West Fraser shows Flynn new rail freight terminal at Inverness OSB plant

West Fraser Europe has hosted Stephen Flynn MSP, Cabinet Secretary for Economy, Tourism and Transport, at its Inverness manufacturing site to tour a new rail freight terminal linking the plant to the Aberdeen-Inverness railway line.

The terminal has two 560m rail sidings and infrastructure for loading and unloading freight containers, West Fraser said. Once operational, it will allow more raw materials and finished products to move by rail rather than by road.

In its initial phase, West Fraser expects the facility to remove around 10,000 HGV movements a year and cut annual CO2 emissions by about 9,000 tonnes. The company also said other businesses in and around Inverness could potentially use the terminal.

Stephen Flynn MSP, Cabinet Secretary for Economy, Tourism and Transport, said: "Moving goods by rail takes lorries off our roads, boosts businesses and helps secure the sustainable economic growth we want to deliver."

During the visit Flynn met George Webb, West Fraser's European Purchasing Director. Alan McMeekin, MD and Senior Vice President, Europe, also appears in the company's photograph of the visit. West Fraser said the Rail Freight Group took part in the discussions.

The funding

The visit announcement did not give the cost of the terminal or how it was funded. An earlier Transport Scotland release did: it said Scottish Government funding of up to £3m would enable construction of an £11.2m rail freight terminal at West Fraser Limited's Dalcross site.

The money came through the Freight Facilities Grant, which Transport Scotland says helps companies with the capital costs of moving freight by rail or water instead of road. The programme reopened for applications in April following a commitment in the 2025-26 Programme for Government. A separate scheme, Mode Shift Revenue Support, covers the extra operating costs of moving freight by rail or inland waterway.

In that release, George Webb of West Fraser Limited was quoted as saying construction had started and the facility was expected to begin operations in mid-2026. Over 10 years, Transport Scotland said, the project was expected to take more than 8.5 million lorry miles off Scotland's roads.

Fiona Hyslop, then Cabinet Secretary for Transport, said at the time that the project could equate to removing the equivalent of up to 100 HGVs permanently from roads each week.

Differing HGV figures

The HGV figures quoted for the scheme differ between announcements. Transport Scotland's release quoted West Fraser as saying the first phase would remove some 20,000 HGV journeys from the A96 and A9. The company's own announcement of the Flynn visit puts the initial-phase figure at around 10,000 HGV movements a year. The 9,000-tonne annual CO2 saving is the same in both. Neither source explains the difference.

Civil engineering scope

BT Bell provided earthworks and civil engineering design services for the facility. Its project pages describe a freight handling area, container storage hardstanding and site access infrastructure, with its scope covering access routes and sustainable drainage systems.

The firm said the railway infrastructure had to be integrated into an active, operational manufacturing site. During construction, its engineers worked alongside West Fraser, the main contractors and Network Rail representatives. Subgrade stabilisation was completed across the siding corridor and attenuation systems were added to manage run-off across the rail formation, BT Bell said.

The site

The Inverness mill makes SterlingOSB Zero, which West Fraser describes as the only oriented strand board (OSB) made in the UK with no added formaldehyde. According to the company, the mill was the first in Europe to manufacture OSB and the first OSB plant in Europe to receive what it calls Forestry Stewardship Council accreditation. Output from Inverness and its Genk plant makes West Fraser one of the largest OSB producers in Europe, it said.

George Webb, European Purchasing Director at West Fraser, said: "Our rail freight development represents a major investment in the long-term future of the Inverness site."

Flynn was named Cabinet Secretary for Economy, Tourism and Transport in the Cabinet announced by First Minister John Swinney. The forecast given in Transport Scotland's release was for the terminal to begin operations in mid-2026; West Fraser's announcement of the visit describes it as a facility that will enable rail transport "once operational".