Multimodal Transport and Indian Railways. Sachin Bhanushali 23 rd Nov 2018

Size: px
Start display at page:

Download "Multimodal Transport and Indian Railways. Sachin Bhanushali 23 rd Nov 2018"

Transcription

1 Multimodal Transport and Indian Railways Sachin Bhanushali 23 rd Nov 2018

2 Prologue Indian Railways have played a key role in development of Multi-modalism in Indian Logistics Sector.

3 The Two Concepts Multimodal Logistics: In simple words, multimodal logistics refers to the international transportation of cargo from one point using more than one mode of transport viz. road, rail and sea (coastal / inland waterways), switching between different modes during the chain of transportation to deliver a door to door solution for the customer which is efficient and economic. Intermodal Logistics: Intermodal logistics involves land transportation of containerised cargo by rail and road where cargo is transported from origin to destination using more than one mode of transport in unitised form like containers or swap bodies throughout the transportation chain eliminating the need to handle the cargo at various mode change points.

4 Distinction Parameter Multimodal Logistics Intermodal Logistics Transport Mode Containerised Transport Ownership Both use multiple modes of transport to create a logistics chain to deliver an end to end solution ISO Marine Containers Carriers and NVOCC as Logistics Service Providers (LSP) ISO and Non-ISO containers and Swap Bodies Multi-player Inter-modal Operators (IMO) Transaction International International & Domestic Mode Land and Sea Rail & Road Document Single transport document Multiple transport documents Conventions & Framework Hague Visby Rules Hamburg Rules, Rotterdam Rules National Legal Framework

5 Freight Business Segments Dry Bulk Coal for Metallurgical and Thermal use, Fertilizers, Food Grains, Cement, Iron Ore, Iron and Steel, Raw Material for steel plants Liquid Bulk Petroleum, Crude Oil, Fuel Oil, Vegetable Oil, Chemicals Break Bulk Bagged commodities, Steel coils, Bales, Pallets, Containers

6 Indian Railways Indian Railways have served the Indian freight transport sector well and have been the largest logistics transport service provider in the organised sector. However, over time Indian Railways have ceded market share to Road Transport Sector due to its focus on heavy weight, large parcel size and long distance transport its role has been limited to sectors like Coal, Power, Mining, Primary Metals, Cement, Fertilizers, Food Grain and Petroleum industry.

7 Indian Railway Rolling Stock Wagon Type Rolling Stock Purpose Open wagons BOX, BOXN Side discharge wagons for Dry Bulk, Coal BOY, BOBS, BOBX Iron ore, Ballast & Ore Tank BTPN Liquid Bulk (Petrol, Naphtha, POL) TK, TG Kerosene, LPG Covered wagons BCN / BCNA Break Bulk Special Purpose Wagons BCCN Milk Wagon BTAP BFR / BRH, BFU BFNS Double decker for automobile cars Cylindrical, Stainless steel inside Alumina & Cement; Two chambers with bottom discharge and air fluidising system Bogie Flat wagon and well wagon Steel Coils

8 Newly Emerging Manufacturing Sector Manufacturing Sector Supply Chain is more complex.. Smaller Parcel Size Time Bound Supply chain More Complex O-D matrix No Multiple handling of cargo

9 Indian Railways and Intermodal Sector Indian Railways have fostered Inter-Modal Transportation sector in India by developing container terminals and promoting container transportation by rail through CPSE and Public Private Partnership. However, its presence in inter-modal by rail has remained stagnant at 5% of its own freight which is just about 1.5% of the total freight sector. Indian Railways do not offer intermodal service to the trade directly. If IR has to increase its market share in the freight transport sector (which has fallen from 80% to 33% over the last 7 decades) then it will have to reorient its current policy of addressing only heavy weight, large parcel size and long distance transport and address the transportation need of the manufacturing sector.

10 Quo Vadis Develop Route capacity on Trunk routes and Feeder routes Convert its public goods sheds into Intermodal Terminals Encourage shift of business from conventional railway wagons to containers to foster Inter-modalism Replace its BCN Fleet with own BLC fleet over time Promote Multi operator regime for freight train operations Convert BLC licenses umbrella composite licence encompassing SFTO (Special Freight Transport Operator), AFTO (Automobile Freight Train Operators) and Private Freight Terminal Operators (PFTO).

11 Epilogue Indian Railways can play a leadership role in promoting sustainable and economic transport in Logistics sector of India by promoting inter-modal transport based on trunk route feeder route model for both international and domestic trade.

12 THANK YOU