British businesses could soon regain direct rail freight access to mainland Europe, following a government-backed agreement to transform the Barking Eurohub site in east London into an international logistics gateway.
Announced on 25 February 2026, the deal will see Network Rail and its property development arm, Platform4, take long-term control of the site from Legal & General. More than £15 million is set to be invested to upgrade the facility and enable the return of regular intermodal freight services through the Channel Tunnel.
The plans would allow containerised goods to move directly between Britain and destinations in France, Germany, Italy and Spain by rail. For exporters, that could mean Scottish whisky, British white goods and other consumer products travelling straight to European markets. For importers, it could enable fresh produce and other goods to reach UK customers more efficiently.
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.”
Currently, only a small proportion of UK rail freight uses the Channel Tunnel, largely restricted to bulk traffic for single customers. Most cross-border freight travels by sea before continuing by road within Britain. Reviving regular intermodal rail services would help reduce lorry traffic, particularly on key south-east corridors such as the Dartford Crossing and the M20 and M2, easing congestion and cutting emissions.
Minister for Industry Chris McDonald said:
“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.”
The move also aligns with wider rail reform. Once established, Great British Railways will have a statutory duty to promote rail freight, with growth targets set by the Transport Secretary. Freight volumes are already rising, up 5% in 2024 to 2025 compared with the previous year, with intermodal traffic up 4% in the July to September quarter.
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.”
For Legal & General, the agreement unlocks a strategically significant site. Michael Barrie, Head of Real Estate (UK and 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.”
Industry bodies have long argued that the Channel Tunnel remains underused for freight. Maggie Simpson OBE, Director General of the Rail Freight Group, said:
“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 Platform4 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.”
Local leaders have also welcomed the move. Councillor Dominic Twomey, Leader of the London Borough of Barking and Dagenham, said:
“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. It builds on the firm foundations of our incredible industrial infrastructure, strengthens our links to international markets and adds the momentum to the wider Thames Freeport.
“Rail freight is forecast to grow at least 3% 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.”
Alongside the freight push, the government is also pursuing expanded international passenger rail links, including agreements with Germany and Switzerland and support for new operators seeking to launch services. Together, these moves signal a renewed focus on using rail to strengthen Britain’s economic ties with Europe while reducing reliance on road haulage.
