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Multi Modal Transport

Multimodal transport in India involves using multiple modes of transport under a single contract to enhance efficiency in logistics, which is crucial for the country's economic growth. Despite its potential, India lags behind global standards in logistics performance, necessitating improvements in infrastructure and policy. The government's initiatives, including the Multimodal Transport Act of 1993, aim to establish a robust multimodal transport system to reduce costs and improve service delivery in the logistics sector.

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0% found this document useful (0 votes)
113 views7 pages

Multi Modal Transport

Multimodal transport in India involves using multiple modes of transport under a single contract to enhance efficiency in logistics, which is crucial for the country's economic growth. Despite its potential, India lags behind global standards in logistics performance, necessitating improvements in infrastructure and policy. The government's initiatives, including the Multimodal Transport Act of 1993, aim to establish a robust multimodal transport system to reduce costs and improve service delivery in the logistics sector.

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Sambhav Jain
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INTODUCTION

Multimodal transport is the articulation between different modes of transport, in order to more
rapidly and effectively transfer operations of materials and goods Multimodal transport is
that in which it is necessary to use more than one type of vehicle to transport the goods from
his place of origin to their final destination, but mediating a single contract of carriage.

Within this overall framework, we distinguish intermodal transport (using different types of
transport but using a single measure of load) and combined transport (the responsibility is
assumed by different operators). Multimodal transport is effected by a multimodal transport
operator who holds a multimodal transportation contract and assumes responsibility for
compliance as carrier.

Combined freight transport can be organized in different ways. In general, trucks cover short
distances between the loading area and the transhipment point respectively between the
place of arrival and the recipient. Long-distance haulage is conducted by other means of
transport such as train, ship or even plane.

WHY ITS NEED IN INDIA


India has experienced fast-paced growth over the last decade. Though the growth has primarily come
from the services sector, manufacturing and exports have also risen reasonably. The Indian logistics
industry spends around 14% of the GDP on different types of cost incurred in logistics operation.
Logistics as a function is being increasingly outsourced by manufacturers. However, the Indian
logistics sector in many ways still lags behind the global standards of performance.
This is evident from the fact that India ranked as low as 46th among 155 countries in the World Bank
International Logistics Performance Index. Adequate road and rail infrastructure is required to support
the growth as these two major modes of transportation available in the country. Policy level changes
are also necessary to turnaround other modes like inland waterways and coastal shipping. Investing in
and using multiple transportation modes not only bring efficiencies in the chain but also go a long way
to reduce pilferage as well as overall transportation costs.
Multimodal logistics serves to interconnect different modes of transport – road, rail, air, water – and
therefore improve efficiency and speed of goods movement. The economic growth in India has
increased the demand for practically all transport services and further underlines the importance of
providing an efficient multimodal logistics infrastructure in India.
Multimodal transportation, which has been proven elsewhere in the world as a solution to reduce
logistics costs, is touted as an efficient way of transporting goods over long distances. It is, however,
struggling to make its presence felt in India today
The transport and logistics sector are fundamental to the development of a country, specially so in
India where it is estimated to provide employment for 45 million people.

GOVERNMENT INITIATIVE
The Multimodal transport act was passed by Indian Parliament in the year 1993; the main
objective of the act was to establish a liability regime for Multimodal Transport operators. The
Director General of Shipping was notified as a Competent Authority under the aegis of this law.
The passing of the MMTG Act paved the way for various Indian Logistic Service providers to get
themselves registered with the authorities and start issuing Multi Modal Transport Document. This
helped the shipper community in India in a big way as now they could ship goods from any land
point India to any destination in the world under a single Contract of Carriage.

AIM
The aim of multi modal transport system To promote the utility of the area under
consideration for the purpose of functioning as a multimodal interchange hub for transit
oriented development of the area.
This multi modal system can be helpful for the cities which have a fast rate of
urbanisation and higher population densities.

OBJECTIVE
The major objective of multi modal transport is to strengthen the link between various
modes of transport present in close proximity , thus achieving the ultimate goal of a multi-
modal interchange that combines various modes and their associated functions in order to
achieve a better degree of transport network.
Encourage integrated development of traffic movement & networks, transportation facilities
& their linkages and associated functions/ activities prompting land use modifications to
suit the context of the development.

SCOPE
Development of transit facilities as per user rate, multiple mode linking and passenger
comfort and affordability.
Holistic approach to commercial bases and their delineation along avenues of relevantly
related freight movement and logistics.
Promotion of single land use zones to facilitate correlativity between the various activities
that are related to transport and traffic networking.

