Virgin Group will be able to run international services from London through the Channel Tunnel as the result of a decision by the Office and Rail and Road to allow it to use Temple Mills depot, which has been occupied exclusively by Eurostar since 2007.

The decision will be a setback for competitors Evolyn, Gemini and Trenitalia, but the ORR said it considered that ‘Virgin Trains has the strongest prospects of making the best use of capacity at Temple Mills’. It continued: ‘Virgin Trains’ plans were more financially and operationally robust than those of other applicants, and it provided clear evidence of investor backing and an agreement in principle to deliver the necessary and appropriate rolling stock.’

Virgin is planning to run from London St Pancras International to Paris Gare du Nord, Brussels Midi/Zuid and Amsterdam Centraal from 2030. It also has ambitions to run to other destinations in France, Germany and Switzerland.

It has confirmed that if either Ebbsfleet International or Ashford International in Kent are reopened to Channel trains then Virgin services will call there, and Virgin is working with Kent County Council and other local stakeholders to explore how this can be done. Eurostar ceased calling at intermediate stations between London and the Channel Tunnel at the start of Covid lockdowns in 2020, and has resisted pleas for it to return.

Virgin has also confirmed the funding consortium behind the project. Equitix will fund 12 new Alstom Avelia Stream trains, and the order has been confirmed in the wake of the ORR’s decision about Temple Mills, where the trains will be maintained. Private equity firm Azzurra Capital will also be providing funds.

Virgin Group founder Sir Richard Branson said: ‘The ORR’s decision is the right one for consumers – it’s time to end this 30-year monopoly and bring some Virgin magic to the cross-Channel route. Virgin is no stranger to delivering award-winning rail services, and just as we have successfully challenged incumbents in air, cruise and rail, we’re ready to do it again. We’re going to shake-up the cross-Channel route for good and give consumers the choice they deserve.’

Virgin Group CEO Josh Bayliss added: ‘The cross-Channel market is underserved and represents a fantastic opportunity for Virgin to bring greater value and service to customers, not just in the UK and France, but across the wider European network too. We are pleased to be working with two exceptional and experienced investment partners in Equitix and Azzurra Capital. Together, this consortium will build a new business that does what Virgin does best – disrupt and challenge the status quo.’

Rail minister Sir Peter Hendy has welcomed the ORR‘s decision, and continued: ‘While this decision is an important first step, we recognise there is significant interest in this and depot capacity should not be a barrier to greater competition and growth. We are therefore exploring plans to establish new depot capacity in the UK, supported by private investment, to meet the needs of the market and will set out further plans in due course.’

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