Eurostar calls for ‘credible' Channel rail strategy as monopoly decision looms

The Guardian

6 days ago

Eurostar has urged the UK government to choose a 'credible long-term strategy' for international rail or risk 'falling behind' the rest of Europe, before a crucial decision by the regulator that could end its cross-Channel monopoly.
The high-speed train operator warned that a 'premature' ruling from the Office of Rail and Road (ORR) to allow competitors to squeeze trains into existing facilities could jeopardise its planned investment and expansion.
Instead it called for 'big-picture thinking' from the government to enable more capacity for overseas rail – which it said could produce more high-skilled jobs and growth.
Eurostar is on the verge of finalising an order for 50 more high-speed trains to upgrade and expand its fleet, and has pledged new direct routes to Frankfurt and Geneva.
A number of potential competitors are, however, hoping to break its 30-year exclusive hold on passenger train services through the Channel tunnel. Virgin Group, the British startup Gemini trains and a partnership between the Italian state rail operator, FS Italiane, and the Spanish company Evolyn are among those vying for space.
While the owners of the rail infrastructure – the Eurotunnel parent, Getlink, and London St Pancras High Speed (formerly HS1) – are keen to drive more business, rivals have been unable to secure space to house and maintain high-speed trains in Great Britain.
Capacity for more services has been focused on one functioning depot at Temple Mills, in east London, which Eurostar insists is full and can only accommodate its own growth plans with a €80m (£70m) investment.
However, the ORR has said it believes there is space at the depot and invited applicants to submit proposals before a ruling.
Eurostar's own response to the regulator, seen by the Guardian, sets out plans for expansion on the back of recent passenger growth, up 5% last year to 19.5 million, and agreements between the UK and Germany and Switzerland to facilitate direct routes.
However, it also starkly sets out what it says would be the risk of a new operator sharing the depot, including a 'significant impact on the ability to operate' and disruption to customers. Eurostar suggested that the ORR should find 'that it would be premature to make any determination' and that it 'cannot assume the capacity … is actually deliverable'.
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Instead it said the ORR and government should outline its support and strategy for new depots, to be used by any company, including repurposing existing alternatives or building brand-new facilities.
Gareth Williams, the general secretary at Eurostar, said: 'We believe there is an incredible opportunity to grow international rail … With demand for sustainable travel at an all-time high and growth being a key challenge for the country, the UK cannot afford to fall behind.'
He said Eurostar's plans were financed and already under way, adding: 'Temple Mills is an important foundation of that future. We want to be a leading centre for European high-speed maintenance, bringing skilled jobs and industrial investment. The regulator, UK government and private investors have a unique moment now to make bold decisions to unlock the huge potential of international rail and encourage more European links for tourism, trade and education.'
The decision by the ORR on whether Eurostar has to give up depot space to a competitor is expected in October.