Over the first five years it is expected this will remove 183,000 lorry miles per annum from the A884, A82 and A85.
Keith Brown, Minister for Housing and Transport said: "This government is committed to encouraging the transfer of freight from our roads to rail and water and projects like this contribute to our efforts to reduce carbon emissions.
"The Scottish Budget passed by Parliament earlier this year announced extra funding for future Freight Facilities Grant applications. This is another example of the way in which the Freight Facilities Grant can help businesses contribute to a Greener Scotland while remaining competitive.
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"In addition, Forestry Commission Scotland - Scottish Strategic Timber Transport Scheme have contributed £387,000 towards the £775,190 project cost for shore-side works at Pennyghael and the upgrade of 10 km of public roads between Bunessan and Pennyghael."
Cameron Maxwell, Forestry Commission Scotland Business Development Advisor, said: "Getting timber to processing facilities and unlocking the timber potential in Scotland's forests is important for the Scottish economy.
"The Timber Transport Fund has, over the years, invested tens of millions of pounds in projects that have helped to facilitate this process, while at the same time taking timber traffic off the road - and this is another great example.
"Removing thousands of tonnes of timber transport from the roads will have a very positive effect on the rural road network and will help make the environment cleaner, communities safer and businesses stronger."
The FFG scheme is currently open to applications for the funding of rail or water freight facilities in Scotland. The 3-year budget totals £7.25m. The deadline for applications to the first bid round is 20 April 2012.
(GK)
