While the port’s £1 billion (1,17 billion euros) expansion programme has already been well publicised, this specific rail package has not been formally announced. Instead, the tender has appeared via construction and procurement listings, signalling a live opportunity for contractors – albeit one upon which they will have to act promptly as work is proposed to start this summer. For rail freight, the implications are far from minor, pointing to a substantial uplift in capacity, flexibility and operational resilience at one of the UK’s fastest-growing intermodal hubs.

A second rail terminal takes shape

The tender confirms that Phase 2 will build on earlier works to create a fully fledged second rail terminal to the west of the existing facility. Phase 1 has already delivered initial sidings, but this next stage significantly expands the layout, adding five new sidings to complement those already in operation. In practical terms, this means more trains can be handled simultaneously, easing one of the key constraints in port rail operations.

Beyond track layout, the scope includes 21 new switches and crossings, enabling more flexible routing of trains between the western and eastern terminals. This is not simply an extension but a reconfiguration of how rail flows through the port, allowing parallel movements and reducing conflicts. The result is likely to be faster turnaround times and a higher throughput of intermodal services.

Cranes, control and integration

A defining feature of the project is the installation of an 850-metre crane rail beam to support rail-mounted gantry cranes. These machines form the backbone of high-capacity intermodal terminals, enabling rapid transfer of containers between trains and the yard. Their inclusion signals that the second terminal will mirror, and potentially enhance, the semi-automated handling model already in place.

The tender also highlights significant signalling and control upgrades, including a new shunter’s cabin and an integrated control panel capable of managing both terminals. By linking operations into a single system, port operator DP World is effectively creating a unified rail hub rather than two separate facilities. This level of integration is critical for scaling up volumes without introducing operational bottlenecks.

Quiet procurement, strategic shift

The absence of fanfare for the launch is a notable contrast to public works of this scale. However, in the absence of any political need to proclaim the project, it is not unusual for privately procured infrastructure. The tender has been issued under a utilities-style competitive procedure by London Gateway Port Limited, reflecting a more flexible, commercially driven approach. The overall scale of development at London Gateway will be the subject of an extended feature report in the May edition of our sister magazine, WorldCargo News.

Strategically, the move reinforces rail’s growing role at London Gateway. The port already handles a significant share of its containers by rail, and this expansion suggests a deliberate push to increase that proportion further. As pressure mounts to decarbonise UK freight, such “quiet” investments could prove decisive, reshaping inland logistics flows and strengthening rail’s position in the national supply chain.

Quietly, incrementally advancing rail

Once completed, the expanded terminal is expected to support a marked increase in train movements, potentially lifting weekly service capacity well beyond current levels. Longer, fully loaded intermodal trains—typically up to 775 metres—will benefit from additional handling roads and improved network access, making rail a more competitive option for inland distribution.

In a wider context, this positions London Gateway to compete more aggressively with established rail freight ports, notably Felixstowe, which may relinquish its position as the UK’s busiest rail freight terminal. More importantly, it underlines a broader shift. The rail freight sector would clearly state that it is not a peripheral mode in port logistics. Rail is an integral component of future capacity planning—often advancing in incremental, low-profile steps like this one.

The terminal, located approximately 70 kilometres southwest of Budapest, occupies a territory of 36,000 square metres and has a storage capacity of 1,450 TEU. It can handle three block trains on a daily basis.

Car battery logistics

According to LX Pantos, the lease of the Tata terminal is “part of a massive infrastructure investment aimed at developing a Europe-wide multimodal logistics network.” The terminal is located close to Europe’s largest battery production hub.

“As the fourth-largest battery production hub globally, following China, Poland, and the U.S., Hungary is emerging as the center of the burgeoning electric vehicle and battery industry in Europe. Accordingly, the region has been experiencing a significant surge in logistics demand, necessitating enhanced railway terminal capabilities to address site limitations and capacity challenges of existing facilities”, LX Pantos says.

With its proximity to various crucial railway corridors, LX Pantos says it is also looking to “develop various railway products to expand its logistics operations across Europe.” It adds: “Specifically, the blueprint involves connecting major inland cities in Europe via the Trans China Railway and launching a new maritime-rail multimodal transportation service from Slovenia’s Port of Koper, a key gateway for Eastern European maritime logistics, to major battery production centers throughout the continent.”

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The new terminal modernises and streamlines infrastructure in the region, the company says, and emphasises the terminal’s contribution to assisting in the reconstruction of war-torn Ukraine.

Capacity

The design of the terminal facilitates non-stop operations, 24 hours per day, according to GRAMPET Group. It has a maximum capacity of 3 million tonnes of cargo. The loading and unloading stations can simultaneously process 8 wagons, which allows for a processing speed of 500 tonnes per hour.

The terminal makes use of equipment that is similar to the equipment in sea and river ports, the company says. It subsequently calls the terminal “a strategic point in streamlining the traffic of goods to the port of Constanța.”

