Author:
Shri Parasnath Shukla,
Ex. Senior Member – BGTA,
U-Trans India Pvt Ltd
The Multimodal transport act was passed by Indian Parliament in the year 1993;
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.
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.
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 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, The challenge in meeting the goal of 45 percent market share is to get enough rail-linked multi-modal terminals. Currently, there are 80-90 inland container depots (ICDs)/private freight terminals (PFTs) in the country including those of Concor. That’s extremely low. You can’t have something like this continuing for long and think about reducing the logistics costs from 14% to 8-9%of the GDP. It’s not going to happen unless you have more terminals in the hinterland. India requires ICDs/PFTs in another 200 locations.
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