DP World launches road-to-rail incentive

DP World has launched a new programme in the UK to help cargo owners reduce their carbon emissions by shifting from road to rail.

Containers at port

The Modal Shift Programme is being trialled at the company’s Southampton Logistics Hub and will pay customers who swap road for rail. DP World hopes the scheme will reduce CO2 emissions by as much as 30,000 tonnes per year.

“Southampton has traditionally moved more containers by rail more than any other UK terminal,” said John Trenchard, UK commercial & supply chain director at DP World.

“Over the last few years however, there has been a gradual decline in rail share.

“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.”

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.

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 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.