Government reveals £15m plan to boost cross-Channel rail freight and cut road congestion

The deal, announced today (25 February), will see Network Rail and its property development firm Platform4 take a long term lease of the Barking Eurohub site in east London, currently owned by Legal & General (L&G) and managed by DB Cargo, and pump in around £15m of investment to transform it into an international logistics hub.

The Barking Eurohub is the only intermodal facility in the UK able to handle freight cars with European dimensions. Network Rail aims to upgrade the site into an international logistics hub, which will include lengthening tracks to handle trains of up to 700 meters.

Announcing the plans, the government said the investment will support the return of regular intermodal freight trains, help British businesses directly import and export goods via rail to France, Germany, Italy and Spain, deepen trade links with Europe and help reduce congestion on the roads, particularly in the South East at the Dartford Crossing and M20/M2 corridors.

Currently, only a very small proportion of rail freight passes through the Channel Tunnel, and this is limited to bulk, single customer orders. Most freight between Britain and Europe travels via sea, with goods then moving onwards through Britain via roads.

Rail Minister Lord Hendy, said the deal was a “huge opportunity” to reinvigorate rail freight, paving the way for the return of regular services through the Channel Tunnel.

He added: “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.

Minister for Industry, Chris McDonald, said the move will strengthen UK supply chains, deepen trade links and boost jobs across the country. “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,” he commented.

Jeremy Westlake, Network Rail’s chief executive, said: “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 £15m 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.”

Maggie Simpson, Rail Freight Group director general, said the Channel Tunnel is an “under utilised” vital strategic asset. “This investment by Network Rail and Platform4 is of huge importance and will help unlock renewed growth in international rail freight between the UK and Europe,” she explained.

According to government data, rail freight volumes increased by 5% in 2024 to 2025, compared to the previous year, whilst intermodal traffic volumes increased by 4% between July and September last year, compared to the same quarter in 2024.

The government has a strategy to grow rail freight. Once Great British Railways is established, it will have a statutory duty to boost the use of rail freight, with the Barking Eurohub playing a key role in helping it deliver that goal.