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UK government announces £1.8m for freight innovation

The UK Department for Transport launched the third year of its £7 million Freight Innovation Fund Accelerator program on May 1, 2024, allocating £1.8 million to support small and medium-sized enterprises in the freight sector. This initiative aims to drive innovation in decarbonisation and efficiency improvement across the industry.

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SMEs can apply for grants of up to £1.8 million to implement cutting-edge technologies like AI and automation in their operations, focusing on various modes of transport including trains, lorries, vans, and ships. The program seeks to enhance the sustainability and effectiveness of freight deliveries throughout the supply chain.

Over the past two years, the fund has distributed nearly £3 million, supporting collaborations between SMEs and industry leaders in developing cleaner and more efficient logistics solutions. Successful projects include Royal Mail’s pioneering drone deliveries in Orkney and FedEx’s trials with eCargo bikes for urban deliveries. 

Previous grant recipients have also secured a collective £97 million in commercial investment based on their initial £1.2 million government funding.

Connected Places Catapult, a government agency, will oversee the program and provide technical and business support to participating SMEs. 

Additionally, the government has announced a £31 million joint investment to improve truckstops and working conditions for lorry drivers.

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