Virgin gets green light for Channel Tunnel trains in blow to Eurostar
Sir Richard Branson's Virgin Group is pushing ahead with plans to run trains through the Channel Tunnel after regulators approved its application to gain access to the line.
In a blow to Eurostar, the Office for Rail and Road (ORR) confirmed that Virgin could store its trains at the only UK depot available for the rail route.
That is despite Eurostar claiming that the facility at Temple Mills in east London was already full with its own carriages and that there was not enough space.
The dispute had threatened to stall Virgin's bid to bring competition to the Channel Tunnel for the first time since it opened in 1994.
However, findings from the ORR said that two of the depot's eight maintenance lanes are underused and could be allocated to Virgin, or the other two rivals eyeing the route.
Virgin said the announcement had removed the last major hurdle to it gaining access to the tunnel, clearing the way for it to launch a raft of new services from St Pancras International in London to Paris, Brussels and other cities on the Continent.
Virgin is one of three groups vying to compete with Eurostar, alongside Evolyn, backed by the Spanish Cosmen family, which is the leading investor in Mobico, and Gemini Trains, chaired by Labour peer Lord Berkeley.
The ORR is expected to decide between the three applicants by the summer.
Virgin is already preparing to order a dozen high-speed trains that would operate through the Channel Tunnel, with the purchase likely to be worth more than £500m.
It is understood that the company is also close to finalising launch funding of around £800m in debt and equity from investors, including Sir Richard, though less might be required if it opts to lease rather than buy the trains.
Phil Whittingham, who is leading the rail project for Virgin, said the regulatory decision was 'really good news' as he confirmed plans to run the first trains in 2029.
The Campaign for Better Transport said that much of the Channel Tunnel's potential is currently untapped and that the ORR's announcement was a boost for travellers.
However, following the decision, Eurostar once again claimed there is not enough space at Temple Mills for two operators.
It said: '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.'
Eurostar claims it uses more than six of the eight maintenance lanes each day on average, whereas the study commissioned by the ORR suggested that fewer than six were actually being used, leaving space for a new entrant.
Virgin said its trains will be 200 metres long and that, with each lane stretching for 400 metres, it could make do with only one and a half if necessary.
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