Combating challenges of multimodal transport
The logistics industry in India is presently facing challenges, predominantly in three areas in the multimodal transport arena, observes S Ramakrishna, Chairman, Federation of Freight Forwarders’ Associations in India (FFFAI).
It would be ideal that all stakeholders have a code-sharing facility among the various operators
According to Ramakrishna, the three areas that pose a challenge to smooth flow of trade are railways, owing to disparity in movement of rolling stocks; roadways, owing to toll gates; and Multimodal Logistics Parks (MMLPs) due to underutilisation of available capacity resulting in exorbitant transaction time and cost.
RAILWAYS
Currently, while the public sector has 315 rakes, the private sector has 173, carrying the total ex-im trade to hinterlands from Major Ports in India. The utilisation of rolling stocks is not optimum, since there is a disparity between the flow of export and import containers. For instance, there is more import in JNPT than export and similarly, in Mundra and Pipavav, there are more exports than imports. It is assumed that almost 35 per cent of rakes were plying empty to evacuate the loaded containers into hinterlands or evacuate loaded export-laden containers from hinterland to the port, a couple of years ago. This has reduced to 25-26 per cent and is a national loss. The question remains, how can we mitigate such a loss? It would be ideal that all stakeholders have a code-sharing facility among the various operators and endeavour for a hub-and-spoke model like the practices followed by airlines and shipping lines. This would not only help utilise the rake capacity better, but also enable faster evacuation of containers for import and export. It would also facilitate the utilisation of double-stack trains. In addition, if all ICDs in 300 locations could be converted to ex-im as well as domestic freight terminals, it would help better utilise empty containers and rolling stocks.
ROADWAYS
The National Logistics Policy talks about e-toll. A study was conducted by transporters from Mumbai who have reported that there are 24 toll booths between JNPT and the Delhi-NCR region. The toll is approximately `9,000 and on an average, there is a daily vehicular movement of 400 to 500 container vehicles from JNPT to Delhi-NCR. It is also presumed that it would take an average time of 15 to 20 minutes for a vehicle in running condition at each toll gate, which averages out to six hours of idling. In terms of fuel loss, around `1500 to `1800 (depending on the vehicle) are burned as wastage, and `600,000 worth of fuel is burned every day in this way. This also causes congestion for other regular vehicles, pollution, etc., apart from wastage of fuel. It is recommended that for all National Permit holders, there should be a fixed amount to be taken one time towards the toll charge along with the National Permit charge, by following a rational mechanism supported by proper data analysis. This would ease traffic congestion, reduce pollution, and enhance efficiency of delivery of cargo. Even from a GST perspective, there should be minimal interception of vehicles and at the toll level itself, they should capture the e-way bill data to ensure that the vehicles have not deviated.
MMLPS
The capacity utilisation of warehouses today, either bonded or otherwise, is not more than 40 per cent on an average. Accordingly, it is suggested that instead of creating large MMLPs, the existing capacity should be utilised optimally. In many places there already is an infrastructure in place for MMLPs. Creating an MMLP at the same location would ensure better utilisation of scarce land and infrastructure. The idea of strengthening the warehousing sector, in the Policy, would be addressed at the same time.