Virgin Group has received regulatory approval to press ahead with its plans to operate a new international train route through the Channel Tunnel, paving the way for the first serious competition on the route in three decades.
The Office of Rail and Road (ORR) confirmed on Thursday that Virgin can proceed with its bid to use the Temple Mills International Rail Depot in East London – a key piece of infrastructure for servicing and maintaining trains to continental Europe. The landmark decision removes one of the last barriers to entry and puts Virgin on track to challenge Eurostar’s long-standing monopoly on cross-Channel travel.
Sir Richard Branson, founder of Virgin Group, hailed the ruling as a victory for passengers and competition. “ORR’s decision is the right one for consumers – it’s time to end this 30-year monopoly and bring some Virgin magic to the cross-Channel route,” he said. “Virgin is no stranger to providing award-winning rail services and just as we have successfully challenged the incumbents in air, cruise and rail, we are ready to do it again. We will disrupt the cross-Channel route for good and give consumers the choice they deserve.”
Virgin has also announced its investment partners for the new venture and confirmed that Equitix and Azzurra Capital are part of the financing consortium. Equitix, one of Europe’s leading infrastructure investors with a strong track record in financing rail vehicles, will finance the train fleet. Virgin Group will lead the financing of the operating company alongside Equitix and Azzurra Capital, the private equity firm founded by Stefano Marsaglia and Jorge Delclaux and known for backing high-growth companies in collaboration with leading entrepreneurs.
Earlier this year, Virgin signed an exclusive deal with Alstom to purchase 12 Avelia Stream trains, marking a renewal of the partnership that created the Pendolino fleet, once synonymous with Virgin Trains on Britain’s West Coast Main Line. The Avelia Stream model, already in use in parts of Europe, promises greater energy efficiency, passenger comfort and speed than previous designs.
Andrew DeLeone, Alstom’s president for Europe, said the partnership was a natural next step. “Virgin and Alstom have a long history of driving innovation and change in the rail industry and serving passengers,” he said. “This collaboration strengthens our long-standing relationship and reinforces our shared commitment to sustainability, customer experience and technological excellence.”
Virgin plans to launch services from London St Pancras International to Paris Gare du Nord, Brussels-Midi and Amsterdam Centraal by 2030, with ambitions to expand into Germany, Switzerland and further into France. The company has also pledged to add Ebbsfleet International and Ashford International in Kent to its route map if either station reopens and is already in discussions with Kent County Council and local stakeholders to make this possible.
Phil Whittingham, former managing director of Virgin Trains, is leading the project for Virgin Group. He said ORR’s decision on depot access was “a significant milestone for Virgin and a key turning point for international rail transport”.
“Temple Mills was a key bottleneck in the introduction of a new cross-Channel service,” explained Whittingham. “Building on the great success of Virgin Trains, Virgin will offer a world-class cross-channel service that will create hundreds of jobs and support the modal shift of short-haul travel from air to rail.”
Virgin Group CEO Josh Bayliss said the consortium’s aim is to expand consumer choice and reshape the market. “The cross-channel market is underserved and represents a fantastic opportunity for Virgin to deliver greater value and service to customers, not just in the UK and France but also across its European network,” he said. “Together with Equitix and Azzurra Capital, this consortium will build a new company that does what Virgin does best – disrupt and challenge the status quo.”
With access to the depot approved, funding secured and train procurement underway, Virgin is now entering the final planning stages before launching the full service. The company expects to complete the depot access agreement and complete the financing of its train fleet in the coming months.
If all goes to plan, passengers could be boarding Virgin’s first cross-Channel trains within five years – ushering in a new era of competition, innovation and choice on one of Europe’s most famous transport routes.
