From undercroft to urban transformation: the Waterloo Freight Hub model

Decarbonising freight requires more than cleaner vehicles. It demands a rethink of how goods move through cities. The Waterloo Freight Hub Trial, led by Cross River Partnership, has transformed underutilised space beneath a major London rail terminus into a functioning logistics hub, demonstrating how consolidation, collaboration and low-emission last-mile delivery can reshape urban freight

Published: 22 May 2026

Transport accounts for around 27% of the UK's total greenhouse gas emissions, with transport emissions intensified in urban areas. In London, road vehicles produce nearly half of all nitrogen oxide (NOx) exhaust emissions and contribute around 60% of particulate matter (PM10). Vans and lorries account for approximately one-third of those road transport emissions, making urban logistics one of the most pressing targets for decarbonisation.

The scale of the problem is growing. E-commerce has driven sustained growth in delivery volumes, and demand for logistics space is projected to increase by 30% by 2030. More deliveries mean more vehicle trips, further impacting congestion and air pollution, particularly in denser urban neighbourhoods where the effects are felt most acutely. Lambeth, for example, is one of the most densely populated boroughs in London and is crossed by key arterial routes.

Freight has long been underrepresented in transport policy relative to its emissions footprint. The Waterloo Freight Hub Trial is a practical response to that gap.

The concept

The project's premise is that much of the infrastructure needed for sustainable urban logistics already exists. Waterloo Station, one of the busiest rail termini in the country, features a network of arch spaces in its undercroft that had been largely vacant for more than 15 years

Cross River Partnership (CRP) began feasibility work in 2022 to determine whether existing vacant spaces across the rail estate could anchor a new approach to last-mile freight delivery.

A series of studies examined rail freight potential, market demand, and infrastructure requirements across London, identifying Arch 242A, a 1,800 sq. ft space beneath the station, as the project location. The operational design was informed by baseline traffic and noise monitoring, ensuring the hub could function without disrupting the surrounding area.

Securing the space required navigating approvals covering fire safety, health and safety, planning and landlord consent, alongside selecting an operator and agreeing a lease. The Department for Transport provided the space rent-free for the trial period, a condition that proved essential to the project’s viability. Retrofitting works to improve lighting, electricity and fire safety were completed in February 2025, and the trial launched at the end of March 2025.

The trial

The Waterloo Freight Hub operates as a cross-docking and consolidation point for last-mile deliveries. Parcels arrive each morning by van, are sorted and loaded, then distributed by electrically assisted cargo bikes across central and inner London.

The trial ran from 25 March to 23 July 2025, with Delivery Mates operating the hub. Over 20,000 parcels were delivered. Cargo bikes covered more than 4,600 km, a distance greater than London to the eastern edge of Canada. Delivery routes reached the South Bank, Battersea, Tower Bridge, the City of London and Shoreditch, covering a broad range of residential and commercial addresses.

This was a live operational logistics system, processing bona fide deliveries at commercial volume throughout the four-month trial period.

Impact

Reducing the number of diesel van deliveries and vehicle circulation across London by shifting most of these journeys to electrically-assisted cargo bikes saved over 2,500 kg of CO2 across the trial, the equivalent of emissions from 51 football pitch-sized forest fires. The trial also generated significant reductions in NOx, PM2.5 and PM10, pollutants directly linked to respiratory harm.

Beyond emissions, the project created new employment through Delivery Mates’ additional staff, and it demonstrated a commercially viable use for infrastructure that had been generating no value.

The project supports delivery of Defra's clean air targets, the Department for Transport's decarbonisation plan, Network Rail's Net Zero 2050 target, and Lambeth's Climate Action Plan, which commits the borough to reach net zero by 2030.

Wnnning the Decarbonising Transport Award

What made this award-winning?

The judges at the Decarbonising Transport Awards 2026 described the project as showcasing "a truly innovative and highly transferable approach to easing freight pressures in a busy urban centre, demonstrating real-world delivery, strong collaboration, and the kind of scalable impact that can transform logistics in our cities".

