The UK government has announced £1.1 million in funding to support innovative freight and logistics technologies, with grants awarded to nine small and medium-sized businesses developing solutions that could reshape freight operations, efficiency and sustainability across the country.
The funding comes from the Freight Innovation Fund, a government-backed programme aimed at tackling pressing sector challenges such as decarbonisation, operational inefficiencies, safety and workforce wellbeing. The latest round represents the second phase of the fourth funding cycle and will see each winning bidder receive up to £130,000 to trial their technologies in real-world environments with industry partners.
Projects chosen for support span a broad range of freight innovation areas. Among them are trials of AI-based logistics capacity sharing platforms, lightweight aerodynamic trailers, and a high-speed rail freight concept tailored for parcel and express delivery. Other funded initiatives include sensor systems to improve health and safety in port operations, movement intelligence tools for predictive flow management at terminals, electric trailer solutions, and GenAI-enhanced data-analysis platforms.
Officials say the Freight Innovation Fund not only backs cutting-edge freight technologies but also helps innovators collaborate with established logistics operators such as ports, carriers and express delivery firms to ensure commercial viability. Since 2023, the fund has supported dozens of companies — helping many secure significant private investment and create new jobs in the logistics technology space.
Industry groups have welcomed the announcement, noting that innovation will be critical to improving the UK’s freight network, reducing emissions and enhancing resilience, particularly as the sector faces evolving market demands and sustainability targets.
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