The most fundamental component of a multimodal transportsystem, however, is the multimodal transport network that consists of networks forprivate transport, public transport, and other t
INTRODUCTION
Definition of multimodal transportation
Multimodal transport refers to the use of two or more different modes of transportation within a single journey, necessitating a transfer between them Each segment of the journey, where only one mode is utilized, is known as a leg Common examples include using a bicycle to reach a railway station or taking an urban bus from the station to the final destination In contrast, unimodal transport involves trips where only one mode is employed, such as traveling solely by private car or regional train service.
Figure 1: Examples of unimodal trips (a, b) and a multimodal trip (c) (the transfer point is denoted by the bold T)
Although this definition seems to be quite simple, it deserves more discussion with regard to the following four aspects:
Transfers play a crucial role in multimodal trips, requiring travelers to switch modes at transfer nodes To clarify, this thesis defines transfers specifically as intermodal transfers, where travelers change between different transport service networks or modes This distinction is vital, as it highlights that a transfer from one service network to another, with varying characteristics, qualifies as an intermodal transfer—such as moving from a regional bus to an urban bus In contrast, transfers occurring within the same transport service network, like between urban buses, are categorized as intramodal transfers Intermodal transfers are unique due to their involvement with various network types, typically managed by different operators or authorities, whereas intramodal transfers are usually overseen by a single organization.
Transfers in multimodal trips can lead to increased travel time and costs without covering any distance, significantly impacting the overall transport service To remain competitive with unimodal transport options, multimodal services must offer faster or more cost-effective solutions to offset the delays and inconveniences associated with transfers Thus, efficient and affordable transport services are essential for the attractiveness of multimodal transport.
Modes and transport services are interconnected yet distinct concepts The term "mode" often refers to the choice of transportation, such as cycling, driving, or using public transport, with a focus on the vehicle used In public transport, however, "mode" pertains more to service characteristics than specific vehicle types like buses or trains This leads to a classification of service modes into private and public categories, while vehicle modes encompass private vehicles (e.g., cars, bicycles) and public vehicles (e.g., buses, trams) The thesis emphasizes service modes in the context of multimodal transport, where the focus is on the interactions between private and public transport services Public transport services vary in accessibility, speed, frequency, fares, and vehicles, often reflecting different network levels—urban, regional, and national Multimodal transport involves transfers among various private and public transport modes, highlighting the complexity of vehicle classifications, as a bus can serve multiple public transport functions across different network levels.
Figure 2: Distinction in different types of modes
Significance and relevance in the transportation sector
Multimodal transportation involves the integration of various transportation methods, including road, rail, air, sea, and pipelines, to facilitate the movement of goods and people This approach enhances efficiency and cost-effectiveness in the logistics sector, making it a vital component of modern transportation Additionally, multimodal transportation plays a crucial role in promoting sustainability and driving economic development, underscoring its significance in today's interconnected world.
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Multimodal transportation enables the identification of the most efficient and cost-effective routes for moving goods or individuals By considering factors such as distance, time constraints, and cost, various transportation modes can be strategically utilized to optimize the logistics process.
Combining various transportation modes can significantly reduce transit times by leveraging the strengths of each mode; for instance, air transport excels in covering long distances swiftly, while road or rail transport efficiently manages the last mile This multimodal approach enhances resilience and reliability in logistics, ensuring timely deliveries and improved supply chain performance.
Multimodal transportation enhances resilience by mitigating risks associated with disruptions in any single mode In the event of challenges such as adverse weather, strikes, or infrastructure failures, alternative transportation methods can step in to maintain operational continuity.
- Redundancy: Having multiple modes available adds redundancy to the transportation network, reducing the impact of unexpected events and enhancing overall reliability. ã Environmental Sustainability:
- Modal Optimization: By selecting the most environmentally friendly modes for different segments of a journey, multimodal transportation can contribute to reducing the carbon footprint of the overall transportation process.
Energy efficiency varies among different modes of transportation, with some being more efficient than others By combining various transportation methods, it is possible to optimize energy consumption, thereby enhancing sustainability in the transportation sector Additionally, this approach plays a crucial role in facilitating global trade.
Multimodal transportation significantly improves connectivity across regions and nations, thereby boosting global trade By enabling the seamless movement of goods from production hubs to markets, it plays a crucial role in fostering economic growth and development.
Intercontinental transport is crucial for international trade, as it employs multimodal transportation to seamlessly integrate different transport methods This approach ensures efficient coverage from manufacturing sites to ports and ultimately to the destination country, optimizing infrastructure utilization throughout the entire journey.
