The UK government has set a new interim target to increase rail freight by at least 40% by 2040, marking a significant milestone in the plan to overhaul the nation’s logistics network.
The target, announced on 8 September 2026, is intended as a stepping stone towards a long-term goal of 75% growth by 2050. The development coincides with the Railways Bill entering its Committee Stage in the House of Lords, which will formalise the creation of Great British Railways (GBR).
Under the new legislation, GBR will be a publicly-owned body with a statutory duty to promote and grow rail freight. Transport Secretary Heidi Alexander confirmed that the GBR Board will include a dedicated member specifically representing freight interests to ensure the sector’s needs are balanced against passenger services.
Economic and environmental targets
The rail freight sector currently contributes approximately £34 billion to the UK economy each year. Government analysis suggests that achieving the new 2040 targets could add a further £15 billion annually to the value of goods moved by rail.
Specific commodity growth targets have been outlined to meet the 40% increase. These include a 65% rise in the transport of high-value goods, a 45% increase in construction materials, and a 7% rise in the movement of critical goods.
Beyond the economic impact, the shift is expected to have substantial environmental benefits.
Regional infrastructure and capacity
While the targets are national, their success relies on regional infrastructure improvements. The expansion of freight services on shared lines will require GBR to manage the competing demands of freight operators and nationalised passenger services.
Industry and union response
The RMT union has acknowledged the new targets but raised concerns regarding the sector’s workforce. The union reported that the number of rail freight workers has halved since privatisation and warned that many current positions remain precarious.
While the targets provide a clear direction for the industry, the RMT argued that significant investment in recruitment and job security will be necessary to meet the 2040 and 2050 goals.
The Railways Bill continues its progression through Parliament, with the establishment of Great British Railways expected to centralise the management of both tracks and trains, ending the previous model of fragmented private franchises.
