Controversial plans for the £750m Hinckley National Rail Freight Interchange (HNRFI) in Leicestershire have hit the buffers after Transport Secretary Heidi Alexander refused planning permission this week.

The decision will come as a blow to developer Tritax Big Box Developments and to Maritime Group which signed an exclusive agreement with Tritax in May last year to develop, lease and operate the 40-acre Strategic Rail Freight Interchange.

Tritax Symmetry had estimated that, once in operation, the rail freight interchange would be capable of handling 16 trains per day when fully operational and would create around 8,000 jobs.

The developer said that at full capacity, the scheme would remove more than 83 million HGV miles from the UK road network, saving around 70,120 tonnes of CO2 each year.

The hub, which was to include 850,000sqm of warehousing, was to be situated on countryside southwest of Elmesthorpe. The area lies between the M69 and Leicester to Birmingham train line.

However the development was refused planning permission on the grounds that its expected benefits were outweighed by the potential negative impacts.

Whilst Alexander recognised there was a “compelling need” for the development nationally and in south west Leicestershire, she said there were concerns that nearby junctions on the M69 would be unable to cope with an increase in lorrys using the complex.

Another concern cited by Alexander was a “potential highways safety risk” in Sapcote. She also questioned the impact that the proposed 775-metre long trains would have at the level crossing at Narborough.

Tritax greeted the ruling with disappointment and said it was seeking legal advice.

Councils and MPs who opposed the development welcomed the decision.

Leicestershire County Council’s cabinet member for highways and transport Ozzy O’Shea said: “This is a landmark day.

“Whilst we are not against the principle of a rail freight interchange, any proposal must be supported by appropriate infrastructure to mitigate its impacts on our communities and highway and transport network.

“Unfortunately, this was not the case with this proposal.”

South Leicestershire MP Alberto Costa said: “All the hard work of campaigners has paid off.”

A Tritax spokesperson said: “We are seeking legal advice on the next steps available to us and will review our position when that advice is received.

“We remain committed to delivering critical supply chain infrastructure that is key to the UK economy, with rail freight connectivity a key driver of the modal shift in the sector.”