Virgin Group, led by Richard Branson, is close to finalizing an order for 12 high-speed trains in a move to challenge Eurostar's 30-year dominance of Channel Tunnel travel. The order, valued at more than £500 million (€595.20 million), positions Virgin to become a key player in cross-Channel travel, with plans to introduce competition on routes between London and mainland Europe.
The decision comes as the rail startup Evolyn, backed by Spain’s Cosmen family, also prepares to enter the market, threatening to upend Eurostar’s monopoly. Virgin's ambitious project requires nearly £1 billion (€1.19 billion) in funding, with Branson expected to take a significant stake, though details of additional partners are still under wraps.
A Virgin spokesperson highlighted the company’s ambition:
"The route is ripe for change, and Virgin is the right brand to signal a new era in cross-Channel travel, given its track record of shaking up industries."
While Virgin has yet to commit fully to launching a service, it has initiated key steps, including seeking access to the Temple Mills depot, the sole UK facility connected to HS1, the Channel Tunnel operator.
Virgin has shortlisted major rail manufacturers, including Hitachi, Alstom, Talgo, and Siemens, with plans to finalize a supplier by the end of Q1 2025. The urgency stems from limited capacity at the Temple Mills depot, as the UK Office of Rail and Road (ORR) evaluates whether maintenance facilities can support expanded operations.
The introduction of new players like Virgin and Evolyn is expected to boost competition, leading to better prices, increased service frequency, and enhanced options for passengers. Virgin has signaled interest in expanding its footprint beyond cross-Channel routes, eyeing opportunities in the broader UK high-speed rail network.
Eurostar has expressed concerns over capacity constraints at the St. Pancras International station and the Temple Mills depot. A Eurostar spokesperson stated:
"The essential issue we face is not opposition to competition but limited space to meet the combined growth ambitions of all operators."
Eurostar has sought government support to ensure fair investment opportunities for all players in network expansion.
As Virgin accelerates its plans, the race to secure maintenance capacity and finalize contracts intensifies. The Temple Mills depot can likely accommodate only one additional operator, placing urgency on both Virgin and Evolyn to solidify their plans.
The outcome of Virgin's train order and the ORR’s decision on infrastructure capacity could reshape the landscape of cross-Channel travel, breaking a long-standing monopoly and setting the stage for a more competitive market.
