THE imminent departure of David Higgins as chief executive of Network Rail has come as a shock to many people in the rail industry, but Network Rail insiders are pointing out that he was never expected to stay in the job until the end of the new control period, CP5, which runs for five years from next April.

He took over in 2011 from Iain Coucher, and introduced a major programme of devolution to the individual routes, giving much more power to each route managing director.

This was in sharp contrast to the more centralised management style which had been adopted by Iain Coucher, who had taken over when Network Rail was still evolving following the dissolution of its unsuccessful predecessor Railtrack.

Now it is reported that David Higgins has told the Network Rail board that it needs to begin the search for its next chief executive so that a smooth handover can take place, probably in the early stages of CP5, although officially Network Rail has yet to comment.

Even so, others are already saying that they will be sorry to see him go. Manuel Cortes, who is general secretary of TSSA, said David Higgins had been restoring the company's reputation.

The next chief executive will face several major challenges, including the continuing battle to improve performance, which is still a matter of contention, particularly on the East and West Coast Main Line. The sensitive subject of bonuses for senior directors is also causing a debate.

Above all, Network Rail is expected to achieve a great deal during CP5, and its proposed budget for the period was reduced by the Office of Rail Regulation by £2 billion when it published its draft determination recently. The budget will not, however, be confirmed until later this year, and Network Rail is currently working through the implications of the ORR's proposals.