Virgin Trains will launch international services through the Channel Tunnel after its application to share Eurostar’s east London depot was approved.
Sir Richard Branson’s company will challenge the monopoly on passenger services through the tunnel which Eurostar has held since it opened in 1994.
Virgin Trains plans to launch competing services in 2030.
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Regulator the Office of Rail and Road (ORR) granted Virgin Trains access to use the Temple Mills site for maintaining and storing trains.
The east London site is the only train depot that can be accessed from High Speed 1, the line that runs between London and the tunnel, making it a critical requirement for an operator to launch Channel Tunnel services competing with Eurostar.
Virgin Trains will need to gain additional regulatory approvals covering issues such as track access and safety.
Sir Richard said: “The 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.
“Virgin is no stranger to delivering award-winning rail services, and just as we have successfully challenged incumbents in air, cruise and rail, we’re ready to do it again.
“We’re going to shake-up the cross-Channel route for good and give consumers the choice they deserve.”
Eurostar currently runs trains from London’s St Pancras station to locations such as Paris, Brussels and Amsterdam.
The tunnel is only used at about 50% capacity, despite also accommodating LeShuttle vehicle-carrying trains between Folkestone in Kent and Calais in northern France.
Virgin Trains plans to run services between St Pancras and the same stations in Paris, Brussels and Amsterdam used by Eurostar, and it has “ambitions” to expand “further across France, and into Germany and Switzerland”.
The company added: “If either Ebbsfleet International or Ashford International station are reopened in Kent, then Virgin will stop there, and it is working with Kent County Council and other local stakeholders to explore how to make this happen.”
Eurostar stopped serving the stations in March 2020 because of the coronavirus pandemic.
Earlier this year, Virgin Trains confirmed it had reached an agreement with manufacturer Alstom to purchase 12 Avelia Stream trains.
It announced on Thursday that they will be funded by infrastructure investor Equitix.
Virgin Group will lead the funding of the operating company, alongside Equitix and private equity firm Azzurra Capital.
The ORR rejected applications from Evolyn, Gemini Trains and Trenitalia to use the Temple Mills depot.
Eurostar was also unsuccessful in seeking permission to use the site’s spare capacity to grow.
The ORR said: “Virgin Trains’ plans were more financially and operationally robust than those of other applicants, and it provided clear evidence of investor backing and an agreement in principle to deliver the necessary and appropriate rolling stock.”
Martin Jones, the regulator’s deputy director for access and international, said: “With this decision we are backing customer choice and competition in international rail, unlocking up to £700 million in private sector investment and stimulating growth.
“While there is still some way to go before the first new services can run, we stand ready to work with Virgin Trains as their plans develop.”
Rail minister Lord Hendy said he was “incredibly pleased” by the ORR’s decision, as it will “give passengers greater choice, better value and improve connectivity for millions”.
He added: “Depot capacity should not be a barrier to greater competition and growth.
“We are therefore exploring plans to establish new depot capacity in the UK, supported by private investment, to meet the needs of the market and will set out further plans in due course.”
Virgin Group has not been involved in operating trains in the UK since Virgin Trains’ contract for the West Coast Main Line (WCML) expired in December 2019.
In July, the ORR rejected the company’s application to run open access services on the WCML, serving cities such as London, Birmingham, Liverpool and Manchester.
