Virgin Group, led by British billionaire Richard Branson, is aiming to raise £700 million (approximately $900 million) to fund its ambitious bid to launch cross-Channel rail services. The goal is to directly compete with Eurostar, which has dominated the high-speed rail route between the UK and continental Europe for over 30 years.
The company plans to connect London with Paris and Brussels, with future expansions potentially extending to Amsterdam. To finance this project, Virgin intends to secure £300 million in equity and £400 million in debt. This plan was confirmed by Virgin Group in a statement to Reuters, following an initial report by the Financial Times. The company also emphasized that it would act as a cornerstone investor in the project.
Virgin’s proposed service would operate with high-frequency trains, positioning it as a direct competitor to Eurostar’s existing network. The company has outlined a potential launch as early as 2029, though it has clarified that no commitment has been made to the launch yet.
A Virgin Group spokesperson noted in a statement to Reuters, “The cross-Channel route is ripe for change and would benefit from competition.” The spokesperson added, “While Virgin is not committing to launching a service just yet, we are seeking investment from likeminded partners to invest alongside Virgin and we are delighted with the progress made so far.”
Eurostar, responding to the news, expressed its support for increasing rail services in Europe. The company highlighted that, “Competition in the high-speed rail sector is another example of the growing demand for rail transport in Europe,” according to The Financial Times.
While Eurostar did not respond directly to Reuters’ request for comment, its welcoming stance reflects the broader trend of growing investment in European rail infrastructure.
If successful, Virgin Group’s venture could shake up the European rail market, challenging Eurostar’s long-standing dominance and responding to the growing demand for fast, sustainable travel options across the continent.
References:
- Reuters
- Financial Times
Virgin Express Train Picture by British Rail on Wikimedia
