New Opportunities Arise For Competition In Cross-Channel Rail

The future of international rail travel between the UK and Europe is looking brighter as the Office of Rail and Road (ORR) has indicated that Eurostar’s Temple Mills depot in London could accommodate additional trains. This development comes following an independent report commissioned by ORR to assess the depot's capacity, which was published on April 1, 2025. The report highlights the potential for increased competition on the High Speed 1 line, which connects London to continental Europe.

According to the ORR, while the Temple Mills facility is currently at near capacity, operational and maintenance adjustments could unlock extra space for new operators. Stakeholders interested in launching cross-Channel services, including Evolyn, Virgin, and Gemini Trains, have until April 28, 2025, to submit evidence that could influence ORR’s final conclusions on capacity.

Ben Plowden, chief executive of Campaign for Better Transport, expressed optimism about the findings, stating, "This announcement means that competition on High Speed 1 has been given the green light – opening the door for more services to a wider variety of destinations across Europe. Passengers will be delighted to hear this news." The potential expansion of services is particularly significant given the growing demand for international rail travel, which is projected to double by 2040, according to research from the Campaign for Better Transport.

However, Eurostar has cautioned that while the ORR’s report suggests possibilities for accommodating additional trains, it also emphasizes the need for significant investment to meet the aspirations of both new and existing operators. A Eurostar spokesperson noted that the depot is "effectively almost full today for major maintenance work" and that the options presented in the report would not be sufficient to accommodate the ambitions of any single operator.

Virgin Group, led by Richard Branson, is particularly eager to capitalize on this opportunity. The company announced that there are "no more major hurdles to overcome" before it can begin operating passenger trains through the Channel Tunnel. Virgin plans to connect London with Paris, Brussels, and Amsterdam, and has already initiated fundraising efforts, aiming to raise £700 million to support its new service.

In a statement, Virgin expressed its satisfaction with the ORR's findings, stating, "Finally, a green signal for competition. The Temple Mills depot is the only facility in the UK which can accommodate European-style trains and claims suggesting it was at capacity have been blocking Virgin from coming to the line." The company is optimistic about its ability to launch services by 2029.

Gemini Trains, another potential operator, has also welcomed the ORR’s report. The company’s chair, Labour peer Tony Berkeley, stated that they look forward to engaging with ORR officials during the consultation period. He emphasized that Gemini's service offering would provide competition to Eurostar, benefiting all passengers. Virgin echoed this sentiment, highlighting that the report serves as a green light for competition and that they expect to make an announcement soon.

Despite the optimism from potential operators, Eurostar has reiterated that any plans for expansion would require a comprehensive approach to capacity constraints, which have historically been a challenge in the industry. The company has expressed its willingness to invest in new maintenance capacity and has called for other operators to consider joining in these investments.

Richard Thorp, chief operating officer at London St Pancras Highspeed, which oversees the high-speed track, welcomed the ORR ruling, noting that the depot was always intended to be a shared facility. Thorp stated, "This is an important step forward for the future of high-speed rail between the UK and Europe. It opens the door to more international services, new destinations, and more competitive fares, helping to make rail the preferred way to travel for more people."

As the industry gears up for potential new services, it is important to note that Virgin and other new operators will need to secure the necessary licenses and safety certifications to operate trains in both the UK and the European countries where they plan to run services.

The ORR’s report and the responses from various stakeholders indicate a significant shift in the landscape of international rail travel, with the potential for increased competition and improved services for passengers. As the deadline for stakeholder feedback approaches, the future of cross-Channel services appears to be on the brink of transformation.

In a related development, Network Rail’s chief executive, Andrew Haines, announced his retirement amid a government overhaul of the sector. Haines, who has served in the role for seven years, will leave the company in October 2025. The functions of Network Rail will be taken over by Great British Railways, a new state-owned entity, as part of a broader effort to modernize the UK's rail infrastructure.

With the ORR's findings and the growing interest from new operators, the stage is set for a new era in international rail travel, promising greater connectivity and competition for passengers eager to travel between the UK and Europe.