Multimodal transportation enhances the optimal use of infrastructure by catering to the specific requirements of various transport modes This approach maximizes the efficiency of existing infrastructure while minimizing the necessity for constant expansion, contributing to effective urban planning and reducing congestion in urban areas.
Multimodal transportation is essential for urban areas facing congestion challenges, as it facilitates the integration of last-mile solutions like bike-sharing, ride-sharing, and public transit This approach promotes sustainable urban mobility, enhancing the overall efficiency of transportation systems.
It can be seen that multimodal transportation plays a crucial role in optimizing efficiency, ensuring resilience, promoting sustainability, and facilitating global trade.
As the world becomes increasingly interconnected, the significance of multimodal transportation is likely to grow, contributing to a more efficient and sustainable transportation sector.
MODES OF TRANSPORTATION WITHIN MULTIMODAL SYSTEMS
Railways
Rail transport plays a vital role in multimodal transportation systems, offering an efficient and dependable method for the long-distance movement of goods and passengers When incorporated into a multimodal framework, railways enhance the effectiveness of other transport modes, such as road, air, and sea, thereby fostering a cohesive and well-organized logistics network.
Pros and cons of Railways:
Efficiency and Capacity: High Capacity and
Limited Accessibility: Last-Mile Challenges:
Reliability and Predictability: Fixed Routes and Schedules
Safety: Low Accident Rates Intermodal Interface Challenges: Transfer
Complexities Cost-Effectiveness: Economies of Scale Infrastructure Investments: High Initial Costs
Impact: Decongestion and Lower Emissions
Speed and Time Sensitivity: Slower Than Air Transport
In summary, railways play a crucial role in multimodal transportation systems, providing benefits like efficiency, high capacity, and environmental sustainability To maximize the advantages of rail transport within this framework, it is essential to tackle challenges related to accessibility, scheduling, and intermodal interfaces Effective planning and coordination are vital for optimizing the integration of railways into the wider transportation network.
Maritime transport
Maritime transport, commonly known as shipping, is essential to multimodal transportation systems, facilitating the movement of goods and people over water using diverse vessels like ships and boats As a crucial element of global trade, it effectively links various regions while providing distinct advantages and encountering specific challenges when integrated into multimodal networks.
Pros and cons of Maritime transport:
Cost-Effectiveness: Economies of Scale Speed and Time Constraints: Transit Time
Port Infrastructure Limitations: Port Congestion
High Capacity: Cargo Volume Accessibility Challenges: Inland Connectivity Energy Efficiency: Fuel Efficiency Weather-Related Risks: Weather Disruptions
Reduced Congestion: Decongestion of Land
Routes Security Concerns: Piracy and Security Issues
In summary, maritime transport plays a vital role in multimodal transportation systems by providing cost-effective and high-capacity options for global trade To maximize its benefits, it is important to strategically plan for challenges such as speed, infrastructure, accessibility, weather risks, security, and environmental concerns When seamlessly integrated into multimodal networks, maritime transport significantly boosts the efficiency and resilience of the overall transportation system.
Air transport
Air transport is a vital component within multimodal transportation systems, offering a fast and efficient mode for the movement of goods and people over long distances.
Air transport plays a vital role in multimodal logistics by acting as a key connector within the supply chain, integrating road, rail, and sea transport to ensure the efficient movement of cargo.
Pros and cons of Air transport:
Speed and Efficiency: Swift Transportation and Global Reach Cost: High Operational Costs
Facilitation and Emergency Response Environmental Impact: Carbon Emissions
Limited Capacity for Bulk Cargo: Volume Constraints
High Value and Low Volume Cargo:
In summary, air transport is essential in multimodal systems due to its unmatched speed and global connectivity Nevertheless, the high costs and environmental impact associated with air freight, especially for bulk cargo, require thoughtful evaluation and strategic incorporation into the overall multimodal transportation strategy Effectively balancing the benefits and drawbacks of air transport is vital for optimizing multimodal systems to address various logistical requirements.
Road transportation
Road transportation is essential in multimodal systems, as it links various transportation modes and offers the flexibility needed to access diverse destinations Often acting as the "last mile" solution, road networks connect key transportation hubs such as ports, rail terminals, and airports to their final destinations.
