The managing director of railfreight operator DRS has left the business after nearly 17 years at the helm.

Neil McNicholas, 51, helped to set up DRS – short for Direct Rail Services – 20 years ago as an offshoot of BNFL at Sellafield.

He 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.

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.

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, has been non-executive chairman of DRS for six years.

He will take up an interim executive role with DRS until a successor to Mr McNicholas is appointed.