Ben Webster, Transport Correspondent
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Germany is seeking to buy Britain’s share of Eurostar in a move that would leave the high-speed international train service entirely under foreign control. Passengers could benefit from direct services between London and several new continental destinations, including Cologne, Frankfurt and Amsterdam.
Deutsche Bahn (DB), Germany’s state-owned railway, may also use Eurostar trains to operate a rival service through the Channel Tunnel, with competition resulting in cheaper tickets to Paris and Brussels. But the Government, which is preparing to sell the third of Eurostar that it controls, would lose the ability to influence the development of the rail link to the Continent.
DB has plans to be the dominant rail operator in Europe and already operates high-speed services between Germany and 80 foreign cities in cooperation with state-owned railways in France, Belgium, Denmark, the Netherlands, Switzerland and Austria.
Over the past 18 months, it has quietly bought several British train companies that carry a total of 30 million passengers a year. DB owns Chiltern, which runs between London Marylebone and Birmingham, and half of London Overground, which operates on the North London Line and will serve the extended East London Line from next year. It also runs two thirds of Britain’s goods trains through its purchase of EWS, the biggest British rail freight company.
DB believes that Eurostar is being run very inefficiently and is failing to take advantage of opportunities to expand its services. From 2010, train companies will have the right to run services across the European Union without needing special agreements with member states.
Passenger numbers on Eurostar have increased from 6.6 million in 2002 to nine million this year but are still far below the 20 million predicted in the mid1990s when the Channel Tunnel Rail Link was approved.
DB hopes to persuade Geoff Hoon, the Transport Secretary, that it will operate a more efficient service through the Channel Tunnel by drawing on its experience in Germany of integrating trains with other modes of transport. German rail passengers can book an entire journey on just one web-site and with one ticket and can even arrange for an electrically assisted bicycle to be waiting for them at the station.
Andreas Hamprecht, the company’s head of international business, said that it was interested in running international services through the Channel Tunnel and also expanding in any country willing to sell part of its railway. DB’s self-proclaimed objective is to “become the world’s leading passenger and logistics company”.
It is unclear how much Britain’s one-third share of Eurostar is worth but DB will make clear to Mr Hoon that the price would be much lower if he allowed France to take greater control of the company in a proposed restructuring. SNCF, the French state railway, owns 62 per cent of Eurostar, and SNCB, the Belgian state railway, owns the other 5 per cent. It is this ownership structure with duplicated management roles that is the cause of much of the company’s inefficiency.
DB would either run Eurostar in cooperation with SNCF and SNCB or run an alternative service using the 11 186mph trains owned by the Eurostar’s British arm. It already cooperates with SNCF on services between Paris and Frankfurt and Paris and Stuttgart. Fares for these services are about half the price of a similar type of ticket on Eurostar. DB offers a €39 (£35) Europa-Spezial ticket for a one-way journey across its existing international high speed network.
The Government effectively owns Eurostar UK through its controlling stake in the parent company, London & Continental Railways.
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In Germany DB has a very bad reputation, i am amazed by all these comments praising it.Compared to the UK where punctuality is improving every year, DB seems terrible.They have concentrated on the business traveller in the time of economic crisis. If you think British trains are bad, u should see DB
ian martin, Berlin, germany
Eurostar needs a massive shake up. It's over priced, only rewards loyalty at the top end. Empty trains don't stop at Calais/Ashford at good times, full trains stop at the the wrong times. Each train could stop at each station and still be a fast service. Fr/Belg cust services great, St P. rubbish
Peter, Hesmond, France
Once again the Government is selling, or considering selling off the family silver for a mess of pottage. To see what this means for UK consumers just compare the recent price increases EON and especially EDF made for electricity supplied to their UK customers compared with their home markets.
