DP World accomplishes freight rail movements increase in Southampton

DP World accomplishes freight rail movements increase in Southampton

DP World has significantly increased the amount of goods moved by rail from its Southampton logistics centre.

The Modal Shift Programme pilot, which began in September 2023, is intended to make intermodal rail more appealing to consumers by offering carefully studied financial incentives.

From September to February, the percentage of goods units transported by rail rather than road at DP World Southampton climbed by two-thirds, from 21 per cent to 35 per cent.

The rise has been supported by four additional rail routes from the terminal to Cardiff, East Midlands Gateway, Hams Hall and Doncaster, respectively, which strengthen DP World’s end-to-end logistical offering for cargo owners and freight forwarders.

Since the beginning of the programme, DP World’s customers and supply chain partners have reportedly saved approximately 4,500 additional tonnes of CO2 by choosing rail over road – the equivalent of 13,500 lorry journeys. That is more than the total emissions of DP World Southampton’s operations, according to the company.

DP World’s customers are now eligible for an £80 ($101) financial incentive if they transport import-laden containers by rail to a railhead within 140 miles of the logistics centre.

READ: DP World unveils revenue growth to $18 billion

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

In March, DP World announced a $50 million investment to build a new logistics hub at Busan New Port, China.

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