Virgin looks to raise £700m to fund Eurostar rival

The ambitious project seeks to connect London with Paris and Brussels, eventually extending to Amsterdam

Virgin, which used to operate intercity train services in Britain, plans to launch services that would connect London with Paris and Brussels (PA Archive)

Richard Branson's Virgin Group is aiming to challenge Eurostar's dominance with a £700 million fundraising effort to launch its own cross-channel rail service.

The ambitious project seeks to connect London with Paris and Brussels, eventually extending to Amsterdam.

Virgin, which previously operated intercity train services within Britain, plans to secure £300 million in equity and £400 million in debt, confirming a report that initially appeared in the Financial Times.

The group also intends to be a primary equity investor in the venture.

This high-frequency service, slated for a potential 2029 launch, would mark the first direct competition to Eurostar's three-decade-old network.

Richard Branson's Virgin Group is aiming to challenge Eurostar's dominance (Virgin media)

"The cross-Channel route is ripe for change and would benefit from competition," a spokesperson said in an emailed statement.

"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," the company said.

Eurostar told the FT it welcomed the development of rail services in Europe, adding that "competition in the high-speed rail sector is another example of the growing demand for rail transport in Europe."

Eurostar did not immediately respond to a Reuters request for comment.