London St. Pancras Highspeed (the new trading name of HS1 Ltd) has unveiled a groundbreaking incentive scheme for new and existing international train operators to accelerate the growth of rail travel from London to Europe on the UK’s only high-speed railway.
The International Growth Incentive Scheme will encourage train operators to introduce new services, launch new destinations, connect intermediate stations, deploy new rolling stock and increase passenger volumes.
Train operators who qualify will be entitled to discounts of up to 50 per cent in year one, 40 per cent in year two and 30 per cent in year three on the Investment Recovery Charge (IRC) which is paid to run services on the line, plus an incentive to grow passenger volumes.
Currently the high-speed line which runs from London St. Pancras to the Channel Tunnel in Folkestone operates at 50% capacity.
London St. Pancras Highspeed wants to maximise the number of international services to drive growth, offer greater choice and lower fares to passengers, to increase sustainable tourism, and provide a valuable boost to the UK economy.
The International Growth Incentive Scheme is available to all international high-speed passenger service operators using and proposing to use the high-speed line and has two parts:
- New Services Incentive, offering a discount on the IRC for new train services, launching new destinations and intermediate stations, and deploying new rolling stock.
- Passenger Incentive, offering a rebate equivalent to £1 for every additional passenger carried above previous levels. This is to be paid into a joint fund to support marketing and other activities aimed at growing passenger demand.
The proposals come amid plans to more than double international passenger capacity at St. Pancras station to nearly 5,000 passengers per hour to accommodate the expected growth over the next decade and beyond.
Robert Sinclair, CEO of London St. Pancras Highspeed, said: “The International Growth Incentive Scheme is an innovative and groundbreaking proposal designed to boost international rail travel with more services to more destinations in Europe.
“We are enabling operators to expand their services, increase the network of destinations they serve and invest in new rolling stock “
“Our ambition is to make rail the preferred mode of travel to Europe, and we know that high-speed rail can reduce carbon emissions by up to 96% compared with flying.
“We believe this will boost the UK’s economic growth and contribute to our national effort to cut carbon.”
Public demand for international train travel is growing with 60% of Londoners* supporting a ban on short-haul flights where high-speed rail alternatives exist.
London St. Pancras Highspeed recently signed a Memorandum of Understanding with Eurotunnel to work jointly on measures to reduce journey times, improve timetable coordination, and incentivise more trains and new routes.
The proposed International Growth Incentive Scheme has been published today for consultation with operators and the Office of Rail and Road (ORR). The scheme is set to commence on Friday, 30 May, subject to the outcome of the consultation.
Image credit: iStock
