British businesses are set to benefit from a major revival in cross-channel rail freight, as the UK Government confirms a landmark deal unlocking a new era of direct rail links to mainland Europe.
Announced today (Wednesday 25 February), the Government-backed agreement will see Network Rail and its development arm Platform4 take long-term control of the Barking Eurohub site in east London from Legal & General. The partnership will drive around £15 million of investment to convert the site into a modern international logistics hub capable of handling regular cross-Channel intermodal freight services.
The move marks a significant step toward restoring routine freight traffic through the Channel Tunnel, enabling British companies to import and export goods by rail directly to France, Germany, Italy and Spain.
Industry leaders expect the project to expand trade opportunities for sectors such as Scottish whisky, white goods, and consumer products, while also enabling London food markets to receive fresh produce straight from European growers.
Beyond the commercial benefits, the shift from road haulage to rail is expected to reduce congestion and emissions on key routes in the South East, including the Dartford Crossing, M20, and M2 corridors—supporting Government ambitions for greener, more efficient rail logistics.
Government and Industry Welcome the “Huge Opportunity”
Rail Minister Lord Hendy said:
“It will boost British businesses by opening new trade links to Europe by delivering a faster and more sustainable way to transport goods to the continent and back.
“This is all part of our plan to use our railways to support economic growth and jobs.”
Minister for Industry Chris McDonald emphasised the importance for UK supply chains:
“This significant investment will strengthen UK supply chains and support jobs across the country by deepening trade links with our closest partner and biggest market in the EU.
“This project will help deliver more sustainable trade and build more reliable connections for the almost 100,000 UK businesses that export to the EU, while creating new opportunities for others here at home.”
Network Rail Chief Executive Jeremy Westlake highlighted the strategic importance:
“Freight is fundamental to the future of our railway, and this landmark agreement highlights the central role it will play as we transition to Great British Railways.
“By securing Barking Eurohub and unlocking more than £15 million of private investment, we’re putting in place the infrastructure needed to restore regular cross Channel intermodal freight services – supporting British businesses and trade, while also helping to protect our environment.”
Unlocking Underused Capacity Through the Channel Tunnel
Currently, only a small proportion of freight travels through the Channel Tunnel, and most of that consists of single-customer bulk shipments. The Barking Eurohub project aims to reverse this decline by creating a major logistics gateway that enables seamless modal transfer between rail, road, and sea.
Legal & General, the site’s outgoing owner, also welcomed the move.
Michael Barrie, Head of Real Estate (UK & Europe), said:
“Legal & General is pleased to let this strategically important site to Network Rail, helping bring the Barking Eurohub site into full use. This deal supports vital investment in UK rail infrastructure, unlocking cleaner, faster freight links with Europe and reinforcing the Government’s wider growth agenda.”
Rail Freight Group Director General Maggie Simpson OBE described the investment as pivotal:
“Rail freight has a huge role to play in supporting UK trade, and the Channel Tunnel is a vital strategic asset that is presently under utilised. This investment by Network Rail and Platform 4 is of huge importance and will help unlock renewed growth in international rail freight between the UK and Europe. We look forward to seeing new services start operating into the Barking Eurohub as this exciting development takes shape.”
Boost for London Borough of Barking & Dagenham
Councillor Dominic Twomey, Leader of the London Borough of Barking & Dagenham, celebrated the announcement:
“This deal between Legal & General and Network Rail is a big vote of confidence in Barking and Dagenham’s industrial strength. A revitalised freight and logistics hub at Box Lane will supercharge our local economy, support hundreds of businesses and create new opportunities for growth across the borough as well as London.
“Rail freight is forecast to grow at least 3 per cent per year until 2033, even as freight train movements have almost halved during the last 20 years. There is huge, untapped potential and we want to be at the heart of that growth.
“We welcome investment at this scale, and we’ll continue working closely with partners to ensure that this development delivers long‑term benefits for jobs, local businesses, and our residents.
“Future growth, it starts here.”
A Growing Sector With Room to Expand
The UK rail freight sector is already showing signs of renewed momentum, with freight volumes rising 5% in 2024/25 and intermodal traffic up 4% year-on-year in the July–September period.
The Barking Eurohub deal also aligns with wider government efforts to expand international rail connectivity for passengers, including recent bilateral agreements with Germany and Switzerland and industry work to enable new operators—such as Virgin—to enter the market.
Image credit: iStock
