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Tag: rail freight

Modal Shift Programme sees Containers Moved by Rail

Posted on by David Priestman

DP World has recorded the 100,000th container moved by rail from its Southampton logistics hub as part of its award-winning and carbon emission reducing Modal Shift Programme trial.

The share of rail freight for onward journeys by containers arriving by sea at DP World Southampton has risen from 21% at the start of the programme to more than 30% today. The increase means 100,000 more containers have started their onward journey by rail than without the incentive. The landmark 100,000th container departed Southampton by freight train carrying goods being shipped for major retailer Halfords.

In reaching this total the Modal Shift Programme has removed more than 25,000 tonnes of CO₂e from supply chains, cut road congestion by shifting approximately 8 million road miles to rail freight. DP World now aims to further increase the share of rail freight towards 40% in 2026.

John Trenchard, Vice President – Commercial & Supply Chain, DP World in the UK, said: “I would like to thank all our customers who have embraced the Modal Shift Programme and made the positive choice to use rail as a lower carbon option for their international supply chains through DP World Southampton. Reaching this groundbreaking milestone of an additional 100,000 containers moved by rail rather than road is a testament to the hard work and dedication of our team to make the Modal Shift Programme trial the success it is now.

“This is a unique programme that sits at the heart of DP World’s ambition to offer market leading, more sustainable options to our supply chain partners in the UK. Through a combination of detailed analysis, customer engagement and responding to new market trends, we have further refined the programme trial since its launch in September 2023 and set our sights on continued growth in the share of rail freight for the onward journeys all containers make after arriving at Southampton.”

Emma Tillsley, International Logistics and Customs Manager at Halfords, said: “We’re committed to reducing emissions from all parts of our supply chain. Moving freight from road to rail is an important part of that strategy. We’re thrilled to learn that a container carrying Halfords products was the 100,000th to be moved by rail from Southampton under this DP World programme. The reduction of CO₂e, coupled with the added benefits of a reliable rail service, has provided a first-class overall service for our logistics network.”

The programme pays customers a direct financial incentive for each import laden container moved by rail from DP World Southampton to a railhead within 140 miles. DP World’s Modal Shift Programme trial has now resulted in the establishment of four new daily cargo rail services from Southampton to Birmingham, Cardiff, East Midlands Gateway and Doncaster and helped DP World win both the ‘Business of the Year’ and the ‘Driving Rail Freight Growth’ awards at last year’s Rail Freight Group honours event and an edie decarbonisation award for ‘Transport and Mobility Project of the Year’.

The milestone follows a recent announcement from DP World that its Carbon Inset Programme – a world first at a container port – has also registered more than 100,000 TEUs worth of import laden containers by cargo owners in its first two months. Launched in January, the Carbon Inset Programme rewards importers with 50kg CO₂e of carbon inset credits for every loaded import container they move through DP World’s London Gateway and Southampton terminals.

In addition to its hubs at Southampton and London Gateway, DP World’s offer includes logistics, forwarding and European transport capabilities, all of which are being integrated into the company’s global network. Operating in 78 countries, DP World handles 10 per cent of global containerised trade.

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DSV Acquires DB Schenker Amid Industry Consolidation

Posted on by David Priestman

In a major industry shake-up, DSV has acquired DB Schenker, positioning itself as a major player in global logistics. This acquisition enhances DSV’s capabilities in European land transport and rail freight, aligning with the industry’s shift towards multimodal solutions and sustainability. The deal reflects a trend of consolidation, with logistics companies like CMA CGM and Kuehne+Nagel expanding their operations. As DSV integrates DB Schenker, it will face challenges in streamlining operations, but the combined entity will offer more competitive, efficient supply chain solutions globally.

In a major industry shake-up, DSV has acquired DB Schenker for a transaction valued at EUR 14.3 billion at enterprise value, positioning itself as a leading global logistics provider. This acquisition significantly enhances DSV’s capabilities, particularly in European land transport and rail freight, aligning with the industry’s shift towards multimodal solutions and sustainability. The combined entity is projected to have pro forma revenue of EUR 39.3 billion (based on 2023 figures) and a workforce of approximately 147,000 employees across more than 90 countries. This deal reflects a trend of consolidation, as logistics giants like CMA CGM and Kuehne+Nagel expand their global operations. As DSV integrates DB Schenker, it faces operational challenges, but the merged company is poised to offer more competitive and efficient supply chain solutions globally.

