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Raking it in

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Nicola Shaw, chief executive of the Channel tunnel rail link ‘operator’ HS1 Ltd, expects the company to ‘rake in well in excess of £300 million in 2015 due to rents and revenues from retailers at stations’, the Daily Express reported.

[Channel Tunnel rail link back on track, says chief executive, Ravender Sembhy, Daily Express, October 5, 2014]

[The Channel tunnel rail link] carries more than 50 million ­passengers each year. However, the firm is not expected to turn a profit until 2025 and ­Ontario and Borealis will likely receive a £50 million dividend this financial year. Ontario and Borealis paid £2.1 billion in 2010 for a 30-year concession but the firm has about £2 billion of debt.

Shaw said: “We’re a cash generative business and it is important that this is on an upward trajectory. This helps keep the debt under control.”
[…]
Ontario is expected to bid to run HS2 when it is put out to ­tender. Shaw also said that a new theme park, London Paramount Entertainment Resort, which will be linked to HS1’s Ebbsfleet station, will boost the local economy ­further, creating some 27,000 jobs. The 872-acre site will open in 2018 at a cost of £2 billion.

HS1 Ltd tax avoidance story from the Independent newspaper, 24 Oct 2013

HS1 Ltd receives ~£10 subsidy per domestic passenger, so each trip costs the public purse around four times the GB average for a train journey. If HS2 were built, one could conservatively estimate an additional rail subsidy requirement of around £500 million per year, and expect a similar bundling up of Euston property assets.

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Written by beleben

October 6, 2014 at 2:14 pm

One Response

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  1. So HS1 needs rents and revenues from retail to keep afloat in addition to the subsidy it receives from the state for the commuter services. Of course HS2 will not have any revenue from short distance commuter services to London because there aren’t any suitable station pairs.

    johnma

    October 7, 2014 at 1:50 pm


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