DP World offers rail incentive
The Port of Southampton and London Gateway on the River Thames are offering customers financial incentives to move their freight from road to rail.
Owner DP World’s ‘Modal Shift Programme’ aims to cut 30,000 tonnes of CO2 emissions per year.
John Trenchard, UK commercial & supply chain director at DP World, said: “Over the last few years there has been a gradual decline in the share of rail.
“Through the Modal Shift Programme we aim to increase the rail share up towards 40% by the end of 2025 – removing an estimated 30,000 tonnes of carbon dioxide from our customers’ onward supply chains.”
“Today’s announcement will help customers on their own decarbonisation journeys and supports the UK government’s stated ambition to drive the modal shift from road freight to more environmentally sustainable alternatives like rail.”
DP World will charge a £10 ‘modal shift’ fee on all loaded containers. Customers who move their containers to a railhead more than 140 miles from the terminal will be reimbursed whilst those whose containers are moved to a railhead within 140 miles will be given a £70 incentive.
The aim is to encourage more customers to move their containers by rail rather than road to the large distribution hubs in the Midlands.
Last year DP World launched a new weekly rail freight service connecting Southampton and London Gateway, which takes up to 120 lorries a week off the roads, cutting carbon emissions by 80%.
The £10 fee and £70 incentive will apply from 1 September until 31 December, after which the incentive will be variable according to demand.
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