Britain’s railways are undergoing their biggest change in a generation. But rail reform must be delivered through the lens of freight and logistics, as well as passenger flows.

Logistics is one of Britain's largest value-adding sectors. It is the backbone of an import-driven economy and, according to Logistics UK, employs 8% of the UK workforce, contributing £175 billion annually to the national economy. An efficient, integrated logistics network is therefore imperative for driving economic growth, and the railway is a crucial piece of the puzzle.

The UK government has already committed to large-scale rail reform. The Railways Bill 2025 established Great British Railways (GBR), paving the way for a staggered renationalisation of passenger service operators. But the next challenge for policymakers is ensuring that freight and logistics receive the same strategic attention as passenger services in order to deliver on ambitious growth targets.

The government has a once-in-a-generation opportunity to embed freight more deeply into the strategic direction of the network. Targeted reform in rail freight can better connect the railway to ports, manufacturing hubs and logistics parks that underpin the British economy, ensuring Britain’s rail revolution strengthens the logistics network on which long-term growth depends. 

Why Freight Matters

Through Great British Railways, the government is laying the groundwork for one of the biggest rail reform programmes in a generation. Train operating companies have been brought into public ownership under one unified strategic authority, while the government has set out an ambition of 75% growth in rail freight by 2050.

The ambition and progress are promising, but rail reform will only achieve its full economic potential if it strengthens connections between railways and the logistics network.

Indeed, the UK’s key growth sectors, from advanced manufacturing and clean energy technology to defence and data centres, depend on integrated logistics. Major companies are increasingly investing in new locations based on the connectivity and quality of the logistics infrastructure, with seamless, multimodal access to ports and terminals a key consideration.

We have invested over £200 million in owned rail infrastructure, including £30 million in a second rail terminal at our London Gateway port, allowing us to move even more than the 634,000 containers that were transported to and from our ports at Southampton and London Gateway in 2025. Meanwhile, our Modal Shift Programme has moved more than 200,000 truck trips from road to rail, contributing to the 160,000 tonnes of CO2e we have saved in the UK supply chains of our customers since 2023.

In a supply chain environment defined by disruption, connectivity is not optional. That is why investment in freight is crucial for creating the integrated logistics network of the future. 

Addressing Weak Links

Building an integrated logistics network requires more than flagship infrastructure investments. Local constraints can have disproportionate consequences for the movement of goods across the country. Seemingly isolated bottlenecks, such as local level crossings, can quickly become national supply chain challenges if left unresolved, reducing the appetite for private investors to expand multimodal infrastructure.

In an era where disruption has become a defining feature of the supply chain, businesses are seeking resilient, reliable and predictable logistics, and rail freight has an important role to play in delivering all three. Widespread modal shift will only be possible if businesses have confidence that their goods will be delivered via a reliable and resilient network - on time, and with cost parity to road transport.

This is why freight must be considered alongside passenger services as the railway continues to evolve. Planning the network through the lens of both passengers and freight will strengthen connections between ports, rail terminals, logistics parks and manufacturers, while addressing the bottlenecks that constrain growth. In doing so, the railway can become an even more effective component of the integrated logistics network which is so important to driving economic growth.

Creating Certainty for Investors

Building the integrated logistics network the UK needs will require significant long-term investment from both the public and private sectors. This requires setting attractive conditions for investment and working together in strong investor coalitions to deliver both small and large infrastructure projects that benefit both passenger and freight markets, and regional and national economies.

Infrastructure projects are planned and financed on timelines far longer than parliamentary terms. Investors need confidence that policy will remain stable, planning processes will be coordinated, and regulatory frameworks will provide the certainty needed to support long-term investment decisions. Where government and industry have worked together through clear, predictable delivery models, the UK has successfully delivered nationally significant infrastructure that has strengthened the economy and improved connectivity.

To ensure this continues in the rail freight sector, the Railways Bill must ensure that sufficient certainty is in place for investors. Uncertainty could slow the delivery of new rail-connected terminal capacity, reduce the pace of private investment, or push investors towards lower-commitment delivery models. We are working with partners and lawmakers to ensure the Railways Bill contains sufficient long-term certainty for investors.

By bringing together government, infrastructure owners, freight operators and private investors behind a shared vision, the UK can create the conditions for sustained investment in the rail freight network and the wider logistics system on which future economic growth depends.

Measuring Success in the Future

The government has set an ambitious direction of travel for Britain’s railways. GBR provides a once-in-a-generation opportunity to reshape the network, while the commitment to growing rail freight recognises the increasingly important role it will play in supporting the UK economy.

The next step is to ensure that freight is fully embedded within that vision. The UK can build a transport system that is more resilient, more competitive and better equipped to support future growth, but it needs to create confidence for long-term investment. It also needs to be planned through the lens of both passengers and freight, strengthening connections with the wider logistics network.

The most successful railway will not simply move passengers efficiently, but underpin the integrated logistics network that supports trade, attracts investment and drives sustainable economic growth for decades to come.