Network Rail announced today that John Armitt has declared his intention to retire as Chief Executive of Network Rail at the end of July 2007 after more than five successful years in the post.

Ian McAllister, Chairman of Network Rail said: “John Armitt has been an outstanding Chief Executive. He took over at a time when the railway had considerable problems, and he has successfully led the team as we have stabilised the company, delivered a substantial improvement in the punctuality of trains and the cost efficiency of the railway. His contribution has been enormous, and he is recognised as one of the great leaders of the railway industry. The Board of Network Rail and I extend our gratitude to John for his outstanding contribution.”

Ian McAllister also announced that Iain Coucher will be appointed as the next Chief Executive with effect from August 2007. Mr Coucher has been Deputy Chief Executive of Network Rail since October 2002 and has been a key part of the team, alongside John Armitt, in delivering the substantial improvements at Network Rail over that time.

Ian McAllister continued: ”The strength of Network Rail’s leadership team has been one of our greatest assets and the choice of Iain to succeed John as the next Chief Executive means we have continuity to build on the success of recent years. Iain is a strong, focussed and determined leader. The Board knows he will build on our achievements as we seek to deliver a world-class railway for passengers and freight users.”

Commenting on today’s announcement, John Armitt said: “Following five challenging, enjoyable and successful years, the time is now right to move on. Our team has achieved a great deal and I am proud to have led them. The company is now a stable and confident organisation ready to meet the challenges which lie ahead. I thank all of the employees for their support and efforts during my time with Network Rail. “The rail industry is expecting demand growth of at least 30% over the next ten years.  The next challenge is to meet this demand and I believe that 2007 will be the right year to leave the next phase to my successor. I know the railway will continue to go from strength to strength under Iain Coucher’s leadership.”

Iain Coucher added: “I am very proud to be announced as the next Chief Executive at a time when the railway has become a success story. That it has done so is down in no small part to John Armitt, to whom I would like to pay tribute. “The challenge ahead, and my personal priority, is to grow the capacity of the railway to meet the ever-growing needs of passengers and freight users whilst maintaining high levels of punctuality, safety and continuing to drive down costs. In recent years, Network Rail has delivered a substantially better railway to Britain – I am committed to making these improvements continue.”