The extension of the West Coast Main Line franchise will allow Virgin Trains to operate throughout the 2012 Olympics, a great opportunity – but one that also brings challenges.

They have been tasked to introduce three new trains, as well as lengthening 31 existing train with extra carriages, all before the end of next year.

If Virgin Trains succeeds in delivering these results, and hits the required DfT revenue targets, it could be prove itself to be in good shape if it then wins the subsequent long-term franchise for the West Coast Main Line, which lasts until 2026, and would allow the operator more freedom to provide further improvements.

With demand on the railways set to continue increasing, extra capacity on currently busy lines must be created, with or without the addition of high speed rail.

The benefit to the rail industry could be huge if it can keep up with the surge of passengers.