Introduction to Virgin’s Eurostar Rival
Virgin has completed the first step of its plan to launch a rival Eurostar service. The company, owned by billionaire Sir Richard Branson, has been given access to share the Eurostar international depot at Temple Mill in east London. This decision by the railway regulator is an important first step towards operating cross-border train services via the Channel Tunnel.
Access to the Depot
Access to the depot allows Virgin to service and store trains. Sir Richard described it as “the big hurdle we had to overcome”. However, further regulatory approvals are required and Virgin Trains requires track access and security clearance before international services can commence.
Plans for Expansion
The company plans to have trains running between London’s St. Pancras station and the city centers of Paris, Brussels and Amsterdam by 2030. Negotiations are also currently underway with France’s busiest airport, Charles de Gaulle, to operate trains there. There are “ambitions” to “expand further throughout France as well as into Germany and Switzerland”. Sir Richard also hopes to resume occasional services between London and Disneyland Paris.
Impact on the Market
Eurostar will stop operating direct trains to the theme park in 2023. Other rail operators had requested access to the depot and were not granted access. Eurostar, which currently operates services, had tried to expand its access but was rejected. The railway regulator said the announcement was a win for passengers, customer choice and economic growth.
Benefits of Competition
Virgin Trains’ plans were financially and operationally more robust than those of other applicants and they provided clear evidence of investor support and an agreement in principle to deliver the necessary and appropriate rolling stock. This competition will drive down prices, said Sir Richard. Passenger rail transport on the high-speed line has been a monopoly since it opened in 1994.
Current State of the Tunnel
The tunnel is only operating at around 50% capacity, despite hosting the LeShuttle vehicle trains between Folkestone in Kent and Calais in northern France. The introduction of Virgin’s rival service is expected to increase utilization of the tunnel and provide more options for passengers.
