Virgin wins key approval to challenge Eurostar in Channel tunnel race

Thursday 30 October 2025 - 11:30

By: Sahili Aya

Virgin wins key approval to challenge Eurostar in Channel tunnel race

British group Virgin has won a key step in its bid to challenge Eurostar’s monopoly on passenger rail services through the Channel Tunnel, after obtaining access to the Temple Mills depot in London — a crucial maintenance facility previously reserved exclusively for Eurostar.

The Office of Rail and Road (ORR), the UK rail regulator, confirmed on Thursday that Virgin’s access marks “an essential first step” toward launching cross-border train services between London and continental Europe. The decision effectively opens the way for the company, founded by billionaire Richard Branson, to prepare its fleet and maintenance operations ahead of a planned 2030 launch.

Temple Mills is currently the only depot connected to the High-Speed 1 (HS1) line that links London to the Channel Tunnel. Competing operators including Trenitalia (Italy), Evolyn (Spain) and Gemini (UK) had also applied for access but were rejected, with the regulator citing Virgin’s stronger financial and operational plan, backed by investor commitments and a clear procurement agreement for rolling stock.

Richard Branson said Virgin intends to “shake up the cross-Channel model and give consumers the choice they deserve.” The company has announced plans to raise £300 million in equity and £400 million in loans to fund its new trans-Channel services.

Since Eurostar’s launch in 1994, several firms have tried to enter the market, but none have succeeded — until now. Eurostar remains the only passenger operator through the tunnel, often criticized for its high ticket prices compared with airlines on routes such as London–Paris.

Infrastructure operator Eurotunnel has long pushed for more competition, stating that the tunnel could handle up to 1,000 trains per day, compared to the current 400 combining passenger, shuttle, and freight services.

Eurostar “takes note” of the ORR’s ruling but maintains that Temple Mills is already “almost full.” The company recently announced a €2 billion investment in 50 new Alstom trains, with 19.5 million passengers carried in 2024 — a record figure.