High-speed trains are a popular mode of transportation in the Amsterdam-Paris-London region, thanks to the Eurostar company. Despite this success, various investor groups are looking to introduce competing projects in the train sector, highlighting the complexity of creating price-reducing competition in this industry.
One such investor is Roemer van den Biggelaar, who fondly recalls memorable train journeys with his family from the Netherlands to Switzerland for a skiing holiday. Now, he aims to venture into the railway business at a large scale in northwest Europe.
Van den Biggelaar’s new company, Heuro, plans to offer high-speed connections from Amsterdam to Paris via Brussels from 2028. The company aims to add a connection to London as well. However, van den Biggelaar acknowledges that the complexity of the railway market poses unique challenges and requires numerous permits from various authorities.
The cities of London, Paris, Amsterdam, and Brussels present an ideal network for high-speed rail connections due to their proximity and large population centers. These cities offer a potential market for rail services to compete with airlines. While Eurostar’s current operations are successful, there is room for competition to address capacity constraints and high ticket prices.
Several other companies like Virgin and Evolyn are also looking to introduce new high-speed rail services in the region. This move draws parallels with the liberalization of the aviation sector in 1992 when private companies were allowed entry into what was previously a state monopoly. Today, private companies see an opportunity in the European rail market but face significant challenges such as navigating regulations, raising capital and managing operational costs.
Infrastructure constraints and high initial investments pose hurdles for new entrants in the railway market. However, some companies like Getlink have stepped up by offering financing support for new connections between London and mainland Europe. As investors remain cautiously optimistic about future growth opportunities in high-speed rail travel within northwest Europe.
