Scottish Forestry has awarded the money to Dumfries and Galloway Council as a contribution to improve the C27w road at Elrig in Wigtownshire in order to reopen it to timber lorries.
The road is currently closed due to an unsafe surface condition but about 1800 metres between High Glenling and Mochrum will be improved.
The route to be upgraded will help timber to be extracted from four productive forests in the vicinity. In the past, the road has suffered badly from damage over time, made worse by frost.
The road serves several forests and is forecast to carry 36,500 tonnes of timber over the next decade, as well as providing local and visitor access to Loch Elrig and forming part of the Wigtown Pilgrim Way.
The cash boost is being made through the Strategic Timber Transport Fund, which is managed by Scottish Forestry, with funding support from Transport Scotland.
Announcing the funding, Environment Minister, Màiri McAllan said: “Scotland’s forestry sector supports around 25,000 jobs and generates over £1 billion to the economy each year. Ensuring we have a sound timber transport network is a key feature to ensure economic benefits continue.
“The funding promotes timber transport projects that benefit rural communities too. I welcome projects that reduce lorry trips and take timber wagons away from villages and small rural roads.”
