RAILFREIGHT operator Direct Rail Services (DRS) is searching for a new managing director.

Neil McNicholas, 51, who is also chairman of the Cumbria branch of the Institute of Directors, is stepping down.

He helped to set up DRS 20 years ago as an offshoot of BNFL at Sellafield, and became managing director in 1999 following the death of Max Joule.

Although initially specialising in nuclear cargoes, DRS diversified into general freight and also provides locomotives for passenger trains, including some services on the Cumbrian Coast line between Carlisle, Barrow and Lancaster.

Now based at Kingmoor, Carlisle, it operates 100 locomotives, employs 440 staff and was named ‘best performing freight operator’ at the Golden Whistle Awards in February for the second year running.

Turnover is expected to hit £75m this year.

It remains a wholly owned subsidiary of BNFL’s successor, the Nuclear Decommissioning Authority (NDA).

Mr McNicholas’ decision to step down follows the successful early delivery of a five-year business growth and diversification plan.

Alan Moore, head of operational services for the NDA, will take up an interim executive role with DRS until a successor to Mr McNicholas is appointed. He has been non-executive chairman of DRS for six years.

Mr Moore said: “On behalf of all at DRS, the NDA and the wider industry, I would like to thank Neil for the outstanding commitment and service he has given, and wish him all the best for the future.”