'Win for passengers' as Virgin clears first step to run Channel Tunnel trains to rival Eurostar

Virgin has cleared the first step in its plan to launch a rival Eurostar service.

The company, owned by billionaire Sir Richard Branson, has been granted access to share Eurostar's Temple Mill international depot in east London. The decision, by the rail regulator, the Office of Rail and Road (ORR), is an important first step towards operating cross-border train services via the Channel Tunnel.

Sir Richard has described it as "the big hurdle that we had to get through" in the process. Access to the depot means Virgin can maintain and store trains.

Money blog: Major bank loses 23,000 customers to rivals Additional regulatory approvals are necessary, however, and Virgin Trains will require track access and a safety go-ahead before it can start international services. The company says it wants to run trains between London's St Pancras station and the city centres of Paris, Brussels and Amsterdam in 2030.

It's also in discussions with France's busiest airport, Charles de Gaulle, about running trains there. Sir Richard said he hoped to recommence occasional services between London and Disneyland Paris.

There are "ambitions" to expand "further across France, and into Germany and Switzerland". Eurostar stopped running direct trains to the theme park in 2023.

Other train operators had sought access to the depot and were denied. Eurostar, who currently run services, had sought to expand its access but was turned down.

Read more:Car finance redress scheme threatens UK jobs, bank warnsOfgem to wipe millions of debt with slight increase to bills The ORR said the announcement was a win for passengers, customer choice, and economic growth. "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," it added.

This competition will bring down prices, Sir Richard said. Passenger rail services on the high-speed line have been a monopoly since it opened in 1994.

The tunnel is only used at roughly 50% capacity, despite accommodating the LeShuttle vehicle-carrying trains between Folkestone in Kent and Calais in northern France..