Landmark Deal Paves Way for Return of Regular Cross-Channel Rail Freight

British businesses could soon gain direct rail freight links to the continent, as a landmark deal paves the way for the return of regular cross-Channel rail freight.

The government-backed deal, announced today (25 February 2026), will see Network Rail and its property development company Platform4 take long-term control over the Barking Eurohub site in east London, currently owned by Legal & General (L&G), with plans for around £15 million of investment to transform it into an international logistics hub.

This investment will help support the return of regular intermodal freight trains, which carry cargo in containers that can be easily transferred across rail, road and sea, through the Channel Tunnel.

This could see British businesses directly import and export goods via rail to France, Germany, Italy and Spain, deepening trade links with Europe and could open the possibility for Scottish whisky, British white goods and consumer goods to be exported on trains to European customers, or London’s bustling food markets to get fresh fruit and vegetables direct from growers on the continent.

It would also help to reduce congestion on the roads, leading to less pollution, less traffic and fewer potholes, particularly in the south-east at the Dartford Crossing and M20/M2 corridors. Growing rail freight is a key part of the government’s ambitions to reform the rail network. Once Great British Railways is established, it will have a statutory duty to promote rail freight use and the Transport Secretary will set growth targets.

Rail Minister, Lord Hendy, said:

"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.

"This is all part of our plan to use our railways to support economic growth and jobs."

Minister for Industry, Chris McDonald, said:

"This significant investment will strengthen UKsupply 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."

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 £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.

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

Not only would Network Rail’s plans for Barking Eurohub reinvigorate the rail freight industry, stimulate the economy and deliver jobs, it will also establish a major international logistics hub offering a sustainable alternative to move goods in and out of the UK by shifting freight from trucks to trains.

The rail freight industry is already growing under the government, with volumes increasing by 5% in 2024 to 2025, compared to the previous year. Plus, in July to September last year, intermodal traffic volumes increased by 4% compared to the same quarter in 2024.

The Barking Eurohub deal comes as the government continues to deliver on its plans to expand our international rail passenger connections with Europe, including signing landmark agreements with Germany and Switzerland and working with industry to pave the way for new competitors such as Virgin to launch services in the coming years.

Read the full press release below.