DP World has announced it is increasing its financial incentive by almost 50 per cent to £100 ($127) for customers taking advantage of its ‘Modal Shift Programme’.
The scheme was introduced in September last year and is designed to increase the attractiveness of intermodal rail for customers through carefully considered financial incentives.
The Modal Shift Programme, which is being trialled at DP World Southampton for 12 months, initially offered £70 ($89) to customers who move import-laden containers via rail to a railhead within 140 miles of the Southampton logistics hub.
The programme has the potential to prevent an estimated 30,000 metric tonnes of CO2 being emitted per year, more than three times the total emissions of DP World’s logistics hub at Southampton.
With this new incentive increase, DP World is encouraging supply chain partners to explore, trial and transition to rail as a lower carbon alternative for their UK supply chains. Early indications show that up to 4,000 tonnes of CO2 have been mitigated so far through the increase in rail usage.
Since the announcement of the Modal Shift Programme, rail services uptake at Southampton have increased from 21 per cent (January to June) to 27 per cent (September to December) last year, particularly across the Midlands rail network.
John Trenchard, UK Commercial & Supply Chain Director at DP World, said: “We are delighted with the Modal Shift Programme’s success so far.
“The increase in incentive will provide our customers with a welcome boost to their financial and sustainability ambitions and further support the UK Government’s ambitions to achieve a 75 per cent growth in freight carried by rail by 2050.
“This is particularly important at a time when the pressure to manage costs, maintain reliability and improve speed has never been greater for our customers.
“The programme is also a testament to our growing cooperation with the market, as we continue to seek to provide customers with lower carbon choices and encourage modal shift for supply chains using our UK logistics hubs. To put that in perspective, our investment in British rail alone via our two UK hubs is taking approximately 300,000 trucks off the road each year.”
Earlier this year, DP World signed multiple Memorandums of Understanding (MoUs) totalling INR250 billion ($3 billion) with the Gujarat government for the construction of new ports, terminals, and industrial zones in a rising Indian state.