“Integrated solutions within multimodal logistics framework should be offered”

“The integrated solution should be flexible and adaptable to the specific needs and requirements of different industries and types of cargo. Tailoring logistics solutions to meet the unique demands of various sectors enhances efficiency and customer satisfaction,” opines Xerrxes Master, President, AMTOI

As the President of AMTOI, What is your agenda? What are the major concerns of multimodal operators and how is AMTOI addressing them?

The primary agenda of AMTOI, is to bring value addition to our members by:

1. Advocacy and Policy Influence: Representing the interests of its members to government bodies and policymakers. This involves advocating for favorable policies, regulations, and trade agreements that facilitate the growth of multimodal transport.
2. Promoting Industry Best Practices: Encouraging the adoption of industry best practices related to multimodal transport. This could involve initiatives related to safety, sustainability, and efficiency.
3. Capacity Building and Skill Development: Offering training, workshops, and seminars to members to enhance their skills and knowledge in the field of multimodal transport. This may include specialized training on intermodal logistics, customs procedures, and technology adoption.
4. Information Dissemination: Providing members with up-to-date information on industry trends, regulatory changes, and emerging technologies. This can help members stay competitive and adapt to new developments.
5. Networking and Collaboration: Creating opportunities for members to network with each other, potential clients, and other stakeholders in the industry. This could involve organizing conferences, trade shows, and other events.
6. Technology Adoption: Encouraging the adoption of digital technologies and platforms that can improve efficiency and visibility within the multimodal transport sector.

We have a few major areas of concern as well such as :

1. Regulatory Compliance: Keeping up with and adhering to a complex web of regulations, both domestic and international, related to transportation, customs, and safety.
2. Infrastructure Challenges: Ensuring that the necessary infrastructure is in place to support seamless transitions between different modes of transport (e.g., ports, railheads, container terminals).
3. Security and Safety: Implementing measures to safeguard cargo and ensure the safety of transport operations, especially in regions prone to security risks.
4. Environmental Sustainability: Addressing environmental concerns by adopting eco-friendly practices and technologies to reduce the carbon footprint of transportation.
5. Technological Integration: Staying updated with the latest technology trends and integrating digital solutions for tracking, visibility, and operational efficiency.
6. Market Dynamics and Competition: Adapting to changing market conditions, including shifts in demand patterns, pricing pressures, and emerging competitors.

AMTOI would likely address these concerns through a combination of advocacy efforts, knowledge-sharing, training programs, and collaborations with relevant stakeholders including government agencies, industry partners, and academic institutions. They might also work towards establishing industry standards and guidelines to promote best practices.

While different modes of logistics are being developed, each has its share of woes – waterways are not functional round the year due to draft issues, they complain of high bunker charges, shortage of service providers, coastal shipping has the problem of return cargo and is mostly dominated by bulk cargo. In this scenario, can a seamless multimodal logistics system be developed in our country?

Developing a seamless multimodal logistics system in our country is certainly possible, but it would require addressing the specific challenges mentioned below:

1. Waterways and Draft Issues: This can be addressed through dredging and infrastructure improvements. Regular maintenance and upgrades to water channels can ensure year-round functionality.
2. Bunker Charges: Governments and industry stakeholders can work together to negotiate more favorable terms with bunker suppliers. Promoting alternative fuels and energy-efficient technologies can also help mitigate these costs.
3. Shortage of Service Providers: Encouraging private sector investment and creating a conducive environment for logistics companies to operate can help attract more service providers. This might include providing incentives, streamlining regulations, and ensuring a level playing field for both domestic and international providers.
4. Return Cargo in Coastal Shipping: Innovative business models and incentives can be explored to encourage the transportation of return cargo. This could involve creating strategic partnerships between industries or providing subsidies for specific routes.
5. Bulk Cargo Dominance in Coastal Shipping: Efforts can be made to diversify the types of cargo that can be efficiently transported via coastal shipping. This might involve investing in specialized equipment or creating incentives for industries that are more likely to utilize coastal shipping.

In addition to addressing these specific challenges, there are several strategies that can facilitate the development of a seamless multimodal logistics system:

1. Infrastructure Development: Invest in modern infrastructure, including ports, roads, railways, and intermodal terminals. This will facilitate smooth transitions between different modes of transport.
2. Regulatory Framework: Create a supportive regulatory environment that encourages competition, transparency, and fair play. This includes ensuring that regulations are clear, predictable, and not overly burdensome.
3. Information Technology and Data Sharing: Implement modern technology systems for tracking and managing cargo. This can include digital platforms for booking, tracking, and managing shipments across different modes.
4. Training and Skill Development: Invest in workforce development to ensure that there is a skilled labour force available to operate and manage the logistics systems efficiently.
5. Public-Private Partnerships: Collaboration between government agencies and private sector stakeholders is essential. This can involve joint ventures, co-investment in infrastructure, and shared responsibility for maintaining and upgrading logistics networks.
6. Environmental Considerations: Ensure that the logistics system is designed with sustainability in mind. This includes adopting green technologies, optimizing routes, and minimizing environmental impacts.

By addressing these challenges and implementing these strategies, it is indeed possible to develop a seamless multimodal logistics system in your country. It will require coordinated efforts from various stakeholders, including government, industry, and the private sector.

