Archives



Freight News, Inland waterway


Grant changes could unlock Thames freight potential, says report

[ July 13, 2022   //   ]

A Thames Estuary Growth Board and Port of London Authority (PLA) a report has suggested changes to the government grant s that could unlock the potential for freight movements to switch from road to water.

The ‘Mode Shift Revenue Support (MSRS) – Light Freight Analysis Report’, published by consultants WSP on 12 July, says that four simple changes can make the scheme more effective: adjusting the scheme to take account of the additional barriers faced by waterborne operators; encouraging innovation, particularly in light freight; developing pilot studies to test alternative modes for specific cargo types; and allowing grant funding for capital expenditure in setting-up new operations, rather than just operating costs.

The latest report follows on from the ‘Light Freight on the River Thames study’ published in 2022 which objectively assessed the potential for increasing river freight movements in the near term

With a review of the grants scheme due in 2024, the report sets out the barriers and solutions, which could help unlock better use of the Thames to move freight, as well as other waterways across the country.

The report authors say that handling just 3% of the 700 million parcels delivered in London annually could transform the economics of river freight compared with road.

While the Government’s Mode Shift Revenue Support (MSRS) scheme aims to remove short term financial barriers preventing companies moving away from road transportation and helping cut CO2 emissions, the WSP analysis, outlines several ways in which the current funding criteria inadvertently disadvantage light freight, resulting in extremely low numbers of successful applications.

Deputy chair of the Thames Estuary Growth Board, Perry Glading, said: “We hope this new research will help get the dialogue on what is possible moving at a faster pace, driving a real shift from road to water. We all recognise the potential environmental and social benefits, as well as the greater reliability the river offers for deliveries. Businesses and stakeholders at our first light freight event highlighted that they were unable to access MSRS funding that could help us get this service up and running at scale quickly and supporting the country’s net zero ambitions.”

www. thamesestuary.org.uk/light-freight

Tags: