DP World remains on target to meet its own ambitions for modal shift out of Southampton. The global port operator has been operating an incentive scheme for importers who move laden containers on by rail. That has proved successful in raising the proportion of traffic from twenty-one per cent to thirty per cent of containers leaving the port by rail. Now the operator is targeting forty per cent by 2026.
Heavy investment in rail infrastructure at Southampton has been paying off. Making the movement of freight trains easier around the south coast city has helped boost freight movements. DP World, who manage the city’s container terminal, has been encouraging modal shift by making rail pay – at least for those who choose to move their boxes by rail.
Southampton’s railway makes the grade
It’s been a few years since the British infrastructure agency, Network Rail, addressed long long-standing access issue to the port of Southampton. Now, four years later, that investment is paying off. Longer and more frequent trains are running from the container terminal (and the separately managed general cargo and Ro-Ro quays).
Loadings on those intermodal trains are healthy, too. DP World’s modal shift incentive scheme has encouraged shippers to move laden boxes inland on railway wagons instead of being hauled out by trucks. The financial bounty paid on each container has helped raise the rail share from 21 per cent to over 30 per cent of all eligible traffic. That measure of success has encouraged DP World to go even further.
A possible addition to the timetable
DP World is aiming for a forty per cent share of traffic by rail by 2026. That’s almost double the ‘pre-incentive’ figure. “We’re building stronger connections across the UK,” said a statement from the port operators. DP World now dispatches trains around the clock from Southampton, including services to its other UK property, London Gateway. That inter-port service began in 2023 as a once-a-week (weekend) transfer. It was very soon augmented with a midweek departure, and may be in line for a further return working.
Social media posts from DP World hint as much. “As demand for rail freight grows, so do our services,” they said on a LinkedIn teaser. “From 1st September, we’re increasing mid-week frequency to offer even more flexibility and reliability for our customers.” DP World have yet to confirm those plans.
Freightliner and the freeports trifecta
Coincidentally, British rail freight operator Freightliner has also just announced a reintroduction of its own flow, collecting Southampton with Teesport in the northeast of England. That run, at around 300 miles (540km), falls outside the 140-mile limit for DP World’s modal shift incentive scheme, but it is easily far enough to make rail transport attractive for shippers.
Teesport shares Freeport’s status with Southampton. That opens up possibilities for transhipment between hubs – with all the benefits that are afforded by freeport status. It hasn’t hurt the Southampton and London Gateway flow either. The latter terminal is also a freeport. “Our inter-port rail service offers a faster, more efficient way to move goods around the UK, connecting London Gateway and Southampton,” added DP World’s statement. That might equally be applied to Teesport as well.