BRITAIN’s rail regulator, the Office of Rail and Road (ORR), announced on October 30 that it has approved the application from Virgin Trains for access to the Temple Mills International (TMI) light maintenance facility in east London owned by Eurostar, paving the way for Virgin to enter the cross-Channel market.

ORR has rejected applications from the other prospective new entrants, Evolyn, Gemini and Trenitalia. It considers that Virgin Trains has the strongest prospects of making the best use of capacity at TMI, and says that its plans are more financially and operationally robust than those of other applicants. Virgin Trains also provided clear evidence of investor backing and an agreement in principle to deliver the necessary and appropriate rolling stock.

Virgin Group confirmed on October 30 that its order for 12 Alstom Avelia Stream high-speed trains will be funded by European infrastructure investor Equitix. Funding of the new operating company will be led by Virgin Group, alongside Equitix and Azzurra Capital.

ORR says that its decision unlocks plans for around £700m of investment in new services and the creation of 400 new jobs, which it says is “a win for passengers, customer choice, and economic growth.”

Virgin says that its new services are on course to launch in 2030, running from London St Pancras to Paris Nord, Brussels Midi and Amsterdam Central, “with ambitions to expand further across France, and into Germany and Switzerland.” With depot access approved and the funding consortium in place, Virgin will now finalise a depot access agreement with Eurostar proceed with the final stages of rolling stock procurement and financing.

As well as concluding a commercial agreement with Eurostar as operator of TMI, Virgin Trains must also secure track and station access in Britain, France, Belgium and the Netherlands, as well as safety certification and rolling stock authorisation in Britain and the European Union (EU).

A Eurostar spokesperson told IRJ that the company would appeal ORR’s decision, while confirming that its plans to invest €2bn in up to 50 Alstom Avelia Horizon high-speed trains will proceed. “We’re not going to change course,” said the spokesperson.

Announcing a firm order for 30 new trains and an option for 20 more on October 22, Eurostar also said that it would invest €80m to maintain the new fleet at TMI. The spokesperson told IRJ that other options are now under consideration, including the adjacent Orient Way stabling facility, currently used by British operator Greater Anglia.

ORR says that in reaching its decision it took into consideration Eurostar’s growth plans. It also points out that Virgin Trains will need to secure access to heavy maintenance facilities, as this is not covered by the 1993 Railways Act in Britain.

“Temple Mills has been a critical bottleneck in the process to launching a new cross-Channel service, so today’s news is a significant milestone for Virgin and a pivotal turning point for international rail,” says Phil Whittingham, project leader for Virgin Group. 

“Allowing Virgin Trains to share this vital facility will give passengers greater choice, better value and improve connectivity for millions, as well as drive innovation, lower fares and promote greener connections with Europe,” says rail minister, Lord Peter Hendy.

“While this decision is an important first step, we recognise there is significant interest in this and 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.”

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