09 May 2019, 13:24
Rail freight fund announced
£25m available to strengthen rail freight industry in Scotland
Scottish rail freight is set to benefit from up to £25 million of ring-fenced funds to help strengthen the industry over the next five years.
The Scottish Government commitment was announced by Transport Secretary Michael Matheson during a visit to the Freightliner Terminal in Coatbridge today (9 May).
The fund is open to rail freight industry partners, including Network Rail and Transport Scotland, to table proposals for improvements which meet freight modal shift objectives. Innovative proposals which meet strategic objectives without costly infrastructure upgrades, for example wagons/locomotives or other interventions, are also welcome.
Mr Matheson said:
“This Government has a strong track record of support for rail freight which we are committed to taking forward over the next five year funding period. We know that rail freight and modal shift to rail reduces road congestion, improves air quality, and reduces emissions.
“Rail freight services are vital to sustainable economic growth across Scotland. This fund will support the development and delivery of strategic rail freight projects which improve capacity and capability. It aims to build on and complement our existing and future investment in Scotland’s railways.
“Working with Network Rail, we are also encouraging a sharper business-focus and setting challenging but achievable regulatory targets for freight in terms of average speed, performance and growth.”
Paul McMahon, Managing director of Freight and National Passenger Operators at Network Rail, said:
“Over the next five years we’ve committed to working with our industry partners to get new traffic onto Scotland’s rails and today’s announcement is welcome. We understand that Network Rail is vital to supporting freight growth, but this will only be realised by working in partnership with the wider industry.
"That’s why, in April, we launched the Industry Plan for Freight Growth in Scotland and this will help us to achieve the ambitions set out in that plan.”
Maggie Simpson, Director General of the Rail Freight Group, added:
"This commitment from Scottish Government is welcome news for the rail freight industry and will allow vital upgrades to Scotland’s railways, unlocking capacity and capability for new services. This is good news for freight customers, for the Scottish economy and for the environment."
The Fund will be administered by Transport Scotland and a new Scottish Rail Freight Forum will be established including members from across the industry. All work will be commissioned in a way that best secures value for money.
Contact Information
Steven Carmichael
Media Manager
Transport Scotland
01412727196
07775853185
steven.carmichael@transport.gov.scot
Notes to editors
- The £25m forms part of the £4.85 bn allocated to rail over the next five year funding period.
- The fund complements other available support for freight such as the Freight Facilities Grant (FFG) or the Mode Shift Revenue Support Grant (MSRS). These schemes are available to companies to assist with the extra costs of moving freight by rail by offsetting capital costs (FFG) and revenue costs (MSRS).
- The Fund is not intended to support investment where the financial benefits to individual stakeholders are sufficient to warrant them funding the scheme directly.
- As such and in line with established policy – an outline appraisal of the likely value of to be delivered by the proposal/scheme should be carried out as early as possible in the process.
- A more detailed - usually quantitative - appraisal should be completed prior to the commitment of detailed design.
- All appraisal work will be clear, evidence-based, and in line with the Fund principles, including the Scottish Ministers’ priorities and will consider the financial impact on each affected industry partner.
- All appraisals will follow the principles of the Scottish Transport Appraisal Guidance applied at a proportionate level to the proposal/scheme.
Key rail freight facts/information
• In 2016 rail freight generated £1.6 billion in economic benefits across the UK
• Crucially rail freight and modal shift to rail reduces road congestion, improves air quality, reduces emissions and road accidents
• For example each tonne of freight by rail reduces emissions by 76% compared to road
• In recognition of the importance of rail freight to the Scottish economy and in view of the sharp decline in the rail freight market with the loss of coal the Scottish Government published a Rail Freight Strategy: Delivering the Goods
• This Strategy was a call to arms to both the public and private sectors, it signalled a shift to the norm with specific actions and dedicated support to grow the rail freight market
• The vision that the Strategy set out and to which all activity is directed is:
A competitive, sustainable rail freight sector playing an increasing role in Scotland’s economic growth by providing a safer, greener, and more efficient way of transporting products and materials
• Early in 2017 alongside the industry we published a Guide to the Benefits of Using Rail Freight, an easy to read introduction to rail freight, why it is important and how it can assist businesses this was followed by a series of promotional workshops across Scotland showcasing rail freight to potential businesses
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