For the first time in over three decades, the monopoly on passenger train services through the Channel Tunnel is set to be broken. Virgin Trains, led by Sir Richard Branson’s Virgin Group, has received the crucial green light from the UK’s Office of Rail and Road (ORR) to share the Temple Mills depot in east London with Eurostar, paving the way for a new era of competition and connectivity between Britain and continental Europe. The move, widely seen as a shake-up for cross-Channel travel, promises to bring greater choice, lower fares, and improved services for millions of passengers—but not until 2030.
Since the Channel Tunnel opened in 1994, Eurostar has enjoyed exclusive rights to run passenger trains between London and major European capitals. According to BBC News, the ORR’s decision marks the end of this 30-year monopoly, unlocking approximately £700 million in investment and potentially creating 400 new jobs. The Temple Mills depot is the only facility in the UK capable of accommodating the larger trains used for cross-Channel journeys, making access to it a decisive factor in who can operate international rail services from Britain.
Virgin Trains’ application to use Temple Mills was judged by the ORR to be the most financially and operationally robust among several contenders. Other applicants—including Spanish start-up Evolyn, Italian state operator Trenitalia, and Gemini Trains (backed by Uber)—were ultimately rejected. Stephanie Tobyn, director at the ORR, explained, “We have placed particular weight on our duties to promote competition and the use of the railway network.” She went on to say that Virgin’s plans were more detailed and included “clear evidence of an exclusive agreement to deliver the necessary rolling stock by 2030.”
Virgin has already ordered 12 Avelia Stream trains from manufacturer Alstom, with funding provided by infrastructure investor Equitix and private equity firm Azzurra Capital. Josh Bayliss, chief executive of the Virgin Group, said, “Together, this consortium will build a new business that does what Virgin does best – disrupt and challenge the status quo.”
Sir Richard Branson himself hailed the ORR’s approval as a victory for consumers. “It’s time to end this 30-year monopoly. We’re going to shake-up the cross-Channel route for good and give consumers the choice they deserve,” he said, as quoted by The Independent. The sentiment was echoed by Rail Minister Lord Peter Hendy, who described the move as a “significant step forward.” He added, “Allowing Virgin Trains to share this vital facility will give passengers greater choice, better value and improve connectivity for millions, as well as drive innovation, lower fares and promote greener connections with Europe.”
The first services are scheduled to begin in 2030, with Virgin planning to operate trains from London St Pancras International to Paris Gare du Nord, Brussels-Midi, and Amsterdam Centraal. There are ambitions to expand further, with future routes potentially reaching deeper into France, Germany, and Switzerland. Initially, however, the focus will be on these major inter-capital connections. Virgin Trains also indicated it may revive some of Eurostar’s discontinued routes—such as Calais, Disneyland Paris, and other French destinations—though these plans remain in the exploratory phase.
One of the key hurdles to launching new cross-Channel services has always been the limited depot capacity in the UK. The Temple Mills International depot is the only site suitable for maintaining and storing the large continental trains. The ORR’s assessment found that only one new entrant could share the depot alongside Eurostar, and ultimately Virgin’s proposal was deemed the most viable. According to BBC News, this approval “unlocks plans for around £700m of investment and could create 400 new jobs, describing it as ‘a win for passengers, customer choice, and economic growth.’”
Virgin’s return to the rails is notable in itself. The company last operated UK intercity services in 2019, before losing its contract to Avanti West Coast. Its previous 22-year tenure included routes from London Euston via Birmingham and Manchester to Scotland. The Channel Tunnel project marks Virgin’s comeback, this time with the added ambition of connecting Britain to mainland Europe’s high-speed network.
But why the long wait until 2030? New trains must be built, certified, and tested to meet the rigorous safety and technical standards required for international operation. Virgin’s exclusive agreement with Alstom for the Avelia Stream trains is a key part of this process. In addition, Virgin must secure finance, access to tracks and stations, and safety approvals from both UK and EU authorities before it can carry its first passengers through the tunnel.
Competition is expected to benefit travelers in several ways. As The Independent noted, Eurostar’s fares can soar close to departure time, sometimes exceeding £200 for a one-way ticket from London to Paris. In contrast, competition on high-speed rail networks in Spain and Italy has led to improved services and reduced fares. The hope is that Virgin’s entry into the market will have a similar effect for travelers between the UK and the continent.
Eurostar, for its part, is not standing still. The company recently announced a €2 billion (£1.7 billion) investment in new double-decker trains, aiming to deliver “exceptional comfort, a unique Eurostar experience and new surprises,” according to chief executive Gwendoline Cazenave. She described the current period as “a golden age for international sustainable travel – and Eurostar is leading the race.” The company is reviewing the ORR’s decision and considering its next steps to ensure continued growth.
There’s also talk of reviving mothballed stations in Kent, such as Ebbsfleet International and Ashford International, which were previously served by Eurostar before the Covid pandemic. Virgin Trains has expressed interest in stopping at these stations if they are reopened, and is working with Kent County Council and other stakeholders to explore the possibility. Lord Hendy added, “We will also continue to champion the reopening of Ashford and Ebbsfleet International stations as a priority to restore full connectivity, support tourism and boost growth across the region.”
The government is already looking beyond this first step. The rail minister has indicated that plans are underway to establish new depot capacity in the UK, supported by private investment, to enable even more competition in the future. “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,” Lord Hendy said.
For now, Eurostar and Virgin Trains will be the main players on the Channel Tunnel route, with Virgin’s arrival expected to bring long-awaited competition and consumer benefits. As the countdown to 2030 begins, rail travelers can look forward to a new chapter in cross-Channel journeys—one marked by greater choice, improved services, and perhaps, at last, a break from sky-high last-minute fares.
