The towpath of the Newry Canal runs from the centre of town northwest towards Portadown — a flat, well-surfaced 32-kilometre walking and cycling route, much of it through woodland and alongside the water. The section closest to town, around the old Sugar Island wharf, is the most atmospheric, with restored quayside warehouses and informational panels on the canal's history.
For a short visit, walk twenty minutes north along the towpath to Steenson's Bridge and back. Cyclists can use the canal as a quiet, traffic-free route most of the way to Scarva and Portadown — the surface is good and the gradient close to flat.