DP World has introduced the "Modal Shift Programme" in the UK to actively encourage customers to transition their imported goods from road transport to rail. This major initiative is aligned with DP World's commitment to significantly reduce carbon emissions.
The Modal Shift Programme aims to make intermodal rail transport more attractive to customers. The initiative has the potential to avoid approximately 30,000 tonnes of carbon dioxide emissions per year, which is more than three times the total emissions of DP World's Southampton logistics hub. The programme will be piloted at the Southampton hub from September and will initially run for 12 months.
“DP World in the UK has been a market leader supporting our supply chain partners with access to a comprehensive network of rail options to connect our logistics hub to inland locations across the UK. However, 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,” highlighted John Trenchard, UK Commercial & Supply Chain Director at DP World.
Under the programme, a flat fee of £10 will be charged on all import-laden containers. Customers whose containers are moved to a railhead more than 140 miles from the terminal will be reimbursed, while those whose containers are moved within 140 miles will receive a £70 incentive. While intermodal rail transport already makes economic sense for distances over 140 miles from Southampton, the economic advantage is less clear for shorter distances. The incentive is designed to increase the likelihood of a modal shift to rail within the 140 mile zone.
