In an attempt to establish a competing train service to the existing monopoly holder Eurostar on lines between the United Kingdom and mainland Europe, businessman Richard Branson’s Virgin Group is trying to raise 700 million pounds ($904 million).
The Virgin Group started out in the music business but has now expanded to include airlines, finance, and the operation of intercity train services throughout the United Kingdom. By the end of the decade, it is believed to seek to launch competing services to Eurostar from London to Paris and Brussels, with Amsterdam to follow.
According to a Virgin Group spokesman, the cross-channel route is ready for change and would benefit from competition. While Virgin is not committing to launching a service just yet, we are seeking investment from like-minded partners to invest alongside Virgin, and we are delighted with the progress made so far.
The journey under the sea through the Channel Tunnel, which was finished in the same year after six years of construction, is now operated by Eurostar, which has operated all passenger services between London St Pancras International and cities like Paris, Brussels, and Amsterdam since November 1994.
Additionally, Eurotunnel Le Shuttle, a distinct rail service that transports road cars, operates between Folkestone, England, and Calais, France.
The terminal’s owner, London St Pancras High Speed, chief executive Robert Sinclair, told the Financial Times in December 2024 that the company was eager to increase passenger volume.
Fifty percent of our high-speed line is spare capacity. He stated, there is a big opportunity that is waiting there, underutilised.
The Spanish Evolyn group, which declared in October 2023 that it wished to challenge Eurostar’s monopoly, is another possible new player in the services between London and other European capitals. Jorge Cosmen, the CEO of the company, told the All-Party Parliamentary Rail Group of the House of Commons that his group could provide just over $1 billion in investment.
Access to the Temple Mills depot in east London, where Eurostar trains are kept and repaired, is a barrier for any business looking to break the monopoly.
The Office of Rail and Road, a government department, has commissioned independent research to determine the facility’s capacity because Eurostar has stated that it is already completely filled. The study is expected to return soon.
Phil Whittingham, the project manager for Virgin Group, told the Daily Telegraph that the business did not believe the economics would work for three operators competing, and that it was prepared to proceed as soon as the independent study’s conclusion came in.
He also added, our goal is for the regulator to identify available capacity and set it aside for a new competitor. And we anticipate that the capacity will be awarded to the first person to submit a contract for new trains.
