LONDON — Eurostar passengers travelling between London and the continent could
face higher fares thanks to a U.K. government tax raid on the Channel Tunnel.
Eurotunnel, the company which owns the under-sea link, says a business rates
revaluation on its infrastructure will effectively treble its payments and see
it paying 75 percent tax on new investments.
The infrastructure firm says costs will be passed onto operators through higher
access charges for trains using the tunnel — raising overheads that are likely
to be passed onto passengers.
Rail operator Eurostar said the plans “would be at odds with the Government’s
ambition” to promote rail travel.
Rail freight will also be hit as Eurotunnel warned plans to bring an east London
goods yard back into operation would have to be cancelled.
It comes as the U.K. braces for a budget of tax rises, with Chancellor Rachel
Reeves expected to focus on smaller, specific revenue raising measures after
cancelling a planned general hike in income tax.
‘NOTHING LEFT TO INVEST’
Eurotunnel says the Valuation Office Agency (VOA), which sets business rates for
the government, hasn’t been transparent about the rise in its payments, which
from April are set to go from £22 million to £65 million.
The company says access charges are decided by a set formula taking business
rates into account, and that they would inevitably rise as a result.
“All of the users of the tunnel pay for access. When business rates go up,
that’s split amongst the different users,” John Keefe, director of public and
corporate affairs at Eurotunnel, told POLITICO.
“At this stage, the numbers aren’t one hundred percent known, because we’re
hoping we can talk a bit more with the government about this and about bringing
a bit more pragmatism into it. But there is a mechanism whereby everybody
contributes.”
Higher charges for tunnel users would also hit Virgin Trains, the new challenger
operator hoping to start running competing services to Paris, Brussels and
Amsterdam through the tunnel by 2030. The second operator got the green light
just last month with the aim of reducing fares and increasing competition on the
key international rail route.
“Since 2017 we’ve had, over three valuations, a nine-times increase in the
valuation. This time it’s gone up, multiplied by three, from £22 million that we
pay at the moment to £65 million, which is the ask,” Keefe said.
“It needs to be based on what business can actually pay, generate and pay and
still invest. Because if you take all the money in business rates, there’s
nothing left for investment. So there’s nothing left for growth.
“While we’re hearing leading up to the budget, ‘growth, growth, growth, growth,
growth’, nobody can invest at that level.”
Eurotunnel also complains that the VOA’s calculations are “opaque beyond
belief.”
“They say, ‘here’s the number.’ And you go, ‘why did you get the number? How did
you get to that number? What numbers are you using?’ And they go, ‘there’s the
number’,” Keefe said. POLITICO has contacted the VOA for comment.
FREIGHT INVESTMENT PAUSED
Eurotunnel was planning to reopen Barking rail freight yard in east London to
make running freight on trains through the tunnel a more attractive proposition
— in line with the government’s own target for a 75 percent increase in rail
freight.
But Keefe said: “The sums just don’t add up when you’re paying a 75 percent
marginal tax rate. So it’s unfortunately going to be frozen.”
A spokesperson for Eurostar, the high-speed rail operator, said: “Our priority
is enabling more people to travel sustainably, which includes offering
affordable lead-in fares and products, and we remain fully committed to our
growth plans regardless of the VOA review.
“Eurostar continues to engage with the Government and the Valuation Office
Agency and is determined to find a positive way forward. However, a three-fold
increase in business rates for Channel Tunnel users for the second time would be
at odds with the Government’s ambition of economic growth, pioneering European
rail connectivity, and encouraging low-carbon rail travel.
“Throughout our conversations, we have urged fairness by treating international
rail in the same way as domestic rail in business rates terms. Nevertheless,
Eurostar continues to commit to its own ambitious growth plans and investments
including €2bn in new fleet and new destinations of Frankfurt and Geneva direct
from London.”
Tag - Freight
The Louvre Museum in Paris has been temporarily closed following a robbery,
France’s culture minister said Sunday morning.
Rachida Dati wrote on X that the robbery happened Sunday morning and that there
were no reports of injuries. An investigation has been launched, she said.
The museum said that it will remain closed Sunday “for exceptional reasons.”
