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This item was published during the term of a previous administration that ended in April 2007

Freight

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Water grants lead the way

21/03/2005

Scotland is leading the way in the UK with a pioneering scheme to get freight off congested roads and onto the water, it was announced today.

The Waterborne Freight Grant (WFG) scheme will help meet shipping costs for freight currently transported by road. The grant will be available to canal, inland waterways and short sea shipping operators.

Transport Minister Nicol Stephen said:

"The Executive is committed to taking freight off our roads and this scheme will encourage companies to carry their goods by water instead.

"With Scotland's roads getting more congested and the working time directive kicking in next month, operators will now get more help to start shipping services by water.

"We already help towards capital costs at ports. This scheme goes further and helps with the shipping route's operating cost, making waterways an increasingly attractive and competitive choice."

The WFG scheme has been finalised following a joint consultation exercise by the Scottish Executive and the Department for Transport with the freight and shipping industries. Scotland is the first area in UK to introduce this scheme. The WFG scheme will not only help with shipping routes around Scotland, but also between Scotland, the rest of the UK and mainland Europe.

The WFG complements the grant schemes already in place to take more freight off Scotland's roads. The Freight Facilities Grant scheme helps provide facilities at ports, railheads etc and the Track Access Grant scheme is a revenue based scheme for the rail freight industry. The total amount available for the three grant schemes over the next three years is £44m. The WFG scheme will give grants towards a ship's running costs up to a maximum of two million Euros for each project spread over three years.

The new scheme will contribute to the Executive's target of making freight grant awards each year which will remove 2 million lorry miles annually from Scottish roads.

Page updated: Monday, March 21, 2005