A new £15m deal will restore regular container services through the Channel Tunnel, shifting freight from trucks to trains.

The government-backed deal will help boost trade between the UK and continental Europe. While cross-Channel freight trains never completely stopped, regular container services have largely disappeared in recent years. What does pass through is limited to bulk, single-customer orders.

As a result, most freight is transported by ship and then on lorries, substantially increasing road traffic and pollution. The return of regular scheduled freight train services will ease traffic on the road network, particularly in the south-east at the Dartford Crossing and M20/M2 corridors, and decrease carbon emissions. 

It will also enable British businesses to directly import and export goods via rail to France, Germany, Italy and Spain.

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.”

Under the £15m deal, the focus will be on transforming the Barking Eurohub terminal site in east London into an international logistics hub. Network Rail and its property development company Platform4 will take long-term control over the site, which is currently owned by British financial services firm Legal & General.

Minister for industry Chris McDonald said: “This project will help deliver more sustainable trade and build more reliable connections for the almost 100,000 UK businesses that export to the EU, while creating new opportunities for others here at home.”

Maggie Simpson OBE, director general of the UK industry body Rail Freight Group, 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.

“We look forward to seeing new services start operating into the Barking Eurohub as this exciting development takes shape.”

The move forms part of the government’s plans to transition to Great British Railways (GBR), the new public body that will run Britain’s railways. Once established, GBR will have a statutory duty to promote rail freight, with growth targets set by the transport secretary.

The deal also expands on government plans to expand international rail passenger connections with Europe, including agreements with Germany and Switzerland. 

Additionally, while Eurostar has had a monopoly over the train services that run through the Channel Tunnel, in October 2025 the Virgin Group announced that a decision by the rail regulator would finally allow it to launch a rival service using the same tunnel.