Philip Hammond invites bids for High Speed rail route

The Government kicked off its cash-raising sale of British infrastructure today, starting an auction to sell off the High Speed 1 rail link between St Pancras and the Channel Tunnel which is expected to bring in more than £1.5 billion.

The transport assets look set to join Britain's Spanish-owned airports by falling into foreign hands.

France's Groupe Eurotunnel and Australia's Macquarie bank are expected to be among the leading bidders to win the 30-year contract to run the route and its stations, which include Ebbsfleet and Ashford in Kent.

Eurotunnel is expected to put in a consortium bid with the fund manager M&G and Goldman Sachs Infrastructure Partners investment fund.

The only British operator to have indicated any interest is Network Rail, the state-backed firm that runs the UK's tracks and stations, but its £23.8 billion debt makes a solo bid unlikely.

Departing chief executive Iain Coucher this month said the firm would "like to be involved in high-speed rail in some form".

High Speed 1, which cost £5.8 billion to build, is run by London and Continental Railways under the control of the Department for Transport.

The sale is expected to bring in a fees bonanza for the City's banks. LCR has hired Swiss bank UBS for advice, while the DfT is using Citibank.

The DfT said a winner would be announced by April next year.

Transport Secretary Philip Hammond added: "HS1 is a national success story and a world class railway operating to international standards. The money generated by this sale will make an early, significant contribution to the crucial task of reducing the public-sector debt."