A scheme to transfer freight from road to rail has successfully removed 64,300 truck journeys from the UK's roads within its first year, according to the port operator DP World.
In September 2023, DP World Southampton introduced a financial incentive to encourage the movement of shipping containers by rail. The initiative imposes a £10 charge on every laden container arriving at Southampton, the UK's third-largest terminal.
The primary objective is to make rail transport to large distribution hubs in the Midlands more economically viable, thereby reducing lorry traffic on the M3 motorway and A34 dual carriageway. The funds collected are utilised to subsidise rail journeys under 140 miles (225 km), providing a £70 incentive for each container. Containers travelling longer distances by rail are refunded the £10 levy.
The modal shift programme has been heralded as a significant success. A year ago, only 20% of containers leaving Southampton docks did so by rail. Today, the figure has risen to nearly 33%. DP World aims to increase rail’s market share to 40% by 2026, which would represent the highest percentage among UK ports.
DP World also reported that the initiative has reduced carbon emissions by more than 17,000 tonnes over the past year. John Trenchard, DP World UK Vice-President, stated: "This is 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 to the sustainability and resilience of their supply chains."
Southampton Test MP Satvir Kaur expressed her support for the scheme, commenting: "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."
The scheme has expanded rail freight services significantly. Since its launch, four new container train services have been introduced, serving Birmingham, Cardiff, East Midlands Gateway, and Doncaster. Additionally, a second service now connects Southampton with DP World's other major terminal, London Gateway in Essex.
Despite the scheme's success, broader concerns remain within the transport industry. The Chancellor of the Exchequer, Rachel Reeves, surprised many by freezing fuel duty in the October 2024 Budget. The tax rate on diesel for lorries has remained unchanged since 2011, with an additional 5p-per-litre discount introduced in 2022. While this makes lorry transport more cost-effective in real terms, the cost of rail freight continues to rise with inflation, which the rail industry argues undermines the environmental benefits of rail freight.
DP World confirmed that the financial incentive for rail freight will remain in place until the end of 2025.
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