The multinational logistics company, DP World, is behind a push to shift freight from the road to rail transportation. This trial has already seen a significant cut in lorry journeys from their Southampton hub.
As part of their Modal Shift Programme trial, introduced last September, they are increasing the amount of freight carried by rail. It has already seen an increase from 21% of units, to 35% with this number set to rise. This trial has even included financial incentives for customers who utilise their rail service if they move import laden containers to a railhead within 140 miles of the logistics hub.
This change has already had a significant environmental impact, with DP World customers and supply chain partners saving approximately 4,500 additional tonnes of carbon dioxide – the equivalent of over 13,000 lorry journeys. With the UK committed to reaching Net Zero emissions by 2050, the transport industry needs to be finding more sustainable modes of transport and this is certainly the start. Indeed, DP World says that their programme already has the potential to prevent an estimated 30,000 metric tonnes of carbon dioxide being emitted per year and that the Modal Shift Programme enables cargo owners to accelerate their net zero ambitions.
John Trenchard, UK Commercial & Supply Chain Director at DP World, said: “DP World will help mitigate the impacts of climate change by becoming a net zero logistics organisation by 2050 and continue to support our customers on their own decarbonisation journeys. We invite supply chain partners to review if rail can play a bigger role in their UK supply chains.” He goes on to explain that, whilst Southampton traditionally moved more containers by rail than any other UK terminal, there had been a gradual decline in rail share due to the nationwide challenges facing rail freight. However, this programme has already seen the introduction of four additional terrain services, strengthening both the end to end logistics offer, and the transport network as a whole.
There are many benefits to a better rail freight offering, with the speeds being comparable to truck and road transportation overall. The cost, particularly for large volumes over a greater distance is certainly lessened and the capacity of rail is more flexible, allowing larger shipments or bulkier items.
With a push from a global company, which is responsible for 10% of the world trade, it is likely that these changes will soon be seen across other companies as well.