Pros and cons of Road transportation:
Accessibility and Flexibility: Last-Mile
Connectivity and Versatility Traffic Congestion: Urban Challenges
Environmental Impact: Air Pollution and Emissions
Door-to-Door Service: Direct Connectivity Limited Capacity: Volume Constraints Timely Delivery: Speed and Frequency Infrastructure Maintenance: Wear and Tear
Connectivity to Rural Areas: Reach in
In summary, road transportation plays a crucial role in multimodal systems by offering essential connectivity and flexibility Despite its importance, it faces challenges such as congestion, environmental concerns, and safety issues To optimize the integration of road transport with other modes in a multimodal system, careful planning, regulation, and ongoing efforts are necessary to mitigate its drawbacks and maximize its benefits.
DIFFERENCES BETWEEN MULTIMODAL AND INTERMODAL TRANSPORT
Crucial background of multimodal and intermodal transportation
When transporting goods, selecting the optimal route for timely door-to-door deliveries is essential, highlighting the importance of choosing between intermodal and multimodal transportation options.
Cargo transportation involves two primary methods: intermodal and multimodal Both approaches utilize a combination of two or more transportation modes to efficiently move products from the shipper at the origin to the consignee at the destination.
The most fundamental difference between both shipping methods lies in their contract.Different shipping companies handle intermodal transport; a single carrier takes multimodal transit. a, Intermodal transportation
Intermodal transport involves the movement of goods from their source to their destination using multiple transportation methods, with each method managed by different carriers under distinct contracts.
A different shipping company deals with each part of the trip This means the shipper must manage different contracts, one for each transport company involved in the shipment’s various legs.
It may be possible to work out the best possible door-to-door shipping price by combining the services of many different transport companies.
Intermodal transport offers cost-effective shipping solutions, but it may require trade-offs in delivery speed and route efficiency.
And while you may save money, you’ll have to put in more time and effort coordinating logistics and doing the legwork yourself.
When relying on multiple companies for timely contract fulfillment, delays can occur, and it will be your responsibility to manage these setbacks Since carriers operate under different contracts, they may not be aware of delays or schedule changes, necessitating your role as a liaison to ensure shipments are back on schedule This highlights the importance of effective communication in multimodal transportation.
Multimodal transportation refers to a method of transportation that uses two or more modes to get goods from one location to another while requiring only one bill of lading.
A Multimodal Bill of Lading, often referred to as a Combined Transport Bill of Lading, is a crucial legal document that details the type, quantity, and ultimate destination of goods being transported This document serves a dual purpose, as it also acts as a receipt for the shipment once the carrier delivers it to the final location.
When a contracted carrier issues a Bill of Lading (BL), this document accompanies the shipment throughout its journey, potentially crossing multiple countries until it arrives at its final destination Consequently, the carrier assumes complete responsibility for the transportation, irrespective of the method or company involved in the shipping process.
Multimodal shipping simplifies the logistics process by utilizing a single organization or contract to manage the entire shipment journey This approach ensures that one company is responsible for every leg of your package's transport, regardless of the different modes of travel involved.
You will not be held liable for any problems related to shipment tracking, delivery time, or other intermodal shipping issues when employing a single carrier.
An agent manages all negotiations, simplifying your responsibilities to just one contract They also coordinate loading and unloading processes while addressing any delays that may arise.
Using a single carrier for transportation offers the advantage of simplifying the shipping process, allowing you to avoid the hassle of managing details While this approach limits your control over carrier selection and routing, it can lead to significant savings on overall shipping costs.
Comparison between multimodal and intermodal transportation
Intermodal transport, though a bit more complex for shippers, offers greater flexibility than multimodal transport due to its multiple contracts, allowing for enhanced negotiation opportunities By utilizing intermodal transport, companies can enjoy a range of benefits.
● Better negotiation opportunities for each intermodal transport leg;
● Potential reduction in carbon footprint through carrier choice;
● Better access to equipment, capacity, and transit schedules
Intermodal transport offers significant advantages primarily through cost-effective rates and negotiation capabilities Although it may require more time, leveraging a skilled team and extensive network can lead to substantial reductions in environmental impact and transportation costs Conversely, smaller businesses may find multimodal transport to be a more suitable option, given their limited negotiating power and experience with transportation management systems.
Multimodal transport offers reduced overhead costs compared to intermodal transport, primarily because it operates under a single transport carrier or contract, streamlining management and enhancing efficiency.
● Better access to remote parts of the world while maintaining a single source of responsibility;
● Minimization of overhead, coordination costs, and potential for errors
Figure 3 Comparison between Intermodalism, Multimodalism and Transmodalism
For smaller businesses with infrequent shipping needs or limited negotiating leverage, utilizing a single transport carrier is often more advantageous Entrusting the entire shipping process to a skilled, dedicated provider can streamline operations and significantly lower internal costs.
