While the port’s £1 billion (1,17 billion euros) expansion programme has already been well publicised, this specific rail package has not been formally announced. Instead, the tender has appeared via construction and procurement listings, signalling a live opportunity for contractors – albeit one upon which they will have to act promptly as work is proposed to start this summer. For rail freight, the implications are far from minor, pointing to a substantial uplift in capacity, flexibility and operational resilience at one of the UK’s fastest-growing intermodal hubs.

A second rail terminal takes shape

The tender confirms that Phase 2 will build on earlier works to create a fully fledged second rail terminal to the west of the existing facility. Phase 1 has already delivered initial sidings, but this next stage significantly expands the layout, adding five new sidings to complement those already in operation. In practical terms, this means more trains can be handled simultaneously, easing one of the key constraints in port rail operations.

Beyond track layout, the scope includes 21 new switches and crossings, enabling more flexible routing of trains between the western and eastern terminals. This is not simply an extension but a reconfiguration of how rail flows through the port, allowing parallel movements and reducing conflicts. The result is likely to be faster turnaround times and a higher throughput of intermodal services.

Cranes, control and integration

A defining feature of the project is the installation of an 850-metre crane rail beam to support rail-mounted gantry cranes. These machines form the backbone of high-capacity intermodal terminals, enabling rapid transfer of containers between trains and the yard. Their inclusion signals that the second terminal will mirror, and potentially enhance, the semi-automated handling model already in place.

The tender also highlights significant signalling and control upgrades, including a new shunter’s cabin and an integrated control panel capable of managing both terminals. By linking operations into a single system, port operator DP World is effectively creating a unified rail hub rather than two separate facilities. This level of integration is critical for scaling up volumes without introducing operational bottlenecks.

Quiet procurement, strategic shift

The absence of fanfare for the launch is a notable contrast to public works of this scale. However, in the absence of any political need to proclaim the project, it is not unusual for privately procured infrastructure. The tender has been issued under a utilities-style competitive procedure by London Gateway Port Limited, reflecting a more flexible, commercially driven approach. The overall scale of development at London Gateway will be the subject of an extended feature report in the May edition of our sister magazine, WorldCargo News.

Strategically, the move reinforces rail’s growing role at London Gateway. The port already handles a significant share of its containers by rail, and this expansion suggests a deliberate push to increase that proportion further. As pressure mounts to decarbonise UK freight, such “quiet” investments could prove decisive, reshaping inland logistics flows and strengthening rail’s position in the national supply chain.

Quietly, incrementally advancing rail

Once completed, the expanded terminal is expected to support a marked increase in train movements, potentially lifting weekly service capacity well beyond current levels. Longer, fully loaded intermodal trains—typically up to 775 metres—will benefit from additional handling roads and improved network access, making rail a more competitive option for inland distribution.

In a wider context, this positions London Gateway to compete more aggressively with established rail freight ports, notably Felixstowe, which may relinquish its position as the UK’s busiest rail freight terminal. More importantly, it underlines a broader shift. The rail freight sector would clearly state that it is not a peripheral mode in port logistics. Rail is an integral component of future capacity planning—often advancing in incremental, low-profile steps like this one.

Novi Sad is the first terminal in Serbia to offer this kind of regular intermodal connection to Western Europe, says DP World.

An answer to road challenges

This new intermodal rail service is a response to increasing regulatory and operational pressures on long-haul road transport between Serbia and Western Europe, the Emirati company elaborates. Unpredictable transit times and growing exposure to European Union road freight rules, including the Entry/Exit System (EES) and stricter driver mobility requirements, are making intermodal rail a more attractive option.

“As regulatory requirements for road transport continue to evolve across the European Union, customers are seeking solutions that offer greater speed, predictability and lower administrative complexity. Intermodal rail offers all three, while also delivering measurable carbon savings”, said Vladica Ćulafić, Chief Commercial Officer at DP World Novi Sad.

The award highlights DP World’s Modal Shift Programme, launched in 2023, and comes as rail continues to play a central role in the decarbonisation of UK freight logistics. Business group Logistics UK named DP World the Rail Freight Business of the Year at its annual awards ceremony, citing strong take-up of the operator’s Modal Shift Programme and measurable carbon savings.

Modal shift recognised

The modal shift programme was launched in September 2023 to tackle the underutilisation of UK rail freight. The incentive scheme pays a bounty for moving containers inland by rail instead of road. According to figures from DP World and Logistics UK, around a quarter of available capacity on intermodal trains can run empty. While moving freight by rail delivers emissions savings of up to 76% compared with diesel road haulage, higher costs have historically discouraged shippers from making the switch.

