Mode Shift Revenue Support

MSRS 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.

  • Opening date: (Midnight)
  • Closing date: (Midnight)

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Contents

Summary

Mode Shift Revenue Support (MSRS) 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.

MSRS is administered by:

• Department for Transport: for flows entirely within England and for cross border flows where the majority of environmental benefits fall in England.

• Scottish Government: for flows entirely within Scotland and for cross border flows where the majority of environmental benefits fall in Scotland.

• Welsh Government: for rail flows entirely within Wales and for cross border flows where the majority of environmental benefits fall in Wales.

Eligibility

Any company can apply for support if it is acting as the operator or contractor of an eligible rail service.  

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.

Objectives

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

Dates

The main bid round takes place in February of each year.  Subsequent bid rounds depend on budget availability.

Supporting information

All available grant funding for 2025/26 financial year has been fully allocated.  As a result, no further bidding rounds are expected.  The MSRS is currently scheduled to expire on 31 March 2026.  A decision on whether to continue or replace this scheme beyond that date will be made by the Department for Transport closer to the expiry.