Rail freight incentive to cut down on lorry journeys from port removes more than 64,000 truck journeys in 12 months

A scheme to transfer freight from road to rail has removed 64,300 truck journeys from roads in its first year, according to one of the UK's largest port operators.

DP World in Southampton started offering a financial incentive to move shipping containers by rail in September 2023.

The aim is to make rail travel to giant distribution hubs in the Midlands more viable, taking lorries off the congested M3 motorway and A34 dual carriageway. 

It imposes a £10 charge for every laden container arriving in the UK's third-largest terminal. The money is used to reduce the cost of rail journeys of less than 140 miles. The incentive is £70 for each container. Containers travelling longer distances by rail have the £10 levy refunded.

The modal shift programme is seen as a big success.

A year ago, only one container in five left Southampton docks by rail. Now the figure is close to one in three. The ambition is for rail's share of the market to reach 40% in 2026. That would be by far the highest of any UK port.

DP World claims the incentive has cut carbon emissions by more than 17,000 tonnes in the last year.

John Trenchard, DP World UK vice-president, said: "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, Labour MP for Southampton Test, said: "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 froze fuel duty in the Budget on 30 October, surprising many in the transport industry.

The tax rate on diesel used by lorries has been held since 2011, with a further 5p a litre discount in place since 2022.

This effectively makes the fuel for lorry travel cheaper in real terms each year, while the cost of carrying freight by rail has increased in line with inflation. 

The rail industry argues this undermines the environmental advantages of freight moved by train.

Since the modal shift scheme started in Southampton, four new services for container trains have been started, serving Birmingham, Cardiff, East Midlands Gateway and Doncaster. A second service has also been added connecting Southampton to DP World's other major container terminal at London Gateway in Essex.

DP World says the financial incentive will continue until the end of 2025.