According to the French daily Le Parisien, the thieves accessed the building on
the Seine docks, where work is taking place. They used a freight elevator to
access directly the targeted room, in the Apollo gallery, according to the
report.
After breaking windows, two hooded men entered, while a third remained stationed
outside, according to the Parisien report. The thieves took nine pieces from the
Napoleon and the Empress jewellery collection. The damage is still being
assessed, it said.
The Regent, the largest diamond in the collection weighing more than 140 carats,
was not stolen, according to the report.
The criminals fled on a scooter toward the A6 motorway, the newspaper said.
The Louvre is the world’s most visited museum and houses many famous artworks
and other valuable items.
WARSAW — Poland will reopen border crossings with Belarus at midnight from
Wednesday to Thursday, ending a nearly two-week shutdown that’s wreaked havoc on
rail shipments between China and Europe, Polish Prime Minister Donald
Tusk said Tuesday.
Warsaw closed all its border crossings with Belarus on Sept. 12, citing security
concerns over the Zapad 25 Russia-Belarus war games. That coincided with 21
Russian drones flying into Polish airspace on Sept. 10; at least three were shot
down.
Tusk said the interior minister would follow up by issuing a regulation to
reopen road and rail crossings.
“Taking into account the economic interests of Polish carriers, including PKP
Cargo, we concluded that this preventive step has fulfilled its role,” the PM
said.
The blockade disrupted a route that carries around €25 billion worth of EU-China
trade. Poland’s state-controlled rail freight giant PKP Cargo warned that
prolonged closure would divert freight south through Central Asia and the Black
Sea, at a loss to the Polish economy.
While Beijing pressed Warsaw to restore traffic, Polish officials said the
“logic of security” outweighed economic considerations at the time.
Tusk also hinted that Poland could shut the crossings again if threats reemerge.
While the situation “is not joyful,” he said, the conclusion of the Zapad drills
reduced — though did not eliminate — risks linked to Moscow’s “aggressive
posture.”
“This tool remains at our disposal, and if tensions rise, we will not hesitate
to use it again,” Tusk said.
A Chinese company is preparing to sail a cargo ship along Russia’s northern
coast to Europe— a test run made possible by melting ice and accelerating
climate change, and one that has implications for both international trade and
the environment.
China is sending the Istanbul Bridge container ship on an 18-day trip from
Ningbo-Zhoushan port — the world’s largest — to Felixstowe in the U.K. on Sept.
20, accompanied by ice breakers. The goal is not a one-off voyage — that’s been
done before — but to establish a regular service via Russia’s Northern Sea Route
linking multiple ports in Asia and Europe.
“The larger picture is that the Arctic is opening up,” said Malte Humpert,
senior fellow and founder of the Arctic Institute, a Washington-based think tank
that studies Arctic security. “Twenty years ago it was frozen. But now that it’s
melting and something is opening up, there’s interest.”
For Humpert, the impact may be bigger than shipping schedules. “The Arctic is
the first region where climate change is changing the geopolitical map. If we
didn’t have climate change, we wouldn’t be talking. Russia would not be
producing oil and gas in the Arctic. China would not be sending container ships
through the Arctic.”
“It’s the first large region on the globe where climate change is rapidly and
actively changing the geopolitical dynamics — because of resources, access to
shipping routes, and because a new region is suddenly accessible.”
PLAYING THE LONG GAME
For now, global trade flows through the usual chokepoints.
“The majority of global trade goes through the Suez Canal, Mediterranean,
Singapore,” Humpert said. “But the Arctic is 40 percent shorter and it has a lot
less geopolitical uncertainty … so it could potentially become an alternative
trade route. The question is, is it really happening? And how quick?”
Peter Sand, chief analyst at shipping consultancy Xeneta, noted the idea is
hardly new. “It has been debated, talked about, tried out a number of times over
the past decades,” he said. China is just the latest to push it forward: “They
announced a similar thing two years ago. They did it then, and now they’re
trying again.”
Earlier Chinese voyages, however, were simpler. “They did point-to-point trips,
like from one Chinese port to Hamburg or to St. Petersburg,” Humpert said. “This
voyage is different. They’re trying four ports in China, then through the
Arctic, then the U.K., Rotterdam, Hamburg and Gdańsk. That actually resembles a
normal shipping route.”
