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Taking freight off congested roads and moving it by rail or water can ensure that freight is moved in an efficient, flexible and sustainable manner. Freight Facilities Grant (FFG) can act as an enabler for companies investing in facilities that without FFG, would not happen as they would not be commercially viable

Freight Facilities Grants are open to any company, including SMEs, who can demonstrate that they can transfer freight from road to rail or water.

Any company, in either a rural or urban area, which wants to move freight by rail or water rather than by road and which is proposing to invest in new freight handling facilities in Scotland or re-invest in existing facilities in Scotland may apply for Freight Facilities Grant. All applications are treated on their merits.

To date, no applications under Freight Facilities Grant have been received specifically promoting low carbon or zero emission solutions. However, the movement of freight by rail rather than road, especially over long distances, can result in lower emissions.

To date, no applicant has sought to include within an award of Freight Facilities Grant the integration of digital technologies as a specific element of a funded project.

A total of £70,443,984 has been allocated through the Freight Facilities Grant (FFG) since its introduction in 1997. Of this the spend on rail projects was £44,708,510, or 63% of the FFG budget. The spend on water projects was £25,735,474 which equates to 37% of the budget.

Traffic monitoring is undertaken after a facility funded under the grant scheme becomes operational.

Transport Scotland requires applicants to provide a return of traffic passing through the grant-aided facility. Transport Scotland will require verified tonnages reports from the applicant, in cases where the applicant is required to provide evidence to corroborate the traffic the documentation required will be agreed prior to the award of grant.

Monitoring will cover an agreed period of time to allow the required environmental benefits from the grant to be accrued by the applicant.

Taking freight off congested roads and moving it by rail or water can have environmental and wider social benefits but it can be more expensive. Freight Facilities Grant (FFG) is therefore available to assist with the extra costs generally associated with moving freight by rail or water by offsetting the capital costs of providing the required freight handling facilities. It is also available to help companies reinvest in existing rail or water freight facilities where the traffic may revert to road transport.

The value of environmental and social benefits is based on calculating the benefits of removing one lorry mile of freight from road and transferring it to rail or water.

Monitoring is undertaken after a facility funded under the grant scheme becomes operational.

The Freight Facilities Grant is a well-known scheme having been in operation since 1997. Transport Scotland continues to raise the profile of the scheme across all areas of the Scottish economy. In March 2025, it is intended to undertake an exercise with stakeholders asking for applications for 2025-26, working with industry bodies representing a range of sectors.

The Scottish Government continues to support the development of our ports, and the potential for new direct freight and passenger ferry services linking Scotland to Europe.

I have personally engaged with parties interested in introducing new ferry services, and Transport Scotland officials communicate regularly with potential operators and Scotland’s main ports.

The Scottish Government and its agencies have supported a number of maritime initiatives across Scotland, including establishing a Green Freeport at Forth Ports, which includes Rosyth. This involves both seed capital funding, along with businesses locating within the ports being able to access a package of devolved and reserved tax incentives.

We will continue to engage with port operators and others to explore opportunities for new commercial ferry services, so that Scottish exporters and passengers have more direct routes to and from Europe. However, the Scottish Government cannot subsidise routes in ways which would be anti-competitive beyond considering the availability of limited start-up grant funding opportunities for freight initiatives.