MULTI-MODAL

TRANSPORTATION
 CHAPTER OBJECTIVES
• To explain the conceptual framework of multimodalism in
international trade logistics.
• To explain the regulatory framework governing multi-modal
transport in India.
• To discuss the advantages of multimodal transport in international
logistics operations.
• To brief out the various types of multimodal transport operators
in international logistics operations.
• To distinguish the salient features including contents of
Multimodal Transport Document (MTD).
• To brief the challenges of multimodal transport operators and to
recommend the suggestions.
 CHAPTER OUTLINE
• Introduction
• Concept Of Multimodal Transport
• Context & Regulation Of Multi Modalism In India
• Advantages Of Multimodal Transport
• Forms Of Multimodal Transport Operations
• Multimodal Transport Document: A Vital Link
• Challenges and Suggestions For Improving
Multimodalism In India
 INTRODUCTION
• Transport of internationally traded goods may involve the use of various transport
links (both interfaces and modes) so as to ensure the movement of cargo from the
point of production to the point of sale. Each interface may involve loading and
unloading, transhipment, temporary storage, reworking of containers, and changes in
labelling and marking of goods.
• Due to long distances among trading countries, coupled with other reasons, such as
costs of transport, time to serve markets, and associated utilities with products,
internationally traded goods are moved in two or more than two modes of transport.
• When such transport operations take place under the responsibility of a single
transport operator from the point of production to the point of destination, it is called
multimodal transport. Multimodalism in international logistics operations existed for
centuries but the introduction of containers revolutionized the concept of
multimodalism in international trade logistics.
• The term multimodal transportation in international logistics refers to the transport of
internationally traded cargo from the factory or other premises of an exporter or
shipper to that of importer’s premises or warehouse in the country of destination
under the responsibility of one transport operator but using two or more than two
modes of transport. Moreover, this door-to-door transportation is under single contract
evidence by an MTO with single freight rate liability for either the shipper or the
 Concept of Multimodal Transportation
• United Nations Convention on International Multimodal Transport of Goods
1980 which reads as “ International multimodal transport’ means the carriage
of goods by at least two different modes of transport on the basis of a
multimodal transport contract from a place in one country at which the goods
are taken in charge by the multimodal transport operator to a place
designated for delivery situated in a different country...”

• This definition should be read in conjunction with the definition of the term
“multimodal transport operator” (MTO) which is enshrined in article 1(2) of
the MT Convention and explain MTO as “Multimodal transport operator’
means any person who on his own behalf or through another person acting on
his behalf concludes a multimodal transport contract and who acts as a
principal, not as an agent or on behalf of the consignor or of the carriers
participating in the multimodal transport operations, and who assumes
responsibility for the performance of the contract.
 Salient Features of Multimodal
Transportation
• The carriage of goods from country of production to country of
destination is to be performed by two or more modes of transport.
• The carriage of goods is to be performed under one contract.
• The essential feature of multimodal transport document is that
there will be only one combined transport document and there
shall be only one responsible party for execution & performance
of entire multimodal transport operations from country of origin
to country of destination. In general practice, it shall be observed
that MTO may subcontract the performance of such long transport
operations to other carriers.
• Thus the terms “combined transport” and “inter-modal transport”
are often used interchangeably to describe the carriage of goods by
two or more modes of transport Adapted from “Implementation of
Multimodal Transport Rules, UNCTAD 2000
 Difference between Multimodalism and
Intermodalism
The glossary of the terms used in combined transport and related field issued by the United Nations
Economic Commission for Europe (UN/ECE), defines “multimodal transport” as “carriage of goods by two or
more modes of transport.” The glossary is intended for the work of the three intergovernmental
organizations, namely the European Community, the European Conference of Ministers of Transport (ECMT)
and the UN/ECE. It is, however, specified that the “definitions are not applicable in their strictest sense to
the legal and statistical fields, whose relevant documents of reference exist already.” On the other hand,
“Intermodal Transport” has been defined as “the movement of goods in one and the same loading unit or
road vehicle, which uses successively two or more modes of transport without handling the goods
themselves in changing modes.” “Combined Transport” is defined as “intermodal transport where the major
part of the European journey is by rail, inland and waterways or sea and any initial or final legs carried out
by road are as short as possible.”
 Context & Regulation of Multi Modalism in India
State-Wise Total Number of Registered Multimodal Transport Operators
Name of States Registered No. of Multimodal Transport
Operators
1. New Delhi 146
2. Maharashtra 358
3. Tamilnadu 121
4. Kerala 20
5. Karnataka 26
6. West Bengal 23
7. Gujarat 19
8. Andhra Pradesh 11
9. Haryana 7
10. Uttar Pradesh 4
11. Madhya Pradesh 2
12. Orissa 0
13. Assam 1
14. Goa 4
15. Rajasthan 2
16. Punjab 4
Total 748
 Forces Shaping the Multimodal
Transportation in India
Under conventional system of segmented transport, the consignee
enters into separate contracts with each other.

