Virgin Trains will soon be able to run passenger services through the Channel Tunnel, challenging Eurostar’s decades-long monopoly.
According to regulator the Office of Rail and Road (ORR), Sir Richard Branson’s company will be able to operate from London to Paris, Brussels and Amsterdam.
Eurostar has exclusively run passenger trains in the Channel Tunnel since its inception in 1994. But the government ruling means that Virgin can use Temple Mills, an east London train depot, to maintain and store its trains. Access is crucial for the operation of cross-Channel routes.
The move is set to bring better services and lower fares on trains to the continent – but not until 2030.
Sir Richard said: “It’s time to end this 30-year monopoly. We’re going to shake-up the cross-Channel route for good and give consumers the choice they deserve.”
But other contenders for the right to run trains through the tunnel are bitterly disappointed.
The news comes just days after Eurostar announced a €2bn (£1.7bn) investment in new double-decker trains.
Here is everything you need to know about the Virgin Trains Channel Tunnel route.
What’s happening with Channel Tunnel rail?
Eurostar has had a monopoly on passenger trains for the entirety of the Channel Tunnel’s 32-year history. While fares as low as £39 each way are available on Eurostar, prices soar closer to departure time.
Anyone wanting to travel to Paris tomorrow from London St Pancras will pay a minimum of £219 on Eurostar, compared with £87 on easyJet. The 150 per cent premium demonstrates the dominant market position held by Eurostar – as well as the appeal of a city centre-to-city centre link with a large free baggage allowance.
Jason Geall of American Express Business Travel says: “Eurostar currently makes up almost three-quarters of business travel trips between the UK and France.“
Competition on high-speed rail networks in Spain and Italy has proved extremely effective in improving services and reducing fares.
Both the High Speed One line from London through Kent and the Channel Tunnel have plenty of spare capacity. The infrastructure owners are very keen to get new entrants.
Rail firms have been clamouring to take on Eurostar. But there’s a crucial limiting factor: room for the trains to be stabled and serviced. The Temple Mills International depot (TMI) in east London is the only suitable UK location, and it has limited space given Eurostar’s existing operation.
The ORR says only one contender can use TMI at the same time as Eurostar.
Who could operate trains through the Channel Tunnel?
The beauty contest comprised:
- Gemini Trains, which planned services from Stratford International to Paris and has the backing of Uber
- Evolyn, a Spanish enterprise
- Trenitalia, the Italian state operator
- Virgin Trains Europe, part of Sir Richard Branson’s Virgin Group
In her decision letter, Stephanie Tobyn – the ORR’s director – says: “We have placed particular weight on our duties to promote competition and the use of the railway network.”
She says Virgin Trains “has the highest confidence level of being operationally viable. Its plans are more detailed, and it has provided clear evidence of an exclusive agreement to deliver the necessary rolling stock by 2030.”
Rail minister Lord Peter Hendy says: “Allowing Virgin Trains to share this vital facility will give passengers greater choice, better value and improve connectivity for millions, as well as drive innovation, lower fares and promote greener connections with Europe.”
Why will Virgin Trains have to wait until 2030 to operate in the Channel Tunnel?
New trains need to be built, certified and tested. Virgin has ordered 12 Avelia Stream trains from manufacturer Alstom. Funding is coming from Equitix, an infrastructure investor, and Azzurra Capital, a private equity firm.
Josh Bayliss, chief executive of the Virgin Group, said: “Together, this consortium will build a new business that does what Virgin does best – disrupt and challenge the status quo.”
Will Virgin Trains compete directly against Eurostar?
Yes. Initially, London-Paris will be served, followed reasonably swiftly by links to Brussels and Amsterdam. Virgin Trains also says it may expand to Germany and Switzerland. Eurostar already plans services to Cologne, Frankfurt and Geneva.
In the past few years, Eurostar has ceased running trains from London to Calais, Disneyland Paris, Bourg-St-Maurice, Lyon, Avignon and Marseille. Virgin Trains may resume services to one or more of these stations (particularly Calais, which is on the main line), but to begin with, it will be strictly inter-capital.
Could the Kent stations be reopened?
Ebbsfleet International, handy for the M25, and Ashford International – with good rail connections from Kent, Surrey and Sussex – were both served by Eurostar before the Covid pandemic.
While the cross-Channel passenger rail operator has been thriving for the past couple of years, the Kent stations remain mothballed. The decision to leave the EU and become subject to the entry-exit system has sharply increased the complexity and cost of operating the necessary French border for passengers departing for the Continent.
Virgin Trains says: “If either Ebbsfleet International or Ashford International station are reopened in Kent, then Virgin will stop there, and it is working with Kent County Council and other local stakeholders to explore how to make this happen.”
Lord Hendy says: “We will also continue to champion the reopening of Ashford and Ebbsfleet International stations as a priority to restore full connectivity, support tourism and boost growth across the region.”
How will Eurostar respond to Virgin Trains?
It plans newer, better, double-decker trains. Chief executive Gwendoline Cazenave says: “Customers can expect a very special new train with Eurostar Celestia, which will offer exceptional comfort, a unique Eurostar experience and new surprises to be revealed.
“This is a golden age for international sustainable travel – and Eurostar is leading the race.”
Any more competition likely?
That is the hope of the rail minister, who says: “While this decision is an important first step, we recognise there is significant interest in this, and depot capacity should not be a barrier to greater competition and growth.
“We are therefore exploring plans to establish new depot capacity in the UK, supported by private investment, to meet the needs of the market, and will set out further plans in due course.”
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