Three features of the project stand out: It repurposes existing infrastructure at low cost, requiring only targeted retrofitting of a vacant space; it produces verifiable outcomes: parcel volumes, kilometres travelled, and CO2 savings all measured and published; and it integrates logistics operations, rail infrastructure and micromobility in a model that is replicable beyond this site. Delegations from cities in the UK, Europe, Canada, South Korea and Japan have visited the hub, reflecting international interest in the approach.

Partnership and coordination

The project required sustained coordination across central government, local government, strategic agencies and the private sector. Network Rail acted as superior landlord and carried out remedial works. The Department for Transport held the lease. Platform4 (formerly London & Continental Railways) managed contractor approvals and facilities. The London Borough of Lambeth provided political and officer-level support. Delivery Mates operated the hub. Steer and Intermodality produced the analytical foundations. Funding came from Defra via CRP's Smarter Greener Logistics programme and from Impact on Urban Health.

CRP played a critical role as an impartial coordinator. When legal processes stalled between July and November 2024, CRP stepped in directly; documents were signed within two months of CRP resuming coordination. In projects spanning multiple large organisations with different governance structures, neutral facilitation is often key to ensuring a timely delivery.

Lessons learned

Five lessons emerge from the trial with relevance for similar projects:

Data as a design tool. Baseline monitoring shaped operational decisions throughout. For example, traffic data confirmed that the Launcelot Street gates, which open onto a busy pedestrian market, should not be used for deliveries, reducing conflicts between cyclists and pedestrians.
Stakeholder mapping. With multiple large organisations involved, mapping specialisms and assigning clear responsibilities to named individuals was essential. Steering Group meetings maintained pace and accountability.
Impartial coordination. CRP's position between the public and private sectors allowed it to move processes forward, particularly on legal matters, in ways that neither side could manage independently.
Decoupling infrastructure from trial time. Retrofitting works occupied part of the six-month trial window. These should be treated as pre-trial maintenance to preserve operational time.
Connectivity as infrastructure. Stable Wi-Fi is fundamental to logistics operations. It should be specified in any lease agreement from the outset.

Long-term vision and next steps

The Phase 1 trial was designed as a proof-of-concept. The long-term ambition is a multi-operator, multi-modal hub receiving inbound deliveries by rail, road and river, using the direct ramp connecting platforms 11 and 12 to the undercroft arch spaces. Studies by Steer and Intermodality estimate that a fully scaled hub could generate significant environmental, social and economic benefits and serve approximately 3.5 million residents and 200,000 businesses across inner London.

Phase 2 will focus on integrating rail freight into the operating model, with intermodal logistics built in as a condition for new tenants rather than added later. Another priority is welfare facilities for logistics workers, currently absent from the hub, as well as green job creation and training pathways into the zero-emission freight sector.

The retrofit-first approach is important as rail stations and transport hubs across the UK hold underutilised space that could be repurposed for sustainable urban logistics. Waterloo provides an evidence base and a replicable model for doing so.

"This award is a testament to the dedication of all our partners and the strength of cross-sector collaboration. The trial proves that transforming underused urban space into sustainable logistics hubs can deliver major benefits for people, businesses and the environment"

Ross Phillips, Sustainable Transport Manager, Cross River Partnership

What the project has demonstrated, above all, is that the infrastructure for sustainable urban freight is mostly in place. The challenge is coordination by bringing together the right organisations, building the evidence base, and working through the legal and operational complexities with patience. The international interest the hub has attracted indicates its global resonance.

A call to action

Freight decarbonisation should be recognised for its significant contribution to reducing urban emissions amidst the rapid growth of delivery volumes. Organisations working on data-driven approaches to this problem should enter the Decarbonising Transport Awards. Recognition matters for securing the funding and policy support needed to scale.

The Waterloo Freight Hub model began with feasibility studies, stakeholder meetings and an empty space beneath the station with unclear operational conditions. What advanced the project was a commitment to evidence, clear governance, and persistent coordination across a complex set of partners. If your organisation is sitting on underused infrastructure or has developed an approach to freight that produces measurable results, CRP can support you in creating a transformation that supports all of London.