'The market is ripe for change': Virgin lays down £500m challenge to Eurostar

Virgin’s decision to seek to end Eurostar’s 30-year reign as the sole operator of cross-Channel passenger services comes despite the Office of Rail and Road (ORR) not yet having made a ruling on whether there is sufficient capacity to expand intercontinental rail services between the UK and Europe.

Last week, the rail regulator urged Channel Tunnel operator HS1 to lower charges for passenger and freight operators using its network from April, a move that would make it more appealing to challenge Eurostar. HS1 operates the high-speed line linking the tunnel with London.

The ORR is reportedly now deciding whether the East London maintenance depot used by Eurostar has enough capacity to accommodate competitors, although Whittingham doesn’t believe it can or will be more than one.

“We’re hoping the regulator will determine what capacity is available and reserve it for a new competitor,” Whittingham told The Telegraph. “And we expect the first person to come along with a contract for new trains will get that capacity. We don’t believe there is room for three operators on the route.”

For its part, Eurostar has played down the prospect of competition, saying its Temple Mills depot near London’s Stratford had limited capacity.

"The essential issue we face is not Eurostar trying to restrict access but the fact there is already limited space available at St Pancras [International] and Temple Mills to meet the combined growth ambitions of everyone,” a spokesperson said.

“We have recently written to the new government asking for its support in creating a framework that will enable all operators, including Eurostar, to invest on level terms in the further network expansion we all want to see.”

In response, the Virgin Group spokesperson said: "Applying for access to Temple Mills depot, the only facility in the UK currently connected to HS1,is the logical next step in the process. We have been in conversation with Eurostar about access for some time and look forward to reaching an agreement in due course."

They added: "While Virgin is not committing to launching a service just yet, we are delighted with the progress made so far. It’s too early to confirm further details about the service at this stage. For now, our focus is on bringing competition to the route, which will benefit all passengers in the long-term."

Virgin Trains last year submitted proposals to the government to start operating trains on the West Coast route again between London, Birmingham, Glasgow, Liverpool and Manchester on an open access basis.

Upon request by TTG for additional information, Eurostar added: "We welcome the expansion of European rail services, which will benefit the planet, society, and mobility.

"Eurostar remains compliant with requirements and has established a process for Temple Mills. We are aware of the ORR tendering for an independent capacity study - the need for such a study has always been anticipated as part of our depot application process and we will be happy to facilitate this. It is important all parties have a shared understanding of the depot given the limitations on additional capacity which exist for Eurostar or any other operator."