Expanding rail freight through strategic investment

Reducing carbon emissions is a growing priority for logistics businesses worldwide. As customers demand more sustainable solutions to align with their environmental commitments, the need for efficient, low-carbon transport has never been greater. Rail freight has a very important role to play in this transition, offering a cleaner, more reliable alternative to road haulage.

The benefits of rail are well-documented. Rail freight contributes £2.45bn to the UK economy each year, alleviates congestion on overburdened road networks, and produces 76% fewer carbon emissions per tonne compared to road transport.

The domestic intermodal sector, which integrates rail and road for containerised goods, is now the fastest-growing segment of the market, rising by 40% in 2023/24.

Despite its advantages and increasing role in UK supply chains, rail freight faces significant constraints. The UK’s rail network is largely designed for passenger services, meaning freight often competes for space on key routes. Limited capacity, insufficient electrification, loading gauge restrictions, and a shortage of strategic rail freight terminals further hinder growth. To achieve a true modal shift – moving more freight from road to rail – investment in the network is essential.

To support this shift and make rail a more viable alternative to road, we have invested substantially in our intermodal operations, increasing rail services, developing new terminals, improving handling/storage capacity, and strengthening reliability across our network.

In 2019, we took our first major step into rail with the acquisition of four dedicated rail services from the ports of Felixstowe and Southampton, and two rail terminals in Manchester and Wakefield.

We’ve expanded at an unprecedented rate, increasing the share of containers moved by rail from 6% in 2019 to over 20% in 2024. Today, we operate more than 30 daily services through a strategic network of open-access, multi-user rail freight terminals in Mossend, Tilbury, Hams Hall, Tamworth, Doncaster, Manchester, Wakefield, and SEGRO’s logistics parks in Northampton and Kegworth (EMG), in addition to four dedicated container storage depots in Ipswich, Liverpool, Felixstowe and DP World London Gateway.

Expanding our terminal network has been critical in accelerating modal shift, and we have delivered some of the most significant rail freight developments in the UK.

The completion of EMG in 2020, part of the UK’s only inland Freeport, has provided a critical hub for intermodal operations. Designed to accommodate the UK’s longest freight trains, the terminal moves an average of 10,000 containers per month. Phase 2 of the project included a new HGV yard, 3,000 TEU of storage capacity, and a purpose-built, four-storey headquarters for our intermodal division.

In 2022, we completed a multi-million-pound regeneration project at Manchester, transforming the site into a high-capacity terminal capable of handling nine trains per day. The redevelopment also introduced a new office and welfare building, ensuring modern, well-equipped spaces for drivers and operations teams.

More recently, we completed a 17-acre rail freight terminal at SEGRO Logistics Park Northampton, directly connected to the West Coast Main Line (WCML) and capable of handling up to 16 trains per day when at full capacity.

Meanwhile, work is underway at Mossend, where we are expanding capacity to support growing demand. Phase 1 of the development will focus on upgrading facilities over a 12.5-acre area to increase container handling capacity and replace the primary rail line, improving both safety and operational efficiency. Additionally, adjacent land has been secured for Phase 2 of the expansion, ensuring long-term growth. The project is scheduled for completion by mid-2026, with work phased to allow existing and future operations to continue without disruption.

We have also partnered with Oxford Properties Group and Logistics Capital Partners as the long-term operator of the SRFI at West Midlands Interchange. This £1 billion infrastructure project, located within the UK’s logistics Golden Triangle, will be one of the largest and most sustainable logistics developments in the UK. While proposals are still evolving, the SRFI is expected to accommodate up to 10 trains per day, with train lengths of up to 775m. The site will include container storage, HGV parking, and eight million square feet of rail-served warehousing and ancillary service buildings.

Beyond our own initiatives, key infrastructure projects are underway to support the growth of UK rail freight.

In the North of England, around a third of goods entering the UK arrive through ports such as Hull, Newcastle, and Liverpool – all directly on the TransPennine Route. With freight demand in the region expected to grow by over 30% by 2050, increasing rail capacity is essential.

The highly publicised Transpennine Route Upgrade (TRU) is key to unlocking this potential, improving East–West rail links and easing congestion on the M62. While the project primarily focuses on passenger services, its impact on freight movements will be significant. Progress is already being made, with new electrified services between Manchester Victoria and Stalybridge and major infrastructure upgrades at key locations. To fully realise the benefits of the TRU, the government must accelerate freight capacity improvements and W12 clearance. Delivering these upgrades will strengthen connections between Northern ports, industries, and markets, ensuring the region remains competitive within the wider UK economy.

Another key initiative, the East West Rail (EWR) scheme, will re-establish a rail link between Cambridge and Oxford. Once fully operational, EWR could support up to two additional daily freight services from Felixstowe via Cambridge to Oxford, and a further two from Southampton via Oxford and Bletchley onto the WCML. While this initial uplift could replace around 250,000 lorry journeys per year, further investment in infrastructure beyond EWR would be needed to unlock its full freight potential, including additional services from the East of England.

Alongside infrastructure investment, modernising rolling stock is another critical step in improving rail freight efficiency and sustainability. GB Railfreight’s new Class 99 locomotives, set to enter service in late 2025, will be the first heavy-haul freight engines capable of operating at mainline speeds on both electrified and non-electrified routes, slashing emissions by at least 58%.

As a business, we are committed to decarbonisation and expanding rail freight to create a more sustainable UK supply chain. However, achieving meaningful modal shift requires a whole-system approach, integrating infrastructure investment, technological advancements, and industry collaboration. Breakthrough innovations are already driving change in the sector, simplifying operations and improving service reliability. To realise the full benefits of rail freight, the industry must continue to adapt to shifting customer demands and embed a service-driven mentality at its core.

By John Bailey, Managing Director – Intermodal, Maritime Transport