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£900,000 grant will help ease congestion on the A9 - Boyack
22/03/2000
Almost 9000 lorry journeys over the next three years will be removed from the busy A9 following the award of a £900,000 grant to supermarket chain Safeway.
Sarah Boyack Minister for Transport and the Environment today awarded Safeway the second Freight Facilities Grant in a year enabling the company to move produce destined for Thurso, Wick, Kirkwall and Ullapool mostly by rail from its warehouse in Bellshill.
As well as allowing Safeway to transport north-bound freight to Inverness and Georgemas Junction near Thurso the grant includes the purchase of refrigeration units from a company in Fraserburgh and track improvements.
Phase 2 of the company's Highland distribution project follows an earlier award of £680,000 which led to the distribution of supplies destined for stores in Nairn, Buckie, Elgin and Inverness by rail.
Sarah Boyack said:
"Funding made through the Freight Facilities Grant scheme underlines the Government's commitment to increase the amount of freight transported by rail and reduce congestion on the trunk road network.
"Today's award will remove almost a further 9000 lorry journeys over the next three years between Bellshill and Inverness/Georgemas Junction, mostly from the A9. This equates to almost a further 600,000 lorry miles per annum being transferred to rail and is a major contribution to the Scottish Executive's target of transferring 15 million lorry miles from roads to rail and inland waterway by 2002.
"The environmental benefits of transporting freight by rail rather than road have long been recognised - but rail has often failed to meet the demands of customers. The expansion of this project is proof that rail and road can work well together and demonstrates Safeway's belief in rail as a reliable and efficient alternative to a solely road based logistics strategy. Rail is now a practical option for time critical deliveries.
"Safeway was the first of the UK's supermarkets to commit to a permanent rail movement for its products. The success of Phase 1 of the project is testimony to the company's commitment to rail".
BACKGROUND
1. Under the Government's Freight Facilities Grants Scheme, grants are available towards the capital costs of rail and inland waterway freight equipment in cases where the traffic would otherwise move by road. The award is made under the provision of section 139 of the Railways Act 1993.
2. Today's announcement marks the seventh award of FFG grant in eight months: £870,000 awarded to H J Banks in July 1999, £2.5 million awarded to L.A.W and £9.7million to TDG Nexus both in September 1999, £4.4million awarded to Associated British Ports, £870,000 awarded to ST Services and £81,000 awarded to Forth Ports this year.
3. As a result of an award of FFG totalling £680,000 by the Scottish Executive last year, Safeway Stores plc currently supplies its five stores in Nairn, Buckie, Elgin and two in Inverness by rail from the the EWS Mossend rail terminal. Each store receives deliveries on a daily basis (363 days a year) consisting mainly of fresh produce, chilled and frozen foods and wine. This Phase 2 project would extend rail delivery to stores in Thurso, Wick and Kirkwall via Georgemas Junction and Ullapool via Inverness.
4. The grant will allow Safeway to purchase equipment to enable the goods to go by rail. This includes inter-modal refrigeration units which are manufactured in Fraserburgh, some track works and works to the unloading area at Georgemas Junction and the provision of a reachstacker. This equates to the removal of some 3,000 lorry journeys covering some 600,000 miles per annum.
News Release: SE0801/2000
22 Mar 2000