The consignor or his agent has to attend to all arrangements

required for transhipment of goods from one mode to another,
including warehousing.

The liability of each carrier is limited to the carrier in limited to the

carriage performed by him.

Goods mainly in International Trade pass through the hands of

more than one carrier and more than one mode of transport.
Advantages of Multimodal Transportation

• Minimises Time Loss At Trans-Shipment Points

• Provides Faster Transit Of Goods
• Reduces Burden Of Documentation And Formalities
• Minimize Transport Costs
• Establishes Only One Agency To Deal With
 Snapshot of Advantages of Multimodal
Transport: A Win-Win
Help in minimizing the time loss at trans-shipment points as the
timing and location of incumbent is clear in advance.

Help in providing faster transit of goods to place of final destination.

Help in significantly reducing the burden of trade documentation and

formalities.
Reduces the freight cost and transaction cost thus enable better
saving.
Establishes the responsibility & liability of only one agency to deal
with.
Ensure issue of combined transport documents (Combidoc) thus
timing negotiation of letter of credit.
FORMS OF MULTIMODAL
TRANSPORT OPERATIONS
Features of Different Types of Multimodal Transport
Operator
Sea/Air/Sea a. It offer the economy of water transport along with speed of air transport.
b. Sea/ Air operations are used mainly for Eastern or European route(s).
c. Sea/ air combinations is mainly used for high value goods like electronic, computer and
high seasonal goods like fashion wear.
d. AKIA is the first company to use this type of multimodal transport operations.
Air/Road It is involves the first part of logistics operations by trucks and next ling haul by air or vice-
(Truck) versa. In India, perishable goods like vegetable, fruits, and other high value-low volume cargo
is exported using this type of multimodal operations.
Rail/Road/ This types of multimodal operations are routine in today complex world.
IWT/Sea
Mini-bridge It is popular in Europe whereby cargo originates at a port and is delivered at port in third
country by train having after been transhipped at train at port of discharge in second country.
Macro-bridge Macro bridge multimodal operations are similar to mini-bridge. The only difference being the
international transportation terminates at an inland point rather than a port.
Land-bridge Land-bridge is similar to mini-bridge except the fact the international transportation
terminates at any other point except the rail terms of a port.
Micro-bridge Micro bridge refers to door to door logistics services. It is known as franco domino in Africa.
Micro-bridge logistics operations are popular on west coast of USA however it was used for
the first time in El Salvador where a group of companies still offer this type of transportation
services. Micro-bridge services are available for all modes i.e. carriage by sea, land, air and
express carriage and multimodal transport operators may accept both LCL/LTL and FCL/FTL
cargo load.
 Forms of Multimodal Transport:
LAND-SEA-LAND
DIAGRAMMATIC REPRESENTATION OF A HOSIERY CONSIGNMENT FROM LUDHIANA TO
MOSCOW (LAND SEA LAND MULTIMODAL TRANSPORT TRANSACTION)
Transship
Goods
Container ped on Loaded
Loaded
Loaded Rail at on Tucks
on Truck
on Ship at Hamburg for
at
Mundra for Warehous
Ludhiana
port for onward e or Final
for
Voyage to Journey Destinatio
Mundra
Hamburg to n
Port
Moscow
 Forms of Multimodal Transport:
Road/Air/Road
• A combination of air carriage with truck transport is a frequent method of
multimodal service and is popular in case of perishable goods which have to be
sent directly at the shortest possible time to destinations.
• Undoubtedly, pick-up and delivery services by road transport are usually
incidental to air transport. But, in addition to that, road transport is now being
increasingly used in India as many part of the country are not connected by
other mode of transport such as train or inland water transportation.
• For example, North eastern part of country whereby the Flowers from
Meghalaya and Orchids from Sikkim are brought by Road transport to Kolkata,
from where they are air-freighted to major markets of Europe, South East Asia
and North America.
• Vegetables and fruits are also first brought to Kolkata by trucks from North-
Eastern states and then air freighted to international markets.
 Forms of Multimodal Transport :
Sea/Air/Sea:
• This form of multimodal transport operations uniquely combines the economy of
sea transport and the speed of air transport.