Unlike tramp shipping — where cargo is taken where it’s needed usually with no
fixed schedule — liner-type container routes run on set timetables between
specific ports whether the ships are full or not. The Chinese experiment in the
Arctic is closer to the latter: less a one-off and more a rehearsal for a
conventional Asia–Europe loop.
But the scale remains minuscule.
“What they’re deploying is equal to maybe 1 percent of the Far East–North Europe
trade,” Sand noted. The Arctic only makes sense when demand is high and shaving
off days matters. “Nobody lives in the Polar region. The only way it competes is
when extra capacity and shorter transit times outweigh higher freight rates.”
China is sending the Istanbul Bridge container ship on an 18-day trip from
Ningbo-Zhoushan port — the world’s largest — to Felixstowe in the U.K. on Sept.
20, accompanied by ice breakers. | Dan Kitwood/Getty Images
So for now, the route looks like a seasonal side-project. “It’s not here to
shake trade lanes as they’re set up today,” Sand said. “But it could be one of
those niche services that appear during peak season over the next decade.”
Humpert sees the experiment as planting a flag for the future. “The Suez Canal
has like 10,000 ships every year, so this is very, very little,” he said. “But
if you play this 30 or 40 years into the future, and the ice melts another 30,
40, 50 percent, suddenly you have six months of no ice, and the Arctic becomes a
very interesting equation.
“The Arctic is not going to replace the Suez Canal tomorrow. That’s not what’s
happening. The Suez Canal, the Panama Canal, they will remain there. But the
Arctic will become supplemental.”
That this experiment is even possible is thanks to climate change. “These
changes are happening quicker than anyone expected, even five or 10 years ago,”
Humpert said.
“Ten years ago, everyone thought that before 2040 or 2050, we would not see
container shipping in the Arctic. And here we are in 2025, and the Chinese are
doing it,” he added. “Do they make money? It doesn’t really matter … it’s about
gaining the knowledge, understanding how to do it. That’s what the Chinese are
doing — they’re gaining the experience and training the shipping crews.”
But there might also be a more immediate prize for the voyage — getting to
Europe ahead of the rush of other Chinese shippers.
“All the Chinese Christmas stuff that we buy in Europe gets shipped from China
at the end of September,” Humpert said. “Normally it takes 40 to 50 days, so it
arrives in Rotterdam in early to mid-November. But everything arrives at once,
creating traffic jams. Big ships can wait one or two weeks before they get into
Rotterdam or Hamburg. By going through the Arctic, this ship will arrive three
to four weeks earlier, when the ports are empty.”
If the trip works, it could also have implications for Europe’s car sector. “For
containers, you need a string of stops — one port after another. Maybe that
works for 10 percent of container shipping, maybe only 1 percent. No one really
knows,” Humpert said. “But cars are different. You load 10,000 electric vehicles
in China, and you offload 10,000 in Rotterdam or Hamburg. No in-between stops.
That’s an area we may be seeing in 10 or 15 years.”
RISKY ROUTE
But the opportunity comes with heavy risk. The Arctic is warming three to four
times faster than the rest of the planet. Less ice may make passage easier, but
it also magnifies the damage when things go wrong.
Black carbon from bunker fuels is especially destructive when released near snow
and ice. “It does five times the damage there than if it’s emitted farther
away,” said Andrew Dumbrille, adviser to the Clean Arctic Alliance. Add the
reality that spill response in the Arctic is slow and limited, and the stakes
rise sharply. “Once oil is in the water, every hour without response means huge
damage,” he said.
And the vessel making this pioneering run hardly inspires confidence. The
Istanbul Bridge — a 25-year-old, Liberian-flagged container ship — is not
ice-strengthened, Dumbrille noted. “There will be an escort around it, but
still, it’s not strengthened. It also will likely use heavy fuel oil on its
journey, or bunker fuels.”
Even though heavy fuel oil was technically banned by the International Maritime
Organization in July 2024, loopholes remain. Spills of the sludge-like fuel are
nearly impossible to clean up, lingering in ecosystems for years. Then there’s
noise pollution, invasive species and disruption to marine life.
