British businesses to regain direct rail freight links to Europe

British businesses are set to gain direct rail freight links to mainland Europe following a government backed agreement to revive regular cross Channel intermodal services.

Announced on 25 February 2026, the deal will see Network Rail and its property arm Platform4 take long term control of the Barking Eurohub site in east London from Legal & General. The partners plan to unlock around £15 million of private investment to transform the site into a major international logistics hub.

The redevelopment will enable the return of regular intermodal freight trains through the Channel Tunnel, allowing containers to move seamlessly between rail, road and sea. British exporters could ship goods directly by rail to France, Germany, Italy and Spain, while imports such as fresh produce could travel straight into London and the wider south east.

Unlocking sustainable trade growth

At present, only a limited volume of bulk, single customer freight passes through the Channel Tunnel by rail, with most UK Europe trade moving by sea and onward by lorry. Reviving cross Channel intermodal services is expected to reduce congestion on key corridors including the Dartford Crossing and the M20 and M2, cutting emissions, traffic and road wear.

Rail Minister Lord Hendy described the agreement as a pivotal moment for the sector. “This deal is a huge opportunity to reinvigorate rail freight by paving the way for the return of regular services through the Channel Tunnel. 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.”

Industry Minister Chris McDonald said the investment would strengthen UK supply chains and support jobs by deepening trade links with the country’s largest export market in the EU.

For Network Rail, the move aligns with the transition towards Great British Railways, which will have a statutory duty to promote rail freight growth once established. Jeremy Westlake, the organisation’s Chief Executive, said securing Barking Eurohub was central to restoring regular cross Channel services and delivering a sustainable alternative to road haulage.

The site, located in the London Borough of Barking and Dagenham, is also expected to generate local economic benefits. Councillor Dominic Twomey said the project would strengthen industrial capacity, create jobs and build on links to international markets, including the wider Thames Freeport.

Rail Freight Group Director General Maggie Simpson OBE noted that the Channel Tunnel remains a strategically important but under utilised asset. She said the investment by Network Rail and Platform4 would help unlock renewed growth in international rail freight between the UK and Europe.

Rail freight volumes are already showing upward momentum, increasing by 5% in 2024 to 2025 compared to the previous year. Intermodal traffic rose by 4% between July and September last year compared to the same quarter in 2024. Forecasts indicate overall rail freight could grow by at least 3% annually to 2033.

By shifting more goods from lorries to trains, the Barking Eurohub scheme is positioned as both an economic growth catalyst and a decarbonisation measure, reinforcing the government’s wider reform agenda for the rail network and international connectivity.