Virgin Group is moving forward with plans launch a new cross-channel rail service to rival Eurostar after the Office of Rail and Road (ORR), which regulates the UK’s railways, on Thursday approved the group’s application for access to Temple Mills international rail depot.
The group, owned by British entrepreneur Richard Branson, said the regulatory green light places Virgin “firmly on course” to introduce competition on the Channel Tunnel, which connects the UK to mainland Europe and is currently exclusively operated by Eurostar.
Virgin plans to operate cross-channel services as early as 2030, with connections from London St. Pancras to Paris Gare du Nord, Brussels-Midi and Amsterdam Centraal – all routes currently served by Eurostar. It also has ambitions to expand services further across France as well as into Germany and Switzerland.
Additionally, the company stated that if Ebbsfleet International or Ashford International stations in Kent are reopened, its services will include stops at those locations. Virgin said it is currently working with Kent County Council and other local stakeholders to “explore how to make this happen”.
Virgin Group founder Sir Richard Branson said: “The ORR’s decision is the right one for consumers – it’s time to end this 30-year monopoly and bring some Virgin magic to the cross-channel route… We’re going to shake-up the cross-channel route for good and give consumers the choice they deserve.”
The decision follows a feasibility study commissioned by ORR earlier this year that determined Temple Mills would be able to accommodate additional trains. According to ORR, gaining access to Temple Mills is a critical initial step toward facilitating cross-channel rail services, as the location offers maintenance facilities required for rail operations.
The regulator on Thursday said Virgin’s plans were “more financially and operationally robust than those of other applicants” after Trenitalia, Spain’s Evolyn and UK-based Gemini Trains also expressed interest in operating cross-channel services. Incumbent operator Eurostar also submitted plans for further investment and growth in its international operations.
The ORR stated that Virgin's plan offered “higher potential benefits” compared to proposals by Trenitalia and Eurostar, and expressed a higher level of confidence in Virgin’s ability to commence operations promptly than with the applications submitted by Gemini or Evolyn.
Virgin on Thursday confirmed infrastructure investor Equitix and private equity firm Azzurra Capital as its partners behind the £700 million cross-channel venture.
Earlier this year, Virgin also confirmed an agreement with train manufacturer Alstom to purchase 12 Avelia Stream trains, which will form its cross-channel fleet.
Phil Whittingham, former managing director at Virgin Trains, will lead the cross-channel project. He described ORR’s decision as “a significant milestone for Virgin and a pivotal turning point for international rail”, adding that the initiative will create hundreds of jobs and support the modal shift from air to rail.
Jason Geall, executive vice president SME, at American Express Global Business Travel also praised the regulator’s decision.
“Opening the Channel Tunnel to additional operators will help make rail an even more attractive option for business travellers on this vital route,” he said in a statement.
“This could unlock significant benefits, including increased sustainability gains through shifts from air to rail, productivity improvements as business travellers can work effectively while in transit, and enhanced connectivity that supports both UK and EU economic growth.
“We look forward to working with all operators serving this route to ensure that business travellers have access to the convenient, reliable and competitively priced services they need,” he added.
Virgin said it will now finalise its depot access agreement and proceed with the final stages of rolling stock procurement and financing, with more details to be announced “soon”.