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Any company 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 FFG. Before making a formal application for FFG, a company is expected to approach Transport Scotland who will be able to give informal advice on whether, and to what extent, a freight facility may be eligible for FFG.

On receipt of the formal application, Transport Scotland may decide to seek independent engineering advice to examine the design and specification of the project. The costs of this will be borne by Transport Scotland. A visit to the site of the proposed facility, by Transport Scotland and by its appointed consultant, will be necessary.

Since the introduction of the scheme in 1997, applications have typically taken between 3-6 months to complete. However, it can take longer depending upon the complexity of the proposal and the time taken by the applicant to supply the information.

The application process for FFG is currently under review ahead of potential awards in financial year 2025-26.

With all applications, Transport Scotland officials are available to discuss any proposal and provide assistance on what information should be included in an application and what evidence is required prior to any formal decision being made on awarding a grant.

To date, no applicant has applied for a grant under the Freight Facilities Grant with the specific purpose of supporting the transition to greener technologies such as alternative fuels.

Since 1997, Freight Facilities Grants have removed over 50 million lorry miles from Scotland's roads. The exact impact on road congestion and air quality of each project cannot be confidently described due to the effect of other local influences on transport demand.

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.

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.

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

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

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.