CARGOCONNECT-JUNE2026 - Flipbook - Page 69
Multimodal Agenda FEATURE
(FIATA) notes, “When using multimodal transport
options, the economies of scale kick in as the rail and
vessels can carry massive volumes, compared to only
truck transportation.” The option of route 昀氀exibility
can also be explored through multimodal options. Only
trucking options normally take a longer transit time
than the multimodal option. “Of course, all this depends
on the origin and destination of the shipment,” he says.
Policy Reforms and Uni昀椀ed Digital
Compliance
L
everaging Multimodal
Networks for Cost
Ef昀椀ciency
Building competitive supply chains in
today’s volatile global market requires
moving beyond traditional, singlemode logistics towards integrated
multimodal networks. By combining
various modes of transport, such as sea, rail, air, and road,
companies can improve e昀케ciency, increase resilience
against disruptions, and enhance sustainability.
Rayapati Srinath Reddy, Head– S&OP at United
Breweries, highlights that the total cost of logistics on
road-only corridors is often 15–25% higher than what a
well-planned multimodal alternative can deliver. Rail,
in particular, changes the economics on trunk routes.
The per-tonne-kilometre cost is substantially lower, and
when you pair it with e昀케cient 昀椀rst-mile and last-mile
road connectivity, the numbers work. Beyond just the
cost advantage, multimodal forces a planning discipline
which ultimately drives savings. “The shift isn’t about
swapping a truck for a train, it’s about becoming a more
deliberate, cost-conscious supply chain,” he explains.
He further adds that in mainstream FMCG which
includes foods, personal care, home care, the multimodal
cost story is fairly clear. When you’re moving high
volumes of relatively standardised products across
long distances, road-only transport beyond 500–600
kilometres starts bleeding money. It’s not just about the
freight rate—Turnaround Time (TAT), toll cost, driver
shortage, vehicle breakdown, and working capital stuck
in slow-moving transit inventory add to the total cost of
logistics. “The broader lesson is multimodal adoption
doesn’t start with a new contract or a new technology.
It starts with making mode choice a deliberate, weekly
decision rather than a default one. Once it becomes
habit, transformation follows,” Reddy quotes.
However, realising these savings is signi昀椀cantly
harder, feels Reddy. This, he says, is not because the
economics don’t work, but because the excise policy
framework in India simply isn’t designed to accommodate
multimodal transport for alcohol. “The regulatory
structure assumes road movement which includes statelevel transit permits, bonded warehouse requirements,
and physical veri昀椀cation at check posts—all of it is built
around trucks moving point to point,” he clari昀椀es.
Keshav Tanna, Secretary General, International
Federation of Freight Forwarders Associations
Reforms aimed at accelerating private investment
in multimodal infrastructure focus on integrating
planning, streamlining approvals, reducing investor
risk, and providing innovative 昀椀nancing mechanisms.
Key policy reforms, particularly in India, include the
adoption of the PM Gati Shakti National Master Plan for
integrated planning, the creation of 35+
Multi-Modal Logistics Parks (MMLPs),
and the introduction of 50-year conces- By combining
sion periods for railway cargo terminals various modes of
to improve project viability.
transport, such as
Samir J Shah, President of the Air sea, rail, air, and
Cargo Agents Association of India
(ACAAI) re昀氀ects how logistics receives road, companies can
selective recognition as an industry. improve efficiency,
“Logistics is generally understood as increase resilience
infrastructure and movement and logisagainst disruptions,
tics services never receive due credit.
Every state and central government must and enhance
grant logistics an “industry status”,” he sustainability.
reiterates.
“Funds are required by both the infrastructure and
service arms of the logistics sector. As the backbone of
economic activity and societal development, logistics
demands greater policy support. The Government
should facilitate access to land at concessional rates
across the country, as the industry currently remains
heavily dependent on private land. We have a Department of Logistics, and this should be scaled up to an
independent Ministry,” he pinpoints.
Shah underlines that customs clearance has two
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