Trade and transport are intertwined because successful trading relies heavily on effective transportation services. The concept of a multimodal transport system is a revolutionary step in international trade, enabling the goods movement under the responsibility of a sole transport operator. As globalization expands and industries become more interconnected, this has provided greater convenience and efficiency in transporting goods across borders for the logistics industry in India.
Multimodal transport involves using two or more forms of transportation, including a combination of bike, truck, train, and ship, in a sequential manner to transport goods. Multimodal transportation offers businesses a seamless solution to their complex logistics challenges, enabling them to optimize supply chains, expand their reach and capitalize on the opportunities of India’s expanding domestic and international trade. This modern approach provides enhanced efficiency, reliability, and cost-effectiveness when transporting goods – driving economic growth across the nation.
The government of India has introduced various initiatives to enhance the logistics industry in India and optimize freight transportation. In 2023, India allocated a remarkable 1.7% of its GDP to transportation infrastructure, which can be pivotal in paving the way for a 5 trillion USD economy and benefitting every logistics company in India.
The logistics industry in India is yet to be structured effectively, resulting in lengthy and costly processes. Incorporating multimodal transportation would be a suitable means to address this issue.
Flexibility for the Logistics Industry in India
Since its formation, the logistics industry in India has undergone several transformations, yet needs to be further organized for optimal performance. Digitization is crucial for improving logistics and supply chain activities, and the major players have already started offering multimodal services. It is now time for every logistics company in India to adopt this approach.
A multimodal logistics solution provides the desired flexibility to the logistics industry in India, resulting in cost-effective outcomes. The flexibility of multimodal logistics allows businesses to tailor their transportation needs based on time or cost efficiency. For instance, businesses can achieve fast delivery with an air-road combination, while a more cost-effective solution could come from a road-rail combination. This type of system is supported by government initiatives, such as Bharatmala and SagarMala, which aim to promote both inland and coastal shipping.
Increased Efficiency
A multimodal transport plan, organized and coordinated as a single operation, reduces the risk of cargo loss, theft, damage, and delays at transfer points. The transport operator coordinates efficient trans-shipment and onward travel while keeping communication channels open.
Multimodal transportation can also bridge the gap between the product source and customers, allowing for quicker movement of goods and freeing up capital previously locked up due to long distances, benefitting the logistics industry in India.
Reduced Paperwork for the Logistics Industry in India
Coordinating multiple modes of transportation using multimodal transport reduces administrative overhead as it can be handled in one place. It also simplifies freight management and transit times because different carriers can coordinate their efforts in moving goods efficiently. Businesses can also eliminate delays caused by redundant paperwork using Electronic Cargo Tracking System (ECTS) for consolidated documentation.
This boosts reliability and cost-effectiveness across the entire transportation process for the logistics industry in India.
Cost-effectiveness
Multimodal transportation is becoming increasingly popular due to its cost-effectiveness. By utilizing multiple transportation modes, businesses can reduce their overall costs related to transporting goods over long distances.
For instance, utilizing a combination of truck and rail freight for long-distance journeys can reduce fuel costs while ensuring timely delivery. Similarly, integrating multiple modes allows companies to take advantage of excess capacity in certain modes such as rail or sea, thereby reducing reliance on more expensive modes such as trucks or airplanes.
Multimodal Logistics Parks
The logistics industry in India is heavily burdened with issues such as congested transportation networks and inadequate storage and handling facilities for items being transported. This disadvantages the logistics industry in India compared to international players. Multimodal logistics parks (MMLPs) are designed to combat these concerns and aid India in becoming competitive by reducing logistics costs.
MMLPs are collaborative efforts of government organizations at both the state and central levels and active private sector participation. These facilities have been designed to meet regional economic needs with infrastructure for different cargo types and logistics modes. This is intended to improve the efficiency of logistical operations.
Some of the benefits of MMLPs include —
Reduced transportation costs
Reduced carbon emissions
Less traffic congestion
The development of MMLPs is an ambitious project that stands to attract up to INR 50,000 crore in investment. Two MMLPs are being created, which are supposed to be complete by 2024 — one in Chennai and another in Nagpur across 346 acres of land.
Multimodal transportation has the potential to revolutionize the logistics industry in India by cutting down transportation expenses and delivery times. Despite their benefits, there are obstacles associated with implementing these projects. Tackling them will make the logistics industry a critical factor in making India a trillion-dollar economy.
Porter aims to be a significant player in the logistics industry in India by leveraging industry trends. Porter offers a wide variety of vehicles tailored to meet diverse transportation needs for enterprises. Their fleet includes trucks, tempos, pick-up vans, and three-wheelers, ensuring flexibility and efficiency in delivering goods across various distances.
Porter has a strong presence in multiple cities across India, allowing them to serve a wide customer base effectively. With their expanding network, they provide logistics solutions to enterprises, facilitating smooth and timely deliveries. They utilize advanced technologies such as AI-driven real-time tracking systems and smart logistics solutions to enhance customer experience and optimize operations.
Porter for Enterprise is the perfect solution for large companies who need greater control and cost efficiency in their logistics operations. Enterprises can access the pay-per-use model without fixed monthly contracts and only pay for time and distance. Enterprises can also enjoy increased visibility of all their hub-level logistics movement.
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