Modal Shift Programme sees Containers Moved by Rail

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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Second Daily Rail Freight Service from Felixstowe Port

Stobart Ports, a British logistics supply partner for container transport, announces the commencement of a second daily train service between the Port of Felixstowe and Widnes. This new service, launched in partnership with GB Railfreight, comes as a response to the substantial demand following the initial service’s success since October 2023.

Stobart Ports will now operate an additional five trains weekly, elevating the total number of services between Felixstowe and Widnes to eleven per week. This enhancement underscores Stobart Ports’ commitment to sustainable transport solutions and operational efficiency. By introducing this new service, approximately 500 HGV movements will be removed from the UK’s road network each week, significantly alleviating congestion and enhancing road safety.

“Rail reduces carbon emissions by up to 76% compared to road transport, which is why we continue to invest heavily in rail logistics,” said Sean French, Managing Director of Stobart Ports, “This year alone, Stobart Ports have moved over 100,000 containers by rail, cutting road miles and saving around 20,000 tonnes of CO2. Our ongoing investment in rail not only maintains our leadership in UK rail logistics but also supports our environmental goals.”

The Widnes site, which is ETSF and AFSO accredited, offers comprehensive final mile and storage solutions, further complementing the rail services. The strategic location and state-of-the-art facilities ensure that Stobart Ports can provide unparalleled service to its customers, fostering the modal switch to rail.

“We are delighted to accept another GB Railfreight service from the Port of Felixstowe into Stobart Ports Widnes,” added French, “This expansion enhances our rail schedule to over 50 rail services per week, demonstrating our dedication to providing efficient and eco-friendly logistics solutions.”

Julie Garn, Head of Intermodal at GB Railfreight, commented, “We’re delighted to introduce this new service with Stobart, effectively doubling the volume we transport between Felixstowe and Widnes. Having already moved 100k boxes in and out of the Port of Felixstowe in 2024, we aim to double this figure by year’s end.”

The partnership between Stobart Ports and GB Railfreight highlights a shared vision of growth and sustainability. As the logistics industry faces increasing pressure to reduce its environmental footprint, the expansion of rail services stands out as a critical solution. The benefits of this expanded service extend beyond environmental gains. The reduction in road traffic contributes to safer roads and reduced wear and tear on infrastructure, which is advantageous for communities and local governments. Additionally, by enhancing connectivity and efficiency in freight transport, Stobart Ports supports the broader economic landscape, facilitating smoother trade and commerce.

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First Rijeka-Budapest Open Rail Service

A new regular common user open rail train service has been launched by Rail Cargo Group (RCG) linking the Croatian port of Rijeka, via the Adriatic Gate Container Terminal (AGCT), to Budapest in Hungary.

Whilst many rail services operate between Rijeka and Budapest, these are generally dedicated to individual clients. The new rail service is a common user service which enables freight forwarders and individual clients to book the landside service directly with RCG.

“The Hungarian market is one of the most important markets in Europe and the second largest market for AGCT. Already a significant manufacturing hub and consumer market, we see further growth potential as the Hungarian economy continues its strong development,” said Emmanuel Papagiannakis, AGCT chief executive officer.

He added: “Currently, there are multiple regular weekly block trains between Rijeka and different rail hubs in Budapest, Hungary, but all are dedicated rail services. We appreciate that the Rail Cargo Group has launched this initiative that adds a common rail service not just directly to BILK terminal in Budapest, but from Budapest connecting to the entire TransFER intermodal network all over Europe. There is immediate potential for Austria, Czechia, Romania and Slovakia. This initiative confirms the growing significance of AGCT as a gateway for Southern, Central and Southeastern Europe.”

“Comparing rail and road emissions, it is also important to note that 24 kilos of CO2 emissions are saved per ton freight, which is transported by rail instead of by truck. Our current rail-road split is 47 percent, and we aim to grow it further,” Papagiannakis further explained.

The common rail service runs two times per week at a fixed timetable. It offers a direct connection without stopovers from Budapest and Rijeka and vice versa at attractive transit times. The rail service is operated by RCG and its subsidiaries in Hungary and Croatia.

In March 2011, ICTSI forged a 30-year strategic partnership with Luka Rijeka D.D. for the operation, management, and development of Adriatic Gate Container Terminal (AGCT) at the Port of Rijeka, Croatia’s main seaport.

