Virgin Trains, the railway company owned by British businessman Richard Branson, has received permission from the British regulator, the Office of Rail and Road (ORR), to share a central rail depot in east London, where trains are maintained and parked, with Eurostar.
With the application approved, Virgin Trains is removing a significant barrier to the “shake-up” of train connections through the Channel Tunnel from 2030.
Breaking up a monopoly
Since the Channel Tunnel opened in 1994, Eurostar has had a monopoly on passenger trains through the tunnel. Access to Temple Mills railway storehouse in the east of London is crucial in this regard: it is the only depot that provides access to High Speed 1, the high-speed rail line between the British capital and the Channel Tunnel, which connects the United Kingdom to mainland Europe.
“The ORR’s decision is the right one for consumers,” said Branson. “It’s time to end the 30-year monopoly and add a little Virgin magic to the Channel Tunnel connections.”
However, before Virgin Trains can really get started, more approvals are needed, such as concluding a commercial agreement with Eurostar, obtaining access to track and stations, and addressing safety issues with UK and EU authorities. A crucial first hurdle has been cleared.
Like Eurostar, Branson’s company is targeting train services between London, Paris, Brussels, and Amsterdam. In a later phase, connections with Switzerland, Germany, and other parts of France will also be considered. The project initially involves an investment of 700 million pounds. It is expected to create 400 jobs.
Last Virgin Trains service in 2019
Virgin Trains already offered domestic train services in the United Kingdom. Under the West Coast concession, it operated express and intercity services between London (Euston station,ando Scotland and the north-west of Englan via the West Coast Main Lined. In 2019, the West Coast concession was lost to Avanti West Coast. This brought an end to Virgin’s train services.
Virgin Trains is 51% owned by Richard Branson’s Virgin Group. The remaining 49% is owned by the Stagecoach Group, an internationally operating public transport company based in Perth, Scotland, and active in the UK, the United States, Canada, and New Zealand.
Other applications rejected
The British regulator rejected applications from other potential Eurostar competitors, such as Evolyn, Gemini Trains, and Trenitalia. “Virgin Trains’ plans were financially and operationally superior to those of other candidates, and the company provided clear evidence of investor backing and secured an agreement in principle for the necessary trains,” said the Office of Rail and Road.
Eurostar, which had also applied for additional capacity at the train depot but has also been criticized for high prices and poor reliability, says it is reviewing the decision. “We are considering the measures that need to be taken to continue our growth,” it said in a response. Eurostar is partly owned by the Belgian public railway company NMBS/SNCB.
Possibly more rail depots in the UK
According to the British Minister of Railways, Lord Henry, the ORR’s decision will “give passengers more choice” and “improve connectivity for millions of people.” The British government is looking into whether it can create more rail depots, because “depot capacity should not be a barrier to more competition and growth.” In that context, there is talk of Ashford and Ebbsfleet stations in Kent and possibly London’s Stratford International.
The Channel Tunnel is currently operating at about half its maximum capacity. In addition to Eurostar passenger trains, LeShuttle trains (which carry cars, trucks, and buses), and freight trains also run through the tunnel under the Channel between Calais in France and Folkestone in England.
About 400 trains per day, or one train every four minutes, pass through the 50 km-long tunnel, which features the longest underwater segment in the world – 37 km. Tunnel operator Getlink says there is capacity for up to 1,000 trains per day.