Ukraine’s EU rail integration

On the Ukrainian side of the border, Ukraine is similarly constructing its own intermodal road-rail terminal in the Chernivtsi province in order to improve its rail connectivity with EU countries. The terminal also allows for transfers between European and broad gauge rail. It can process 1000 tonnes of freight hourly.

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AD Ports Group states that it wants to strengthen global supply chains, and that the investment in logistics hubs along the Caspian-Black Sea corridor helps fulfil that goal. “As a country situated at the centre of the Caucasus and located along the Black Sea, Georgia is a key destination linking us with our growing maritime and logistics assets in Central Asia and Türkiye, thereby enabling us to serve our customers with cost-effective, streamlined cargo flows and capture significant future trade volumes.”

Dry port

The Tbilisi dry port is currently under construction and expected to be operational towards the end of 2024. It is located along the so-called Middle Corridor, a logistics corridor connecting China and Central Asia with Europe via rail and maritime connections. AD Ports Group states that the Tbilisi dry port will be a key logistics hub along the corridor.

The dry port will be able to transfer containers between two transport modalities, namely road and rail. According to its website, the Tbilisi dry port will be operating as a centre for the transshipment of cargo to further inland destinations in the Caucasus region and CIS member states. It will function as an inland extension of the Georgian ports of Batumi and Poti on the Black Sea coast. Moreover, it will provide rail connections to Caspian ports via Azerbaijan.

According to AD Ports Group, by the end of its development, the dry port is supposed to have a handling capacity of 286,000 TEU, offer 100,000 square metres of warehouse space, as well as a car storage facility.

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The grain terminal is currently operating in test mode. For now, it can unload two trains per day and process six thousand tonnes of grain. The terminal can handle seven wagons at a time.

Feed industry

The construction of the terminal coincides with the establishment of new animal feed production enterprises in the Khorgos special economic zone. Currently, several of those enterprises already operate in the area and demand more than two million tonnes of grain annually. This number is expected to grow in the near future.

Consequently, local authorities believe that the terminal has promise. There are plans to expand the terminal with new railway lines to accommodate more trains. They also want to increase the storage capacity twentyfold, from 50,000 tonnes of grain to one million tonnes.

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According to a consulting partner of the terminal’s operator, the intermodal terminal has direct rail connections to major ports in Spain and Portugal via Iberian gauge rail. Moreover, it is located next to major arterial roads. The location provides the terminal with “fantastic connectivity with the national rail and road network,” according to the consulting partner.

The director of Athos Rail stated that the new terminal provides a unique service in its area of operations. It specialises in semi-manufactured and temperature-controlled goods and food. “This is the only infrastructure with these characteristics that currently exists in Spain.” With an important logistical and industrial centre within a 10-kilometre range, the new terminal hopes to capture up to 4 per cent of containers that are transported via existing road infrastructure in the area.

Enthusiasm

According to José Antonio Sebastián, the government commissioner for the so-called “Atlantic Corridor”, has reacted to the inauguration with enthusiasm. “A terminal of this type was needed in Madrid,” he said. The commissioner also added that “we will see the reality of a very dynamic railway sector in our country in a few years.”

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The new multimodal terminal will accept trains from Ukraine’s 1,520 mm gauge as well as European standard 1,435 mm gauge and enable transfers between the two. The terminal will have a processing capacity of 1,000 tonnes of freight hourly. It will be able to load 16 wagons of 50 tonnes onto standard European gauge within that same timeframe.

Earlier, the EU and European Investment Bank developed a plan for rail integration between the EU and Moldova and Ukraine. The plan ultimately envisions a complete European gauge railway network in both countries.

Also read:

• Ukraine to start building European gauge railway connecting to Poland
• EIB adds 42 million euros for railway upgrades in Moldova
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Besides facilitating 740 metre trains, the expansion will also allow for three trains to be handled simultaneously. It will also shorten the maneuvering times for trains by 4 hours per day, increase the reloading capacity of the terminal by thirty per cent and increase operating efficiency by 35 per cent. Lastly, Schavemaker will build a solar farm to guarantee a renewable energy source at the rail terminal.

The EU’s ‘Connecting Europe Facility’ programme has supported the terminal upgrade with 2,7 million euros.

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The additional studies will cost a total of 100,000 euros. The local government will provide a capital of 40,000 euros, while the municipality of Zwolle is expected to contribute the same amount. A group of six interested companies will contribute the remaining 20,000 euros.

Serving multiple markets

In total, the new terminal in Zwolle could serve 19 weekly trains in the initial phase of its operations. By 2033, this should increase to a total of 44 trains.

The expected volumes are inbound and outbound between Zwolle and Rotterdam, Malmö in Sweden, Herne in Germany, and Poland, with Malmö as the main destination. By 2033, there should be as many as 31 weekly trains between Zwolle and Malmö. Trains between Zwolle and Rotterdam will have the UK as their final destination.