Wilhelmshaven Connects to South Germany

EUROGATE Intermodal GmbH (EGIM), Hamburg-based provider of combined transport, will include EUROGATE Container Terminal Wilhelmshaven (CTW) in its network of rail connections starting mid-January 2023.

Beginning 16th January 2023, EGIM will add Wilhelmshaven, Germany’s only deep-water port, to its portfolio of connections. In Q1, EGIM will offer direct services between CTW and Duisburg, Munich, Nuremberg and Kornwestheim. Shortly after, connections to Ulm, Mannheim and Frankfurt/Main will be added to the offering in Q2. By June 2023, EGIM plans to increase its frequency of connections to 13 roundtrips per week.

Sustainable rail transport is important for the future development of Wilhelmshaven, and the direct connections now available to the JadeWeserPort (JWP) by electric locomotive are a key part of the port’s sustainable growth. As part of its own strategy, EGIM is committed to strengthening its range of climate-friendly transport solutions to destinations across both southern Germany and western Germany. Here, new corridors are being consistently opened, and in the future, these areas will have new connections to Wilhelmshaven. The expansion of rail infrastructure between Wilhelmshaven and regions along the Rhine will further accelerate this development and change the flow of cargo, as trains will be able to travel directly and efficiently to the quayside in Lower Saxony.

All new Wilhelmshaven connections can also be booked via railMybox, the fully digital booking platform launched in early May 2022. This user-friendly system, which offers guaranteed capacity at fixed price, is recording a steady increase in registrations and bookings.

As the shipping sector sees a new generation of super-sized container vessels, JWP’s 18-metre water depths allow the huge new ships to dock fully loaded, independent of the tide at any time of night or day. Eight shipping lines have already included JWP in their schedules and are benefitting from the port’s advantageous positioning. As a result of the port’s increasing importance, CTW is experiencing high growth rates and achieved a record-breaking throughput of 712,953 TEU in 2021.

EUROGATE Intermodal GmbH (EGIM) is an international service provider for container transport headquartered in Hamburg, Germany. Part of the EUROGATE Group, EGIM is one of Germany’s leading neutral providers of combined transport for containers by rail and road.
EGIM is a founding member of the private rail service company boxXpress.de GmbH, and with this product, connects the German North Sea ports and Rotterdam with eleven terminals in southern Germany and Hungary. Alongside its rail services, EGIM offers services for the first and last mile via truck.
Through its sister company Hannibal, which belongs to the Italian Contship Group, EGIM offers connections to Italy via its central hub Munich, thereby also connecting the southern ports to the network.

New Rail Service Connecting Scotland Globally

MSC UK is delighted to announce a new rail service connecting Mossend in Scotland via Hams Hall, to Felixstowe and London Gateway. The new Mossend rail service builds upon MSC UK’s commitment to the Scottish market, customers, and ports, by complementing two existing weekly calls into the ports of Grangemouth and Greenock.

Jonathan Burke, Operations Director at MSC UK commented: “We are very pleased to announce that, together with our partners GB Railfreight (GBRf) and Maritime, the new service launched last week will add greater flexibility for our customers to move cargo to and from anywhere in Scotland and connect to global trade routes via the ports of Felixstowe and London Gateway.

This latest enhancement to MSC UK’s long established and market-leading intermodal network offers great value to our UK customers by seamlessly connecting their cargo across road, rail and sea; delivering an efficient and cost-effective solution that helps contribute to our customers’ sustainability goals.”

Intermodal transportation is a core focus for MSC, and the company continues to make significant investments in this area to strengthen its inland solutions offering. Its fast-growing road, rail and barge network offers customers all over the world a flexible and effective way of moving cargo inland and contributes to the decarbonisation of global supply chains.

John Smith, CEO of GB Railfreight added “GBRf is delighted to begin this exciting new venture with MSC. We are committed to working with partners to ensure that we provide a first-class service. One that demonstrates the commercial value of collaborating with GBRf, delivers wider sustainability benefits for every region across the UK and grows the rail freight industry.”

The train service will run 6 days a week and enhance rail and road capacity for MSC UK’s customers, complemented by the company’s door-to-door haulage services designed to provide support at all stages across customer supply chains.
John Bailey, Managing Director – Intermodal and Terminals, for Maritime Transport Ltd said: ‘We are pleased that MSC UK have decided to utilise both of our terminals at Mossend and Hams Hall to launch this service. Our continued investment in intermodal services and infrastructure means the two sites, which form part of our growing network of seven fully open access terminals, offer excellent coverage and rail connectivity throughout the UK.

