The decision not to provide Freight Facilities Grant (FFG) funding for intermodal terminals in the North West reflects the increasing competitiveness of the sector in this market which is good news for the intermodal sector.

Competition in the rail freight intermodal business is increasing with a number of terminal and freight hauliers now active in the market. In the North West market in particular, there are at least three separately owned competing terminals and rail hauliers serving the market.   

In addition to this, there are plans to develop two new rail freight terminals at the Port of Salford and at Parkside both of which will be developed without public sector support.

The Department will therefore no longer provide FFG support towards terminal investment in the North West as it will clearly distort the market between those who have received grant support and those which have proceeded to invest without.

Similar competition issues are likely to prevail in markets other than the North West of England. The Department therefore reserves the right to extend the policy not to provide FFG funding to intermodal terminals in other areas as and when detailed research has been undertaken in these markets.