Virgin says it has ‘green signal’ for running trains through Channel Tunnel

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 a determination by the rail regulator.

The company owned by the billionaire entrepreneur made the claim after the Office of Rail and Road (ORR) said some capacity at Eurostar’s Temple Mills maintenance depot in north-east London 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.

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.”

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.

Gemini Trains – chaired by Labour peer Lord Berkeley – and Spanish start-up company Evolyn are also hoping to run trains through the tunnel.

Andrew Meaney, partner at economics and finance consultancy Oxera, which is advising Gemini Trains said: “Gemini welcomes that the ORR’s transparent process has determined there is available capacity at Temple Mills International depot and we look forward to working with them as they use their duties to allocate this capacity.”

Ben Plowden, chief executive of pressure group Campaign for Better Transport, said: “Passengers will be delighted to hear this news.

“Much of the great potential of the Channel Tunnel is currently untapped, so while there are further hurdles to clear, we are very glad that the reality of new services is closer than ever.”

Eurostar said in a statement the ORR-commissioned report “confirms” that the depot is “effectively almost full today for major maintenance work and would require investment to meet the growing demands of international rail”.

It went on: “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 added that it is “willing to invest once again in new maintenance capacity” and “other operators should consider investing in the system as well”.