Daniel Cramer, Welwyn, UK
EuroStar fares are high because trains have to pay very high track access charges in the Channel Tunnel and CTRL , to cover construction costs. In France and Germany, construction costs of High Speed lines have been paid by the tax payer. It does not mean anything about the efficiency of operators
Denis, Paris, France
186mph? ... oh you mean 300km/h Now that's more like it!
Peter GODDARD, Epsom, England, EU
If you've ever travelled by train in Germany, you'll know the Germans are very efficient? They know how to run a railway with sensible & cheap fares. As a rail agent I'm glad Eurostar will be backed by such an efficient rail company. Perhaps one day instead of flying Eurostar we'll travel it again!
Philip Barnard, London, England
It's ridiculous that after 14 years of trains to the continent, we still have no direct connections to germany or the netherlands. If it needs DB to push for this, and make it work, then all well and good. Just relax the tunnel "safety" requirements, and the over-strict constraints on train-stabling
Tom, Cambridge, UK
I'm English, live in Germany and just love the way that Germans operate their rail system.
It gets me from A-Z when it says it will and even if it's 2 minutes late the Germans around me roll their eyes and tut while I giggle at how lucky they are that there actually is a train at all.
Matt, Munich, Germany
Eurostar will never become profitable whilst it attempts to charge passengers more than the airlines. It is cheaper to take the car over on a day trip than to buy a single seat on the train. And why virtually close Ashford International?
Ian SISLEY, Arras, F
next is buckingham palace
fantastic
saud, riyadh, saudi arabia
If the carrot is connection to more European destinations, I am all for it.
Jagadish, Bromley, England
Nobody could run our railways any less competently than the assortment of bus companies that are currently in charge. It is such a shame that there is no British company strong enough or experienced enough. Another consequence of the rail privatisation fiasco
Richard, Bexhill, UK
Enough of selling off UK assets for foreign profit. Shut the link down and demolish it
Dave, Chorley,
Good.
Thomas C, Paris, France
Hooray! Best news I have heard for weeks! Please, please GB Government, sell this wastrel company to the Germans tomorrow. Maybe my Travel Company, Trainseurope Limited will actually start to make a decent profit because we will get more sensible fares across Europe with German control.
David Gunning, March, England
If Britain's railways were as fast, punctual and inexpensive as Germany's, it would be a major improvement. Perhaps Deutsche Bahn can be persuaded to buy the First Group or someone as well.
Andrew, London, UK
The Germans are far more efficient and pragmatic than the UK want to or will ever be. Let them do the job and let's get some proper public transport for a change. We all know it will never happen with the English in charge...
HKuiper, London, UK
Let Germany buy all our railways. Maybe then they will run on time.
Chris, London, UK
Britiain is rapidly losing its income generating industries to other coumtries however when the EU finaly becomes the USE it will matter no more than a company run by Irish Scottish Welsh Welsh or English owners just as in the USA.
Michael W, TELFORD, UK
Let a country which knows how to run railways (Germany, France) do the job. They have proved, over the years, to be much better at it than the antiquated , stick in the mud English.
Harry F, Leicester, United Kingdom
Years of under-investment has rendered the UK Rail industry incompetent, - we dont know how to look after the family silver anymore, it would be better off in someone elses hands.
Jeremy, Chippenham, UK
Hey - it's not "the Germans" who want to take over Eurostar, it's that German Rail terrier-CEO Mehdorn who want's to be the world's biggest logistics chief - or possibly the world's biggest anything. And to this end he saves on wages and customer service, and tries to raise ticket prices regularly.
Sibylle, Essen, Germany
Let them in.
Germans do good railway.
Eurostar : overpriced, complicated and disappointing from the outset.
Non German national, unbiased assessment.
Nick West, Berlin, Germany
Do not sell off the 'Family Silver', is my view.
EuroStar will eventually become profitable. We have already seen other European companies taking over our Energy supppliers and the bottom line is that we will end up subsidising their home markets if we sell up. Enough is Enough.
Mike_L, Manchester, UK