DP World has announced it is increasing its financial incentive by almost 50% to £100 ($127) for customers using its ‘Modal Shift Programme’.
Launched in September last year at DP World Southampton in the United Kingdom, this initiative aims to make intermodal rail more attractive to customers through well-considered financial incentives.
Initially offering US$89 to customers utilizing rail transport for import-laden containers within 140 miles of the Southampton logistics hub, the Modal Shift Programme has the potential to prevent around 30,000 metric tonnes of carbon dioxide emissions annually—more than three times the total emissions of DP World’s Southampton logistics hub.
“We are delighted with the Modal Shift Programme’s success so far. The increase in incentive will provide our customers with a welcome boost to their financial and sustainability ambitions and further support the UK Government’s ambitions to achieve a 75% growth in freight carried by rail by 2050. This is particularly important at a time when the pressure to manage costs, maintain reliability and improve speed has never been greater for our customers,” stated John Trenchard, UK commercial & supply chain director at DP World.
By increasing the incentive in January, DP World aims to encourage supply chain partners to explore, trial, and transition to rail as a lower carbon alternative for their UK supply chains. Preliminary results indicate that the increased rail usage has already mitigated up to 4,000 tonnes of CO₂.
John Trenchard further added, “The programme is also a testament to our growing cooperation with the market, as we continue to seek to provide customers with lower carbon choices and encourage modal shift for supply chains using our UK logistics hubs. To put that in perspective, our investment in British rail alone via our two UK hubs is taking approximately 300,000 trucks off the road each year.”
Following the introduction of the Modal Shift Programme, rail services at Southampton have experienced a notable increase, rising from 21% (January to June) to 27% (September to December) last year, particularly within the Midlands rail network. This growth has been driven by factors such as the reintroduction of a daily rail service from Southampton to South Wales and the adoption of final mile deliveries facilitated by electric vehicles.
Beyond its UK hubs at London Gateway and Southampton, DP World’s comprehensive offering encompasses logistics, forwarding, and European transport capabilities, all seamlessly integrated into the company’s global network. Operating in 78 countries, DP World is a major player in global trade, handling 10% of the world’s total trade volume.
