British businesses set to gain direct rail-freight links to Europe, thanks to Government backed deal supporting rail-freight growth and unlocking £15million in private investment.
British businesses could soon gain direct rail freight links to the continent for the first time in years, following a landmark deal paving the way for the return of regular cross-Channel rail freight.
Network Rail and its property development company Platform4 are taking long-term control of the Barking Eurohub site in east London, currently owned by Legal & General.
Platform4, established to unlock the potential of surplus railway land, will lead the redevelopment of the 40-acre rail-connected site — located inside the M25 and just 10 miles east of central London.
Around £15m of investment will help create a significantly improved international intermodal rail freight terminal, with Platform 4 looking to develop the surrounding land for warehousing uniquely connected to the European rail network.
The investment will support the return of regular intermodal freight trains through the Channel Tunnel, carrying cargo in containers that can be seamlessly transferred between rail, road, and sea.
The site has direct links to both the Channel Tunnel via HS1 and Network Rail’s domestic network. This could see British businesses directly importing and exporting goods by rail to France, Germany, Italy and Spain — opening the door for Scottish whisky and consumer goods to reach European customers by train.
Andrew Ferguson, acting CEO of Platform4, said: “Barking Eurohub represents exactly the kind of opportunity Platform4 was created to unlock. By utilising the under-used rail land at this strategically important site we will create a new rail connected freight centre. This partnership lays the foundations for a new era of international rail freight and provides occupiers with a unique opportunity which doesn’t currently exist.”
Michael Barrie, Head of Real Estate (UK & Europe), L&G, said: “Legal & General is pleased to let this strategically important site to Network Rail, helping bring the Barking Eurohub 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.”
Peter Strouts, Director of Ifield Properties, commented: ‘We are pleased to have advised L&G on the successful repositioning of their Eurohub rail freight terminal asset. It is exactly in line with their Fund’s objective to secure long term indexed linked income to match pension fund liabilities. The merging of interests and investment alongside Network Rail will create an enhanced rail logistics hub incorporating both international and national rail freight capability. We are working with operators who have indicated strong interest in this location, in order to optimise the rail freight offer at Eurohub.”
Currently, only a very small proportion of rail freight passes through the Channel Tunnel, and this is limited to bulk, single-customer orders — meaning most freight between Britain and Europe still travels by sea, with goods moving onwards through Britain by road. This deal aims to change that.
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’s use.
The rail freight industry is already growing under the Government, with volumes up 5 per cent in 2024/25 compared to the previous year. Intermodal traffic volumes also rose by 4 per cent in July to September last year compared to the same quarter in 2024.
JLL advised Network Rail and Platform4 and Ifield Properties advised Legal & General.