Sir Richard Branson’s Virgin Group is preparing to order high-speed trains at a cost of 500 million by 2029. The move aims to break Eurostar’s long-standing monopoly on Channel Tunnel services.
The project leader, Phil Whittingham, said they are looking at suppliers such as Alstom and Siemens. However, Whittingham said they need around £1 billion to get the project off the ground. Branson plans to take a significant equity stake, possibly with some partners.
Whittingham is optimistic that the regulator will find room for a new competitor, but doubts there is room available for both companies. Virgin is ready to buy the trains once they get the green light from ORR (Office of Rail and Roads).
ORR has engaged an independent expert to assess capacity at Temple Mills.
Virgin Group’s head of the project, Phil Whittingham, told the Telegraph that he was confident that the rail regulator would conclude that there was room at Temple Mills for a single new entrant, but was unlikely to be convinced of the business case for two new entrants.
“We do not believe there is room for three operators on the route. We don’t think the economics would work for three operators competing.
“We hope the regulator will determine what capacity is available and commit it to a new competitor. And we expect that the first person to come along with a contract for new trains will get that capacity.”
A Eurostar spokesman 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 development ambitions of all.
“We have written to the new government asking for their support in creating a framework that will allow all operators, including Eurostar, to invest at the level in terms of further network expansion that we all want to see.”
