Rail Freight Initiative Reduces Truck Journeys by 64,300

A port operator reports that a program designed to shift freight transport from road to rail has eliminated 64,300 truck trips from roadways during its initial year of operation. DP World, located in Southampton, initiated a financial incentive in September 2023 to encourage the transportation of shipping containers via rail. This initiative involves a £10 fee applied to each laden container that arrives at Southampton, which is recognized as the UK’s third-largest terminal. The objective is to enhance the feasibility of rail transport to major distribution centers situated in the Midlands, thereby reducing the number of lorries on the M3 motorway and the A34 dual carriageway. Funds collected are utilized to decrease the expense of rail journeys covering distances under 140 miles (225km), with a £70 incentive provided for each container. For containers transported by rail over longer distances, the £10 levy is reimbursed. This modal shift program is considered highly successful. A year prior, only one out of every five containers departed Southampton docks by rail; currently, this proportion has increased to nearly one in three. The goal is for rail’s market share to achieve 40% by 2026, which would represent the highest proportion among all UK ports. DP World asserts that the incentive has resulted in a reduction of carbon emissions by over 17,000 tonnes during the past year. John Trenchard, the vice-president of DP World UK, 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.” Satvir Kaur, the Labour MP for Southampton Test, commented: “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.” Chancellor of the Exchequer Rachel Reeves implemented a freeze on fuel duty in the Budget presented on 30 October, a decision that surprised numerous stakeholders in the transport sector. The tax rate applicable to diesel consumed by lorries has remained unchanged since 2011, supplemented by an additional 5p per litre discount that has been active since 2022. Consequently, the fuel cost for lorry transportation becomes more affordable in real terms annually, contrasting with the rising expense of rail freight, which has escalated in conjunction with inflation. The rail industry contends that this situation diminishes the environmental benefits associated with transporting freight by train. Since the commencement of the modal shift scheme in Southampton, four new container train services have been launched, connecting to Birmingham, Cardiff, East Midlands Gateway, and Doncaster. Furthermore, a second service has been introduced, linking Southampton with DP World’s other primary container terminal at London Gateway in Essex. DP World confirmed that the financial incentive is scheduled to remain in effect until the conclusion of 2025. For updates, follow BBC Hampshire & Isle of Wight on Facebook, X, or Instagram. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our approach to external linking is available.