A government-backed deal that aims to bring back regular Channel train freight services will allow British businesses to once again ship goods directly by train to mainland Europe. The arrangement, which was announced on February 25, 2026, will give Network Rail and its property development subsidiary Platform4 long-term control of the Barking Eurohub site in east London from Legal & General (L&G). The partners want to spend about £15 million to turn the facility into an international logistics hub that can handle cross-Channel intermodal operations through the Channel Tunnel.
Currently, just a small amount of rail freight goes through the Channel Tunnel. Most of it is bulk shipments for one customer. Because of this, most of the traffic between Britain and Europe goes by water before moving inland by road. The reconstruction of the Barking Eurohub is set to breathe new life into the rail freight industry, boost the economy, and create jobs, all while creating a long-term way to move goods in and out of the UK. The government’s larger plan for rail reform includes expanding cross-channel rail freight. Once Great British Railways is up and running, it will assume the duty of promoting the use of rail freight, with the Transport Secretary establishing growth goals.
The projected upgrade should make it possible for regular intermodal freight trains to run again, which would let containers move easily between rail, road, and sea. Bringing back Channel train freight lines would let British businesses import and export goods directly by train to France, Germany, Italy, and Spain. This would boost commercial ties with European markets. The new service might make it possible for Scottish whiskey, British white goods, and other consumer items to be sent by rail to clients all throughout Europe. At the same time, London’s food markets may be able to acquire fresh fruits and vegetables directly from European growers. The goal of the project is also to reduce pollution, traffic, and road wear by moving more freight from vehicles to trains. This will help lessen congestion on important roadways in the southeast, such as the Dartford Crossing and M20/M2 roads.
Rail freight volumes have been going higher, going up by 5% from 2024 to 2025 compared to the year before. Intermodal traffic went up 4% between July and September of last year compared to the same time period in 2024. The Barking Eurohub deal is part of a larger initiative to improve international train connections. This includes major agreements with Germany and Switzerland and preparations for new companies like Virgin to enter the market. These steps indicate a new effort to bolster cross-channel rail freight traffic and overall the UK-Europe rail ties.
