Timber will be transported by rail to south west Scotland and Wales

JST Services (Rail) will put the money towards the cost of a custom-built freight train and a new railhead at Barrhill, South Ayrshire.

The company plans to transport timber by rail from the forests of Galloway to Ayr, Troon, Carlisle and Chirk in Wales.

Another firm, WH Malcolm, is to get a grant of nearly �600,000.

It will transport plasterboard by rail from Cumbria to its new rail facility at Paisley.

Transport Minister Tavish Scott said the grants would help remove 1.5 million lorry miles a year from Scotland's roads.

"This devolved government is committed to encouraging the transfer of freight from our roads to rail and water," he said.

"We want to help businesses deliver their goods and continue to be competitive while at the same time improving the environment."

Reduced impact

The investment has been welcomed by Rob Soutar, Forestry Commission Scotland's district manager for Galloway.

"This is really good news," he said. "We have been working in partnership with the councils, haulage companies and others over many years to improve the transport of timber and reduce the impact of lorries on remote rural roads and communities.

"This railhead will help us to markedly reduce the impact of timber traffic on communities and single track roads in south west Scotland.

"Barrhill, Pinwherry, Straiton, Kirkmichael and Girvan will particularly benefit from reduced heavy lorry traffic and the local forest industry will have rail access."