Southampton docks: Cash incentives could boost rail traffic
DP World is planning to use cash incentives to persuade customers to switch from road to rail in a move that would ease congestion and improve air quality.
The scheme, which starts in September, could cut annual carbon dioxide emissions by as much as 30,000 metric tonnes.
DP world has unveiled plans to increase the number of containers leaving the Southampton terminal by rail (Image: DP World)
About 2,500 lorries a day go in and out of the site, with between 20 and 30 per cent of containers leaving by train.
John Trenchard, DP World's commercial and supply chain director, said the figure could rise to almost 40 per cent by the end of 2025.
He added: "DP World will mitigate the impacts of climate change by becoming a net zero logistics organisation by 2050.
"Today’s announcement will help customers on their own decarbonisation journeys and supports the UK government's stated ambition to drive the modal shift from road freight to more environmentally sustainable alternatives like rail."
The DP World Container Terminal occupies a huge site on the eastern side of the River Itchen (Image: DP World)
Under the scheme importers will be charged a flat £10 fee for each container offloaded at the terminal.
Customers whose container is moved to a railhead more than 140 miles from Southampton will be reimbursed.
A £70 incentive will be paid to those whose container is moved to a railhead within 140 miles of the terminal.
A DP World spokesperson said: "The market economics for using intermodal rail for distances of 140 miles or more from Southampton already make sense.
"For deliveries within the 140-mile zone the economic difference is less clear, and this incentive aims to increase the likelihood of a modal shift to rail."
DP World wants to reduce the number of containers leaving Southampton by lorry (Image: Newsquest)
The scheme aims to build on the progress already made by the company, which operates across the globe.
Southampton saw its greenest-ever year in 2022, achieving a 55 per cent reduction in net carbon emissions after eliminating diesel from its operations and converting to hydrotreated vegetable oil (HVO), a low-emission fuel alternative.
DP World owns two container sites in the UK - Southampton and the huge London Gateway facility at Thurrock in Essex.
A new weekly rail freight service connecting the two terminals is taking up to 120 lorries a week off the roads and cutting carbon emissions by 80 per cent.
Last year various initiatives by the company saw global emissions drop by five per cent, with Europe achieving a 20 per cent reduction.
References
- ^ DP World unveils £15m plan to provide lorry drivers with new facilities (www.dailyecho.co.uk)
- ^ DP World Southampton sets new record for highest number of containers on a single vessel (www.dailyecho.co.uk)