NETWORK Rail has appointed one of its non-executive directors as its new chief executive.

David Higgins, who is currently chief executive of the Olympic Delivery Authority, will replace Iain Coucher, who leaves Network Rail at the end of October, but Mr Higgins will not start until 1 February.

To cover the gap, Network Rail's director of asset management Peter Henderson will become acting chief executive on 1 November.

Mr Higgins said his priority would be to “bring Network Rail and the industry closer”.

Before joining the ODA, Mr Higgins was the chief executive of international property and construction company Lend Lease from 1995 to 2002 before joining English Partnerships as chief executive (2003-05).

Mr Higgins will be taking over at a critical time for Network Rail. The company is under growing pressure to make significant reductions in its costs, amid calls for it to be broken up and possibly privatised.

The new chief executive will also be expected to take firm and convincing action about the remuneration of senior directors, after recent protests about the size of payments to a number of the existing directors, including Iain Coucher.

Network Rail’s chairman, Rick Haythornthwaite, said: “We recruited David to the board earlier this year because of his track record in leading large organisations, delivering demanding projects and managing a complex range of commercial interests and wider stakeholder sensitivities. With Iain Coucher deciding it is the right time to leave Network Rail, David emerged as the outstanding candidate to lead Network Rail into a challenging new era following an extensive search process.

“There are significant challenges and opportunities ahead for both Network Rail and the industry such as the comprehensive spending review, the McNulty value for money review and the planning of HS2. Public, passengers, politicians and the industry are demanding a better, safer railway delivered at a lower cost where success will depend on pervasive collaboration. David is well-placed to lead both Network Rail and the industry forward to meet these challenges.”

Commenting on his appointment, David Higgins said: "It has been a privilege to lead the ODA over the last five years and I am leaving with the Olympic Park on time, within budget and with the finish line in sight.

“Looking forward, Network Rail is one of the most important companies in the UK - an efficient railway underpins a modern economy – and therefore a challenge I could not turn down. Network Rail and the rail industry have transformed the train service in Britain in the last eight years - trains run on time and the railway is safer than ever. My priority is to bring Network Rail and the industry closer so that together we can continue to improve service, efficiency and safety and add much needed capacity to a railway network that is nearly full.”