Modal Shift scheme saves 64,300 lorry journeys in 1 year
DP World's Modal Shift Programme in Southampton has successfully removed 64,300 lorry journeys from British roads and cut carbon emissions by over 17,000 tonnes in its inaugural year. Launched in September 2023, the initiative aims to increase rail freight from the Port of Southampton. Under the programme, customers receive a financial incentive for each container transported by rail from DP World Southampton to a railhead within 140 miles.
The programme, funded by a small charge on all inbound containers arriving at the port, has elevated rail freight's share at DP World Southampton from 21% to over 30%, with aspirations to reach 40% by 2026. In the first year, four new rail freight services were introduced, offering routes from Southampton to Birmingham, Cardiff, East Midlands Gateway, and Doncaster. Last month, DP World also launched a second rail service between its Southampton and London Gateway logistics hubs, doubling rail freight capacity between two of the UK's largest container ports, potentially removing up to one million road miles annually.
John Trenchard, DP World UK's Vice President of Commercial and Supply Chain, stated:
"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 six million road miles to rail, we are giving more of our customers the opportunity to explore the benefits of rail for 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 achieving net-zero across our global operations by 2050."
Satvir Kaur, MP for Southampton Test, praised the initiative, saying:
"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 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, Supreme Freight Services' Business Development Director, added:
"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."
In addition to its hubs at Southampton and London Gateway, DP World's offerings include logistics, forwarding, and European transport capabilities, all of which are being integrated into the company's global network. DP World handles 10% of world trade and operates in 78 countries.
German rail freight up 1.4% from 2021-2023
In the broader context of Europe, the shift from road freight to rail freight is gaining momentum, driven by environmental and logistical advantages. According to the European Environment Agency, rail transport produces 75% less CO2 emissions per tonne-kilometer compared to road transport.
Despite this significant benefit, rail freight only accounted for approximately 19% of total freight transport in the EU in 2022, while road transport dominated with 75%. The EU has set ambitious targets to double the modal share of rail freight by 2030 and increase it further by 2050, aiming to reduce carbon emissions and alleviate road congestion. Germany has also been actively working towards increasing its rail freight share.
In 2021, rail freight constituted 18.7% of the total freight volume, while road freight accounted for 72.2%. This trend continued with rail freight making up 19.8% in 2022 and reaching 20.1% in 2023, according to the Deutsche Bahn Annual Report. Meanwhile, road freight accounted for 73.4% in 2022 and slightly decreased to 73.2% in 2023.
Although the growth in rail's share over the past two decades has been modest, the country continues to invest in infrastructure and incentives to promote intermodal transport.
These efforts are crucial in achieving the EU's sustainability goals and ensuring a more efficient and environmentally friendly freight transport system.