Dr Kerry Schott will take on the role of acting board chair of the Australian Rail Track Corporation, after completing a review of the financially beleaguered Inland Rail project.
Infrastructure Minister Catherine King and Finance Minister Katy Gallagher announced Dr Schott's appointment on Wednesday.
The current chair, Peter Duncan, will take a three-month leave of absence to serve as acting secretary of the Department of the Premier and Cabinet in NSW.
Mr Duncan was appointed chair in February 2023.
"It is a sign of how much Mr Duncan's expertise is valued that he has been asked to take on this role, and we are sure his advice will be appreciated by Premier Minns," the ministers said.
The Australian Rail Track Corporation is overseeing the Inland Rail project, the freight line planned to link Melbourne and Brisbane.
Dr Schott's review of the Inland Rail project found it had blown out to more than $31 billion, nearly double what was projected just three years ago.
The uncertainty surrounding the project meant Dr Schott could not provide a total figure for its cost, or a projected date of completion.
Construction of the rail line began in 2018 under the former government, and Ms King has hit out at the Coalition's management of the project as "one almighty mess".
A statement from the office of Nationals spokesperson for Infrastructure Bridget McKenzie said the review "vindicated the importance" of the project.
The Albanese government has accepted all 19 recommendations made in the review.
"Dr Schott recently concluded a significant review of Inland Rail and is perfectly placed to oversee the initial implementation of the recommendations she made, and the government accepted," the ministers said.
"During her three month tenure, Dr Schott will focus on recruiting a permanent CEO of Inland Rail and addressing the governance and board capability shortcomings her report outlined.
"We are grateful to Dr Schott for agreeing to undertake this important task and we look forward to welcoming Mr Duncan back to the role later in the year," they stated.