For using multimodal logistics, Customs services and the movement of documentation has to be seamless, else cargo will be stuck waiting for documents to be cleared at some point in transit. Are these issues being taken care of?

The seamless movement of documentation and efficient Customs services are critical components of a successful multimodal logistics system. These factors play a pivotal role in ensuring that cargo can move smoothly through different modes of transportation without unnecessary delays. Here are some measures that are being taken or are in process to address these issues:

1. Digitalization and Automation: Many countries are increasingly adopting digital platforms and automated systems for customs clearance and documentation processing. This reduces the reliance on paper-based processes, speeds up document handling, and minimizes the potential for human errors.
2. Single Window Initiatives: Implementing a “single window” system allows for the submission of all necessary documentation through a single platform. This streamlines the process and reduces the need for multiple submissions to different agencies.
3. Harmonization of Customs Procedures: Efforts are being made to align customs procedures and documentation requirements across different modes of transportation. This standardization simplifies the process for shippers and logistics providers.
4. Integration of Customs with Other Government Agencies: Coordinating Customs services with other relevant government agencies (such as health, agriculture, and environmental agencies) helps ensure that all necessary clearances are obtained efficiently.
5. Risk-Based Approaches: Customs authorities often implement risk-based assessment systems, which allow for expedited processing of low-risk cargo, while focusing scrutiny on higher-risk shipments. This helps expedite the clearance of most cargo.
6. Pre-Arrival Processing and Advance Information: Providing customs authorities with advance information about shipments allows for pre-arrival processing. This enables authorities to review and process documents before the cargo arrives, reducing delays upon arrival.
7. Capacity Building and Training: Providing training to customs officials on modern customs procedures, technologies, and risk assessment methods enhances their ability to efficiently process cargo and documentation.
8. Collaboration with Private Sector: Engaging with the private sector, including logistics providers and industry associations, can lead to the development of industry-specific best practices and the adoption of technologies that facilitate smoother customs processes.

Logistics in our country is dominated by road transport, while rail operators are in pursuit to divert cargo from road to rail. Various modes of transport seem to be competing rather than complementing each other. Your comments?

This dominance can be attributed to factors like flexibility, accessibility, and the relatively lower upfront infrastructure costs associated with road transport compared to other modes like rail or waterways.

The pursuit of rail operators to divert cargo from road to rail is a positive development from a sustainability and efficiency standpoint. Rail transport, particularly for long-distance and heavy cargo, can be more energy-efficient and environmentally friendly compared to road transport. It can also help alleviate congestion on highways and reduce wear and tear on road infrastructure.

However, it’s crucial to recognize that various modes of transport are not necessarily in competition with each other, but rather they should ideally work in harmony as part of an integrated, multimodal logistics system.

A balanced and integrated approach that considers the strengths and limitations of each mode of transport is the key to optimizing the logistics system. The goal should be to create a seamless and efficient network that maximizes the benefits of each mode while minimizing environmental impact and congestion.

The exim community looks for an integrated solution, rather than having to deal with multiple service providers. Can an integrated solution be offered while using multimodal logistics?

Yes, an integrated solution can be offered within a multimodal logistics framework. In fact, providing a seamless and integrated experience is one of the key advantages of adopting multimodal logistics. There are various issues which have to be factored in though :

1. Single Point of Contact: A central logistics provider or facilitator can act as a single point of contact for the entire logistics chain. This entity would be responsible for coordinating and managing all aspects of the shipment, including planning, booking, documentation, tracking, and handling of cargo across different modes of transport.
2. Digital Platforms and Technologies: Utilizing advanced digital platforms, such as logistics management systems and supply chain management software, can integrate the various stages of the logistics process. These platforms can provide real-time visibility, facilitate communication, and automate many aspects of the logistics process.
3. Intermodal Terminals: Establishing intermodal terminals serves as a physical hub where cargo can transition smoothly between different modes of transport. These terminals are equipped with the necessary infrastructure for seamless transfer, including handling equipment and storage facilities.
4. Standardized Documentation and Procedures: Implementing standardized documentation and procedures across all modes of transport reduces the complexity and administrative burden for the exim (export-import) community. This includes harmonizing customs documentation, bills of lading, and other essential paperwork.
5. End-to-End Visibility and Tracking: Employing tracking technologies, such as GPS, RFID, and IoT devices, allows for real-time monitoring of cargo as it moves through different stages and modes of transportation. This visibility provides transparency and confidence to the exim community.
6. Customized Solutions: The integrated solution should be flexible and adaptable to the specific needs and requirements of different industries and types of cargo. Tailoring logistics solutions to meet the unique demands of various sectors enhances efficiency and customer satisfaction.
7. Collaboration and Partnerships: Establishing strong partnerships between different stakeholders in the logistics chain, including carriers, shippers, freight forwarders, and customs authorities, is essential for seamless integration. Collaborative efforts can lead to streamlined processes and shared resources.
8. Regulatory Support and Policy Framework: Government policies and regulations can play a crucial role in facilitating integration. Creating an enabling environment through supportive policies, incentives for integrated logistics providers, and standardized industry practices can foster a more integrated logistics ecosystem.