Virgin Group has announced plans to launch a high-speed train service by the end of the decade, aiming to rival the existing Eurostar route that connects London to Paris, Brussels, and Amsterdam. The new service will initially operate trains between London, Paris, and Brussels, with Amsterdam being included in long-term expansion plans.
Virgin Group, owned by billionaire Richard Branson, is seeking to raise £700 million (€832.9 million) for the project, with plans to secure £300 million (€356.9 million) in equity and £400 million (€475.9 million) in debt. The company intends to be a cornerstone investor, contributing a substantial portion of the funding needed to get the service off the ground.
Expansion Plans and Increased Capacity
The service is expected to operate at high frequency, catering to growing demand for cross-Channel travel. To accommodate more passengers, London’s St Pancras station, where Eurostar currently departs, is working with Getlink, the owner of the Channel Tunnel, to increase capacity at the station. The expansion will enable more passengers to travel through the station for international trips.
In 2023, Getlink pledged £50 million (€59.5 million) to support the launch of new cross-Channel rail services, further fueling the competition in the market.
Challenges Ahead
However, Virgin Group’s plans face some hurdles, including a dispute over access to a critical East London rail depot. This depot is currently the only location available to park high-speed cross-Channel trains, and Eurostar claims it has already occupied all available spots. Virgin, along with another newcomer, Evolyn, has appealed to the UK’s rail regulator for access to the depot.
Despite the challenges, Virgin Group remains optimistic. A spokesperson for the company said, “The cross-Channel route is ripe for change and would benefit from competition.”
A Strong Brand for a Bold Move
Virgin Group highlighted its extensive experience in the train industry, having built several successful global travel ventures, as a key asset for the new service. “We think Virgin is the right brand to deliver this,” the spokesperson added.
While the company has not yet committed to a launch date, it continues to seek investment from like-minded partners to join the project, with progress already underway. Virgin’s entry into the cross-Channel rail market could significantly disrupt the existing market, offering passengers more choices for international travel.
