The Chartered Institute of Logistics and Transport in UK

11/19/2024 | News release | Distributed by Public on 11/19/2024 06:07

DP World's Modal Shift Programme cuts 64,300 lorry journeys in first year success

DP World's Modal Shift Programme in Southampton has removed 64,300 truck journeys from UK roads and cut carbon emissions by more than 17,000 tonnes in its first year, significantly advancing more sustainable logistics in the country.

The Modal Shift Programme was launched in September 2023 to improve the commercial viability of rail transport for import laden containers.

Under the programme, customers are paid an incentive for each container moved by rail from DP World Southampton to a railhead within 140 miles.

The programme, which is financed by a small charge on all inbound containers coming through the container port, has so far boosted the share of rail freight at DP World Southampton from 21% to more than 30%, with ambitions to progress this further towards 40% in 2026.

In the first 12 months of the initiative, four new rail freight services were launched to provide more options for DP World customers, including routes from Southampton to Birmingham, Cardiff, East Midlands Gateway and Doncaster.

Last month, DP World launched a second rail service between its Southampton and London Gateway logistics hubs, doubling the rail freight capacity between two of the UK's largest container ports and giving customers even more opportunity to take advantage of connections off the UK's busy road network, with the potential to remove up to one million road miles annually.

John Trenchard, Vice President - Commercial & Supply Chain, DP World in the UK said: "The outstanding success of the Modal Shift Programme at Southampton in its first year is testament to our commitment to provide customers with more choices for their supply chains.

"With this significant increase in rail freight volume, equivalent to the transfer of approximately 6 million road miles to rail, we are giving more of our customers the opportunity to explore the benefits of rail to the sustainability and resilience of their containerised supply chains.

"This achievement not only reflects our goal to become the most efficient and sustainable logistics provider in the UK but also illustrates DP World's commitment to achieve net-zero across our global operations by 2050."

Satvir Kaur, Member of Parliament for Southampton Test, said: "It's great to see the success of this pilot run by DP World.

"This scheme not only ensures our port can become more sustainable and help improve the poor air quality Southampton suffers, but it also reduces congestion on our roads.

"This is a great example of business taking action and playing their part to tackle the climate crisis, and it is also great news

for local residents who are often stuck in daily traffic. I am fully supportive, and encourage others to follow suit."

Craig Barnes, Business Development Director, Supreme Freight Services said: "We had not previously considered rail as an option for our import container routings at Southampton but following the introduction of the Modal Shift Programme, we are now increasingly using rail for our customer shipments.

"We have even changed our standard practice to help boost the uptake amongst our customers, offering both options for road-only movements but also rail/road alternatives from the outset."