Virgin Group is reportedly poised to place a £500 million order for trains as it bids to break Eurostar’s monopoly on Channel Tunnel passenger services.
A contract for up to a dozen high speed trains is expected to be signed as early as this quarter.
Virgin hopes to get ahead of start-up Evolyn, which has indicated ambitions to create a new international high-speed train service using the Channel Tunnel.
Evolyn was reported to have signed a deal for up to 16 trains from French firm Alstom in autumn 2023 but the manufacturer later said no contract had been agreed.
Evolyn is owned by Spain’s Cosmen family whose interests include a stake in Mobico, the rail and coach operator formerly known as National Express.
But the big stumbling block to the ambitions of both Virgin Group, Evolyn and any other potential competitor is obtaining access to Eurostar’s Temple Mills train maintenance depot in east London – the only facility in the UK designed for use by international rail services.
Evolyn started the process of negotiating with Eurostar for access to to depot as long ago as July 2023, according to Office of Road and Rail (ORR) documentation.
Virgin has indicated plans to start services through the Channel Tunnel in 2029, with the project needing almost £$1 billion in launch funding.
Virgin Group project lead Phil Whittingham told the Telegraph that he was confident the rail regulator will conclude that there was space at Temple Mills for a single new entrant but it is unlikely to be persuaded of the business case for two new entrants.
He said: “We don’t believe there is room for three operators on the route. We don’t think the economics would work for three operators competing.
“We’re hoping the regulator will determine what capacity is available and reserve its for a new competitor. And we expect the first person to come along with a contract for new trains will get that capacity.”
A Eurostar spokesperson told the newspaper: “The essential issue we face is not Eurostar trying to restrict access but the fact that there is already limited space available at St Pancras and Temple Mills to meet the combined growth ambitions of everyone.
“We have written to the new government asking for its support in creating a framework that will enable all operators, including Eurostar, to invest on level terms in the further network expansion we all want to see.”
Eurostar has outlined ambitions to increase its fleet by 30% from 51 trains to 67 and its passenger numbers by 60% by 2030, including 11 million on services between the UK and continental Europe.