• Sea/ Air/ Sea transport operations are increasingly becoming popular for
transportation of internationally traded goods on the trade routes such as Far East &
Europe, landlocked countries of Asia to Europe and US and in recent years from East
Africa to North America and Europe.

• This form of multimodal transport operations is favourable in case of high value

items like electronics, electrical goods, computers and photographic equipment as
well as goods which are perishable in nature like marine products, fresh fruits,
vegetables, fresh flowers, dairy products and products with high seasonal demand
such as fashion wear and toys.
 Examples of Air/Sea and Sea/Air
Multimodal Transactions
Commodity Origin Mo Via Mode Destinati Logistical
de on Operation

Engineering Bombay, Sea Dubai Air Houston, Sea/ Air

Goods India USA

Marine Kolkata, Sea Seattle Air London, Sea/Air

Products India USA UK

Dairy Rotterdam Sea East Air West Sea/ Air

Products Holland Canada Canada

Carpets/ Kathmandu Air Bombay Sea Hamburg Air/ Sea

Handicrafts Nepal India Germany
Forms of Multimodal Transport : Mini-Bridge

Rail
• Cargo is Consigned • Cargo is unloaded
from Port of at rail terminal of
• Cargo is Unloaded at
Kandla; India by Port of Rotterdam;
Sea to Port of Port of Marseille, Holland
Marseille; France France and loaded on
Rail for transit to Port
of Rotterdam; Holland
Sea
Forms of Multimodal Transport: Land Bridge

Rail
• Goods are loaded at Port • Brought by Rail;
of Nagasaki; Japan on • Unloaded at Shangai unloaded at Kiev;
ship for voyage to Port Ukraine for distribution
of Shangai Port for loading on to warehouses;
Trans-Siberia Railway for Distriparks/Districenters
journey to Kiev; Ukraine
Ship .
 Forms of Multimodal Transport : Ro-Ro
(Roll-on/Roll-off)

• Automobiles has transformed the human life world over after 2nd
World War. There is increased trade of automobiles both LCV &
HCV from major manufacturers such as Japan, Germany and USA.
India is also fast emerging as regional automobile hub.
• Hence, Ro-Ro ships are invented to facilitate the large-scale
transportation of automobile. A car or truck is driven-in into Ro-Ro
ship through the ramp and is clamped-in at tyres.
• Once ship reach country of destination, cars or trucks are driven-
out and are sold at various authorised distribution points. Mundra,
JNPT and Chennai ports in India has dedicated Ro-Ro ship jetties
where automobiles are loaded and unloaded for international
transportation.
 Forms of Multimodal Transport :
Rail/Road/Inland Waterways/Sea

Textiles/ Port Of C&A Retail

Goods Rail
Hamburg, Goods Shop at
Loaded On Ship
Can Be Trans- Church
Mother Ship Shipped To Any Lash/IWT Market, Bonn
at JNPT of Following City, Germany
Bombay Mode
Road

Multimodal Transport Mix of SEA and Inland Transport like Rail/Road/IWT with Importing
Country
 Forms of Multimodal Transport:
Rail/Road/Inland Waterways/Sea

Cranes are Port Of Rotterdam, Cranes are

Road
loaded for export Goods Can Be Unloaded at
to India on any of Trans-Shipped Port of Cochin,
Mode of Rail Mother Ship for India
Transport: Voyage to Cochin
India
IWT

