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Railhub Archive 1996-09-19 DoT-001 Department of Transport0
Watts announces major boost for rail freight
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 railfreight grants
 transport policy
 
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         Watts announces major boost for rail freight _______________________________________________________________

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type Press release note 294
In a move designed to boost rail freight and protect the environment, John Watts, Minister for Railways, Roads and Local Transport, today announced an increase in grants available for long-distance freight traffic. Speaking at the "Investing in Rail Freight" conference in London, Mr Watts revealed the current "credit" of 5p per mile would increase to 20p for trains which replace lorries on motorways. The higher rate will apply immediately. Welcoming the increase, Mr Watts said: "Freight grants have already been successful in switching freight from road to rail. In 1994 grants helped move 10 million tonnes - 12 per cent by volume of all railfreight in Britain. The increase I have announced today will reinforce that success by making more schemes for long-distance railfreight eligible for grant." "This is good news for the environment and good news for industry which increasingly sees rail as a real alternative to the road network for meeting transport needs." Also in the pipeline are proposals to streamline application procedures in order to improve grant take-up, and provide speedier assistance for more ventures. The Department will consult the railfreight industry and others on these improvements in the near future. In addition, Mr Watts announced a new track access grant to English Welsh and Scottish Railway. The grant guarantees coal traffic carried mostly within the Lothian region of Scotland for Coal Contractors Ltd will continue to be transported by rail: "This new grant will keep coal on the railways for the next four years and keep 14,000 lorries off our roads. "With ambitious plans for investment and a more pro-active, customer-orientated approach the private sector is set to reap substantial dividends in the form of new traffic." The company is already attracting new business from Caithness to Cornwall, and EW&S coal trains have operated into Castle Cement's Padeswood works in North Wales for the first time in 30 years. During the summer, coal trains returned to Falmouth Docks after an absence of nine years. EW&S have also secured a new contract for the movement of pipes destined for North Sea gas and oil fields. These trains, between Hartlepool and Georgemas Junction, are believed to be the largest ever to operate in the Scottish Highlands. Revealing that the revival of rail freight is not confined to one company, Mr Watts announced recently privatised Freightliner, the deep sea container distribution business, is also breaking records: "Freightliner have achieved a new all-time record for the number of containers handled by rail on a single day at the port of Felixstowe. On 4 September, Freightliner transported 844 containers to and from the port, equivalent to more than 20 trains in one day alone." Notes to Editors 1. Under the Government's Freight Facilities Grants scheme, grants are available towards the capital cost of rail and inland waterway freight equipment in cases where the traffic would otherwise move by road. 2. The Track Access Grant is a revenue grant to defray the costs to freight operators of access to the rail network. Like the Freight Facilities Grant this is only available where the removal of freight from the roads will result in environmental and wider benefits. 3. In August 1996, the National Audit Office published a report into the administration of the Freight Facilities Grants scheme - "Department of Transport: Freight Facilities Grants in England". Copies of this are available from HMSO, price #8.15. 4. BR's trainload freight businesses were sold in February 1996 to a consortium led by Wisconsin Central. These businesses are being re-formed as English Welsh & Scottish Railway (EW&S). Freightliner was sold in May 1996 to a management buyout team. # = pounds sterling
Railhub Archive ::: 1996-09-19 DoT-001
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