Outsourcing transportation activities can be more costly, making it essential for shippers to develop their own transport carrier networks By establishing this network, shippers can eventually transition to intermodal transportation or create a hybrid model that combines both methods effectively.
Intermodal and multimodal transport differ primarily in the number of contracts and carriers involved in shipping Intermodal transport offers greater flexibility, cost savings, and a smaller environmental impact In contrast, multimodal transport simplifies shipping management, ensures faster and more punctual deliveries, and provides a single point of accountability in case of issues.
When evaluating transportation options, it's essential to recognize that neither choice is inherently superior; the benefits must be considered individually Some businesses may prioritize negotiating for the best rates, while others might prefer the appeal of streamlined transportation management.
ECONOMIC AND ENVIRONMENTAL BENEFITS OF MULTIMODAL TRANSPORTATION
Cost savings in transportation
Multimodal transportation provides significant economic benefits that enhance supply chain efficiency and competitiveness Key advantages include cost efficiency, improved performance, reduced inventory costs, optimized infrastructure use, and enhanced market access Additionally, it facilitates global trade, offers a competitive edge, promotes environmental sustainability, and contributes to job creation These factors make multimodal transportation an appealing choice for businesses aiming to optimize their logistics and transportation strategies.
● Operational Cost Reduction: Multimodal transportation allows for the optimization of routes and modes, leading to reduced fuel consumption, maintenance costs, and overall operational expenses.
● Economies of Scale: Combining different modes enables larger shipment sizes, leading to economies of scale, where the cost per unit decreases as the volume of goods transported increases.
● Faster Transit Times: Utilizing different modes strategically can result in faster overall transit times, reducing the time goods spend in transit and enhancing supply chain responsiveness.
● Reliability: Diversifying transportation modes provides greater flexibility, allowing for smoother adaptation to disruptions or delays in one mode by shifting to another.
Reducing inventory costs is achieved through decreased holding expenses, as enhanced transit times and reliability lead to quicker deliveries and minimized time in transit.
● Maximized Infrastructure Use: Multimodal transportation allows for the optimal use of existing transportation infrastructure, minimizing the need for additional investments in new facilities.
● Reduced Congestion: By distributing traffic across different modes, especially relieving pressure on road networks, multimodal transportation helps alleviate congestion-related costs.
+ Market Access and Global Trade Facilitation:
● Expanded Market Reach: Access to a variety of transportation modes enhances connectivity, enabling businesses to reach wider markets and customers.
● Global Trade Facilitation: Multimodal systems facilitate international trade by providing efficient connections between various transportation networks, including sea, air, and land routes.
● Enhanced Service Levels: The ability to offer diverse transportation options can be a competitive advantage for businesses, attracting clients seeking flexible and reliable logistics solutions.
● Cost-Effective Solutions: Companies that optimize their transportation strategies through multimodal approaches can offer cost-effective solutions, potentially gaining a competitive edge in pricing.
Investing in sustainable practices, like adopting greener transportation methods, not only helps reduce environmental impact but also leads to significant long-term cost savings and ensures compliance with regulations.
● Employment Opportunities: The development and maintenance of multimodal transportation systems create job opportunities across various sectors, including logistics, infrastructure, and technology.
Environmental impact reduction
Multimodal transportation provides several environmental benefits, contributing to sustainability and reducing the ecological impact of transportation systems.
Multimodal transportation offers significant environmental advantages, such as lowering greenhouse gas emissions and enhancing energy efficiency It contributes to better air quality and reduced congestion, while optimizing resource use and minimizing noise pollution Additionally, it supports biodiversity conservation and promotes sustainable land use practices By adopting multimodal systems, we can foster a more resilient and environmentally sustainable transportation network that actively contributes to climate change mitigation.
Multimodal transportation optimizes mode selection to enhance energy efficiency and minimize greenhouse gas emissions By transitioning from road to rail or water transport, significant reductions in the overall carbon footprint can be achieved.
To enhance overall energy efficiency, it is crucial to select the most energy-efficient modes of transport for various segments of a journey Rail and maritime transport typically offer superior energy efficiency compared to road transport, making them preferable options for reducing energy consumption.
+ Congestion and Air Quality Improvement:
Multimodal transportation systems significantly reduce road congestion by distributing traffic across various modes and minimizing reliance on road transport This approach leads to smoother traffic flow and decreased vehicle idling, ultimately improving air quality.
● Lower Local Pollution: Reduced reliance on trucks for long-distance transportation helps decrease air pollution in urban areas, where congestion and vehicular emissions are often more concentrated.
● Efficient Resource Use: Multimodal transportation optimizes the use of existing infrastructure and resources, minimizing the need for additional construction and reducing the overall environmental impact associated with infrastructure development.
