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Grants to take freight off the roads

25/03/2003

More than 1.3 million lorry miles will be removed each year from Scotland's roads following three awards of Freight Facilities Grants (FFG) totalling almost £4 million.

An award of over £460,000 has been made by the Executive to the Cheshire-based company, Salt Union Limited, to develop the movement of highways de-icing salt from Cheshire to Scotland by rail, including the construction of a Salt Dome storage facility at Grangemouth.

This complements an award of nearly £180,000 FFG from the Strategic Rail Authority to Salt Union. These two awards will allow for more than 40,000 tonnes of salt to be transported to the new facility by rail each year removing over 240,000 lorry miles from Scotland's roads each year over 5 years.

The Deputy Transport Minister, Lewis Macdonald said,

"This award of FFG benefits not only Salt Union Limited but also highlights the growing and important role that Grangemouth is playing in rail freight in Scotland."

Mr Macdonald also welcomed two other awards of Freight Facilities Grant made by the Department for Transport (DfT) to CLYDEboyd, a joint venture between Clydeport and Boyd Brothers of Corpach, and to Iggesund Paperboard for their timber project at Portavadie, Loch Fyne, Argyll.

The award of £3.3 million will help CLYDEboyd to develop new port facilities at Corpach, near Fort William. This award for the development of Corpach pier will allow 86,000 tonnes of freight each year, mainly timber and road salt, to be transported by sea rather than road, removing over 780,000 lorry miles annually from Scotland's roads.

David Jamieson, DfT Minister for Shipping, said:

"I am delighted that we were able to offer a higher than normal level of grant in this exceptional case. Not only have we been able to ensure that the traffic already using Corpach Pier can continue to do so but that the improved facilities which will now be put in place with grant support will attract significant additional freight.

"Altogether this will remove eight million lorry miles in Scotland over the next ten years, bringing real benefits to the environment and the air that we breathe. I wish Clydeport plc and Boyd Brothers every success with this exciting new venture."

Jonathan Riley, Executive Director for Freight at the Strategic Rail Authority said:

"The economic and environmental benefit to Scotland of getting freight off of roads and on to rail is clear for all to see. We are delighted to have awarded funding to Salt Union Ltd for capital investment to improve their rail freight handling capability and commend the efforts of all those parties who have contributed to the project."

Mr Macdonald added:

"I am delighted that this project which we fully support, and indeed on which we carried out the initial assessmenthas eventually been given the green light by the EC. The project will realise significant environmental benefits for the West Highlands."

The second DfT award of £223,000 was made to Iggesund Paperboard towards the capital cost of the renovation of the pier, forestry roads and other associated equipment required at Portavadie, Argyll. This award will remove over 300,000 lorry miles from Scotland's roads each year enabling over 350,000 tonnes of timber to be transported by sea from Portavadie to ports in Ayrshire and Workington ,Cumbria, over the five years of the project.

The Scottish Executive has also announced a further award of Track Access Grant (TAG) to English, Welsh and Scottish (EWS) railways. TAG is designed to defray some of the costs of placing freight onto rail and to make rail freight more competitive with road haulage.
EWS have been awarded a TAG of up to £235,000 per year for the movement of timber from various locations throughout Scotland to locations in England and Wales.

The Strategic Rail Authority (SRA) has made an award of FFG totalling £178,619 to Salt Union Ltd for capital expenditure at the company's mine at Winsford, Cheshire, including infrastructure improvements and loading equipment.

Under the Government's FFG scheme, grants are available towards the capital costs of equipment for rail, coastal and short sea shipping, and inland waterway freight transport in cases where this traffic would otherwise move by road.

Page updated: Wednesday, July 21, 2004