DP World is encouraging freight owners to transport their goods by rail from Southampton, targeting a 40 per cent rail freight share in 2026.
The Modal Shift Programme at Southampton, which is being extended until the end of next year, encourages freight owners to move their import-laden containers via rail to a railhead within 140 miles of the logistics hub, taking thousands of trucks off the UK’s roads.
The share of rail freight at Southampton has reached 30 per cent since the programme’s launch in September 2023, up from 21 per cent. Its success has led to the launch of four new daily rail services at the Southampton terminal, taking the total number of weekly scheduled trains at Southampton to 172.
Financial incentives have so far been reviewed every quarter, but from October will be reviewed every six months. The scheme has already contributed to DP World’s goal to take an estimated 300,000 truck journeys off UK roads each year and saved customers and supply chain partners approximately an incremental 6,400 tonnes of CO2 in the first six months.
John Trenchard, Vice President UK Commercial & Supply Chain at DP World, said: “Due to the positive increase in the share of rail freight since the trial’s inception, we believe that we can target a 40 per cent share of rail freight target in 2026.
“At a time when customers face multiple challenges, including escalating geopolitical uncertainty, increased regulatory risk, and the urgent need to decarbonise supply chains, our Modal Shift Programme has proved highly attractive.
“Over the coming year, DP World is looking forward to working closely with the market to refine the initiative further, helping to ensure it delivers the best results for our customers and their operations, as well as our own.
“We are creating a solution that works for all partners across the supply chain.”
Last month, DP World announced the development of its Australian activities with the inauguration of a new rail service at Stockland’s Yennora Intermodal Terminal.
More recently, DP World and the Saudi Ports Authority (MAWANI) commenced construction of a new SAR900 million ($240 million) logistics park at Jeddah Islamic Port.