Download - roll_6 and 17
-
8/8/2019 roll_6 and 17
1/15
Containerisation and multimodal transportation
In India
Submitted by:
Attri Borgohain (06)
Manish Bhadauriya (17)MBA PSM SEM III
CONTAINERISATION
-
8/8/2019 roll_6 and 17
2/15
Containerization
Containerization (or containerisation) is a system of intermodal freight transport using
standard intermodal containers as prescribed by the International Organization for
Standardization (ISO). These can be loaded and sealed intact onto container ships, railroad
cars, cargo planes, and semi-trailer trucks.
-
8/8/2019 roll_6 and 17
3/15
The concept of international multimodal transport covers the door-to-door movement of
goods under the responsibility of a single transport operator. Although the concept might not
be new, it developed with the container revolution initiated in the late 50's by Malcom
McLean and his trucking operations.
Multimodal Transportation
Air
Truck
Rail
WaterPipeline
Intermodal
-
8/8/2019 roll_6 and 17
4/15
The emergence of the container technology and of the multimodal transport concept camefrom and facilitated growing international trade. Trade and transport are inextricably
linked: efficient transport services are a prerequisite to successful trading.
Containerisation helps in unitisation of cargo, safety and security of cargo and avoidance
of cargo.
Multimodal transport system facilitates to develop a system of carriage of these
containers in in the international trade a uniform manner.
With the advent of multimodal transportation, however, shipping line owners can finalise
a single contract for affreightment with multimodal transport operators. In such cases,
these operators take care of the entire transportation from origin to destination.
The integration of these two processes of containerisation and multimodal/intermodal
transportation reduces time and cost
Containerisation and multimodal transportation
-
8/8/2019 roll_6 and 17
5/15
UNCTAD and Multimodal Transportation
The general aim of UNCTAD is to promote international trade and economic
development, especially those of developing countries.
Hence, the economic, commercial and related legal aspects of maritime transport
including ports and connected inland transport are necessarily subjects of direct concernto UNCTAD.
Subsequent decisions of various United Nations bodies have considerably expanded the
scope of competence of UNCTAD to embrace the entire spectrum of the transport sectors
involved in multimodal transport operations and in the standardization of containers.
-
8/8/2019 roll_6 and 17
6/15
UNCTAD and Multimodal Transportation
In pursuing its mandate, UNCTAD has achieved a number of recognized results in the field ofmultimodal transport:
The elaboration of the Multimodal Transport Convention (1980),
The elaboration of model multimodal container tariff rules
A constructive participation with the private sector towards the elaboration of new rules on
multimodal transport documents,
The monitoring -on behalf of developing countries- of technological development in
containerization,
The organization of groups of experts to discuss issues on multimodal transport,
The implementation of technical assistance activities as well as the creation of awareness
on the subject through the organization of workshops and seminars
-
8/8/2019 roll_6 and 17
7/15
Multimodal Transportation in India
In the 90s India began an ambitious program aimed at the transformation of itseconomy towards a market driven export oriented system. Since then the economic
growth of the country has been spectacular.
This places on the infrastructure sector significant challenges because in order to sustain
such a rapid growth, the provision of a seamless, cost effective, fully integrated
multimodal transport system seems to be the only feasible possibility.
The Multimodal Transportation of Goods Act (MTGA) was enacted in 1993 by the
Government of India with an objective to facilitate the movement of goods from any
location within the country to any place outside India.
It allows the road, rail, inland waterways, deep sea and non vessel owning containercarriers (NVOCC) to register as Multimodal Transport Operators (MTO) with the
Director General of Shipping and can issue a multimodal transport document
(MTD) which replaced the earlier combined transport document (CTD) as a basic
document which would be treated as a negotiable instrument for documentary credit by
the Banks.
-
8/8/2019 roll_6 and 17
8/15
Containerization and the Multimodal Transportation in India
Containerization was introduced for the first time in Indian domestic market way back
in 1966 by the Indian railways to provide door to door service to their customers and attract
cargo from roadways. They used containers with a 5 ton payload.
