Row brews over new rail chief

Richard Bowker is respected in the rail industry

Virgin Rail co-chairman Richard Bowker is to replace Sir Alastair Morton as chairman of the Strategic Rail Authority (SRA).

The 35-year-old - also commercial director of Virgin Rail - is held in high regard within the rail industry, particularly for his expertise of rail finance.

However, some fears exist that he could show favouritism to Virgin Rail, where he has worked for the past two years.

Rail finance

His departure is expected to be a blow to Sir Richard Branson, who is understood to have tried to persuade him to stay.

Mr Bowker's former jobs include being director of his consultancy Quasar Associates and a rail finance consultant at Babcock & Brown, having started his rail career as a development manager responsible for financing with London Underground.

Indeed, it is his work in rail industry financing that has won him most plaudits from his colleagues.

He is credited with creating a new leasing scheme for London Underground's new Northern Line trains five years ago.

At Virgin, he has been involved with the introduction of new rolling stock and the upgrade of the West Coast main line.

Challenge

The challenge Mr Bowker faces is immense and rail industry chiefs may find their fears of favouritism are muted by relief at his industry expertise.

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.

The number of passengers using Britain's railways is falling for the first time since privatisation five years ago.

The decline in passenger growth adds to the problems already facing train operators.

They face unusually heavily caps on regulated fare increases next January and declining subsidies from the government.