DP World has experienced a significant rise in the share of freight being transported by rail from its Southampton logistics hub.
The Modal Shift Programme trial, initiated last September, aims to enhance the appeal of intermodal rail transportation for customers by offering thoughtful financial incentives. From September to February, the share of freight units shifted from road to rail at DP World Southampton has surged by two-thirds, climbing from 21% to 35%.
This rise has been bolstered by the introduction of four new train services from the terminal to Cardiff, East Midlands Gateway, Hams Hall, and Doncaster.
According to a statement, since the launch of the program, DP World’s clients and supply chain partners have collectively saved approximately 4,500 additional tonnes of carbon dioxide by opting for rail transport over the road – equivalent to eliminating 13,500 lorry journeys.
Currently, customers are being offered a GB£80 (around US$100)/container financial incentive if they opt to transport import-laden containers via rail to a railhead within 140 miles of the logistics hub. This incentive, financed by a small charge on all import-laden containers, diverts freight that would typically travel via road haulage within this range.
“We believe that our Modal Shift Programme at Southampton has allowed our customers to explore how rail can be effectively utilised to achieve lower carbon international supply chains serving the UK economy. At a time when the pressure to manage costs, maintain reliability and improve speed has never been greater, providing our customers with the right services and incentives to help them unlock better ways to move cargo is of paramount importance,” stated John Trenchard, vice president UK Commercial & Supply Chain at DP World.
