Mode Shift Revenue Support Scheme - Bulk and Waterways

The Mode Shift Revenue Support (MSRS) is provided by the Department for Transport and assists companies with the operating costs associated with running rail or inland water freight transport instead of road, where rail or inland waterway transport is more expensive. It is designed to facilitate and support modal shift, generating environmental and wider social benefits from reduced lorry journeys on Britain’s roads.

The scheme operates in two parts:

• MSRS (Intermodal) for the purchase of intermodal container movements by rail; and
• MSRS (Bulk and Waterways) for the purchase of other freight traffic movements by rail and all movements by inland waterway. (Subject of this report.)

Unlike MSRS (Intermodal) there are no standard rates applicable. Instead grant is limited by the value of the identified environmental benefits and/or the financial need for grant as demonstrated through a financial appraisal. Each application for support from MSRS (Bulk and Waterways) is assessed on an individual basis.

MSRS has been approved by the European Commission to operate until 31 March 2025.

Any company may apply for MSRS (Bulk and Waterways), although grant is normally payable only to the goods service operator (GSO) of the service in question. It is strongly recommended that the application for support is made by the GSO. Where this does not happen, the GSO must be closely involved through the application process.

Due to the time and cost associated with assessing applications, some administrative bodies may stipulate a minimum application value for MSRS (Bulk and Waterways).

MSRS (Bulk and Waterways) will not be paid if the:

• traffic is eligible for MSRS Intermodal (applies only to rail traffic);
• starting point or destination is beyond the first available domestic port beyond the Smooth Water Line for the route in question (applies only to waterway traffic);
• best alternative mode of transport is other than by road (eg coastal shipping);
• service can be commercially justified without MSRS (Bulk and Waterways) support or would proceed in any event without it;
• use of rail or inland waterways is a planning or other legal requirement on the site from where the freight is to be carried.