This item was published during the term of a previous administration that ended in April 2007
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Freight grant to lessen lorry road use
24/09/2004
Lorry use of Scotland's roads could lessen by one million miles every year as a result of an Executive freight grant.
Transport Minister Nicol Stephen announced the award of a Freight Facilities Grant to two Scottish companies WH Malcolm and ARR Craib.
The award enables them to deliver Asda goods from a depot in Grangemouth to four stores in the Aberdeen area by rail rather than road. The combined awards of over £250,000 will help pay for new loading and unloading equipment.
The environmental benefits of the project have been estimated at £2.3 million over five years, reflecting the lorry miles which will be removed and the economic benefits of cleaner, more sustainable transport.
Transport Minister Nicol Stephen said:
"This award is good news for drivers using roads to and from the North East and for the environment. It will remove one million lorry miles from Scotland's roads every year. It also shows how a small but targeted project can lead to major benefits in reduced congestion and pollution.
"The freight will use an existing service, but we are also keen to upgrade the track between Mossend and the North East so more goods can be transferred from road to rail. We are currently funding a detailed engineering and financial study into this project."
The new equipment will allow the movement of over 4,000 containers per year to the Asda stores in Middleton Park, Bridge of Don, Portlethen, Bridge of Dee and Dyce. WH Malcolm has been awarded £138,000 for 2 trailers, 1 trailer lifter and 40 containers, while ARR Craib has received £145,000 towards a replacement Reachstacker (forklift) and 6 trailers.
The total cost of the equipment is £688, 000, with the two companies providing the balance of the funding.
Adam Spiers, ASDA General Manager - Transport Scotland, said:
"Over the past months, we've been steadily increasing the amount of goods sent to Aberdeen by rail. That's because we can reduce costs and also make a real difference to the environment - a virtuous circle that's good for customers and even better for our futures."
Jim Clark, Managing Director of the Malcolm Group, said:
"The Malcolm Group are pleased that the Freight Facilities Grant has been awarded, as it will assist our company's planned geographic expansion of services."
Edward Anderson, Managing Director of ARR Craib Transport Ltd said he was equally pleased with the joint award:
"Undoubtedly the new reach stacker and trailers are vital to facilitate the resurgence of rail freight in the North East of Scotland."
Since July 1997, 25 previous Freight Facilities Grant awards have been made for Scottish projects representing a total grant award of over £68 million, including five awards either part or wholly funded by the Department for Transport.
The published target to make awards of FFG by March 2006 which will remove 25 million lorry miles each year from Scotland's roads was achieved. However, a new higher target is being finalised.
Asda has begun deliveries on the Grangemouth to Aberdeen train. To date, this service has taken approx. 17,500 miles (1944 gallons of diesel) off the road per week for the company, equating to 910,000 (101,111 gallons of Diesel) per year and saving 41 tonnes of solid carbon per year.
Asda has worked with its partners WH Malcolm & ARR Craib Transport to facilitate this switch from road to rail. It now shifts five per cent of goods by rail and it hopes to reach ten per cent in the next five years.
The Executive provided £500,000 in April this year to the North East Rail Freight Development Group to complete preparatory engineering work and establish the costs to upgrade the track between Elgin, Aberdeen and Mossend in Lanarkshire.
The improvements would allow for the use of the larger modern containers preferred by the food and paper industries, transferring up to 1.3 million tonnes of freight from road to rail. It is expected to take 12 months and subsequently - following identification of a suitable funding package - bids can be sought to undertake the upgrade of the track.