However, the DP World scheme has highlighted latent demand. In its first 18 months, the initiative moved 103,475 containers by rail from DP World’s Southampton hub. Rail’s share of container movements increased by 10% (to over 30% of containers, with an estimated 28,200 tonnes of CO₂e eliminated, underlining growing industry confidence in rail-based solutions.

Incentives and interport rail services

Two initiatives sit at the heart of DP World’s rail freight strategy. The first is the incentive scheme at Southampton, designed to encourage import-laden containers to move inland by rail rather than road. It was by reducing the cost differential between modes, that the scheme aimed to make rail a commercially realistic option for a wider range of customers, not just those with established intermodal flows – for whom volume brings its own commercial advantages.

Alongside this, DP World also operates its own five-times-a-week intermodal “interport” train service between its London Gateway and Southampton terminals (see WorldCargoNews.com). The service links two of the UK’s largest container ports by rail, allowing boxes to be repositioned efficiently between deep-sea hubs, supporting shipping line networks and reducing reliance on long-distance trucking. It also helps DP World operate the two port terminals as a single business unit. The terminals are roughly 120 miles (193 kilometres) apart.

Industry praise

“DP World has led the way in improving the commercial viability of rail, increasing rail share and helping to decarbonise UK freight logistics,” said Kevin Green, Logistics UK’s Acting Chief Executive. “I would like to congratulate DP World on its win. It truly is ‘the best of the best’ in the rail sector.”

“We’re delighted to win this award for [our] Modal Shift Programme for our road to rail shipments,” said John Trenchard, Vice President Commercial & Supply Chain, UK at DP World. “It’s really nice to be recognised. A lot of people came together to get this done so I’m very proud on behalf of DP World. Thanks to all our logistics partners who have decided to try something a bit new with rail, resulting in over 140,000 shipments.”

Tesco highly commended

Another long-standing user of rail freight, Tesco Distribution, was highly commended in the same category. The retailer is one of the UK’s largest rail freight customers, operating an extensive network of intermodal services linking ports, distribution centres and regional hubs. Tesco has worked closely with rail freight operator Direct Rail Services over many years, using rail to move thousands of containers each week. partnership has helped remove significant volumes of heavy goods vehicle traffic from the road network, while providing reliable trunk haulage for one of the UK’s most complex retail supply chains.

As the country’s largest supermarket group, Tesco’s commitment to rail freight carries wider significance for the sector, demonstrating that rail can meet the demanding service, reliability and cost requirements of high-volume grocery retailing. The supermarket chain recently extended the movement of refrigerated containers into South Wales, in a collaboration with infrastructure agency Network Rail.

Logistics UK is one of the UK’s largest business groups, representing logistics businesses across road, rail, water and air, as well as major buyers of freight services. With more than seven million people directly employed in the making, selling and movement of goods, the organisation says logistics has never been more important to UK plc, particularly as decarbonisation, new technology and supply chain disruption reshape the sector.

The latest example is DP World’s London Gateway, where ongoing congestion has led shipping lines to review port rotations. In response, one shipping line has diverted a scheduled port call to Southampton. The disruption underlines the flexibility of modern deep-water hubs. It also highlights how, even on Britain’s heavily used network, rail can reshape how congestion is managed across the UK port fleet.

London Gateway responding to its success

Persistent congestion at London Gateway, driven by surging import volumes, particularly from China, has lengthened berth waiting times and threatened schedule reliability. In response, French carrier CMA CGM has temporarily adjusted its South America – Europe trade route (designated “SAFRAN”) to call at Southampton instead of London Gateway. That temporary adjustment has been going on for more than half a year. It has now been extended through the first quarter of 2026.

Down on the north bank of the Thames, DP World, the owner of London Gateway, is engaged in a radical expansion of the terminal. The programme, reported in March, is going from four shipping berths to six. It will also see  the building of a second rail terminal. Southampton benefitted from a Network Rail programme, completed in 2021, which eased rail access. DP World, which operates both terminals, runs a five-times-a-week inter-port rail service, enabling containers to be transferred directly between the two southern English terminals. The Dubai-headquartered company also encourages shippers to move containers inland by rail by offering a financial bounty.

Rail-led resilience beyond the South East

The same model is visible at other British intermodal ports. At Felixstowe, the UK’s largest container port, rail already accounts for around a third of all container movements. It’s often rightly quoted as Britain’s busiest rail freight terminal, which happens to have a port attached. On the West Coast, Liverpool has positioned itself as a rail-connected alternative for deep-sea and short-sea services. The port’s direct rail access to the West Coast Main Line is frequently cited in expansion proposals, even as grand as an autonomous rail tunnel under the city to facilitate better freight access.

