CARGOCONNECT-APRIL2026 - Flipbook - Page 69
Panel 4
Multimodalism – Cohesion between Road, Rail,
Waterways for Bulk Chemicals
“If we look at the current logistics
landscape, road transportation
typically costs around ` 4 to ` 4.5
per tonne per kilometre, while rail
transportation ranges between
approximately ` 1.8 and ` 1.9 per
tonne per kilometre. Coastal and
inland water transport is even more
cost-e昀케cient, at roughly `0.9 per
tonne per kilometre. Given these
di昀昀erences, the shift from road to
alternative logistics modes is both logical and necessary. Many government
agencies recognise that, from the perspectives of emissions, congestion
and long-term sustainability, excessive dependence on road transport is
no longer optimal. In response to this need, Indian Railways has recently
introduced initiatives to promote ISO container movement. Initially, the
incentive o昀昀ered was about `0.90 per kilometre, which was later revised
to `0.85 per kilometre based on industry feedback. These incentives
re昀氀ect a broader e昀昀ort to encourage modal shift towards rail transport,
recognising that road transport alone cannot support India’s growing
logistics requirements sustainably.”
“The most immediate bene昀椀t of multimodal transportation is cost e昀케ciency.
In addition, operators often provide
free detention periods at destination
points, which helps reduce detention and
damage-related costs. Another critical
bene昀椀t is risk reduction, particularly
when compared with long-distance
road transport, where safety concerns
remain signi昀椀cant. However, adoption
of multimodal transportation remains
limited for several valid reasons. One of the primary challenges is infrastructure
maturity. Current multimodal connectivity largely links ports with inland
container depots, leaving gaps in broader inland integration. Freight train movement speeds also a昀昀ect reliability and transit predictability. Another challenge
arises from the existing E-Way Bill framework, which is largely structured
around road transit timelines. Further, multimodal transport is currently
more suitable for bulk cargo, while smaller shipment volumes face aggregation
challenges due to the absence of strong pan-India cargo aggregation operators.
Handling hazardous cargo presents another limitation, as many terminals and
transport assets are not yet fully equipped to manage such materials safely.”
“The ports closest to our plant are
Haldia and Kolkata. However, both
of these ports face geographical
limitations due to lower draft availability. This creates cost pressures,
a昀昀ects delivery timelines for both
imports and exports and often leads
to congestion, resulting in cascading
disruptions across the supply chain.
I would like to share an example that
highlights how such constraints can
be addressed through innovative logistics planning. In one instance, an
urgent shipment had to be executed through a port located farther from
our nearest facility but capable of accommodating larger draft vessels.
Since the shipment was initially routed through Kolkata, we arranged
for barge movement of the cargo to an alternate port with deeper draft
availability. The shipment was successfully executed and became the 昀椀rst
such inter-port coastal movement between Kolkata and Haldia, where
cargo was directly loaded onto the vessel under customs supervision
after obtaining the necessary approvals. This example also re昀氀ects the
broader importance of multimodal logistics in improving e昀케ciency.”
“Reducing lead times to levels comparable with road transport will be a
key factor in accelerating multimodal
adoption. Cargo density also plays an
important role in multimodal optimisation. In our case, where cargo falls
within a medium-density category,
specialised solutions such as dwarf
containers were introduced. Compared
with conventional 20-foot ISO containers
of approximately 8.5 feet height, dwarf
containers are lower in height and allow double-stacking. As a result, while a
standard rake carrying conventional containers moves roughly 1,500 tonnes,
dwarf-container con昀椀gurations can carry nearly 2,600 tonnes—representing
about a 67% increase in loadability and improving commercial e昀케ciency
signi昀椀cantly. Today, close to 60% of packaging movement from our facility
in Jamnagar to northern markets is handled through rail-based multimodal
networks, while more than 50% of southern market requirements are served
through coastal shipping routes. Although infrastructure and regulatory
challenges still exist, multimodal logistics has already demonstrated strong
operational bene昀椀ts.”
AUROBINDO MISHRA, Associate VP– Projects & SCM, JSW Cement
(MODERATOR)
SHIRSHENDU ROY CHOWDHURY, GM– Export and Import,
Himadri Speciality Chemical
GOPAL DIGASKAR, Sr Logistics Leader– India & Subcontinent,
Dow Chemical International
RAVIKUMAR NAIR, Sr VP– Logistics, Petrochemical Business,
Reliance Industries
CARGOCONNECT APRIL 2026 | 69
