Scottish Government backs £11.2m Inverness rail freight terminal project

The Scottish Government has awarded up to £3 million to support the construction of a new £11.2 million rail freight terminal in Inverness.

The investment, made through the Freight Facilities Grant (FFG) programme to West Fraser Limited, will fund a terminal at the company’s Dalcross site. The project aims to move more goods by rail to markets across the UK, while easing pressure on Scotland’s road network.

Over the next decade, the facility is expected to cut more than 8.5 million lorry miles from Scotland’s roads and more than 17 million across the wider UK.

“Rail freight services are vital to sustainable economic growth across Scotland”

Announcing the grant during Scotland’s Climate Week, Cabinet Secretary for Transport, Fiona Hyslop, said:

We know that shifting freight to rail reduces road congestion, improves air quality, and reduces emissions.

Rail freight services are vital to sustainable economic growth across Scotland. This project can make a clear, measurable, and early contribution to the reduction of emissions from HGVs, as well as contributing to our targets to increase the volume of freight being moved by rail.

In fact, this particular project could equate to removing the equivalent of up to 100 HGVs permanently from our roads per week, with the potential for even more should other companies use the facility.”

She added that Scottish Government policy and partnership working had been “instrumental” in supporting and promoting sustainable rail freight growth in Scotland.

George Webb, European Purchasing Director for West Fraser Limited, commented:

West Fraser is delighted to work collaboratively with the Scottish Government to help facilitate the construction of a rail freight terminal at West Fraser’s state of the art Inverness OSB mill.

This facility will help accelerate the switch from road transport to rail, improving efficiency, removing some 20,000 HGV journeys off the A96 and A9 and eliminating approximately 9000 tonnes of CO2 emissions per year, in the first phase.”

Construction has now begun, with the Inverness rail freight terminal due to enter operation in mid-2026.