Virgin Group, led by Sir Richard Branson, is getting ready to order a dozen high-speed trains—price an estimated £500 million—because it pushes to grow to be the primary competitor to Eurostar on companies by way of the Channel Tunnel.
Venture chief Phil Whittingham confirmed that Virgin goals to shut the deal as early as this quarter, forward of rival startup Evolyn, which has additionally revealed plans to function trains from London into mainland Europe. Virgin has shortlisted two producers, having evaluated designs from Alstom, Siemens, Hitachi, and Talgo.
Virgin is focusing on 2029 because the launch date for its Channel Tunnel companies. The venture will want near £1 billion in start-up funding, Whittingham stated, with Sir Richard Branson set to supply the most important doable fairness stake, probably alongside different companions.
It marks the primary time Eurostar will face actual competitors because it started operations. Evolyn, backed by Spain’s Cosmen household, the main investor in transport group Mobico (previously Nationwide Specific), additionally goals to run trains by way of the tunnel. Nonetheless, hopes for 2 new entrants could also be dented by issues over whether or not the present infrastructure, together with Temple Mills upkeep depot in east London, can deal with so many further high-speed trains.
The Workplace of Rail and Highway (ORR) is poised to determine if Britain’s upkeep capability can deal with extra operators. Eurostar has argued that Temple Mills is already at full stretch sustaining its personal fleet.
Whittingham stated he expects the rail regulator to search out sufficient capability for one new market entrant on the depot, however added that having three operators in complete—Eurostar plus two newcomers—would probably show unworkable. “We don’t believe there is room for three operators on the route,” he stated.
Virgin goals to be able to log off on the practice order as quickly because the ORR greenlights additional upkeep capability. “We’re hoping the regulator will determine what capacity is available and reserve it for a new competitor,” Whittingham defined. “We expect the first operator to come along with a contract for new trains will get that capacity.”
Evolyn had beforehand introduced an settlement to purchase 12 trains from Alstom, although Alstom has since clarified no binding contract was in place and supply dates couldn’t be assured.
A Eurostar spokesperson confused that capability constraints at each St Pancras Worldwide station and Temple Mills, slightly than any try by Eurostar to stifle competitors, stay the largest impediment to extra operators working cross-Channel companies. They added that Eurostar had contacted the brand new authorities, asking for help to unlock the required infrastructure upgrades.
The ORR has appointed an unbiased knowledgeable to evaluate Temple Mills’ capability, with findings anticipated this month. Individually, the regulator final week ordered HS1—the corporate managing the UK’s part of the high-speed line—to cut back observe entry charges by 10pc, aiming to advertise competitors on the route. Though the discount saves a further £5m yearly, Whittingham insists the road will stay comparatively pricey for would-be operators.
