DP World launches rail incentive programme

DP World launches rail incentive programme

DP World has introduced a new initiative in the UK aimed at helping cargo owners reduce their carbon footprint significantly.

The “Modal Shift Programme” has been launched as a trial at DP World’s Southampton Logistics Hub and offers an enticing financial incentive for cargo owners to switch from road transport to rail, thereby reducing carbon emissions and air pollutants.

The programme has the potential to make a substantial impact on carbon emissions, according to the company, with the potential to prevent up to 30,000 metric tonnes of carbon dioxide from being released into the atmosphere annually.

The financial incentive for participants will be funded through a modest charge applied to all import-laden containers passing through DP World Southampton.

Under the Modal Shift Programme, cargo owners whose import-laden containers are transported by rail to a railhead located within 140 miles of DP World Southampton will receive a £70 ($87.30) incentive. Furthermore, containers transported to a railhead located more than 140 miles away from the Southampton hub will be reimbursed the £10 ($12.47) fee on each container.

READ: Saving Energy at Terminals

Commenting on this initiative, John Trenchard, the UK Commercial and Supply Chain Director at DP World, stated: “DP World will help mitigate the impacts of climate change by becoming a net-zero logistics organisation by 2050 and continue to support our customers on their own decarbonisation journeys. We invite supply chain partners to review if rail can play a bigger role in their UK supply chains.”

READ: DP World, Goodyear boost Southampton’s port operations

DP World added that Southampton has historically been a leader in moving containers by rail compared to other UK terminals. However, in recent years, there has been a gradual decline in rail utilisation, partially due to broader challenges faced by the rail freight industry.

Through the Modal Shift Programme, DP World aims to boost rail’s share to approximately 40 per cent by the end of 2025, aligning with the UK government’s objective to transition away from road freight in favour of environmentally sustainable alternatives like rail.

DP World Limited recently posted strong financial results for the first six months to 30 June 2023.

The company’s revenue increased by 13.9 per cent to $9 billion, while adjusted EBITDA increased by 7 per cent to $2.6 billion, with an adjusted EBITDA margin of 28.9 per cent.

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