87 million euros for the whole package

According to the researchers, the cost of the rail connection and construction of the terminal, including later expansion, will be over 87 million euros. However, the total expenses could diverge by 30 per cent, either higher or lower than the initial forecast.

The costs of the rail connection to the terminal will exceed 46 million euros, and the government will probably cover them. On the other hand, the terminal’s construction will be covered by the as-yet-unknown terminal operator. Nevertheless, it is possible to apply for a CEF subsidy, which can reimburse up to 30 per cent of the investment and research costs.

Volumes are an issue

Research shows that the terminal will become profitable at the beginning of its third year, when it will be able to transship 100,000 TEUs annually. With the current outlook, the terminal will operate approximately 65,000 TEUs in its initial phase. However, the participating parties have a growth ambition of 20,000 TEUs per year, say the researchers.
By the third operational year, it will be possible to invest more in the site by building two additional sidings and gantry cranes. This way, the terminal will reach 217,000 TEUs of cargo annually. Interested parties must be able to contribute to the total throughput with 165,000 TEUs, but this might not be enough since more volumes will be required to reach the maximum target.

Another option is to expand operational hours from 16 to 24 hours and six to seven days a week. In that case, the terminal’s maximum capacity would grow from 100,000 to 160,000 TEUS, allowing it to handle almost all the expected volumes.

No determined location

Six sites were examined as possible locations for the terminal, out of which three were found suitable. One of the sites does not have space for trains which are 740 metres long. The other locations are far from the current Hessenpoort business and industrial park, which will house the new terminal.

“We cannot yet determine the final location based on this study”, said Stec Group. Two options require the waiting track to be fitted in under a viaduct. It is not yet clear whether this is even possible. If this proves impossible for one of these locations, the terminal must move eastwards. For the third option, the possibility of an additional viaduct remains to be investigated. It is also unclear to what extent the Hessenpoort will expand. This needs to be further explored in the new study.

This article originally appeared on our sister publication NT.nl. 

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There’s a busy week ahead at the Redcar Bulk Terminal, but less so on the surrounding roads through the neighbouring east of England communities of Lackenby, Marton and Middlesbrough. With stockyards of diverse range of bulk materials to be moved, such as the prosaically named Granulated Blast Furnace Slag (GBFS to the trade) together with, coal, aggregates and road salt Redcar Bulk Terminal has a timetable of train movements planned to whittle away mountainous loads, and distribute them around the country. Doing so by train is reducing truck movements by around one thousand loads this week alone, which is proving an environmental boon.

Redcar may have a beach pretty enough to be a filming location, but it’s heavy industry that’s always had the starring role here. Until 2015, this was the site of a massive steel works, of which only the dedicated railway station remains – officially Britain’s least used passenger platforms. The blast furnace has long since been closed down, leaving only the extensive rail layout across the south bank of the River Tees, where large bulk carrier ships still dock at the deep-water terminal.

Steel Works No More

Although they no longer handle raw materials for the long-gone steel works, it’s these legacy facilities that have survived what director Garry O’Malley called a hammer blow to all of Teesside. “Following the closure of the steelworks,” he says, “Redcar Bulk Terminal was provided with an opportunity to move away from traditional coal and iron ore imports by proactively marketing its unique assets to the wider ports and logistics sector.”

Continued investment in port equipment and rail infrastructure has seen terminal throughput continue to grow. The Terminal is the deepest bulk handling terminal on the UK east coast with the capacity to handle ‘Cape Size’ vessels, with drafts up to 17 metres, and discharge rates in excess of 40,000 tonnes per day. Moving large volumes of bulk cargo to and from the port are by far best achieved by rail.

Long Term Deals

The industrial location allows the Terminal to operate around the clock when necessary which has attracted other businesses to the 320-acre site. Plenty of room, and direct to the customs approved stockyards, has helped RBT to attract new customers and sign long-term deals, such as a much heralded agreement with Sirius Minerals to export up to 20 million tonnes annually of Polyhalite fertiliser through the existing Terminal and a custom-built facility.

This week’s programme sees the Terminal into a busy mid-December. The extensive rail infrastructure has made other economically regenerative projects possible, such as plans for a waste-to-energy power station, which will consume 500,000 tonnes of refuse, with the added potential to export circa 150,000 tonnes back into the cement and related industries.

The repurposing of the facility works remarkably efficiently. Bulk handling to rail involves overhead hoppers, directly fed by conveyors. Incoming loads are bottom discharged into underground hoppers and conveyed directly to the stockyards.

Although the steel works, which was the bulk of the terminal’s original purpose, is now just a memory, it is still bulk handling that’s very much a part of Redcar’s daily industrial life. Where once the raw materials of manufacturing were shipped in and finished steel shipped out, today’s loads are very much more a two-way process, and heavy rail is playing a vital part in regenerating this post heavy industry heartland.