KiwiRail Group's announcement of Jim Quinn as its new group chief executive has surprised industry sources, who expected current acting CEO William Peet to continue in the role.

KiwiRail and Kiwibank chairman Jim Bolger announced Mr Quinn as the new chief executive yesterday.

Mr Bolger has worked closely with Mr Quinn before; Mr Quinn is currently CEO of Express Couriers Limited, a joint venture between New Zealand Post and DHL.

Mr Bolger is chairman of New Zealand Post and Express Couriers.