Rail and maritime transport produce significantly less noise pollution than road and air transport, leading to a quieter and more peaceful environment in both urban and rural settings.
+ Biodiversity Conservation - Reduced Habitat Disruption: By minimizing the impact of transportation infrastructure on natural habitats, multimodal systems help protect biodiversity and ecosystems.
Multimodal transportation optimizes land use by utilizing efficient modes like rail and water transport, which require less land This approach significantly reduces land consumption, helping to preserve natural landscapes and limit their conversion for transportation needs.
+ Promotion of Sustainable Practices - Encouragement of Green Technologies:Multimodal transportation systems often encourage the adoption of environmentally friendly technologies, such as electric or hybrid vehicles and energy-efficient infrastructure.
Shifting to sustainable transportation methods significantly contributes to climate change mitigation by reducing carbon emissions, aligning with global climate goals and minimizing the environmental impact of travel.
Long-term environmental stewardship through sustainable development emphasizes the importance of multimodal transportation, fostering a balanced approach that satisfies current needs while ensuring future generations can fulfill theirs.
CHALLENGES AND SOLUTIONS
Creating an effective multimodal transportation system presents various challenges that necessitate innovative solutions for seamless integration and enhanced efficiency Key obstacles and their solutions are outlined in the table below.
Misalignment Different modes of transportation may not be seamlessly connected, leading to inefficiencies.
Develop integrated infrastructure planning to ensure smooth transitions between modes, reducing bottlenecks.
Regulatory Hurdles Varied regulations across different transportation modes and jurisdictions can impede integration.
Establish consistent regulations, standards, and policies to facilitate interoperability and coordination between modes.
Technological Integration Incompatible technologies and information systems can hinder effective communication and data sharing.
Invest in interoperable technologies, such as standardized data formats and communication protocols, to enable seamless information exchange.
Operational Inefficiencies Lack of coordination between different transportation providers may lead to suboptimal operations
Implement collaborative planning and scheduling systems to enhance coordination and optimize overall operations
Financial Barriers High upfront costs and funding challenges can hinder the development of multimodal infrastructure.
Explore public-private partnerships (PPPs) and innovative financing mechanisms to attract private investment and share the financial burden.
Environmental Concerns Some transportation modes may have a higher environmental impact, contributing to pollution and climate change.
Promote and incentivize the use of environmentally friendly modes, such as rail and maritime transport, and invest in sustainable technologies.
Handling Efficient and secure transfer of goods between modes requires specialized infrastructure.
Develop standardized intermodal cargo containers and invest in facilities that facilitate smooth and secure transfer, such as intermodal terminals.
=> By addressing these challenges and implementing effective solutions,policymakers and stakeholders can contribute to the successful development and operation of a robust and integrated multimodal transportation system.
CASE STUDY
CPK Airport in Poland
The Central Port Community in Poland is a strategic initiative focused on establishing a significant logistics and industrial hub in the Gdansk-Gdynia-Port area This initiative seeks to develop a comprehensive ecosystem that brings together key stakeholders such as port operators, logistics companies, manufacturers, and service providers.
The Central Port Community aims to boost the efficiency and competitiveness of Poland's port and logistics sector by attracting investments, promoting trade, and ensuring seamless connectivity across various transportation modes, including sea, rail, and road.
The Central Port Community is dedicated to enhancing supply chain efficiency and logistics capabilities through improved collaboration among stakeholders This initiative aims to optimize infrastructure and operations, significantly contributing to Poland's economic growth and solidifying its status as a vital player in the European logistics and maritime sectors.
Centralny Port Komunikacyjny (CPK) is a proposed transportation hub set to connect Warsaw and Łódź, integrating air, rail, and road transport Located 37 km west of Warsaw, the CPK development will span 3,000 hectares and is designed to accommodate up to 40 million passengers annually in its initial phase.
The Central Communication Port (CPK) will feature significant railway investments, establishing railway nodes near the airport and enhancing connections across Poland, allowing travel between Warsaw and major Polish cities in under 2.5 hours This initiative is expected to generate over 150,000 jobs Additionally, an Airport City will be developed within the CPK area, incorporating exhibition, congress, and conference facilities, along with office spaces.
The vision for the airport is to establish a well-planned and efficiently designed facility that prioritizes both airline operations and passenger comfort Emphasizing sustainability, the airport aims to provide value for money while delivering a world-class experience Additionally, the CPK will expand its commercial reach beyond its borders, fostering a cohesive environment for commerce and transportation.
