Rail freight grant

Freight containers travelling between Grangemouth and Aberdeen will continue to go by rail rather than road thanks to a £750,000 grant announced today.

As a result of the award to Direct Rail Services (DRS) over 25,000 lorry trips will be avoided over the next three years. The majority of freight will be ASDA traffic transported on behalf of WH Malcolm.

During a visit to WH Malcolm in Grangemouth, Transport Minister Stewart Stevenson said:

"Many of us have been caught up in delays along the A90. We want to reduce congestion across Scotland and minimise the potential impact on the economy. This award to DRS will continue to free up the route to and from the North East while reducing emissions."

Under the Scottish Government's Rail Environmental Benefit Procurement Scheme, DRS has been awarded up to £269,500 for the period from April 2007 to March 2008 and up to £475,700 for the period from April 2008 to March 2010, subject to the outcome of the Strategic Spending Review.

This rail traffic previously received funding from the Department of Transport under the Company Neutral Revenue Support freight grant scheme, which was replaced by the Rail Environmental Benefit Procurement Scheme (REPS) on April 1, 2007.

REPS is operated by the Scottish Government in Scotland and this is its first award. The grant provides operating subsidy to companies who wish to transfer freight from road to trail where the rail option is more costly.