Virgin Group has been given the regulatory go-ahead to move forward with plans to operate a new international train service 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 maintaining and servicing trains operating to continental Europe. The landmark decision removes one of the final barriers to entry and puts Virgin firmly on track to challenge Eurostar’s long-standing monopoly on cross-Channel travel.
Sir Richard Branson, founder of Virgin Group, welcomed the ruling as a win for passengers and for competition. “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,” he said. “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.”
Virgin has also unveiled its investment partners for the new venture, confirming Equitix and Azzurra Capital as part of the funding consortium. Equitix, one of Europe’s leading infrastructure investors with a strong track record in rolling stock financing, will fund the train fleet. Virgin Group will lead funding for the operating company alongside Equitix and Azzurra Capital, the private equity firm founded by Stefano Marsaglia and Jorge Delclaux, known for backing high-growth companies in partnership with leading entrepreneurs.
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