The Centralny Port Komunikacyjny (CPK) is a significant infrastructure mega project in Poland, featuring a new international airport being built from the ground up near Warsaw and a nationwide railway system with ten major corridors connecting the airport to various regions Currently in its planning phase, the Polish government has already made several key decisions regarding the project, with the airport and the initial railway section expected to open by the end of 2027.
The CPK railway system will feature around 2000 km of new high-speed rail lines and 3700 km of modernized railway lines, marking it as one of Central Europe's largest engineering projects This initiative will implement advanced high-speed rail design standards and technical parameters, many of which are unprecedented in the region The planning concept for the CPK railway includes key preliminary assumptions for its high-speed sections.
● Designed speed of up to 350 km/h
● 25kV 50Hz AC electrification of the core HSR network
● Full interoperability and compliance with all modern EU rail traffic control standards
● Full connectivity with the existing railway system.
● Upon completion, the CPK railway system will comprehensively address numerous mobility needs, including in particular:
● Providing fast, frequent, and seamless access to the CPKfrom nearby cities of Warsaw and Lodz
● Forming Poland’s core high-speed-rail network, linking nation’s largest urban areas and serving major international routes running across Central and Eastern Europe
● Bringing convenient rail services to the currently isolated remote regions of Poland. c, CPK airport as an transportation hub
Centralny Port Komunikacyjny (CPK) has revealed the concept design for its multimodal transport hub, which includes a terminal, main railway station, and public transport interchange The approval of this design, created by the British consortium Foster + Partners and Buro Happold, signifies a significant advancement in the CPK project, moving it into the construction phase This development fulfills CPK's commitment made last November when it signed a contract with the Master Architect.
Deputy Minister Marcin Horała, the Government Plenipotentiary for CPK, believes that the innovative architecture designed by top global designers will generate significant business opportunities, draw foreign investments, and economically benefit not only Poland but also the broader Central and Eastern European region.
The CPK multimodal transport hub features a central atrium that integrates the airport terminal, railway station, and various transport options beneath a cohesive canopy This atrium serves as the main focal point of the airport, providing a welcoming connection between the terminal and railway station, ensuring that all passengers can easily converge in this accessible space, regardless of their chosen mode of transport.
The atrium, situated before security control, is open to everyone and serves as a gathering space for employees and visitors of the nearby Airport City This area offers a distinctive interface between the terminal and its surroundings, addressing the common challenge of pedestrian access to terminal buildings CPK’s design promotes walkable spaces, enhancing connectivity between the Airport City and the airport infrastructure.
The airport’s passenger terminal spans around 400,000 m² and features two levels, accommodating both Schengen and non-Schengen arrivals and security checks After passing through security, non-Schengen travelers will move to a dedicated area on a lower level, complete with restaurants and shops tailored to their needs.
The terminal is designed to directly link to four modular piers, allowing for future expansion based on market demand To enhance passenger experience, two-way moving walkways will be installed throughout the terminal, significantly reducing transfer times and elevating service standards.
The terminal will feature not only traditional check-in desks but also self-service check-in stations, a self-bag drop, and biometric kiosks Additionally, security and document control processes will be fully automated, utilizing CT scanners and automated gates for enhanced efficiency.
MMLPs in India
A logistics park is a comprehensive facility that includes various warehouses, both pre-existing and tailored to specific needs, alongside office complexes, data centers, transport depots, fuel stations, labor accommodations, retail spaces, and customs houses Clients have the flexibility to select services that best meet their operational requirements.
Multi-Modal Logistics Parks (MMLP) are designated freight-handling facilities covering at least 100 acres (40.5 hectares) that provide access to multiple modes of transport These parks feature mechanized warehouses and specialized storage solutions, including cold storage, along with facilities for mechanized material handling and inter-modal transfer container terminals.
The Government of India has launched the Multi-Modal Logistics Parks (MMLPs) initiative to enhance the freight logistics sector by establishing Multi-Modal Logistics Parks using a hub-and-spoke model.
- Background of the Indian logistics sector:
India has the second largest road network globally, including expressways, national highways, state highways, and district roads.
+ In 2020, the logistics industry in India brought about more than 215 million USD, projected to expand at a rate 1.2 times the growth rate of India’s (GDP) and generate $360 billion through 2032.
+ In 2018, the World Bank Logistics Performance Index ranked India at 44, which measures performance based on six metrics— customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness
India's logistics sector faces significant challenges, resulting in high costs and low efficiency, with logistics expenses accounting for 13%–14% of the country's GDP, well above the optimal benchmark of 7%–8% The cost of road freight stands at ₹1.9 per ton-kilometer, nearly double that of the United States, while the average speed of freight vehicles in India is 50%–60% lower Although topography contributes to these issues, the stark differences highlight the underlying inefficiencies in India's logistics movement.
