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Multimodal Transportation: Chapter 3 (Part 3) Newsletter Subscription


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By Transport Corporation of India Limited JANUARY 23, 2018 Email

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Future prospects
Categories
The Frost & Sullivan report forecasts that the share of railways in carrying freight would increase by
about 5% and the corresponding share of roads would decrease by about the same percentage by
Awards/ Recognition
2017. India’s international trade is growing at 10-12% annually with a commensurate increase in cargo
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containerization. Corporate Social Responsibility

Most of India’s import and export of goods are through major seaports, which need to be connected Inside Scoop
with the hinterland and mainland through a mix of transportation modes, increasing the need for
Knowledge Series
multimodal transportation. With increased cargo containerisation, it will also be easier to shift cargo
from one mode of transport to another, facilitating a mix of transportation modes. Leadership Speaks

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Earlier, Container Corporation of India (CONCOR) had a monopoly in running container trains. Once
Indian Railways opened container freight operations to private operators, many private service
providers commenced container freight trains with their own Inland Container Depots (ICD). The entry Tags
of private container train operators will increase cargo containerisation.
3PL 5 Force Model AIMA
Freight transportation by railways will also get a boost when the dedicated freight corridors (DFC) Airways all the award title
become operational by 2015/2016.
Allocation of overhead
expenses Automotive
The eastern (Ludhiana to Dankuni) and western (Dadri to JNPT) DFCs will cover almost 3,300 route kms,
Logistics Best Coastal
run longer and heavier trains, accommodate faster speeds up to 100 kmph, guarantee transit time and
reduce unit transportation costs. Container Vessel
Operator Better Health
Many large logistics parks with multimodal facilities have already been set up or are in the process of Blood Donation Cargo
being set up by private parties either on their own or through collaborations with Government entities Containerization CFS
such as CONCOR in the publicprivate partnership (PPP) mode. Challenges & Opportunities in
Automotive Logistics
MIHAN (Multi-modal International Hub and Airport at Nagpur) and Vizag International Cargo Terminal Champions of Change
are two prominent examples of multi-modal logistics parks (MMLP). Containerization Corporate
Film Cost of additional fuel
The Ministry of Railways plans to set up 10 MMLPs along the DFCs within 300 km of each other. These
consumption Cost of delay
MMLPs, spanning 400-500 hectares and built by Government and private funding, would accommodate
CSR DFC Digital
railway sidings with sheds, container depots, warehouses, o ce building and assembly units. Once
operational, these MMLPs are expected to bring down operational costs by 20-30%. Transformation Door to
Door Delivery EDI
In the near future, road transportation will still dominate rail transportation in terms of passenger and Environment ERP Export
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freight. However, as already mentioned, because of increased cargo containerisation and the Market Foundation
operational commencement of DFCs, the share of railways in carrying freight will increase marginally at
Freight Freight Movement
the cost of a road share.
Freight Rates Freight
Air freight will continue to be used only for high-value, time-sensitive and perishable goods, its share of Transportation Fuel

freight movement likely to be limited to 1-2% as before. Consumption GST


Health Healthier Mind and
Despite possessing a coastline of about 7,500 km and close to 6,000 km of navigable inland waterways Body Healthy Habits HIV
in the form of rivers and canals, India’s coastal and inland waterway transportation is extensively HSE ICD Infrastructure
underutilised, contributing only 3-4% of domestic freight movement by volume.
Finance Infrastructure
Status International
If infrastructural bottlenecks can be removed, there is an immense potential increase the share of
coastal and inland waterways in domestic freight movement that could not only lead to economies of Yoga Day Kaizen Lanes
scale, but also reduce carbon emissions and environmental pollution. Life Saving Efforts Logistics
Logistics & Transportation

As shippers prefer a single-service provider to provide seamless end-to-end multimodal transportation perspectiveMarketing
solutions, large capital investments may be necessary through the PPP mode. Excellence MMLP Mobile
Apps Mode Multi-modal
Also, since coordination among the di erent transportation modes is critical to quality, an apex body, transportation
say Multi-Modal Transport Regulatory Authority of India (MMTRAI), in line with the Telecom Regulatory Multimodal Muskaan
Authority of India (TRAI), may be set up to coordinate the di erent ministries, i.e. Ministry of Road
Clinic NSDC OEM Overall
Transport and Highways, Ministry of Railways, Ministry of Shipping and Ministry of Civil Aviation to
Excellence in Logistics and
facilitate multi-modal transportation.
Supply Chain Pan India PPP
Previous Railways Reuse & Recycle of
Wast Road
Constructions Road
Transportation Roadways
Route Survey Routes
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Storage Supply Chain TCI

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Group TCI is India's leading integrated supply chain and logistics solutions provider. TCI group Institutes Trio Bins Trips
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