Regional Eurostar - Privatisation

Privatisation

Regional Eurostar services were never to run. At the same time as the Channel Tunnel was nearing completion British Rail was undergoing the long process of privatisation and regional Eurostar can be seen as a victim of it. Many had seen regional services as more a political than economic cause, a means of gaining support for the Channel Tunnel from areas of the UK outside the South-East. A Parliamentary Select Committee in 1999 said "The regions have been cheated". The economic case for merely the inter-capital services had been questioned from the outset but by the time the Channel Tunnel was opened in 1993 backing for regional services had already started to dry up. The British Rail subsidiary European Passenger Services (EPS), which was to undertake Eurostar operations jointly with SNCF of France and NMBS/SNCB of Belgium, took ownership of the NoL units in 1996 at the same time as it was under the process of being privatised and transferred to London and Continental Railways (LCR) who won the contract to build the CTRL and run Eurostar services.

Due to lower than forecast passenger numbers on the inter-capital services, by 1998 LCR was in financial trouble. As part of a new deal with the UK government in 1998 LCR sub-contracted its share of Eurostar operations, via Eurostar (UK), to InterCapital and Regional Rail (ICRR). As part of its bid ICRR stated that regional Eurostar services could not run without government subsidy, which the Department for Transport was unwilling to provide. The only other bidder to operate the UK share of the Eurostar operation for LCR, Richard Branson's Virgin Group, claimed it was willing to run regional Eurostar services at its own risk, however it subsequently informed the UK government that it too saw them as unviable. As part of its contract LCR was not legally required to start regional Eurostar services and by 1999 it was clear that they would not operate.

British Rail, via EPS, ran a token domestic service from certain locations around the UK into Waterloo station using HSTs allowing connection with onward Eurostar service between May 1995 and January 1997 but these were ended at the time of privatisation.