Virgin eyes train routes from UK to EU capitals

Businessman Richard Branson's Virgin Group is seeking to raise 700 million pounds ($905 million) in a bid to launch a rival train service to current monopoly holder Eurostar on routes between the United Kingdom and mainland Europe.

The Virgin Group began in the music industry but has grown to include finance, airlines, and the running of intercity train services across the UK. It is understood that it would initially want to run rival services to those of Eurostar — from London to Paris and Brussels by the end of the decade, adding Amsterdam at a later date.

"The cross-Channel route is ripe for change and would benefit from competition," said a Virgin Group representative. "While Virgin is not committing to launching a service just yet, we are seeking investment from like-minded partners to invest alongside Virgin and we are delighted with the progress made so far."

Currently, all passenger services between London St. Pancras International and cities including Paris, Brussels and Amsterdam are run by Eurostar, as has been the case since November 1994. It makes the journey under the sea through the Channel Tunnel, which was completed in the same year, after six years of construction work.

There is also a separate rail service carrying road vehicles, called Eurotunnel Le Shuttle, between Folkestone, England, and Calais, France.

In December, Robert Sinclair, chief executive of London St. Pancras High-speed, which owns the terminus, told the Financial Times that it was keen to double passenger numbers.

"Our high-speed line has 50 percent spare capacity … There's a significant opportunity that is sitting there waiting underutilized," he said.

Potential new player

Another potential new player in services between London and other European capitals is the Spanish Evolyn group, which announced in October 2023 that it wanted to take on Eurostar's monopoly. The company's CEO Jorge Cosmen told the House of Commons' All-Party Parliamentary Rail Group that his group could offer more than $1 billion of investment.

However, any company seeking to challenge Eurostar's monopoly faces a problem over access to the Temple Mills depot in east London, where Eurostar trains are parked and maintained.

The British government's Office of Rail and Road has commissioned an independent study, which is due to report back soon, into the capacity of the facility, because Eurostar has said it is already full.

Project leader for the Virgin Group, Phil Whittingham, told The Daily Telegraph the company did not think "the economics would work for three operators competing" and that it was ready to move as soon as the independent study delivered its verdict.

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