Rail companies have hailed a “green signal for competition” on running trains through the Channel Tunnel that would end Eurostar’s monopoly.
Sir Richard Branson’s Virgin Group said there are “no more major hurdles to overcome” before it can begin operating passenger trains through the Channel Tunnel following an announcement by the rail regulator.
The Office of Rail and Road (ORR) has said some capacity at Eurostar’s Temple Mills maintenance depot in Leyton could be made available to other operators.
Access to a suitable depot for maintaining and storing trains has been cited by the industry as a critical requirement for companies to compete with Eurostar.
But Eurostar cast doubt on whether the depot has enough space for the aspirations of rival operators - or its own plans - saying it “would require investment to meet the growing demands of international rail.”
The ORR made its statement after receiving an independent report it commissioned to investigate the issue.
The regulator said: “Eurostar’s London depot would be able, if required, to accommodate additional trains.”
Statement from Virgin trains: pic.twitter.com/U7kP5TVACL
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It added: “Changes to operational and maintenance arrangements at the depot, as well as possible alterations to infrastructure, would be required to access extra capacity and allow more trains to be stabled/maintained there.”
Eurostar holds a monopoly in running passenger services through the Channel Tunnel, which opened in 1994.
A Virgin Group spokesperson said: “Finally a green signal for competition. The Temple Mills depot is the only facility in the UK which can accommodate European-style trains and claims suggesting it was at capacity have been blocking Virgin from coming to the line.
“Virgin is therefore very pleased with the outcome and we thank the ORR for commissioning this report, which will now unlock competition on the cross-Channel route for the benefit of all passengers.
“There are no more major hurdles to overcome, and Virgin is ready to take up the challenge, given its award-winning experience in the train industry and track record for building globally successful travel brands.
“We expect to be able to make an announcement very soon. Watch this space.”
Virgin Group was the majority owner of Virgin Trains when it ran domestic services on the West Coast Main Line from 1997 to 2019.
Richard Thorp, chief operating officer at London St Pancras Highspeed, which owns St Pancras and the HS1 high-speed track, welcomed the ORR ruling.
It is seeking to more than double international passenger capacity at St Pancras station to nearly 5,000 passengers per hour over the next decade.
Mr Thorp said: "The depot was always intended to be a shared facility and it’s positive that some of this spare capacity can be accessed without any changes and further capacity can be unlocked through targeted upgrades and operational changes.
“This is an important step forward for the future of high-speed rail between the UK and Europe. It opens the door to more international services, new destinations and more competitive fares, helping to make rail the preferred way to travel for more people.
"As the infrastructure manager, London St Pancras Highspeed remains committed to unlocking up to 50 per cent spare capacity on the high-speed line. With four years before the arrival of any new trains, there is sufficient time to make the necessary adjustments.
“Potential new operators are now close to placing train orders. A swift and final resolution following the consultation process is essential to give them the certainty they need to move forward.”
Spanish start-up company Evolyn, and Gemini Trains – chaired by Labour peer Lord Berkeley – are also hoping to run trains through the tunnel.
In a statement Gemini Trains said: “Gemini Trains is grateful to the Office of Rail and Road (ORR) for undertaking a review of the capacity available at Eurostar’s Temple Mills depot, which is currently the only facility for trains providing international passengers services through the Channel Tunnel. We are pleased to see that their review has demonstrated that there is capacity available for Gemini’s services, both inside the deport, and for stabling outside.
“We look forward to engaging with ORR officials during the consultation and will be responding in detail. We are convinced that our service offering will provide competition to Eurostar, with benefits to all passengers, and that our compelling business plan will persuade the ORR to allocate capacity at Temple Mills depot to Gemini Trains.”
A Eurostar spokesperson said: “Eurostar welcomes this independent study by the Office of Road and Rail. It confirms what Eurostar has said all along: the Temple Mills depot is effectively almost full today for major maintenance work and would require investment to meet the growing demands of international rail.
“The options presented in the report could help create some capacity, but this would not be enough to accommodate the stated ambitions of any single operator. This includes the three organisations who have applied to the regulator and the needs of Eurostar itself.
“Eurostar has complied fully with the regulatory process and will continue to do so. This is in advance of any train orders being placed – and years ahead of those trains being built and needing to access Temple Mills.
“We believe the conversation now needs to move beyond the inadequate space within the existing depot to look at the bigger picture. Capacity constraints have always been a challenge – whether in stations, at the borders or on-board trains. For 30 years, Eurostar has successfully found new solutions, working closely with stakeholders, and always with our customers in mind.
“Demand for international rail and sustainable travel is at an all-time high, which is a hugely positive story for European connections and the planet. Eurostar is once again accelerating sustainable growth by aiming to reach 30 million passengers and will invest close to €2bn in up to 50 new trains for customers to enjoy.
“Eurostar is willing to invest once again in new maintenance capacity and in many other areas to help deliver our ambitious growth plans. Other operators should consider investing in the system as well. We welcome the opportunity for discussion with government and the regulator to create an ambitious framework to unlock this private investment and deliver the economic growth, stronger connections and sustainable contribution which this historic moment for international rail travel promises to deliver.”