Further north, Grangemouth illustrates how rail underpins resilience at short-sea container ports. It doesn’t handle vessels of the size alongside at London Gateway and Southampton. However, it is a strong connection for feeder and European short-sea services. Grangemouth has rail right onto the quayside and functions as a strategic redistribution hub, rather than just a local terminal.

Pressure likely to persist

London Gateway is progressing with its expansion programme aimed at increasing capacity and improving resilience. However, with global trade flows remaining volatile and vessel sizes continuing to grow, congestion risks are unlikely to disappear entirely. The move by the French carrier CMA CGM (see WorldCargoNews.com) merely reflects the health of the UK maritime sector as a whole. The ability to switch port calls without breaking inland supply chains depends increasingly on rail connectivity.

In the near term, carriers are expected to continue fine-tuning rotations. Port operators are being encouraged to lean more heavily on rail. The UK government is eager to see its net-zero targets aided by more both inter-port and port-to-inland rail freight. As Britain’s port fleet continues to reshape and regenerate, rail is proving a central tool for Britain’s intermodal logistics.

In Suffolk, on the east coast of England, Felixstowe is dealing with its dual role as far and away the busiest port in Britain, but it’s also far and away Britain’s busiest rail freight terminal. However, the real story is that Felixstowe is far from alone, and at least one challenger is coming up on the rails.

Britain’s rail freight champion is constrained

Felixstowe is often quoted among the British rail industry as the busiest terminal in the UK. It’s hardly surprising, given the size of the port operation and the importance of intermodal traffic to the modern rail freight sector. Three dedicated rail terminals are serviced by a complicated rail infrastructure that moves around 35 trains a day in and out of the port.

However, if anything constrains rail movements at Felixstowe, it’s where the traffic goes after leaving the port estate. The single-track branch line that serves the port rail yards is a brake on movements. More challenging, though, is the congested rail layout at nearby Ely, where port traffic competes for paths with mixed traffic from four other directions. Reconfiguring the layout (the long-overdue and already named Ely Area Capacity Enhancement programme) is a constant source of debate in the UK.

The rising contender

If Felixstowe is to lose its crown, which isn’t very likely, it would probably be taken by an unconstrained site, purpose-built for the modern trading volume. That might just describe rival DP World’s London Gateway, a new-build container port in Essex, that’s rapidly emerging as a formidable challenger in the UK’s rail freight sector. Opened in 2013, just 70 miles (112km) south of Felixstowe, the port has been designed with scalability in mind.

Currently, it dispatches around 22 intermodal trains daily, connecting to major freight terminals across Great Britain, including Hams Hall, Trafford Park, Liverpool, Glasgow, Cardiff, and Daventry. Once daily, a shuttle operates, almost like an internal service, connecting London Gateway with DP World’s other UK facility, at Southampton. That, though, only scratches the surface. The port’s rail terminal is one of the largest in the UK, capable of accommodating six trains simultaneously. Plans are underway to develop a second rail terminal on site, which will radically increase handling capacity.

Sustainable transport options

“In rail, London Gateway is currently [handling] 22 trains a day with some additional trains starting,” said Andy Bowen, Chief Operating Officer, UK Ports & Terminals for DP World. “At Southampton, we’re feeding across the country, around 20 as well. Both ports are doing around 30 per cent rail modal share at the moment. We have an aspiration to continue to put more cargo on the rail.”

That aspiration is shared at Felixstowe. Just over a year ago, Robert Ashton, Operations Director at the Port of Felixstowe, answered RailFreight.com and emphasised the significance of expanding rail transportation options. “Increasing the proportion of traffic moving by rail is an important part of our strategy to offer the widest possible range of sustainable transport options through the Port of Felixstowe”, he said.

Container commodity continues growth

Historically, rail freight has played a crucial role in serving UK ports, evolving from traditional bulk cargo transport to the modern containerised intermodal services we see today. The great container terminals – like Felixstowe, London Gateway and Southampton, but also Liverpool, Tilbury, and Hull- all have an interest in rail. Similarly, ports handling traditional bulk cargo, like Immingham-Humber (Britain’s busiest port by weight of cargo moved), Newcastle-Tyne and Liverpool again, rely heavily on rail to transport bulk commodities such as biomass and aggregates.

Intermodal rail freight now accounts for about half of all rail freight traffic in Britain, underscoring its significance in the national logistics network. It is the commodity that continues to grow. While Felixstowe remains the leader, London Gateway’s rapid expansion indicates a shift in the dynamics of UK intermodal rail freight. With its modern infrastructure and strategic location, London Gateway is on track to catch its closest rival. Nevertheless, both will continue to be pivotal, at least in terms of the UK’s intermodal rail traffic.