Strategic Importance

This acquisition strengthens DSV’s market position by adding DB Schenker’s extensive European network to its global operations. DB Schenker is a leader in land and rail transport, making DSV more competitive in Europe and enhancing its multimodal offerings at a time when sustainability and efficient transport are in high demand. With the logistics industry focusing more on green logistics, DSV can leverage DB Schenker’s rail freight expertise to offer environmentally friendly solutions across Europe. According to Jens H. Lund, Group CEO, DSV, the acquisition is a “transformative event” that will create a “world-leading transport and logistics powerhouse” and improve competitiveness across DSV’s divisions—Air & Sea, Road, and Solutions.

Competitive Landscape

The acquisition highlights the growing consolidation in logistics as major players like DSV seek to scale their operations. The deal follows similar moves by competitors such as CMA CGM’s acquisition of Bolloré Logistics and Kuehne+Nagel’s digital expansions. With customers increasingly demanding integrated, end-to-end supply chain services, DSV’s expanded footprint and service capabilities position it well to compete with rivals like DHL and Kuehne+Nagel in offering seamless logistics solutions across regions and transport modes.

Challenges and Integration

Despite the opportunities, DSV faces significant integration challenges, particularly with DB Schenker’s vast operations. Successfully merging technology, workforce, and operational standards will be key to realizing the full benefits of the acquisition. However, DSV has demonstrated its ability to handle such integrations, as seen with the Panalpina merger in 2019. The company is expected to focus on optimizing its services, reducing operational costs, and enhancing efficiency to improve competitiveness in an increasingly digital logistics environment.

Future Outlook

This acquisition will likely accelerate consolidation in the logistics industry as companies seek to expand their reach and enhance service offerings. The global logistics market is increasingly focusing on sustainability, operational efficiency, and innovation. DSV’s acquisition of DB Schenker positions the company to lead in this evolving landscape, offering comprehensive and sustainable supply chain solutions. As DSV integrates DB Schenker’s resources and expertise, it will play a pivotal role in shaping the future of global logistics, driving higher standards of service and operational efficiency.

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Rail Freight Backbone

Posted on by Keith McKinley

Rail freight should form the backbone of UK logistics in the post-pandemic landscape, argues Phil Oakley of Prologis.

There is no doubt that the UK economy has felt the full force of the pandemic and the logistics sector has been on the frontline since the very beginning. As non-essential shops closed their doors due to lockdown, supermarkets and online retailers faced sudden increased demand from consumers, with many experiencing peak levels on a daily basis. As the industry adjusted to the huge
challenges brought by the global shock, many increased their use of rail freight to help keep essential goods moving the length and breadth of the country. Now, as recovery gets under way, what needs to be done to ensure rail continues to be prioritised going forward?

For the first time ever, Network Rail gave freight traffic priority over passenger services during the pandemic. In the early stages of lockdown, this shift was essential in order to move large amounts of goods – often perishables and consumer products – to re-stock supermarket shelves. Indeed, throughout the crisis, Midlands’ hubs at the centre of the country, such as Daventry International Rail Freight Terminal (Prologis RFI DIRFT), have been key in keeping the North-South rail freight route moving. It’s not hard to see why.

Being in the logistics golden triangle in the Midlands, DIRFT’s location enables occupiers to reach 90 percent of the country in under four hours by road. Its proximity to the West Coast Main Line, the UK’s busiest rail freight route, means that much of the country is easily accessible by rail, too. Many companies with distribution facilities at DIRFT upped their rail freight operations during lockdown, moving more goods to help meet increased demand, and taking advantage of the less-crowded tracks.

Read the whole article, from our September issue, here:

https://flickread.com/edition/html/index.php?pdf=5f3d1fcf3160d#18

http://www.prologis.co.uk

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