Latest news with #railcompetition
Yahoo
2 days ago
- Business
- Yahoo
Eurostar needs as much competition as possible
At least it didn't decide that the wrong type of snow made it impossible to run any more trains, or that too many leaves on the line made it far too risky to have an extra operator. Even so, the oddly named Office of Rail and Road, or ORR, last week decided that there is only enough depot space for one extra competitor to Eurostar to run trains from Britain to the rest of the Continent. The other companies queuing up to offer a service will have to be turned away. That is crazy. The rail service needs more competition not less – and anything that gets in the way of that should be fixed before the service gets any worse. Few of us were probably aware of the ORR until last week, although the regulator has more than 350 staff doing something or other, and a budget of more than £40m a year to spend. Last week, however, it made a significant decision that will have an impact on anyone who travels between Britain and the rest of Europe by train. A whole series of rival companies had been preparing to offer rival services to Eurostar running trains through the Channel Tunnel. Sir Richard Branson's Virgin Trains was pitching to run a service on the route, and so were Gemini Trains, chaired by the Labour peer Lord Berkeley, as well as Trenitalia, the main operating arm of the Italian state rail operator. If the tunnel was genuinely opened up, plenty of other companies might have come into the market, such as Germany's Deutsche Bhan, which has expressed an interest in the past; one of the other rail companies; or indeed an airline company such as Air France KLM, which could use the train route to feed long-haul passengers into its Paris hub. St Pancras International could have been humming with new competitors pitching different possibilities. But the ORR has decided that there is only enough space at the depot for one extra competitor on the route. 'The assessment suggests there is room for at most one new operator, or for Eurostar, to grow,' it concluded. At a stroke, the vision of lots of new players has been dashed. Of course in fairness, the ORR is just doing its job, and no one would want to question its decision about the capacity at the depot. It is important that all the trains are properly maintained, and if there is not enough space for more than one extra operator at the moment, then clearly that is a problem. And yet, looking at the bigger picture, it is also completely ridiculous. If we need more depot space, then surely we should just build it. Likewise, if we need another platform, or an extra stop along the route through Kent, or even just space for another Pret so the passengers can pick up a sandwich before they hop on a train to the Continent, then we should build that as well. It would hardly be impossible. In reality, the rail link into the Continent needs as much competition as possible. To start with, it opens up more choice for passengers. Eurostar has been operating on the route since it opened in 1994, and it does a perfectly decent job. But it is hardly setting the world alight with its customer service, or its on board meal options, or indeed its ticket prices. Of 2,500 reviews on Trustpilot it gets an average ranking of just 2.1 out of a possible five, which, to put it politely, would suggest there is some room for improvement. The one thing we know for certain about economics is that when there is a choice, service levels dramatically improve, but when there is a monopoly, they get worse. One extra operator on the service would be an improvement, but two or three would surely be far better. Next, it would open up more potential routes. It has proved impossible to build a new high-speed rail line in the UK. But the rest of Europe has been steaming ahead, with new rapid rail links connecting France, Spain, Germany and Italy. We are meant to be fighting climate change, and we keep whacking extra taxes on air travel to discourage us from getting the plane. So why not make it easier to get the train to Milan, or Barcelona, or Berlin instead of a flight? With more competitors, lots more routes would be opened up, and plenty of climate consciousness travellers could be persuaded to take a train instead. Finally, it would surely lower fares. When I just checked the price of a return from London to Paris for next weekend the best deal I could get on Eurostar was £360 return. It is not exactly cheap. Air France was offering the plane at half that price. Any rival operator coming onto the route would surely start offering more competitive fares, and the more of them there are the cheaper it would get. The tunnel needs a BA option for anyone on expenses, and an easyJet option for anyone who just wants a quick weekend away. But that is not likely to happen now. The role of a regulator is to promote competition, not restrict it. Likewise, we are meant to have a government that believes in 'growth, growth, growth', even if there is not much actual sign of it. Here is a simple suggestion. If we need a new depot to handle more trains, then let's build one, or even two. There is plenty of spare capacity in the Channel Tunnel to run more trains, and plenty of pent up demand for any rival to Eurostar that could offer more choice, more routes and cheaper fares. We should seize that opportunity. Instead, as so often, we are turning it down – and the whole country will end up poorer as a result. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
2 days ago
- Business
- Telegraph
Eurostar needs as much competition as possible
At least it didn't decide that the wrong type of snow made it impossible to run any more trains, or that too many leaves on the line made it far too risky to have an extra operator. Even so, the oddly named Office of Rail and Road, or ORR, last week decided that there is only enough depot space for one extra competitor to Eurostar to run trains from Britain to the rest of the Continent. The other companies queuing up to offer a service will have to be turned away. That is crazy. The rail service needs more competition not less – and anything that gets in the way of that should be fixed before the service gets any worse. Few of us were probably aware of the ORR until last week, although the regulator has more than 350 staff doing something or other, and a budget of more than £40m a year to spend. Last week, however, it made a significant decision that will have an impact on anyone who travels between Britain and the rest of Europe by train. A whole series of rival companies had been preparing to offer rival services to Eurostar running trains through the Channel Tunnel. Sir Richard Branson's Virgin Trains was pitching to run a service on the route, and so were Gemini Trains, chaired by the Labour peer Lord Berkeley, as well as Trenitalia, the main operating arm of the Italian state rail operator. If the tunnel was genuinely opened up, plenty of other companies might have come into the market, such as Germany's Deutsche Bhan, which has expressed an interest in the past; one of the other rail companies; or indeed an airline company such as Air France KLM, which could use the train route to feed long-haul passengers into its Paris hub. St Pancras International could have been humming with new competitors pitching different possibilities. But the ORR has decided that there is only enough space at the depot for one extra competitor on the route. 'The assessment suggests there is room for at most one new operator, or for Eurostar, to grow,' it concluded. At a stroke, the vision of lots of new players has been dashed. Of course in fairness, the ORR is just doing its job, and no one would want to question its decision about the capacity at the depot. It is important that all the trains are properly maintained, and if there is not enough space for more than one extra operator at the moment, then clearly that is a problem. And yet, looking at the bigger picture, it is also completely ridiculous. If we need more depot space, then surely we should just build it. Likewise, if we need another platform, or an extra stop along the route through Kent, or even just space for another Pret so the passengers can pick up a sandwich before they hop on a train to the Continent, then we should build that as well. It would hardly be impossible.