DP World says that the future Tashkent terminal will serve as a vital link between Central Asia, the Middle East, and Europe, and accommodate efficient freight movement through the company’s global network.

Rail-connected dry port

Tashkent Investment, a subsidiary of the Tashkent City Administration, will contribute 15% of the joint venture’s equity capital. The remaining 85% will be held by DP World, for a total investment of 288 million US dollars.

Once fully operational, the Tashkent Multimodal Logistics Terminal will feature a rail-connected dry port for containers and covered freight, customs clearance zones, vehicle storage areas, truck parking and Grade A warehouses and cross-docking facilities, DP World says.

In the first development phase, a 150,000 TEU per year rail terminal will be built alongside a 63,000 square metre warehouse complex. The expected completion date is late 2026 or early 2027. An additional 163,000 square metres of warehousing space is planned if there is demand for it.

Convenient for local and global businesses

“The terminal will be supported by its own dedicated freight railway station, accelerating cargo handling and delivery and helping reduce logistics costs. The hub will have direct access to Uzbekistan’s national rail network, major highways, and Tashkent International Airport, allowing efficient multimodal cargo transfer between road, rail, and air”, DP World writes. The terminal will benefit from customs and tax incentives thanks to its location in a special industrial zone.

“The agreement initiates the development of a transport and logistics hub, which will significantly increase the capital’s production and export potential”, the mayor of Tashkent commented. “With its world-class infrastructure, Tashkent will become even more convenient for both local and global businesses.”

The service operates between the Freightliner-managed rail terminal at Southampton and DP World’s own common user rail terminal at London Gateway on the north bank of the River Thames in Essex. The service began as a weekly train in November 2022. DP World say their Southampton and London Gateway train is the first “port to port” rail service in the UK.

Two become one … business unit

DP World has been steadily increasing the proportion of containers moved by rail from its Southampton terminal. A modal shift incentive – a bounty paid to shippers who choose rail for transfers up to 140 miles (224km) – has proved very popular. The company has targeted 40 per cent of all import containers leaving by rail. It’s well on target to achieve that.

The five-hour rail transfer between ports compares favourably with road alternatives. It also helps strengthen DP World’s “single business unit” operational preference for its two UK ports. “London Gateway has the ability for shipping lines, which are [booked into] Southampton, to have export cargo from that part of England and put it on the train, rather than haulage,” explained Andy Bowen, Chief Operating Officer, UK Ports & Terminals for DP World. “It has opened up an ability for imports and exports to move around. That’s why we’ve increased to five days a week from the first of October.

Cool runnings

The interport rail service allows shipping agents to use both Southampton and London Gateway as logistics hubs. DP World says there’s evidence from loadings that shippers are landing containers at Southampton and forwarding them by rail to the dedicated logistics park at London Gateway. The larger port therefore helps take pressure off its south coast compatriot.

The reliable journey time is also beneficial for cargo that requires refrigeration. Reefer traffic is a growth market in the UK. Southampton is expanding its “We already have two Maersk reefer services calling in Southampton,” said Andy Bowen, who says the shipping company benefits from the rail connection. “Some of the cargo which comes into Southampton is put on the train and ends up in the logistics park in London Gateway refrigerated warehouses.”

Running on empties

One of the Maersk services comes alongside at Southampton on Friday afternoons. Andy Bowen explains how that fits into their rail schedule. “We fill up the train with refrigerator boxes, and it goes up to Gateway, arriving about three in the morning. It’s unloaded and we shunt it into the logistics park so that we have this train to also reposition empties,” he says.

Returning empty containers is a big challenge in the UK. It’s a job that rail handles economically. Andy Bowen says that taking empties along with UK export traffic is an ability well suited to their interport rail service. Although the motive power on the run is diesel (typically a workhorse class 66), DP World is comfortable that the rail freight companies are embracing HVO (Hydro-treated vegetable oil) as an alternative fuel source.

The backbone of that growth has been Network Rail’s investment in longer train paths into the Western Docks and Freightliner’s adjacent terminal, alongside DP World’s investment in quay cranes, intermodal yards and customer incentives. The result is a port better positioned to compete on cost, speed and sustainability against road haulage.

Infrastructure built for longer trains

Signalling and track upgrades mean trains of up to 775 metres can now run directly into the Western Docks rail terminal. That terminal, also sometimes known as Redbridge, is operated by Freightliner. The ability to handle trains at the maximum specified length for UK infrastructure increases capacity per train path on the main line. That has improved the unit economics of rail over road. It also helps reduce congestion on the local road network.

