money by watering down an upgrade of the West Coast line.

A report says that £1.5bn has been shaved of the £6.3bn of Railtrack's planned investment in the line.

That could scupper Virgin Rail's plans to introduce 125 mile per hour tilting trains on the Euston to Scotland route next year.

But a Virgin spokesman pointed out, that while he acknowledged that Railtrack's administrators would try and save money on such investments, his company has a contract with the Strategic Rail Authority to deliver the service.