Network Rail is set to take control of east London development Barking Eurohub, with plans to invest £15m to transform it into an international logistics hub.
The site, owned by Legal & General, will be transferred to Network Rail and its property development company Platform4.
The UK government hopes the deal will 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 would help British businesses to directly import and export goods via rail to France, Germany, Italy and Spain, deepening trade links with Europe.
“This deal is a huge opportunity to reinvigorate rail freight by paving the way for the return of regular services through the Channel Tunnel,” said rail minister Lord Hendy.
“It will boost British businesses by opening new trade links to Europe, delivering a faster and more sustainable way to transport goods to the continent and back.”
Network Rail chief executive Jeremy Westlake added: “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 £15m 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.”
Most freight between Britain and Europe travels via sea, with only a small proportion of rail freight currently passing through the Channel Tunnel, where transportation is limited to bulk, single-customer orders.
Maggie Simpson, director general of the Rail Freight Group (RFG), 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 underutilised.
“This investment by Network Rail and Platform 4 is of huge importance and will help unlock renewed growth in international rail freight between the UK and Europe.”
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