Gauge clearance along the Solent–Midlands corridor has also been upgraded, allowing high-cube containers to run on standard intermodal wagons without restrictions. This opens up consistent northbound flows to inland distribution hubs in the Midlands (Britain’s logistics “Golden Triangle”) and beyond. In turn, that has pushed intermodal dispatches from Southampton to around 25 daily trains.

DP World’s modal shift drive

The port operator at Southampton, DP World, has pursued an aggressive Modal Shift Programme. This incentive scheme encourages rail forwarding instead of boxes taking a road trip. A visit last week demonstrated the extent of the programme in action. Financial incentives paid to hauliers, combined with enhanced rail service frequency, have already diverted more than 100,000 containers onto rail in just over a year of operation.

Currently (Autumn 2025), rail’s modal share at the terminal stood at around 30 per cent. The programme’s next phase is designed to take rail share to 40 per cent by 2026. A revised incentive structure was recently rolled out to underpin that target. DP World is investing in handling equipment, and not just the high-profile purchase of four massive new ship-to-shore cranes (see reporting on WorldCargoNews.com). The company says it will help ensure that rail operations can keep pace with ship turnaround and yard capacity.

Implications for the wider rail network

Southampton is a de facto proving ground for modal shift policies. The combination of infrastructure investment, commercial incentives and operator collaboration, particularly over deep-sea container flows, can be rebalanced towards rail. That does, however, require that national network capacity keeps pace with development.

Southampton now dispatches intermodal trains at the maximum permissible length for the UK network. Longer trains still require scarce network paths, and terminal throughput is limited by yard space and crane productivity. Yet carbon reduction is firmly on the agenda for shippers and policymakers. Southampton’s blueprint of port–rail integration is attracting attention far beyond the Solent.

DP World and Nevomo signed a Memorandum of Understanding to this end with the Deendayal Port Authority, which oversees the port of Kandla, India’s third largest. The initiative “aims to develop and implement MagRail-based solutions that enable autonomous, electric-powered wagons using linear motor technology on existing rail tracks”, the three parties said in a joint statement.

Nevomo in India

This is not the first experience in India for Nevomo. The company started a partnership with Umeandus, an Indian company specialising in the development of an Automated Container Evacuation System. The two are combining their technologies to find solutions to enhance virtual rail capacity in ports and increase efficiency.

In the video below, you can see the first full-scale tests that took place in Gdansk

A rethink of shipping routes, known as trades in the business, has seen a significant relocation of cargo volumes linked to the newly formed Gemini Cooperation. London Gateway operators, DP World, have been on an expansion drive at the port on the Thames, and have welcomed additional port calls. That’s been good news for rail freight operator Freightliner, which has risen to the challenge.

Operational challenge

The Gemini Cooperation is a new vessel-sharing alliance between global shipping giants Maersk and Hapag-Lloyd. The tie-up between the two global shipping lines began operations earlier this year and has been extensively reported by our sister service, WorldCargo News. As part of the Gemini Cooperation, the two shipping carriers are restructuring their port calls and inland transport arrangements, leading to a redistribution of cargo volumes across world ports, including a shift of some services calling at Felixstowe to London Gateway.

Freightliner, which operates the UK’s largest maritime intermodal logistics network, mobilised additional resources in less than five months to meet the requirement. “Freightliner mobilised and were able to solve this enormous operational challenge in under five months – providing several key benefits for all our customers,” a company spokesperson said.

Seemless change

The changes include a revised and optimised train plan, faster train paths to improve efficiency, and an increase in the number of electric locomotives used across Freightliner’s network. While London Gateway’s rail infrastructure is not currently electrified, Freightliner is deploying electric traction where possible on wider routes to support lower-carbon freight movements.

“It is testament to the staff, the network, our assets and skills within Freightliner that we have managed to shift operations from Felixstowe to London Gateway in such a short period of time – working collaboratively with several key stakeholders to ensure a seamless change for our customers,” the spokesperson added.

Aggressive growth

Freightliner’s national network connects all major UK deep-sea ports with inland rail terminals, alongside its operations in the bulk materials and heavy haulage sectors. Despite the shift of some services to London Gateway, the Port of Felixstowe remains the UK’s busiest rail freight terminal and continues to handle significant intermodal volumes.

Industry observers expect strong demand to support ongoing rail service development at Felixstowe, even as the owners aggressively court new services at London Gateway. The UK Government has expressed a number of commitments to a net-zero economy, including encouragement to grow rail freight operations by at least 75% by 2050.