The necessary infrastructure required for multi modal transport took a longer time then
expected to develop. It was only in 1987 that the Government of India realized the
importance of containerization and started constructing a satellite port at Bombay which
commenced operations in 1988 and was christened The Jawaharlal Nehru Port (JNP) after
the first Prime Minister of India.
Subsequently a Corporation was created by the Indian railways for inland haulage of
containers by rail called CONCOR which constructed the first ICD at Tughlakabad in New
Delhi. CONCOR connects and operates these ICDs to the gateway port by rail in India
to enable smooth and seamless movement of containers.
ICDs are interfaces between connecting modes of transportation and offer a total package of
activities to handle export and import containers and general cargo flows between
road, rail and waterways in a cost effective manner with intermediate storage thrown in,
along with some value addition services like consolidation of cargo, grading, sorting,
packaging, custom examination etc.
-
8/8/2019 roll_6 and 17
9/15
Container traffic outperformed in FY2010
-
8/8/2019 roll_6 and 17
10/15
Rail Road Transportation
Inland transportation of containers is the biggest challenge faced by multi modal
operators in India. Presently about 40% of the containers are moved by railwayswith the remaining percentage by roadways with no usage of inland waterways.
The development of road and rail networks took place at a time when containerization
and globalization were at their starts hence it is not surprising that they are unable
now to cope up with the strain deriving from containerized global cargo.
Today Indian Railways have excellent coverage in with almost all parts of the country.
It carries both passengers and freight in a cost effective manner.
Though economically priced the Railways have not been able to attract freight from
the road network mainly due to insufficient connectivity and its failure to maintain
scheduled transit times apart from insufficient supply of container wagons and poor
customer service.
Presently in spite of several shortcomings and bottlenecks the roadway system
continues to carry over 57% of the total container traffic and continues to grow
at a rate of 11.4%
-
8/8/2019 roll_6 and 17
11/15
-
8/8/2019 roll_6 and 17
12/15
YEAR BY RAIL BY ROAD
1994
1995
1996
1997
1998
1999
2000
2001
2002
20032004
2005
0.36
0.45
0.53
0.64
0.73
0.77
0.88
1.16
1.04
1.641.37
1.72
0.68
0.8
0.9
1.04
1.13
1.16
1.29
1.71
1.43
2.261.98
2.21
BREAK UP OFMULTIMODAL CONTAINER TRANSPORTATION
(In Million TEUs)
(Source: Ministry of Surface Transport)
-
8/8/2019 roll_6 and 17
13/15
Maritime transportation
Maritime transportation, similar to land and air modes, operates on its own space, which is at
the same time geographical by its physical attributes, strategic by its control and commercial
by its usage.
The physiography of maritime transportation is composed of two major elements, which are
rivers and oceans.
Unlike Europe, India does not enjoy an efficient inland waterway system or anextensive coastal short sea transport so almost the entire domestic transportation is
conducted by rail and road networks.
The Inland Waterways Authority of India (IWAI) was set up in 1984 to develop,
maintain and administer the waterways while The Central Inland Water Transport
Corporation (CIWTC) was set up to undertake freight transport. However, less than 1% ofthe domestic cargo is moved via this mode.
A major plan (NMDP) is underway to revamp and develop the ports. Port Blair has been has
been identified as the 13th major port. Draught restriction is a major constraint that does not
accommodate bigger vessels.
-
8/8/2019 roll_6 and 17
14/15
For the smooth functioning of the multimodal transportation all the above mentioned
modes of transportation has to be developed to cater to the rising export and import
demands of the country.
Both infrastructure and the superstructure supporting the different modes of
transportation need to be given due importance and concern.
Participation of private players has to be encouraged and facilitated by the government
by implementing favourable policies or amending the existing one wherever it is
required and justified
Containerisation and multimodal transportation
-
8/8/2019 roll_6 and 17
15/15
THANKYOU