India has experienced fast-paced growth over the last decade. Though the growth has primarily come from the services sector, manufacturing and exports have also risen reasonably. Logistics as a function is being increasingly outsourced by manufacturers. However, the Indian logistics sector in many ways still lags behind the global standards of performance. This is evident from the fact that we are ranked as low as 46th among 155 countries in the World Bank International Logistics Performance Index. It has by now become a known fact that logistics infrastructure is crumbling under the weight of the ongoing economic development in the country and the process of beefing up needs to be expedited on war footing. Adequate road and rail infrastructure is required to support the growth as these two major modes of transportation available in the country. Policy level changes are also necessary to turnaround other modes like inland waterways and coastal shipping. Investing in and using multiple transportation modes not only bring efficiencies in the chain but also go a long way to reduce pilferage as well as overall transportation costs. India is one of the largest economies in the world and a major emerging market that has a young population, rising investment rates, large domestic demand and globally competitive firm. Even though, the unexpected global crisis has taken its toll on the economy, it is predicted that India will become the third largest economy by the year 2025 after China and the USA and has awakened the interest of significant investors. The transport and logistics sector are fundamental to the development of a country, especially so in India where it is estimated to provide employment for 45 million people. Multimodal logistics serves to interconnect different modes of transport – road, rail, air, water – and therefore improve efficiency and speed of goods movement. The economic growth in India has increased the demand for practically all transport services and further underlines the importance of providing an efficient multimodal logistics infrastructure in India. The Planning Commission of India has stressed that focus needs to be given to ‘integrated transport solutions’ in preference to individual ‘transportation’ and ‘distribution’ services. MULTIMODAL LOGISTICS IN INDIA: AN ASSESSMENT
Logistics facilitates in getting products and services as and when they are needed and desired to the customer. It also helps in economic transactions, serving as a major enabler of growth of trade and commerce in an economy. The American Council of Logistics Management defines logistics as “the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers’ requirements”. In order to achieve these objectives the functionality of logistics include processing the orders received from the customers, inventory planning and management, warehousing, transportation and packaging. Multimodal transport refers to the transport of good from one point to another via more than one mode of transport. Multimodal Logistics can be viewed as “the chain that interconnects different links or modes of transport – air, sea, and land into one complete process that ensures an efficient and cost-effective door-to-door movement of goods under the responsibility of a single transport operator, known as a Multimodal Transport Operator (MTO), on one transport document”. OVERVIEW AND TRENDS
The transport and logistics sector are fundamental to the development of a country. In India, since the 1990s, the transportation infrastructure has undergone a significant change. While in the 90s, the demand for transport grew at an annual rate of 10%, in the last decade the demand in the transport and logistics industry grew along with the accelerating...
Please join StudyMode to read the full document