Monday, December 23, 2024

Rail freight scheme sees 64,000 less lorry journeys in first year

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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 said the financial incentive would continue until the end of 2025.

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