Lisbon, July 2, 2024 (Lusa) - Portugal's government announced on Tuesday that it will support rail freight operators with €45 million until 2029 to encourage environmental sustainability and transport by rail.

In a statement released after the announcement of the approval by Brussels, a statement from the Ministry of Infrastructure and Housing said that this is a measure that will represent annual support of nine million euros and will be allocated based on a value of €0.07 per tonne/kilometre, and will be applied as of this year.

"Rail freight transport is central to a national logistics strategy and this sector has been left behind. The government recognises its importance and is focused on promoting its growth and robustness," the minister for infrastructure and housing, Miguel Pinto Luz, in the document.

According to the secretary of state for mobility, Cristina Pinto Dias, the support for rail freight operators "was worked out with the European Commission and the IMT, and reflects the external costs avoided, such as greenhouse gas emissions, congestion and accidents, by rail compared to road".

The European Commission today gave the green light to Portuguese state aid, with subsidies of €45 million until 2029, to encourage the transfer of freight from road to rail, with a view to a less polluting model.

In a statement released today, the EU executive said it had "approved, under EU state aid rules, a Portuguese aid scheme worth €45 million to encourage the transfer of freight transport from road to rail".

"The aim of the scheme is to promote the modal shift of freight transport to rail, which is a more environmentally friendly mode of transport, and is in line with the objectives of the Commission's Sustainable and Intelligent Mobility Strategy and the European Green Deal," says the institution.

JO/ADB // ADB.

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