DP World launches programme to encourage cargo owners to shift to rail

The Modal Shift Programme, which is being trialled at DP World’s Southampton Logistics Hub, offers customers a financial incentive to move their imported goods off the road and onto rail, cutting carbon emissions and air pollutants – the programme could prevent as much as 30,000 metric tonnes of carbon dioxide being emitted per year. The financial incentive will be paid for by a relatively small charge on all import laden containers coming through DP World Southampton.

Under the scheme, customers whose import-laden containers are moved by rail to a railhead within 140 miles of DP World Southampton will receive a £70 incentive. Containers that are moved by rail to a railhead more than 140 miles from DP World Southampton will be reimbursed the £10 fee on each container.

John Trenchard, UK Commercial & Supply Chain Director at DP World, said: “DP World will help mitigate the impacts of climate change by becoming a net zero logistics organisation by 2050 and continue to support our customers on their own decarbonisation journeys. We invite supply chain partners to review if rail can play a bigger role in their UK supply chains.

“Southampton has traditionally moved more containers by rail more than any other UK terminal. Over the last few years however, there has been a gradual decline in rail share – a consequence of the wider nationwide challenges facing rail freight at present. Through the Modal Shift Programme we aim to increase the rail share up towards 40% by the end of 2025 – supporting the UK Government’s ambition to drive the modal shift from road freight to more environmentally sustainable alternatives like rail.”

DP World was named ‘Sustainability Company of the Year’ at Multimodal 2023 thanks, in part, to the Modal Shift Programme. The company was also recognised for delivering a 55% reduction in net carbon emissions from its fleet and installations at Southampton in 2022 after transitioning to Hydrotreated Vegetable Oil (HVO) and its £12m investment at London Gateway in the first all-electric fleet of straddle carriers to go into commercial operation at a port anywhere in the world.

In addition to its UK hubs at Southampton and London Gateway, DP World’s offer includes logistics, forwarding and European transport capabilities, all of which are being integrated into the company’s global network. Operating in 78 countries, DP World now handles 10 per cent of world trade.