The Scottish Government has announced up to £3 million in funding to support the development of a £11.2 million rail freight terminal at Dalcross, Inverness. The investment, awarded through the Freight Facilities Grant, will enable West Fraser Limited to build a state-of-the-art facility aimed at shifting freight transport from road to rail.
This strategic move is expected to deliver major environmental and logistical benefits. Over the next 10 years, the terminal could remove more than 8.5 million lorry miles from Scotland’s roads and over 17 million miles across the UK, significantly reducing congestion and emissions.
The Freight Facilities Grant programme was reopened for applications in April, as part of the 2025–26 Programme for Government, reinforcing Scotland’s commitment to sustainable transport and climate action.
Cabinet Secretary for Transport, Fiona Hyslop said:
“I’m pleased to make this award at the start of Scotland’s Climate Week.”
“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.
“Scottish Government policy, leadership and partnership working, combined with a growing focus on rail freight’s environmental benefits, have been instrumental in supporting and promoting sustainable rail freight growth in Scotland. I welcome West Fraser’s significant investment in this new terminal and look forward to seeing how this collaborative approach can continue to have a meaningful impact on industry and the environment.”
George Webb, European Purchasing Director for West Fraser Limited said:
“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 commenced, and the facility is expected to begin operations in mid-2026.”
Image credit: iStock
