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IP/09/1081

Brussels, 2 July 2009

Commission authorises UK state aid to improve freight transport by rail and inland waterway

The European Commission decided today not to raise any objections to a new aid scheme which will encourage modal shift of freight from road to rail and inland waterway within the UK. The Mode Shift Revenue Support (MSRS) scheme will thus grant financial support to intermodal services provided that they generate environmental benefits within the UK.

The scheme will be in force for five years. Its yearly budget will be around GBP 19 million for England. For Scotland, an annual budget of GBP 8 million will be shared between this scheme and the Waterborne Freight Grant scheme.

The Commission found that the proposed measure is in line with the objectives of the common transport policy, which encourages a modal shift towards a more sustainable transport system. The White Paper on Transport Policy 1 also emphasises the importance of giving rail and other environmentally friendly modes the means to become competitive alternatives to road haulage.

The Commission concluded that the planned scheme is in the Community's interest and that the criteria set out in the applicable Community framework 2 are complied with.

1 :

White Paper European transport policy for 2010: time to decide. COM (2001) 370.

2 :

Community Guidelines on State aid for railway undertakings.


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