EC OKs U.K. Aid to Improve Freight Transport by Rail, Inland Waterway
July 3, 2009 // Published as a news service by IHS
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On July 2, the European Commission (EC) decided not to raise any objections to a new state aid scheme that will encourage a modal shift of freight from road to rail and inland waterway across the U.K.
Thus, the Mode Shift Revenue Support (MSRS) scheme will grant financial support to intermodal services, provided that they generate environmental benefits in the U.K.
The scheme will be in force for five years. Its yearly budget will be around £19 million for England. For Scotland, an annual budget of £8 million will be shared between this scheme and the Waterborne Freight Grant scheme.
The EC found that the proposed measure is in line with the objectives of the European Union's common transport policy, which encourages a modal shift towards a more sustainable transport system.
The EC's white paper on transport policy ("European transport policy for 2010: time to decide," COM (2001) 370) also emphasized the importance of giving rail and other environmentally friendly modes the means to become competitive alternatives to road haulage.
The EC concluded that the planned scheme is in the European Community's interest and that the criteria set out in the applicable community framework (Community Guidelines on State Aid for Railway Undertakings) were complied with.
Source: European Commission (EC).