Is the Channel tunnel in debt?

The construction of the tunnel massively overspent, incurring large debts. For its first 15 years, Eurotunnel lost money: traffic numbers were half the optimistic projections, and revenues from the tunnel were never enough to meet debt repayments from the construction.



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At €1.049 billion, Eurotunnel revenue saw an increase of 63% at a constant exchange rate, a level never before seen for this business. Revenue from the Shuttle business increased by 53% to €732 million compared to 2021, in a context marked by the return of tourist traffic, thus confirming people's appetite for travel.

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The project was financed entirely by private sector capital, including five banks who were part of the TransManche Link consortium. Financing originated partly from investment by shareholders and partly from GBP8 billion of debt (about USD12. 2 billion, 1994 prices).

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At €1.049 billion, Eurotunnel revenue saw an increase of 63% at a constant exchange rate, a level never before seen for this business. Revenue from the Shuttle business increased by 53% to €732 million compared to 2021, in a context marked by the return of tourist traffic, thus confirming people's appetite for travel.

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The typical Eurotunnel Train Driver salary is £44,322 per year. Train Driver salaries at Eurotunnel can range from £28,298 - £53,034 per year.

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For a few worrying months, with lockdowns in places and travel quarantines required for most, the high-speed train service was operating a single service a day to Paris and Brussels from London, provided mainly for key workers. In 2019, the last “normal” year of travel, Eurostar recorded a healthy £62.4m profit.

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The lining of the tunnel is designed to last for 120 years. 18. It takes around 35 minutes to travel the length of the Channel Tunnel.

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Soon after the start of operations, Eurotunnel reached a delicate financial situation which resulted from the escalation of construction costs, a large overestimation of the cross-Channel market and the underestimation of the cross-Channel ferry operators' competitive response which led to a very damaging price war.

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The tunnel does leak, but it is designed to. Seawater from the rocks above the tunnel drips through and is then pumped away.

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The accounts - for the year to Dec 31, 2021 - reveal the company racked up pre-tax losses of £305m as Covid continued to hamper travel. A spokesman for Eurostar said: “The business has continued to grow and rebuild throughout 2022.”

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Ticket prices can increase over time as the day of travel gets closer as the amount of space available on our shuttles decreases. To book the best fares, we recommend booking as early as possible in advance.

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Strong cash generation has enabled Eurostar Group to repay €127m of debt and at the end of December 2022, total debt stood at €964m. We have turned the page on the COVID crisis and are now moving towards a new chapter of building the new Eurostar Group, bringing Eurostar and Thalys together”, says Gwendoline Cazenave.

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Although the government thought higher profits could increase the price tag, it decided to sell to avoid uncertainty and risks. However, the timing was “primarily driven by the desire to sell prior to the 2015 general election”, said the NAO.

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The carriage is lit and there are toilet facilities available. You can get out and walk around, but there is nowhere to go. Toilets are fine. You mustn't smoke or take flash photos because they have smoke and flash detectors that are very sensitive and can stop the train.

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