DP World Boosts Rail Freight Share by Two-thirds
PRESS RELEASE
London, United Kingdom, 3 April 2024: DP World has seen a significant increase in the amount of freight being transported by rail from its Southampton logistics hub.
The Modal Shift Programme trial, which was introduced in September, aims to make intermodal rail more appealing to customers by offering financial incentives. From September to February, the percentage of freight units being moved by rail instead of road at DP World Southampton has risen by two-thirds, from 21% to 35%.
This increase has been supported by the introduction of four new train services from the terminal to Cardiff, East Midlands Gateway, Hams Hall, and Doncaster, enhancing DP World’s end-to-end logistics services for cargo owners and freight forwarders.
Since the launch of the programme, DP World’s customers and supply chain partners have saved approximately 4,500 additional tonnes of carbon dioxide by choosing rail over road, which is equivalent to 13,500 lorry journeys. This is more than the total emissions of DP World Southampton’s operations.
Customers are currently being offered an £80 financial incentive to move import-laden containers via rail to a railhead within 140 miles of the logistics hub. This incentive is funded by a small charge on all import-laden containers, as freight within this range would typically travel by road haulage.
John Trenchard, Vice President UK Commercial & Supply Chain at DP World, stated, “We believe that our Modal Shift Programme at Southampton has allowed our customers to discover how rail can be effectively used to create lower carbon international supply chains for the UK economy. Providing our customers with the right services and incentives to help them find better ways to move cargo is crucial at a time when managing costs, maintaining reliability, and improving speed are key priorities.”
“We are continuously working with the market to enhance this service, and we are excited to offer our customers new options to help them achieve their decarbonization goals.”
In addition to its UK hubs at Southampton and London Gateway, DP World offers logistics, forwarding, and European transport capabilities, all of which are being integrated into the company’s global network. Operating in 78 countries, DP World handles 10% of world trade.