Jonathan continued: “This exciting enhancement to our intermodal offering ensures we can collect or deliver customers’ cargo from anywhere in Scotland and connect seamlessly to the ports of Felixstowe and London Gateway and mainline services to destinations around the globe.”

As a national leader in shipping and logistics, with knowledgeable support from local teams in Glasgow, Liverpool, London and the UK Head Office in Ipswich, MSC UK is confident that the new rail service will deliver success for all parties involved.

UK Railfreight Operations Acquired

STAR Capital Partnership LLP, a leading European fund manager is pleased to announce that it has made an investment in Rail Operations (UK) Limited (ROUK), a leading provider of rolling stock movement and storage services to the UK rail industry through its subsidiaries Rail Operations Group Limited (ROG) and Rail Operations (Rolling Stock Management) Limited (Traxion).

In addition, ROUK has established a new subsidiary, Orion, to provide high speed logistics and express freight services, focused on accelerating modal shift from air/road to rail by offering a fast, cost effective and environmentally-friendly solution. STAR will acquire a majority stake in the Group, alongside existing management. Additionally, STAR will provide significant growth capital to fuel the Group’s ambitious expansion plans. Neil Bennett, a highly-experienced rail industry professional, will be appointed Executive Chairman of ROUK as part of the transaction.

STAR looks forward to working closely with ROUK’s seasoned management on new opportunities to accelerate growth in each of the Group’s subsidiaries, ROG, Traxion and Orion. STAR has a successful track record in value generation and driving growth, typically investing in asset-based companies holding a strong strategic market position. STAR’s investment in ROUK builds on its previous investments in rail-transport, Eversholt Rail Group in the UK and Abellio GmbH in Germany.

Paul Gough, Managing Partner of STAR said, “We are delighted to have acquired ROUK, which we believe exhibits several characteristics that STAR looks for in a platform investment, including a strong reputation as a high-quality, safety-conscious service provider, supporting critical rail operations across the UK. We are excited to partner with management to help ROUK continue to grow by providing innovative, cost-effective and increasingly environmentally-friendly solutions for its customers”.

Commenting on the deal, Karl Watts, Chief Executive Officer of ROUK, said “We are thrilled to partner with an investor of STAR’s stature to accelerate our growth and expand into new activities. The growth capital from STAR will enable the Group to widen its service offering and cement further its reputation as a high-quality, safety-focused solutions provider to our customers. ROUK continues to innovate and challenge traditional thinking on rolling stock services and freight logistics. We look forward to playing a significant part in assisting the UK to meeting its net-zero carbon targets”.

Neil Bennett, incoming Executive Chairman said “I have enormous respect for what Karl Watts and Dave Burley have achieved in a relatively short space of time with ROUK. Working with Karl and Dave provides an excellent opportunity to combine our skills and networks as the business continues its rapid growth trajectory. STAR’s pedigree in rail means that we can take the business to the next level, backed by an investor who understands the industry and shares our vision for ROUK”.

Rail Logistics Game Changer

An innovative high-speed logistics service has hosted an event to showcase its first unit and the potentially game-changing capabilities of rail logistics in the UK.

Orion, a subsidiary of Rail Operations UK, has introduced a new logistics concept into the UK market: it is described as a green, fast and flexible solution, with rail freight generating about 76% less carbon emissions in comparison to road and therefore, it is claimed, a perfect solution for companies aiming to reduce their environmental impact. Orion will also help to get vehicles off the road and reduce congestion in city centres and on main highways, say supporters, because its new bi-mode ‘flex’ units are able to enter both passenger stations and freight sites. Orion is also
faster than traditional rail freight and road transport and can run at speeds of up to 100mph.

Rail logistics

The quoted journey-time figures are certainly impressive. Glasgow to Daventry and London by road is a 12-hour trip. Orion will do it in five, it is promised. Or try Glasgow-London via Newcastle and Doncaster – the road journey will take you 14 hours, while Orion is scheduled to do it in six. Even Thames Gateway, on the edge of the capital, is a guaranteed hour’s run, whereas traffic difficulties can extend the road journey to anything up to two hours.

For the customer, it is a digital process. The Orion platform suggests a suitable delivery plan. The customer browses to select a suitable service based on the urgency of the job. Space is then
booked on the Orion train and the customer receives confirmation and realtime tracking information. Read the whole article from our September issue here:

https://flickread.com/edition/html/index.php?pdf=5f3d1fcf3160d#16

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