Multimodal Transport. Key Challenges Domestic & International. Arunendra Kumar Former Chairman, Railway Board

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1 Multimodal Transport Key Challenges Domestic & International Arunendra Kumar Former Chairman, Railway Board 1.

2 CONTAINER Container has changed the world It has become ICON of Globalism It has enabled - Movement of goods between countries - Raised the efficiency of logistics - Stimulated growth of world trade - Enabled developing countries to enter a global supply chain without massive investments - And now spurred digitisation 2.

3 Intermodal & Multimodal are different Intermodal Movement of cargo from origin to destination by several modes of transport with each having Independent contract Multimodal Various modes of transport with one transport bill of lading Cost efficiency and customer delight is required in Multimodal format Year of Multimodal by EU Transport Commission 3.

4 Trends in Multimodal Freight Transport More customers prefer smart and sustainable transport solutions Multimodal freight transport is gaining ground over traditional road transport Increased demand for multimodal in Freight transport from automotive & FMCG Route disruptions in Road services are a great dampener Higher expectation of services level and Integrated & flexible IT systems Information has become vital part of efficiency in supply chain management. Transport companies need to make large investment in IT, in addition to conventional infrastructure Digital and e- commerce is here to stay 4.

5 Logistic cost as of % GDP Country GDP USA 9% Japan 11% France/ Korea 12% 20% 15% 10% 9% 11% GDP 12% 18% 15% China 18% 5% India 12-15% 0% USA Japan France/ Korea China India According to a study 0.5% decrease in logistic costs (relative to GDP) leads to 2% increase in trade and a 40% increase in range of products for export 5.

6 Recommendations of National Transport Development Policy Committee 2013 Pricing for transport services should be set by Independent Regulator Road tolls to be electronically collected with a single technological standard and with a clearing house Network of DFC s to be made operative speedily Increase the attractiveness of coastal shipping 6.

7 Recommendations of National Transport Development Policy Committee 2013 Airport dedicated to cargo freight to come up About 15 to 25 logistic parks to be set up and to be located at major transportation hubs like DFC terminals A new Central logistics Development Council to be setup 7.

8 Recent trends in Indian Multi modal Transport Movement of Cargo on Inland Waterways Shifting to water based transport for cutting cost & greenhouse gas emission Cost of transportation : Water ways = paise/ km/ tonne Rail = Rupees/ km/ tonne Road = 1 Rupees/ km/ tonne 8.

9 Another Experience Hyundai, car manufacturer, decided to temporarily stop transportation of goods via sea as it didn t find it to expedient in terms of cost & time To transport cars from Chennai to Gujarat = 6 days by road & 12 days by water Reasons Poor first and last mile connectivity Multiple handling increases the risk of damage Water ways have huge capacity & suits large manufacturer at one go 9.

10 Concor s Concept of setting up Integrated Logistic Manufacturing Zone (ILMZ) Forward and Backward integration of its logistics business by setting up an ILMZ Approx acre would be needed (300 acres earmarked for multimodal logistic park) A JV can be formed (Proposal to Andhra Pradesh Govt. for deep sea port at Machilipatnam) CONCOR will provide logistic support for all inflow and outflow of raw material & finished goods- along with customs facility, leaving core manufacturing to vendor 10.

11 New International Route China to Europe Freight on Rail Shift from Sea to rail Return traffic from Europe to China to need a boost 11.

12 THANK YOU 12.