Train operator looking at rival for Eurostar

A French transport group, Veolia Environment, has this month been in advanced talks about the introduction of high-speed train service that will rival SNCF and be the first service offered that will give the famous Eurostar cross-channel route some healthy competition. Veolia will be in partnership with an Italian rail firm, Trenitalia, to offer the new routes by the end of 2012 and take some of the monopoly that has long been owned by Eurostar services.

Veolia was already in talks earlier this with Air France-KLM over a high speed rail link between Paris and Amsterdam. The airline pulled out of the planning in October, forcing Veolia to look elsewhere. Neither the train operator nor the French transport group has officially confirmed the story to the press, but it is thought that nothing has yet been decided on where to go next.

A ruling earlier this month via a European directive announced that the French rail travel market must be open to competition so that they did not have a monopoly. So far only Trenitalia has applied for an operators license and are though to be hoping to launch a service that would run from Paris to Genoa and Milan.

All is not good with the opening of competitors to the French train market as those wishing to invest in the country have said that conditions are not favourable to foreign firms. Eurostar have also been slammed by Eurotunnel for reducing capacity on their routes in a bid to raise prices for seats. Bosses at Eurotunnel have said that this continued move would open up the route under the English Channel to other companies.