● Fragmented institutional and governance structure.
- India improves in the logistics ranking of the World Bank by jumping 6 places to Rank 38 out of 139 countries in the 7th edition of Logistics Performance Index (LPI
Since 2015, India has made significant strides in enhancing logistics efficiency under the leadership of Prime Minister Shri Narendra Modi The World Bank has recognized these efforts, noting substantial improvements in four out of six Logistics Performance Index (LPI) indicators, attributed to various initiatives launched in recent years.
- The Ministry of Road Transport and Highways is developing Multi-Modal Logistics Parks (MMLPs) at 35 strategic locations to cater to over 50% of the nation's road freight movement.
- National Highways Logistics Management Limited (NHLML), a 100% owned SPV of NHAI, is the nodal agency for MMLP development MMLPs will be developed in
The PPP mode, with a total investment of approximately ₹46,000 crore, involves the establishment of project-specific special purpose vehicles in collaboration with central and state governments, port trusts, and railway authorities The government will provide land and enhance external connectivity, while private investors will be responsible for developing and operating the Multi-Modal Logistics Parks (MMLPs) Memorandums of Understanding (MOUs) have been signed with key agencies, including the National Industrial Corridor Development Corporation Limited and Railway Cars Negam Limited, to facilitate development and rail connectivity Construction is currently underway for the MMLP at Yogi Kopa Niyagawhati, with additional projects in Nagpur, Chennai, Bangalore, and Indore poised for implementation.
The Detailed Project Report (DPR) is currently being developed for six key locations in India: Hyderabad, Coimbatore, Pune, Mumbai, Ananthapur, and Vishakhapatnam The establishment of Multi-Modal Logistics Parks (MMLPs) is anticipated to significantly optimize the country's logistics costs, which currently range from 14% to 9% of GDP This initiative aims to enhance connectivity, accelerate freight movement, lower logistics expenses, and create numerous employment opportunities across the region.
The Sagarmala Programme encompasses 13 logistics park projects, which are detailed in an annex These initiatives are being implemented by the Ministry of Road Transport & Highways, the Ministry of Railways, major ports, and various state governments.
Annexure: List of logistics parks projects included in Sagarmala
1 New ICD Development in South Uttarakhand -MMLP
2 New ICD Development in Raipur -MMLP Naya Raipur Chhattisgarh
3 New ICD Development in Jharsuguda Odisha
4 Phase II of Multi Model Logistics Hub - Visakhapatnam
5 New ICD Development in Hyderabad -MMLP
6 Dry Port at Niphad in Nashik District Maharashtra
8 Dry Port at Ranjani Village in Sangli district Maharashtra
9 New ICD development in Rajasthan -MMLP Swarupganj Rajasthan
10 Multi Modal Logistics Park at Paradip Port Odisha
11 New ICD Development in North Bengal -Darjeeling West Bengal
12 Dry Port at Wardha Maharashtra
13 Dry Port at Jalna Maharashtra
This information was given by the Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal in a written reply to the Lok Sabha
- The development of MMLPs is envisaged as a key policy measure to reduce logistics costs and help address three of the five constraining issues identified above In July
2017, the Government of India approved a plan to build 35 MMLPs State governments will provide the land needed for the projects, which will then be taken up through public–private partnerships.
Figure 4 Estimated benefits after the implementation of MMLP in India c Main components:
The establishment of Multi-Modal Logistics Parks (MMLPs) at strategic locations is a crucial policy initiative aimed at optimizing logistics costs in India and enhancing its competitiveness The COVID-19 pandemic has underscored the necessity for increased regionalization within the supply chain By developing MMLPs across various regions, India can foster a more agile and cross-functional supply chain, ultimately improving efficiency and responsiveness.
(i) infrastructure for enabling seamless multimodal freight transfer;
(ii) mechanized warehouses and specialized storage solutions such as cold storage; (iii) mechanized material handling and intermodal transfer container terminals, and bulk and break-bulk cargo terminals;
(iv) value-added services such as customs clearance, bonded storage yards, quarantine zones, testing facilities, and warehousing management services;
(v) late-stage manufacturing activities such as kitting and final assembly, grading, sorting, labeling, and packaging activities, reworking, and returns management.
