This states that the government will examine the individual sectors, road, rail and water, and prioritise future funding according to the likelihood of the potential benefits from each sector.

Water freight grants are currently funded from a dedicated budget. Sea and Water are concerned that in future, water may have to compete with the other sectors for funding and have written to Secretary of State for Transport Alistair Darling to reinforce the importance of dedicated freight grant funding to kick start water freight initiatives.

Sea and Water has also reported two studies being conducted in London aimed at moving some of the capital's freight onto its canals. British Waterways and Transport for London (TfL) are investigating how the Grand Union Canal, and particularly the 26 mile stretch from Camden westward to Slough which has no locks, can be developed to carry more freight. BW and TfL are surveying locations and evaluating what work and investment is necessary to turn the idea into reality.

Meanwhile, the EC has agreed to a French aid scheme for inland waterway transport costing up to ? 15m a year.

MJ Information No: 19852