DP World, a leading provider of global end-to-end supply chain solutions, is taking the innovative step of directly incentivising customers to move their imported goods off the road and onto rail in a major new initiative, strengthening its ambition to be the most sustainable logistics business in the UK.

The ‘Modal Shift Programme’ is designed to increase the attractiveness of intermodal rail for customers through the use of carefully designed financial incentives. The programme has the potential to prevent an estimated 30,000 metric tonnes of carbon dioxide being emitted per year, more than three times the total emissions of DP World’s logistics hub at Southampton, where it will be trialled from September for an initial period of 12 months.

John Trenchard, UK Commercial & Supply Chain Director at DP World, said: “DP World in the UK has been a market leader supporting our supply chain partners with access to a comprehensive network of rail options to connect our logistics hub to inland locations across the UK. However, over the last few years there has been gradual decline in the share of rail. Through the Modal Shift Programme we aim to increase the rail share up towards 40% by the end of 2025 – removing an estimated 30,000 tonnes of carbon dioxide from our customers’ onward supply chains.”

“DP World will mitigate the impacts of climate change by becoming a net zero logistics organisation by 2050. Today’s announcement will help customers on their own decarbonisation journeys and supports the UK Government’s stated ambition to drive the modal shift from road freight to more environmentally sustainable alternatives like rail.”

The Modal Shift programme will charge a flat £10 fee on all import-laden containers. Customers whose container is moved to a railhead more than 140 miles from the terminal are reimbursed, and a £70 incentive is paid to those whose container is moved to a railhead within 140 miles of the terminal. The market economics for using intermodal rail for distances of 140 miles or more from Southampton already make sense. However, for deliveries within the 140 mile zone the economic difference is less clear, and this incentive aims to increase the likelihood of a modal shift to rail.

DP World operates the UK’s most advanced logistics hubs: two deep water ports at Southampton and London Gateway with access to freight rail terminals, and a rapidly expanding logistics park on the doorstep of the capital. Southampton enjoyed its greenest ever year in 2022 after delivering a 55% reduction in net carbon emissions from its fleet and installations after eliminating fossil diesel from its operations and transitioning to Hydrotreated Vegetable Oil (HVO), a low emission diesel fuel alternative. The £350m new fourth berth under construction at London Gateway will be the first all-electric berth in Britain when it opens next year.

DP World’s investment in rail at Southampton and London Gateway eases traffic congestion, with 300,000 truck journeys taken off UK roads each year. Last year it launched a new weekly rail freight service connecting the two terminals, which takes up to 120 lorries a week off the roads, cutting carbon emissions by 80%. These UK initiatives have contributed to DP World’s global carbon dioxide emissions being reduced by 5% in 2022, with a 20% reduction in the European region alone.

Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.

The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK and Kenya, which includes state-of-the-art cold chain facilities.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”

Schalk Bruwer, CEO of Morgan Cargo, added: “We wanted to expand our successful family-owned business and took the opportunity to become part of one of the world leaders in logistics. This new development will provide greater opportunities for our customers in terms of global reach and allow our team to advance their careers beyond the realm that was previously possible. Morgan Cargo is extremely excited to become part of Kuehne+Nagel.”

Closing of the transaction is expected during the third quarter of 2023 and is subject to customary closing conditions, including clearance by the competent merger control authorities.

Siemens Healthineers Middle East, Southern & Eastern Africa and Wingcopter GmbH have signed a Memorandum of Understanding to develop and roll out an integrated drone delivery solution to transport various laboratory diagnostics materials as well as other medical supplies in Africa. The combination of Siemens Healthineers’ Laboratory Diagnostics testing capabilities and Wingcopter’s drone delivery services will provide improved diagnostics and faster treatment. The solution will adopt the latest in digital technology provided by Siemens Healthineers and Wingcopter from highly automated drone delivery to Laboratory Information Systems which will accurately track and report results directly to the patients.

Ole Maloy, Managing Director of Siemens Healthineers Middle East, Southern & Eastern Africa, said, “At Siemens Healthineers, we are committed to providing access to care for everyone. Our partnership with Wingcopter will look to bridge the existing gaps in healthcare infrastructure, providing equitable and affordable access to diagnostic testing and medical supplies.”

The utilization of Wingcopter’s delivery drones interconnected with Siemens Healthineers’ laboratory diagnostics facilities will allow for quick and automated 2-way delivery of samples, medicine and other medical products. The battery-powered drones will be operated by Wingcopter, covering a range of 75 kilometers while maintaining the cold chain at all times. These sustainable and efficient drone delivery networks will allow for the centralization of sample testing and medical consumables distribution, resulting in improved access to diagnosis, faster turnaround time, increased efficiency and reduction in costs.

Tom Plümmer, CEO and Co-founder of Wingcopter GmbH, comments, “We are convinced that we have found the perfect partner for our bold ambitions to improve and save the lives of millions of people on the African continent and beyond. Partnering with Siemens Healthineers will bring us a big step closer to the goal we are working tirelessly towards: to make a real social impact worldwide for those who need it most through fast, reliable and sustainable drone delivery networks in the sky.”

Roughly half of the world’s population still lack access to essential health services such as timely diagnostic services, according to a report from the World Bank and WHO. While accessibility for diagnostic testing will increase, the drone delivery solution will also have a positive impact on the UN Sustainable Development Goals, from access to health, to potential reductions in carbon footprint and the risk of road accidents, to capacity building on drone operations. Wingcopter intends to train and upskill local young people, creating jobs and perspectives in the fast-growing drone industry. In doing so, Wingcopter is following the company’s approach in Malawi, where operations are run by an all-local, majority-female crew.

The exact time and place of the first deployment of drone-based lab sample deliveries will be announced in due time.