CHRISTOPHER GARNETT, the chief executive of York-based GNER, has been promoted to senior vice-president of the rail firm's US parent company, Sea Containers Ltd.

The promotion also makes him chief executive of Sea Containers' rail division and chairman of Great North Eastern Railway Ltd, the GNER operating company. He will continue to steer the York company.

The move comes as GNER's East Coast line franchise comes up for renewal next year, as the rail firm pre-qualifies as a bidder for the new, integrated Kent franchise and as it prepares with Laing Plc to bid for the Greater Western franchise when First Group's franchise runs out in 2006.

Mr Garnett's promotion follows a decision by Bermudan-based Sea Containers to split its transport division into ferries and rail.

The idea is to focus powerful management minds separately on to the problems faced by ferries through higher fuel costs and increased competition from budget airlines, and rail which is not only bidding for new UK franchises but also plans to extend into other countries.

Mr Garnett's chief executive counterpart for the ferries division will be David Benson, another senior vice-president of Sea Containers Ltd.

Mr Garnett, who was largely responsible for obtaining the GNER franchise, has managed the business for the past eight years, bringing turnover to about £400 million.

He served as a regional manager for the eastern division of Sealink when it was owned by Sea Containers and later became commercial director of Eurotunnel before rejoining Sea Containers in 1996.

His boss, James B Sherwood, both president and group chief executive of Sea Containers, described Mr Garnett as "one of the most respected and skilled rail executives in the UK".

Updated: 09:44 Thursday, October 14, 2004