D.Bahn in talks on access to UK high-speed railway
Reuters: Jun 23, 2010
German state rail operator Deutsche Bahn AG is in talks with Britain about running its trains on the country's only high-speed railway, in a move that could break rival Eurostar's monopoly.
Mark Bayley, head of state-owned London and Continental Railways (LCR) said on Wednesday: "We are discussing several options with them (Deutsche Bahn)."
LCR operates the high-speed, 110km railway linking London and the Channel Tunnel. The British government is selling the concession to run the line, as part of moves to cut the budget deficit.
Deutsche Bahn has expressed interest in running direct rail connections between London and the continent following the liberalisation of the European cross-border rail passenger market at the start of the year.
Such a move could break the monopoly of rival Eurostar, which uses the line, called High Speed 1, and buoy the fortunes of Eurotunnel, the Channel Tunnel operator, which would also have to provide access for such services.
In April, Deutche Bahn clinched a 1.58 billion pound ($2.36 billion) takeover of British transport group Arriva to create Europe's No.1 passenger carrier, enlarging its footprint in rail, bus and logistics outside Germany.
CONCESSION SALE
Earlier this week, the British government launched the sale of HS1 Ltd, which has a 30-year concession to run the high-speed line and stations. People familiar with the matter have previously told Reuters High Speed 1 could fetch 1.5 billion pounds.
"High Speed 1 will not be sold unless the price is right," Bayley told Reuters on the sidelines of the Transfin 2010 conference in Barcelona, without commenting on what the right price would be. The sale process should be completed by March 31, 2011, he added.
Allowing speeds of up to 300 km per hour, the line is part of a European fast rail network linking the cities of London, Paris, Brussels, Cologne and Amsterdam.
Last week the European Commission conditionally approved a new single company structure for Eurostar, under which LCR will own 40 percent, French railway operator SNCF 55 percent and Belgian railway company SNBC 5 percent.
While a major driver behind the sale of HS1 is Britain's attempt to cut a budget deficit running close to 11 percent of national output, Bayley said the divestment would also be in line with a European trend of removing conflicts in rail.
"High Speed 1 will no longer feel any incentive to act in the interest of Eurostar. The European Union wishes to see regulators enforcing this principle of a separation of the commercial and management interests of infrastructure and operation," he said.