Virgin Group is setting its sights on launching a rival to Eurostar’s cross-Channel rail service, aiming to have its first trains running by 2029.
The group, led by billionaire Richard Branson, has announced plans to raise £700 million (€832.9 million) to fund the ambitious project, which will initially connect London to Paris and Brussels, with Amsterdam earmarked for future expansion.
The company has outlined its funding strategy, consisting of £300 million (€356.9 million) in equity and £400 million (€475.9 million) in debt. Virgin intends to take a leading role in the investment, contributing significant funds to kickstart the high-speed rail service.
Efforts to expand capacity at London’s St Pancras International, in collaboration with Getlink, the Channel Tunnel operator, are already underway. The station is preparing for a substantial increase in passenger numbers, with plans to more than double its capacity for international travellers. This follows Getlink’s £50 million (€59.5 million) subsidy initiative designed to encourage the development of new cross-Channel rail services.
However, challenges persist. A disagreement over access to an east London rail depot, currently dominated by Eurostar, has emerged as a key obstacle. Virgin, along with another competitor, Evolyn, has appealed to the UK’s rail regulator for depot access, as they seek to navigate this operational bottleneck.
“The cross-Channel route is ripe for change and would benefit from competition,” a Virgin Group spokesperson stated. “Virgin’s expertise in the rail industry, coupled with its global reputation for travel innovation, positions us as the ideal brand to spearhead this transformation.”
While the project remains in its infancy, Virgin’s moves have already sparked interest across the industry, with the group actively seeking like-minded partners to invest alongside them.