MMLPs have the potential to enhance the efficiency and effectiveness of inland container depots (ICDs) and container freight stations According to the Ministry of Road Transport and Highways (MORTH), logistics parks could lead to a 10% reduction in transportation costs for the top 15 nodes by facilitating the use of larger trucks and rail for freight movement This shift would not only decrease carbon dioxide emissions but also alleviate congestion in urban areas.
Relocating warehouses and wholesale markets from urban areas to logistics parks can alleviate city congestion due to lower rental costs Furthermore, the advanced and automated storage solutions offered by these logistics parks can significantly minimize storage and handling losses.
Figure 5 Key Facilities in a Multimodal Logistics Park by Cargo Type
- Some of the representing parks are the Dabaspete Multimodal Logistics Park and the Jogighopa Multimodal Logistics Park:
CASE 1 THE DABASPETE MULTIMODAL LOGISTICS PARK
The 264-acre MMLP site proposed at Dabaspete is about 50 km from Bengaluru and
Located 25 km from Tumkur, this area offers convenient access to Niduvanda and Hirehalli railway stations It is strategically positioned amidst significant manufacturing clusters and serves as a key node in the Chennai–Bengaluru Industrial Corridor.
CASE 2 JOGIGHOPA MULTIMODAL LOGISTICS PARK
Assam, a key industrialized state in Northeast India, houses 70% of the region's population and serves as a major consumption hub Guwahati, the state's logistics center, includes Dispur, the capital of Assam The proposed Multi-Modal Logistics Park (MMLP) site is strategically situated near Jogighopa, approximately 150 km from Guwahati.
Comparison between CPK Airport in Poland and MMLP in India
Figure 6.1 Comparison between CPK and MMLPS
Figure 6.2 Comparison between CPK and MMLPS
+ Mode of Transport: Airports primarily focus on air transport, while MMLPs are designed for the seamless integration of various transportation modes, including road and rail.
Airports facilitate air travel by managing the movement of passengers and cargo through aircraft, while Multi-Modal Logistics Parks (MMLPs) concentrate on enhancing the efficiency of goods transfer across various transportation modes.
+ Connectivity Scope: Airports are connected to air routes, while MMLPs are strategically located to connect road, rail, and possibly waterway networks.
+ Cargo Handling Approach: Airports focus on efficient cargo handling for air transport MMLPs emphasize the smooth transfer of cargo between different transportation modes, promoting intermodal logistics.
+ Trade Facilitation Emphasis: Airports contribute significantly to international trade by facilitating air cargo MMLPs play a key role in trade facilitation by enhancing overall supply chain connectivity.
Multimodal transportation serves as a transformative catalyst in the logistics landscape, optimizing supply chains and enhancing efficiency while promoting environmental sustainability By seamlessly integrating various transportation modes—such as railways, maritime, air, and road—this approach leverages the unique advantages of each mode to improve connectivity and reliability Information technology plays a crucial role in streamlining intermodal management, while standardization and procedural optimizations present both challenges and opportunities for stakeholders Economic benefits include cost savings and reduced carbon footprints, aligning with global sustainability goals Despite challenges like regulatory complexities and security in international freight, solutions such as collaborative policies and standardization are emerging Real-world examples, like the CPK Airport in Poland and Multimodal Logistics Parks in India, illustrate the practical application of these principles Looking ahead, ongoing technological advancements and global collaboration position multimodal transportation as a cornerstone of efficiency, sustainability, and resilience in the evolving transportation sector, ultimately paving the way for a more interconnected and sustainable future.
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Dennis Rondinelli and Michael Berry explore the critical intersections of multimodal transportation, logistics, and environmental management within the context of a global economy in their article published in the European Management Journal This research emphasizes the importance of effectively managing these interactions to enhance sustainability and efficiency in logistics practices The findings highlight the need for integrated approaches to transportation that consider environmental impacts while optimizing global supply chains For further details, the article is accessible online.
3, Ministry of Commerce & Industry: “India jumps 6 places to Rank 38 in World Bank’s Logistics Performance Index 2023” [Online], available at: https://pib.gov.in/PressReleasePage.aspx?PRID19925#:~:text=India%20improves
%20in%20the%20logistics,Performance%20Index%20(LPI%202023)
4, Multimodal Transportation: Definition, Challenges, and Solutions Updated on September 15, 2021 by Yulia Miashkova [Online]ư, available at: https://www.track-pod.com/blog/multimodal-transportation/
5, Habtesilase, 23 May 2018, Challenges of Multimodal Transport Services: The Case of Ethiopian Shipping and Logistics Service, Ethiopia- Sweden-Denmark and
UK trade routes operation [Online], available at: https://diva-portal.org/smash/get/diva2:1272775/FULLTEXT01.pdf