Virgin to challenge Eurostar’s monopoly with Channel Tunnel services

Virgin Trains is set to launch international services through the Channel Tunnel after its application to share Eurostar’s east London depot was approved.

Regulator the Office of Rail and Road (ORR) granted access to Sir Richard Branson’s company to use the Temple Mills site for maintaining and storing trains.

The billionaire entrepreneur pledged to “shake-up the cross-Channel route”.

Access to the depot is a critical requirement for an operator to launch Channel Tunnel services competing with Eurostar.

Temple Mills is the only train depot that can be accessed from High Speed 1, the line that runs between London and the tunnel.

Eurostar has held a monopoly on passenger services through the tunnel since it opened in 1994.

Virgin Trains is planning to launch competing services in 2030.

It will need to gain additional regulatory approvals covering issues such as track access and safety.

Sir Richard said: “The ORR’s decision is the right one for consumers. It’s time to end this 30-year monopoly and bring some Virgin magic to the cross-Channel route.

“Virgin is no stranger to delivering award-winning rail services, and just as we have successfully challenged incumbents in air, cruise and rail, we’re ready to do it again.

“We’re going to shake-up the cross-Channel route for good and give consumers the choice they deserve.”

Eurostar currently runs trains from London’s St Pancras station to locations such as Paris, Brussels and Amsterdam.

The tunnel is only used at about 50% capacity, despite also accommodating LeShuttle vehicle-carrying trains between Folkestone in Kent and Calais in northern France.

The ORR rejected applications from Evolyn, Gemini Trains and Trenitalia to use the Temple Mills depot.

Eurostar was also unsuccessful in seeking permission to use the site’s spare capacity to grow.

The ORR said: “Virgin Trains’ plans were more financially and operationally robust than those of other applicants, and it provided clear evidence of investor backing and an agreement in principle to deliver the necessary and appropriate rolling stock.”

Martin Jones, the regulator’s deputy director for access and international, said: “With this decision we are backing customer choice and competition in international rail, unlocking up to £700 million in private sector investment and stimulating growth.

“While there is still some way to go before the first new services can run, we stand ready to work with Virgin Trains as their plans develop.”

Rail minister Lord Hendy said he was “incredibly pleased” by the ORR’s decision, as it will “give passengers greater choice, better value and improve connectivity for millions”.

He added: “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.”

This announcement also means international rail services could return to Kent after trains stopped calling at Ebbsfleet and Ashford International during the pandemic.

The company said it was working with Kent County Council and other local stakeholders to explore how to make this happen.

A spokesperson for the Department for Transport said "we’re working closely with the Home Office and industry partners to explore practical solutions for restoring international services at Ebbsfleet and Ashford, while ensuring any arrangements maintain strong border security."

Helena Dollimore, the Labour MP for Hastings & Rye, led a debate in parliament about the importance of returning trains there. She said the government will work to remove any barriers that could stop this happening.

• Dollimore told ITV News Meridian that bringing international trains back to these stations could be a big boost to the local economy

Virgin Group has not been involved in operating trains in the UK since Virgin Trains’ contract for the West Coast Main Line (WCML) expired in December 2019.

In July, the ORR rejected the company’s application to run open access services on the WCML, serving cities such as London, Birmingham, Liverpool and Manchester.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...