Transport secretary Stephen Byers will tomorrow set out plans for the future of the successor to Railtrack.

Key to the future of a not-for-profit company will be a dowry in the form of a government endowment of around £1 billion.

Byers will outline to MPs the basic structure of a new company with 10 to 15 directors running the concern but reporting to a stakeholder board of 35 to 40 members drawn form train operators, freight and rolling stock firms, trade unions and passengers.

Byers faces a row over the expected appointment of Virgin trains executive, Richard Bowker, as chairman of the Strategic Rail Authority.