Virgin Trains cleared to launch cross-Channel Eurostar competitor

(Sharecast News) - Virgin Trains has been cleared to launch high-speed passenger services through the Channel Tunnel, it emerged on Thursday, ending Eurostar's three-decade monopoly on cross-Channel rail travel.

The Office of Rail and Road (ORR) confirmed that Sir Richard Branson's company would be granted access to the Temple Mills International depot in east London, the only UK facility suitable for maintaining Channel Tunnel trains.

It would allows Virgin to begin operating routes from London to Paris, Brussels and Amsterdam, with services expected to start by 2030 once a new fleet of trains was built and certified.

Virgin has ordered 12 Avelia Stream trains from French rolling stock manufacturer Alstom, financed by infrastructure investor Equitix and private equity firm Azzurra Capital.

The ORR said it selected Virgin from four contenders, including Italy's Trenitalia, Spain's Evolyn and Gemini Trains, a startup backed by Uber.

ORR director Stephanie Tobyn said the regulator placed "particular weight on our duties to promote competition and the use of the railway network," adding that Virgin's proposal was the most operationally viable and backed by a firm delivery plan for rolling stock.

The move would mark a significant shift in the Channel Tunnel's 32-year history, where Eurostar has been the sole passenger operator since 1994.

Supporters say competition could lower fares and improve service quality.

"It's time to end this 30-year monopoly," Sir Richard commented.

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

Virgin was planning to begin with a London-Paris service, expanding later to Brussels and Amsterdam, and potentially further into Germany and Switzerland.

Rail minister Lord Peter Hendy said the decision "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".

The development came as Eurostar embarks on a €2bn investment in new double-decker trains, dubbed Celestia, which chief executive Gwendoline Cazenave said would offer "exceptional comfort" and a "unique Eurostar experience".

Virgin also signalled interest in reviving calls to reopen the Kent stations of Ashford International and Ebbsfleet International, which Eurostar abandoned after Brexit due to new border complexities.

The company said it was working with Kent County Council and other local partners to explore the feasibility of restoring those stops.

According to the Independent, the government was now examining options to expand depot capacity in the UK to encourage further entrants to the cross-Channel rail market.

Lord Hendy said ministers "will continue to champion the reopening of Ashford and Ebbsfleet stations as a priority" and support private investment to create more space for new operators.

Reporting by Josh White for Sharecast.com.