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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
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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.
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