New canal facilities will be constructed in north and west London along with improvement of existing facilities through dredging, in order to aid freight transport.
A new winding hole (turning area) will be built at a cost of £160,000 at Stockley Park in west London on the Grand Union Canal, to improve the efficiency of existing freight operations along the canal there.
Meanwhile, a new wharf (£304,000) will be built at Willesden, northwest London, to serve the new recycling plant being constructed there.
£1,050,000 will also be spent on dredging all waterways to improve facilities for existing vehicles and to accommodate new freight barges.
Finally, £140,000 will be spent on a study into the potential for commercial traffic on London's existing waterways.
A report by British Waterways and Transport for London has found that improvements to the area's waterways could remove 530,000 lorry miles per year from the road network. Particular canal freight opportunities were highlighted at Park Royal and Slough.
TfL and British Waterways are investing £1.6m in upgrading and adding to London's canals so they can transport more freight. The package includes money for a new wharf at the new recycling centre in Willesden.
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