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DP World’s modal shift trial boosts rail freight adoption

Terminal operator says modal shift from road to rail has increased by two-thirds at its Southampton logistics hub during first six months of trial.

The share of freight units being moved by rail instead of road has jumped from 21% to 35% during the first six months of the year-long trial at the terminal.

DP World’s Modal Shift Programme, which began in September 2023, is designed to increase the attractiveness of intermodal rail for customers through financial incentives.

Customers are currently being offered an £80 financial incentive if they move import-laden containers via rail to a railhead within 140 miles of the logistics hub. Without this incentive, which is financed by a charge on all import-laden containers, freight moved within this range would normally travel via road haulage.

The increase has been supported by the introduction of four new train services from the terminal to Cardiff, East Midlands Gateway, Hams Hall and Doncaster respectively.

DP World said the initiative has saved its customers 4,500 additional tonnes of carbon dioxide by choosing rail over road – the equivalent of 13,500 lorry journeys – which is more than the total emissions of DP World Southampton’s operations.

John Trenchard, Vice President UK Commercial & Supply Chain at DP World, added: “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.

“We are continually engaging with the market to strengthen this service, so we look forward to providing our customers with new options to meet their decarbonisation goals.”

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