UK Government Secures Landmark Deal to Restore Cross Channel Rail Freight Services Through the Channel Tunnel Linking Barking in East London with Major European Cities

For years, most goods moving between Britain and mainland Europe have taken the long way round — by ship and then by lorry.

That may be about to change.

On 25 February 2026, the UK government confirmed a deal that could bring back regular rail freight services through the Channel Tunnel.

It’s being described as a turning point — not just for the rail industry, but for British exporters, logistics firms and communities affected by heavy road traffic.

At the heart of it all is a site in east London that’s about to get a second life.

The Barking Eurohub: A Strategic Piece of the Puzzle

The agreement hands long-term control of the Barking Eurohub site to Network Rail and its property arm Platform4.

The land, previously owned by Legal & General, will now be transformed into an international logistics hub backed by roughly £15 million in private investment.

Barking might not sound glamorous, but location is everything in freight.

Positioned near major road corridors and rail connections in east London, the site is ideally placed to link domestic rail routes with services heading through the Channel Tunnel.

If plans move forward as expected, intermodal trains — those carrying containers that can shift seamlessly between ships, trains and lorries — will once again run regularly between Britain and mainland Europe.

Why This Matters for British Businesses

Right now, only a small fraction of rail freight goes through the Channel Tunnel, and that’s mostly bulk shipments for single customers.

In contrast, the vast majority of goods cross the Channel by sea and then travel across the UK by road.

The revived rail link could allow British companies to ship products directly by train to France, Germany, Italy and Spain. That means:

Scottish whisky reaching European markets more efficiently
British-made appliances and consumer goods travelling with fewer transfers
Fresh fruit and vegetables arriving straight into London’s food markets from continental growers

For nearly 100,000 UK businesses that export to the EU, smoother rail connections could mean faster delivery times, fewer delays and more reliable supply chains.

Fewer Lorries, Fewer Headaches

There’s also a clear environmental and infrastructure angle.

Shifting freight from road to rail reduces carbon emissions per tonne of cargo.

Rail freight typically produces significantly less CO₂ compared to heavy goods vehicles.

Fewer lorries on the M20, M2 and around the Dartford Crossing could mean:

Lower air pollution

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Reduced congestion
Less wear and tear on road surfaces (and, yes, fewer potholes)

The south-east of England, which bears the brunt of Channel-bound freight traffic, stands to benefit most immediately.

Rail Freight’s Bigger Comeback Story

This isn’t happening in isolation. Rail freight volumes have already shown signs of growth, rising by 5% between 2024 and 2025.

Intermodal traffic — the type most likely to use the Channel Tunnel — also climbed 4% in a recent quarterly comparison.

Forecasts suggest freight could grow at least 3% annually through to 2033.

Interestingly, that projected growth comes even though overall freight train movements have nearly halved over the past two decades.

In other words, there’s substantial unused capacity in the system.

The return of cross-Channel services fits neatly into broader rail reform plans, including the upcoming establishment of Great British Railways.

Once formed, the body will have a legal duty to promote rail freight, with growth targets set by the Transport Secretary.

Freight is no longer being treated as a side activity.

It’s central to the railway’s future.

Local Impact: Barking and Beyond

For the London Borough of Barking and Dagenham, the project is more than just transport policy.

It’s a vote of confidence in local industry.

Revitalising the Eurohub could create jobs, support hundreds of nearby businesses and strengthen links to the wider Thames Freeport area.

Industrial logistics may not grab headlines the way passenger rail does, but it plays a critical role in regional economic resilience.

When freight hubs thrive, warehousing, maintenance, engineering and support services grow around them.

A Wider European Rail Ambition

Interestingly, this freight development lands alongside renewed efforts to expand international passenger rail.

The government has recently signed cooperation agreements with Germany and Switzerland and is exploring new commercial routes that could introduce more competition — potentially including services from private operators such as Virgin Group.

The message is consistent: rail connections with Europe — both passenger and freight — are back on the agenda.

What’s Next?

The immediate focus will be on upgrading and preparing the Barking Eurohub site for full intermodal operations.

That includes infrastructure improvements, track access arrangements and coordination with European rail partners.

Key next steps likely include:

Finalising construction and site development plans
Securing train paths through the Channel Tunnel
Attracting logistics operators and freight customers
Integrating services into domestic rail schedules

If all proceeds smoothly, regular services could begin operating once infrastructure upgrades and commercial agreements are in place.

Longer term, success at Barking could encourage similar logistics investments elsewhere in the UK, especially in regions seeking stronger export links.

Summary:

A government-backed deal has paved the way for the return of regular cross-Channel rail freight by placing the Barking Eurohub site under the control of Network Rail and Platform4.

Backed by around £15 million in private investment, the hub aims to restore intermodal freight services through the Channel Tunnel.

The move promises direct rail links between British businesses and key European markets, reduced congestion on major roads, lower emissions and new job opportunities.

With freight volumes already growing and Great British Railways set to prioritise rail freight, the project marks a significant step in repositioning rail as a central pillar of the UK’s trade and transport strategy.