LITERATURE REVIEW
International Multimodal Transport Association defines multimodal transportation as “the chain
that interconnects different links or modes of transport – air, sea, and land – into one complete
process that ensures an efficient and cost-effective door-to-door movement of goods under the
responsibility of a single transport operator, known as a Multimodal Transport Operator (MTO),
on one transport document”. Multimodal transportation is quite popular in Europe. In addition to
road and rail modes, the continent is blessed with numerable waterways crisscrossing the land
mass. Therefore, it has become convenient and economical to use a combination of these modes
to transport goods from the gateway ports to hinterland and vice-versa. But the situation in Indian
subcontinent is different. Majority of the transportation is done by road (about 60 to 65 per cent),
followed by rail (about 30 per cent).
The role of waterways is very negligible as they are not spread over the entire country and instead
are concentrated in a few regions. Coastal shipping on the other hand is being promoted of late as an
economical mode of transport.
The transport and logistics sector are fundamental to the development of a country. In India, since
the 1990s, the transportation infrastructure has undergone a significant change. While in the 90s,
the demand for transport grew at an annual rate of 10%, in the last decade the demand in the
transport and logistics industry grew along with the accelerating Indian GDP. This growth increased
the demand for practically all transport services. Various estimates put the size of the Indian
logistics market at between USD 90 to 225 Billion. In addition, the Indian logistics industry is
estimated to generate employment for 45 million people.
In 2012, the World Bank published logistics performance index of countries. The Logistics
Performance Index overall score reflects perceptions of a country’s logistics based on efficiency of
customs clearance process, quality of trade- and transport-related infrastructure, ease of arranging
competitively priced shipments, quality of logistics services, ability to track and trace consignments,
and frequency with which shipments reach the consignee within the scheduled time.

Containerisation is the use of standardised intermodal containers for freight transport and is the
single most important development in the evolution of multimodal logistics. In India, the Container
Corporation of India Limited (CONCOR) was initially the sole operator of ICDs as well as Container
train operator, and currently operating about 59 terminals in the country, and includes,
international, domestic, rail linked as well as road fed ICDs/ CFS. Currently the market share of
CONCOR is about 85%. Ministry of Commerce is the nodal agency and Addl. Secy/Infrastructure is
the chairman of the Inter Ministerial Committee (IMC). Containerised tonnage aggregated about
105.11 million MT and constituted 14.32 per cent of the total traffic handled (732.76 million MT) in
2008–09 by the Indian ports. For the major ports, this ratio is higher at around 13 per cent.

Multi-modal transport in India was a monopoly of the Container Corporation of India till 2005. With
licenses being given to 13 new private players, rail trade should improve considerably. In order to
encourage trade by small scale industries, Indian Railways has started a “road-railer ”system where
container vehicles are capable of running both on highways hauled by trucks and on rai. In 1998-99,
the Konkan Railway (one of the railway zones in South-Western India) pioneered the 'roll-on, roll-
off' ('RORO') concept between Mumbai (Kolad) and Goa (Verna). Privately owned trucks are loaded
with their goods which are driven on to a rake of flat cars and are carried (trucks and their cargo) to
the destination.

The World Economic Forum and Confederation of Indian Industry (CII) host the India Economic
Summit in New Delhi from 4 to 6 November 2014. The government is committed to achieving a
target of building 30 kilometres of roads and highways a day within two years, taking the rate up
from three kilometres a day currently The government is working to solve problems associated with
land acquisition, creating a multi-modal transport policy and reducing the cost of capital to make
investment in infrastructure viable internationally, confidence in India is high; country needs to
ensure predictability in policy, process and growth
ADVANTAGES OF MULTIMODAL TRANSPORTATION

i) Minimises time loss at trans-shipment points:


Multimodal transport, which is planned and coordinated as a single operation, minimises the
loss of time and the risk of loss, pilferage and damage to cargo at trans-shipment points. The
multimodal transport operator maintains his own communication links and coordinates
interchange and onward carriage smoothly at trans-shipment points. This avoids
documentation and verification time from one agency to other. Also advance planning can be
done by MTO because knowing status from initial stages.

ii) Provides faster transit of goods:


The faster transit of goods made possible under multimodal transport reduces the
disadvantages of distance from markets and tying-up of capital. In an era of Globalization the
distance between origin or source of materials and consumer is increasing thanks to the
development of multimodal transport.

iii) Reduces burden of documentation and formalities:


The burden of issuing multiple documentation and other formalities connected with each
segmented of the transport chain is reduced to a minimum.

iv) Save cost:


The savings in costs resulting from these advantages are usually reflected in the through freight
rates charged by the multimodal transport operator and also in the cost of cargo insurance. As
savings are passed onto the consumer, demand increases. The inherent advantages of
multimodal transport system will help to reduce the cost of exports and improve their
competitive.

v) Single window operation:


The consignor has to deal with only the multimodal transport operator in all matters relating to
the transportation of his goods, including the settlement of claims for loss of goods, or damage
to them or delays in delivery at destination.
CONCLUSION
In India, with increasing number of middle class, the personalized vehicles have also
increased in many folds in last decade, which further has causes deterioration in traffic and
environmental conditions. This has generated implacable need to shift mode of travel from
car to walk/cycle for short journey and to public transport for long journey. Integrated multi-
modal urban transportation is a step ahead to achieve this goal. IMMTS is a promising area
of
research and development, for near future, as well as for scientific and practical
implementation of adequate infrastructure; as most of the Indian cities are pacing up for
improving the transport infrastructure by carrying out various transportation projects. The
case of Delhi Integrated Multi-Modal Transit System is the precursor to upcoming
developments for appropriate integration of various modes of transportation in highly dense
urban areas of India. The biggest challenge for Indian cities would be to achieve the
highest
level of integration of multiple modes to shift the captive ridership of personalized transport
to at least partial usage of public transport for mixed-mode travel.

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