Dumbrille said the next chance for tougher global rules will come in February
2026, when the IMO’s pollution prevention and response subcommittee meets — with
experts and green groups already pushing for stricter fuel regulations in an
increasingly busy Arctic.
Russia’s military drills may be over, but Poland isn’t relaxing — and has
decided to keep its border with Belarus closed indefinitely, severing a
€25-billion-a-year trade artery between China and the EU.
Warsaw closed its border with Belarus on Friday to better monitor the
large-scale Russian-Belarusian “Zapad” exercise.
But what was billed as a temporary precaution now looks open-ended, with the
government citing “concern for the safety of Polish citizens” and adding that
“traffic will be restored once the border is fully safe.”
The move comes at a moment of high diplomatic tension, after Russia last week
tested Poland’s defenses by sending a drone swarm into its air space and amid
increasing diplomatic pressure from U.S. President Donald Trump to punish China
for helping the Kremlin’s war effort in Ukraine. Poland’s government said the
“logic of trade” was being replaced by the “logic of security.”
Crucially, the shutdown hits a trade route that moves 90 percent of rail freight
between China and the EU.
On that route, cargo volumes between China and the EU grew 10.6 percent in 2024,
while the value of goods jumped nearly 85 percent to €25.07 billion. The
corridor now accounts for 3.7 percent of all EU-China trade, up from 2.1 percent
a year earlier — a lifeline for e-commerce giants like Temu and Shein.
Polish firms might also take a hit. State-controlled PKP Cargo said short delays
could be managed but warned that a prolonged closure would divert trade south,
through Kazakhstan, the Caspian and Black Sea and on to Southern Europe or
Turkey.
The closure comes just a week after the company launched its first Warsaw–China
freight train, carrying goods from several European countries — a symbolic run
meant to cement Poland’s role as a hub and raise PKP Cargo’s international
profile.
“The complete border closure is a crucial problem — not only for transport and
logistics but for the whole economy,” said Artur Kalisiak, strategic projects
director at the Transport & Logistics Poland industry association. Some 10,000
Belarusian drivers employed by Polish transport firms are also stuck, he added —
unable to return to work in Poland, or even get back home.
All cargo is currently blocked, including time-sensitive shipments like medicine
and food. As for alternatives, “you can try via Lithuania or Latvia, but that of
course takes more time and more money. And even then, there’s no guarantee those
borders will stay open,” he said.
Belarusian opposition outlet Belsat reported on attempts to improvise new supply
chains, saying a workaround had been created whereby a loaded truck heads to a
terminal in Lithuania’s Kaunas, Poland’s Łódź or Germany’s Duisburg — from where
cargo is shifted and then enters Belarus through Lithuanian rail crossings.
“It’s a very difficult situation,” Kalisiak concluded. “The government says it
is monitoring the situation and that the border will be reopened when it is
safe. This is what we know … so, from a business perspective, we know nothing.”
| Jaap Arriens/NurPhoto via Getty Images
“The decision to close the border with Belarus will remain in force until
further notice. Further steps on the matter are yet to be decided,” Polish
government spokesman Adam Szłapka confirmed to reporters on Wednesday.
With no reopening date in sight, businesses have no clear word on whether they
will be compensated.
“Losses will be assessed once we know how long the border will have been closed.
At that point, the ministries will be able to prepare an assessment, which will
serve as the basis for the government’s decisions on possible state support for
individual industrial sectors,” the interior ministry said.
POLITICAL CHESS
Chinese Foreign Minister Wang Yi flew into Warsaw on Monday to talk with his
Polish counterpart, Radosław Sikorski.
“It was made very clear during the talks that in this situation, the logic of
trade, which is also beneficial for us, is being replaced by the logic of
security. And that was expressed very clearly by Minister Sikorski,” Polish
foreign ministry spokesperson Paweł Wroński said. He added that the Chinese side
had made no direct demands to reopen the border.
Beijing had already said before the ministers met that it hoped Poland would
“take effective measures to ensure the safe and smooth operation of the [rail
link on the Belarus border] and the stability of international industrial and
supply chains,” stressing that the China-Europe Railway Express was a “flagship
project” in China’s cooperation with both Poland and the EU.
