Virgin is one step nearer to launching cross-Channel rail providers after Britain’s rail regulator accepted its utility to share Eurostar’s depot.
The multinational confirmed in March it was concerned with launching Virgin Trains as a rival service to Eurostar by 2030. The Workplace of Rail and Highway stated Thursday that Virgin shall be allowed to make use of the Temple Mills Depot in east London, a requirement for a prepare operator working cross-Channel providers.
The depot is the one upkeep and storage facility that’s accessible from the high-speed railway linking London to the Channel Tunnel, and is ready to home the bigger trains used for continental journey. The ORR resolution thus makes Virgin’s ambition extra attainable — although the corporate nonetheless must safe a “business settlement” with Eurostar to make use of the power, the workplace warned.
Virgin founder and billionaire magnate Richard Branson hailed the ruling as a victory for customers. “It’s time to finish this 30-year monopoly and convey some Virgin magic to the cross-Channel route,” he stated in a press release.
The ORR concurred, saying in a press release that the choice “unlocks plans for round £700mn of funding in new providers and the creation of 400 new jobs, in a win for passengers, buyer selection, and financial development.”
The ORR added it had rejected related purposes from prepare operators Evolyn, Gemini and Trenitalia, with Virgin making the strongest case. “Virgin Trains’ plans have been extra financially and operationally strong than these of different candidates, and it offered clear proof of investor backing,” the regulator stated.
Eurostar has held a monopoly on cross-Channel journey because the tunnel opened in 1994. The operator needs to develop its fleet, saying this month it had signed a €2 billion deal for no less than 30 extra double-decker trains.
Nonetheless, the ORR stated earlier this 12 months that the Temple Mills Depot has room for both extra Eurostar trains or one other operator — however not each, teeing up a attainable battle between the rivals.
A spokesperson for Eurostar stated it was assessing the regulator’s resolution and “contemplating our subsequent steps to make sure we are able to proceed to develop,” based on the BBC. Eurostar didn’t instantly reply to POLITICO’s request for remark.