A Government-backed deal to transform a Channel Tunnel rail freight terminal in east London has been announced.
The Department for Transport (DfT) said the move could enable many more British businesses to export goods to the rest of Europe by train.
Under the deal, Network Rail and its property development company Platform4 will take over long-term control of the Barking Eurohub site, owned by financial services provider L&G (Legal & General).
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There are plans for £15 million of private investment in the site to enable it to operate as an “international logistics hub”, the DfT said.
This will help support the return of regular freight trains carrying cargo in containers that can be transferred across rail, road and sea, via the Channel Tunnel.
The DfT said British businesses could use rail links with France, Germany, Italy and Spain to import goods such as fresh fruit and vegetables direct from growers, and export items such as Scottish whisky and consumer goods.
This would reduce pollution, potholes and congestion on Britain’s roads, the department added.
Network Rail is in discussions with organisations that have expressed an interest in being the international rail freight operator at the overhauled Barking Eurohub site.
Currently, rail freight through the Channel Tunnel is limited to bulk, single customer orders, meaning most goods passing between Britain and the rest of Europe travels via sea and roads.
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.”
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.”
Michael Barrie, head of real estate for the UK and Europe at L&G, said: “Legal & General is pleased to let this strategically important site to Network Rail, helping bring the Barking Eurohub site into full use.”