But China isn’t the only player in the game. “There is also the United States,
and we have a very close relationship with them. I’m quite sure Washington is
more than happy to see the routes closed — at least temporarily — because they
have been pressuring the European Union to introduce additional tariffs on China
over Russian oil and gas exports to China,” said Piotr Krawczyk, former head of
Poland’s Foreign Intelligence Agency.
“I believe they are pleased that instead of tariffs, the main land gateway for
Chinese goods is now blocked for a while,” he added. “I’m also quite sure the
Americans are smiling and supporting the Polish government in not rushing to
reopen it — at least not very soon.”
Europe is also at the table, but as Krawczyk noted, “I haven’t seen any reaction
from any country — nothing from the Commission and nothing from the capitals. So
maybe Europe as well is not unhappy to see the main gateway blocked.”
“If this gateway is blocked, then they have to use other routes — for example,
air transport or maritime transport … I think, for instance, the ports in
Rotterdam and Hamburg would be very happy to receive those goods that can no
longer pass through the Polish-Belarusian border,” he added.
As for China’s position, Konrad Popławski, an economist at the Warsaw-based
Center for Eastern Studies — a government advisory think tank — said the sums at
stake are significant, but not game-changing.
The closure matters more for China’s inland western provinces, he added, which
rely heavily on rail links and lack access to seaports. “Still, we are not
talking about vast volumes of trade — it is more of a steady trickle important
to some industries, but by no means critical overall.”
“The big question is whether the border closure poses a problem of sufficient
magnitude — not only for Belarus and Russia, but perhaps also for China — to
compel any bigger reaction,” Popławski concluded.
But while the value of trade flowing through the Polish-Belarusian border is
substantial, he noted, it’s still not large enough to push Beijing to shift its
stance on Moscow or Minsk.
LONDON — Britain is sleepwalking through its biggest food safety crisis since
the horsemeat scandal of 2013, a group of influential MPs warned as they
dismissed a recent personal import ban on EU meat and cheese as “toothless.”
The government moved in April to prohibit travelers from EU countries from
bringing meat and dairy products into the U.K. following an outbreak of
foot-and-mouth disease across the continent.
However, as reported by POLITICO, the ban has not been fully enforced, with
experts warning that U.K. health officials lack the funds to uphold the rules.
In a damning report on Monday, the parliament’s Environment, Food and Rural
Affairs Committee warned that “alarming amounts” of meat and dairy products were
still being illegally imported for both personal consumption and sale.
The committee welcomed the government’s ban on personal imports of meat and
dairy from the EU but described it as “toothless,” with prohibited products
continuing to enter the U.K. through airports, seaports and the Eurotunnel in
freight, parcels, personal baggage and passenger vehicles.
“It would not be an exaggeration to say that Britain is sleepwalking through its
biggest food safety crisis since the horse meat scandal,” committee chair
Alistair Carmichael said. “A still bigger concern is the very real risk of a
major animal disease outbreak. The single case of foot-and-mouth disease in
Germany this year, most likely caused by illegally imported meat, cost its
economy one billion euros.”
He urged the government to “get a grip on what has become a crisis” by
establishing a national taskforce, boosting food crime intelligence networks,
enforcing “real deterrents,” and giving port health and local authorities the
resources and powers they need.
During the committee’s nine-month inquiry into animal and plant health, experts
painted a gruesome picture of the situation at the border, describing cases of
meat arriving in unsanitary conditions, often in the back of vans, stashed in
plastic bags, suitcases and cardboard boxes.
At the Port of Dover alone, port health officials say they intercepted 70 tons
of illegal meat imports from vehicles between January and the end of April,
compared with 24 tons during the same period in 2024.
During a Public Accounts Committee session on animal disease last week, Emma
Miles, director general for food, biosecurity and trade at the Department for
Environment, Food and Rural Affairs, said it was unclear whether the increase in
the number of seizures of illegal meat at Dover was due to a rise in crime or to
better surveillance.
“When you’re catching people it might just mean you are doing better
surveillance and enforcement,” she said.