Waterborne Freight Grant

Waterborne Freight Grant (WFG) can assist a company with the operating costs associated with running waterborne freight transport instead of road, where transport by water is more expensive. The primary aim of the scheme is to provide time limited support for the inception of new services. However, in exceptional circumstances WFG may be considered to enable an existing loss making service to become viable and prevent freight transferring to road. WFG can support coastal or short sea shipping services, on condition that, after a period of grant aid the service will be economically viable without grant support. Your application would need to demonstrate that this is the case.  The applicant will also need to demonstrate that in the absence of the waterborne grant, the freight would be moved by road.

Any ship-owner wishing to move freight by water using UK ports or harbours and which results in the removal of freight from British roads may apply for a WFG.

WFG is designed to facilitate and support modal shift to waterborne freight services, generating environmental and wider social benefits from reduced lorry journeys on Britain’s roads.

WFG application form and guidance is available on freight grants website: https://www.gov.uk/government/publications/department-for-transport-delivers-more-grant-funding-to-transport-freight-by-rail/mode-shift-revenue-support-and-waterborne-freight-grant-applications-and-background-information

The main bid round for 2026/27 took place on 15 February 2026.

The WFG scheme has been extended and will now expire on 31 March 2027. Applications can be made up to 6 July 2026, for a further funding in 2026/27. The budget for 2026/27 is £20 million, which is allocated jointly between the WFG and the Mode Shift Revenue Support scheme. The WFG scheme will not be extended beyond 31 March 2027. A decision on whether this scheme will be replaced after that date will be made in due course.