NETWORK Rail chairman as Sir Ian McAllister has confirmed his intention to step down from the Board following the company's annual meeting in July 2009.

In addition, Ron Henderson, 62, group finance director, has announced his intention to retire.

Sir Ian, 65, a former chairman of Ford Britain, was instrumental in setting up the Network Rail bid team in November 2001 and played a key role in taking Railtrack out of administration in October 2002.

He will stay with the company until a successor is found and a smooth handover completed.

The announcement comes at a time when Network Rail is waiting for the Office of Rail Regulation to determine exactly how much the company will have to spend on the railway in the next five years.

Sir Ian said: "As the company enters a new phase in its development, it is entirely appropriate that a new chairman helps take the company forward.

“The next challenge is for Network Rail to help deliver an expanded and enhanced railway to meet the growing demand from passengers and freight customers. My role now will be to help find a replacement and see through a smooth transition."

Speaking on the sixth anniversary of Network Rail taking charge of Britain's rail infrastructure, he added: "Network Rail has delivered substantial improvements in the safety, reliability and efficiency of the railway over the past six years.

"Safety is at record levels, train punctuality is now above 90 per cent and we are on track to reduce costs by around 30 per cent by the next AGM. I have led the Board for over six years now and a great deal has been achieved in that time.”

Sir Ian added: “Much has been done, and significant improvements made, but my successor will still have much left to achieve as Network Rail seeks to address the future challenges facing the railway."

A new chairman for the company will be sought through national advertising and through the appointment of recruitment consultants.

Sir Ian, CBE, a father of four, was appointed chairman of Network Rail in October 2002 following its acquisition of Railtrack PLC. He was born in August 1943 and graduated from London University, where he gained a BSc in Economics.

He joined Ford in August, 1964, becoming chairman, and is also chairman of the Carbon Trust; a past president of the Society of Motor Manufacturers and Traders; also previously deputy chairman of the Qualifications and Curriculum Authority and a member of the advisory committee on business and the environment.

He has other wide-ranging interests, including being a board member of UCL Business and was formerly on the advisory board of victim support and the management school, Imperial College.

Network Rail said that Mr Henderson has been with the company since October 2002 and has led a very successful finance and funding team that played a pivotal role in taking Railtrack out of administration and securing the funds to reverse decades of underinvestment in Britain's rail system.

He was formerly group finance director of BICC, finance director of Balfour Beatty, and chief executive of Tuberail. Prior to this he was with Halliburton, Brown and Root and earlier with Arthur Andersen.

Married with two children he has been with Network Rail since the bid team was put together in early 2002 prior to it taking control of Railtrack in October of that year.

He will stay with the company for the next few months to ensure a smooth hand-over to his replacement, who will be announced shortly.

Iain Coucher, chief executive, said: "Ian and Ron have been outstanding members of the leadership team. Ian has been part of Network Rail from its inception, and has led the company from the substantial problems it inherited, to become a successful company, with both train punctuality and safety at record levels. His contribution has been enormous.

"The Board of Network Rail and I extend our sincere gratitude to both Ian and Ron for their outstanding contributions."

The announcements come just two weeks after the company announced the strengthening of it Board with the appointment of three new executive directors, Robin Gisby, Simon Kirby and Paul Plummer.