HS2 Launches Euston Tunnel: £41B Boost & 34,000 Jobs Confirmed

HS2’s Euston tunnel project launches with a 1,624-tonne TBM, promising £41 billion to the economy and 34,000 jobs, signaling renewed commitment.

January 27, 2026 8:39 pm

🛑 Key Takeaways:

HS2 has officially commenced tunnelling on the critical 4.5-mile section connecting Old Oak Common to the central London terminus at Euston.
The Euston development is projected to add £41 billion to the economy by 2053, supporting 34,000 jobs, with the first of two 1,624-tonne tunnel boring machines now active.
This milestone signals renewed government commitment to the full London-Birmingham route, aiming to restore confidence in the project’s delivery amid a “comprehensive reset” led by HS2 Ltd’s CEO.

LONDON, UK – HS2 Ltd has activated the first of two tunnel boring machines (TBMs) for the 4.5-mile high-speed rail link between its Old Oak Common and Euston stations. The Department for Transport (DfT) called the launch a “key milestone,” reinforcing its commitment to the central London terminus as the project undergoes a “comprehensive reset” to control costs. This move is part of a wider government rail investment strategy that includes a £45bn funding cap for Northern Power Rail.

Category	Specification / Detail
Project Segment	HS2 Phase One: Old Oak Common to Euston Tunnel
Tunnel Length	4.5 miles (7.2 km)
Economic Projections	£41 billion added to economy by 2053; 34,000 new jobs (Euston development)
TBM Specification	‘Madeleine’, 1,624 tonnes
Contractor JV	Skanska Costain STRABAG (SCS JV)
Key Stakeholders	Department for Transport (DfT), HS2 Ltd, Euston Delivery Company, Camden Council

Operational & Technical Details

The TBM, named ‘Madeleine’, will excavate and construct the tunnel simultaneously. It will install over 8,000 pre-cast concrete segment rings, manufactured in Hartlepool. A second TBM will follow to construct the parallel tunnel. The Skanska Costain STRABAG joint venture (SCS JV) is managing the operation.

Logistics for the tunnel drive are heavily rail-based. Both the tunnel segments and the 1.5 million tonnes of excavated material will be transported by rail via a dedicated logistics hub. This strategy is designed to remove over 70,000 lorry journeys from local roads. The launch follows the completion of 23 miles of tunnels and 19 bridges elsewhere on the Phase One route.

Market Impact Analysis

The start of the Euston tunnel provides a crucial signal of stability for the HS2 project, particularly for the supply chain represented by the Railway Industry Association (RIA). The public launch, attended by senior government and transport officials, serves to counter previous uncertainty surrounding the Euston terminus. It reinforces the business case, which links the station’s redevelopment with significant commercial and residential growth, projected to add £10 billion to the West London economy over the next decade.

The creation of a new Euston Delivery Company will decouple the complex station and property development from HS2 Ltd’s core railway construction mandate. This move aims to streamline delivery and attract private investment for the integrated transport hub, which includes upgrades to the existing Network Rail and London Underground stations.

FAQ: Quick Facts

What is the main economic value of the Euston development?

According to estimates from Camden Council, the mix of new homes and commercial development at Euston is projected to add £41 billion to the UK economy by 2053 and support 34,000 new jobs.

When is the expected completion date for the Euston tunnel?

The provided information does not specify an expected completion date. The announcement focuses on the commencement of the work as a key milestone in the project’s progress.