MPs urge government to use incentives to boost water freight

The government should consider introducing financial incentives for businesses to move freight by water rather than road or rail, a committee of MPs urges today. Just 1% of domestic freight is transported on canals and rivers, despite the fact that carbon dioxide emissions from coastal and inland shipping are 80% lower than those from road haulage, a report from the environment, food and rural affairs select committee says. It notes that in 2000 British Waterways promised to double the amount carried by water by 2010. But by 2005 the amount had actually fallen, from 4.3m tonnes to 3.4m tonnes. The agency argued it was uneconomic to transport goods by water and warned it would create extra costs.