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2007-07-25 DfT-001
Department for Transport


Department for Transport delivers more funding to support freight

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Department for Transport

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Department for Transport

Department for Transport delivers more funding to support freight

25 Jul 2007 09:30
source Department for Transport
type Press release

The Department for Transport has today announced funding grants of more than £20m to support freight transport in the UK. The awards, from three separate funding programmes, combine to improve the freight infrastructure of the country and reduce the amount of freight transported by road.

£18.5m of funding is being awarded to enhance the Gospel Oak to Barking line in London. The enhancement, funded from the Transport Improvement Fund, will enable the line to transport more goods from key ports in the south east. The upgrade will also allow the line to be used as an alternative route for freight trains during upcoming maintenance works on the North London Line.

A further £2.1m in grants has been awarded to five freight infrastructure projects through the Freight Facilities Grant (FFG) scheme. The funding, awarded to three different companies, will upgrade facilities at Tolworth goods yard, Brierly Hill, Southampton Docks, Barry Docks and the Port of Heysham. Collectively, the projects will remove 39 million lorry km from Britain's roads over the next ten years.

The Department has also provisionally awarded just over £350,000 for this financial year as part of the Rail Environmental benefits Procurement Scheme (REPS). This funding, for carrying freight by rail that would otherwise be carried by roads, will help remove almost 28,000 lorry journeys from the UK road network. This is in addition to £44m of new REPS grants announced in June this year.

Transport Minister Tom Harris said:

"These awards underline the Department's commitment to improving the freight network in this country. This year alone, the DfT has announced more than £65m to support freight, by upgrading the infrastructure and subsidising greener ways of transporting freight.

"This funding will help to make a significant contribution to reducing road congestion, carbon and environmental emissions. In this way everyone wins."

Notes to Editors

1. The Gospel Oak to Barking line is the first award from the DfT's Productivity Transport Improvement Fund. It will enable the route to transport high-cube containers from ports in the south east, including the new development at London Gateway.

2. The new awards of Freight Facility Grants have been made to:

- Day Group Ltd has been awarded a grant of £1,150,938 towards the cost of redeveloping the former rail goods yard at Tolworth. The grant will enable them to move around 2.3 million tonnes of sand and aggregates by rail over a 10 year period. The scheme will remove over 220,000 lorry trips and result in the saving of over 14.6 million lorry kilometres from our roads over this period.

- Dunn Bros (1995) Ltd has been awarded a grant of £705,090 from the Department - and a further £395,657 from the Welsh Assembly Government - towards the cost of rail handling facilities at Brierley Hill, Southampton and Barry Docks. The grant will enable Dunn Bros Ltd to move 140,000 tonnes of scrap steel per year from Brierley Hill in Birmingham for export from Southampton and Barry. This grant will remove over 105,000 lorry journeys over the 10 years and save almost 20.8 million lorry kilometres.

- Henty Oil Ltd has been awarded a grant of £295,343 towards the construction of fuel bunker storage facilities at the Port of Heysham. The grant will enable them to transport 54,000 tonnes of heavy marine fuel oil per year by water from Liverpool to Heysham, in doing so removing over 34,000 lorry journeys and 3.6 million lorry kilometres from UK roads over a 10-year period.

3. Furthermore, four projects that shared around £1.3 million in Freight Facilities Grant funding in 2006 are now operational meaning that goods have shifted from road to rail or water. These projects together will save more than 7 million lorry km over the next 10 years:

- Green Line Oils was awarded a grant of £137,242 in September 2006 towards the construction of oil storage facilities at its plant in Rotherham to enable the delivery of oil by water.

- Hanson Aggregates Ltd was awarded a grant of £206,048 in December 2006 towards the reactivation of a wharf at Wandsworth to enable the delivery of sand and aggregates by water.

- Henty Oil Ltd was awarded a grant of £202,427 in August 2006 towards the cost of oil storage facilities at Huskisson Dock in Liverpool to enable the delivery of Heavy Fuel Oil by water from Pembroke.

- McGrath Bros Ltd was awarded a grant of £755,600 in July 2006 towards the cost of wharf construction and associated mechanical plant at Debden Wharf in Barking. The grant will enable the delivery of sand and aggregates by water from Northfleet.

4. The new awards of Rail Environmental benefit Procurement Scheme funding have been made to:
Grant Recipient Scheme Traffic Details Contract Value (£)
Amec Spie* REPS(B) Kronospan 46,350
Fastline Freight* REPS(I) Various 40,560
Fastline Freight REPS(I) Various 23,000
Freightliner REPS(I) Various 68,200
Freightliner REPS(I) Various 30,800
Freightliner REPS(I) Various 57,000
EWS REPS(B) Mendip Rail 10,800
EWS REPS(I) Various 34,650
EWS REPS(I) Various 23,656
EWS REPS(I) Various 17,700
TOTAL 352,716

*Provisional awards subject to further detailed appraisal.

5. In June this year the Department announced an initial £44m of REPS funding over the next three years. Details of this announcement are available at:

6. The Department for Transport runs three schemes that facilitate the purchase of the environmental and social benefits that result from using rail or water transport instead of road. These are:

- Freight Facilities Grant (FFG): helps offset the capital cost of providing rail and water freight handling facilities.

- Rail Environmental Benefit Procurement (REPS (B) & REPS (I)): assists companies with the operating costs associated with running rail freight transport instead of road (where rail is more expensive than road).

- Waterborne Freight Grant scheme (WFG): assists companies with the operating costs, for up to three years, associated with running water freight transport instead of road (where water is more expensive than road).

The three freight grant schemes are open to new applications. Applications are prioritised in a bid round process and further details are available on the Department's website.

Public Enquiries: 020 7944 8300
Department for Transport Website:

Railhub Archive ::: 2007-07-25 DfT-001


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