Multimodal Transport Mix of SEA and Inland Transport like

Rail/Road/IWT from Exporting Country
 Forms of Multimodal Transport:
L.A.S.H. (Lighter Abroad Ship)
• Lighter Abroad Ship (LASH) are very popular in Europe especially in Netherland
and Germany which have strong inland water transport system through inland
water networks of Rhine, Elbe Nieuwe Maas and Weser.
• Lash transportation Operations, in these water ways is the combination of deep
sea and inland waterway transportation. The popular LASH route for multimodal
operations in Europe is from Germany to the Mississippi Ports.
• Barges sail down through Rhine or Elbe or Weser in Germany which are loaded
onto LASH container vessels in Rotterdam or Hamburg or Bremen and then are
carried across the Atlantic, only to be unloaded at a Mississippi delta port to sail
upstream in the U.S. In India, this type of multimodal transport is at nascent
stage as LASH vessels are very expensive.
• Moreover, India does not have inland water terminal facilities as LASH
transportation require the availability of the special handling facilities necessary
in the ports of destination. In India, barge and small boats are used instead of
LASH vessels.
 Forms of Multimodal Transport :
Piggyback
• This system of multimodalism, although first used in Latin America, but is
now more popular in Europe and in recent times in India as well.
• Multimodal Mix, under this system is a combination of transport by road
and rail. It combines the speed and reliability of rail on long hauls with the
door-to-door flexibility of road transport for collection and delivery of cargo.
• The goods are packed in trailers which are hauled by tractors to the railway
station. At the station, the trailers are moved onto railway flat cars and once
trailers are loaded, the tractors are disconnected from trailers.
• Train loaded with such trailers reach destination where tractors are once
plugged in and trailers are moved away to factory/ warehouses of the
consignee.
• In India, full trucks are loaded on flat car as it is cheaper to move a truck
loaded in train from Bangalore to New Delhi then plying it on road mainly
due to rising oil prices, increasing operating costs and time involved.
Piggyback trains are now regular between Bangalore- Delhi, Chennai Delhi
and Bombay-Delhi.
 Forms of Multimodal Transport : Sea Train
• This form of multimodal’s operations are used by Americans for the first time and
is a very unique system.
• It involves the combination of rail and ocean transport carriers. Sea-Train system is
much similar to roll-on, roll-off (Ro-Ro) system except that in the place of the Ro-
Ro vehicle a rail car is used in these types of multimodal operations.
• For example, hypothetically believe, that a train left Delhi with cargo and its
destination is Colombo, since there is no rail network at sea, the whole train shall
be on-loaded on ships and vessel will perform the voyage at Palk Strait. Once ship
reaches Srilanka coast the train will again be off-loaded from ship and remaining
part of the journey shall be performed by the train.
• Since, maintaining large vessel to accommodate the rail car for sea part of journey
is very expensive preposition, such a system has not been developed in India.
• Sea train shipping services are limited to America, Australia and Europe and as
such ship needs heavy investments and should be long enough to accommodate
the train on-board.
 Legal Standing of Multimodal Transport
Document

Carraige of Goods by Sea Act 1925

Indian Bill of Lading Act 1856

Carriage of Goods by
Sea
Merchant Shipping Act 1958

Marine Insurance Act 1963

Law of Carriage in
India Carriage of Goods by
Carriage of Goods by Air Act 1972
Air
Carriage of Goods by Road Act 2007
Carriage of Goods by
Transport of Goods by Raod Rules 2011
Land
Railway Act 1989
 Concepts of Multimodal Transport
Document in International Logistics
Description about exportable cargo i.e. Trade Classification; Hazardous Status; Perishability etc.

The name of MTO and principal place from where the multimodal operations begin.

The name of the consignor of the cargo

The name of the consignee of cargo (if specified by the consignor)

The date when MTO take charge of the goods from consignor

The destination where the delivery of the goods is requested

Expected date or the period of delivery of the goods at destination

Whether MTD issued is negotiable or non-negotiable transport document

The place where the MTD is issued and date on which it is issued