đź•’ Article read time: 2 minutes
DP World incentive sees 64,300 reduction in truck journeys
DP World's scheme to transfer freight from road to rail has made significant progress in reducing truck journeys from roads in its first year - 64,300 - according to a port operator.
The Southampton-based logistics giant started offering a financial incentive to move shipping containers by rail in September 2023 and imposes a £10 charge for every laden container arriving at what is the UK's third-largest terminal.
The aim is to make rail travel to distribution hubs in the Midlands more viable, reducing road traffic by taking lorries off the M3 motorway and A34 dual carriageway.
The money is used to reduce the cost of rail journeys of less than 140 miles (225km). The incentive is £70 for each container. Containers travelling longer distances by rail have the £10 levy refunded.
Logistics UK’s Senior Policy Advisor, Ellis Shelton, said: “The logistics sector is committed to decarbonising and DP World's Modal Shift Programme underscores the crucial role of rail freight in the nation's logistics.
“This innovative approach not only makes rail more cost-effective for shorter journeys to distribution hubs in the Midlands but also enhances the viability of longer-distance rail freight through strategic refunds.”
“This initiative highlights the immense potential for rail freight to transform the way goods are transported across the UK, and is a powerful example of innovation in action, contributing to a cleaner, more connected logistics network for the UK.”
A year ago, only one container in five left Southampton docks by rail, now the figure is close to one in three. The ambition is for rail's share of the market to reach 40% in 2026 - that would be by far the highest of any UK port.
DP World claims the incentive has cut carbon emissions by more than 17,000 tonnes in the last year.
Published On: 21/11/2024 15:00:00
Comments Section
If you are a Logistics UK member login to add comments.
News In Brief
Time for Scotland to get up to speed
2025 marks the tenth anniversary of the law change in England and Wales which raised the speed limit for HGVs on single carriageway roads to 50mph, yet the speed limit in Scotland remains at 40mph.
Logistics UK's Senior Policy Manager, Alexandra Herdman said, “It is time HGV speed limits in Scotland had parity and we have been pressing for this since the speed limit was raised in England and Wales.
“Scotland’s Road Safety Framework to 2030” was published in 2021 and Transport Scotland has promised a national speed management review but the sector is still waiting for the details to be published.
“We continue to urge Transport Scotland to carry out the review as soon as possible. The pilot scheme on the A9 that raised speed limits between 2014 and 2017 showed a steady reduction in the number of collisions and casualties, and drivers reporting faster journey times and less stress.
"This is the same as the experience in England and Wales where safety has not been compromised, HGVs are able to travel for longer periods closer to the optimum speeds for reducing carbon emissions and driver stress and frustration, among HGV drivers and general traffic, has benefited as HGVs can now travel at higher speeds.”
Latest articles
Ask the MAC
With Andy Kelly, Manager – Compliance Information, Logistics UK.
Read time: 2 minutes
View article
Operator’s guidance on Vehicle Safety Defects and Recalls Briefing Note
With vehicle safety at the forefront of operators’ minds, the rise in safety defects and recalls is becoming a greater risk to operations.
Read time: 2 minutes
View article
Kia steps into the world of electric vans
Though the brand has van operations elsewhere in the world, the launch of the new PV5 will mark the first time that the Korean firm has brought an electric van to the UK.
Read time: 2 minutes
View article
