Multimodal logistics, connecting ports to the hinterland, empowers businesses to adopt diverse end-to-end transport solutions that enhance efficiency and strengthen supply chains, writes Adhendru Jain.
The global trade landscape is in a state of flux, shaped by geopolitical uncertainty, shifting economic priorities and increasing demands for sustainable operations. According to an analysis by an international management consultancy, large-scale disruptions now occur every 3.7 years, with their frequency and intensity rising. Businesses are increasingly compelled to prioritise supply chain resilience over short-term profitability, ensuring they are prepared for the unexpected.
The 2025 Trade in Transition report by Economist Impact found that 39 per cent of Asia-Pacific companies have adopted a risk-mitigated ‘just-in-case’ inventory model, holding buffers of up to three months to safeguard against disruptions. Complementing this trend, a shift towards multimodal logistics enables more agile and sustainable supply chains, helping businesses adapt to future uncertainties with greater confidence.
Seamless and Efficient Trade
A multimodal logistics network connecting ports to the hinterland enables businesses to adopt integrated, end-to-end transport strategies, thereby driving operational efficiency. When supported by logistics partners with global reach and regional expertise, these systems can streamline cargo movement, reduce costs, and enhance supply chain visibility.
Combining transport modes in a coordinated manner supports optimal inventory management and simplifies oversight, offering a single point of contact for supply chain operations. Research indicates that intermodal road-rail solutions can be up to 43 per cent more fuel-efficient and 80 per cent more cost-effective than road-only transport. Multimodal systems also reinforce last-mile connectivity, which is vital for delivery efficiency and supply chain robustness, particularly for manufacturing hubs that require dependable road access to rail freight.
One standout example is a bespoke rail service operated by a leading global logistics company, which integrates truck-based first- and last-mile access with long-haul rail transport. This solution ensures seamless cargo movement between northern India and Mundra Port in Gujarat within 72 hours, facilitating the timely receipt of raw materials and swift export deliveries while enhancing operational productivity and lowering emissions.
As transportation systems worldwide pivot towards sustainability, multimodal solutions offer significant energy savings and can reduce carbon emissions by more than 77 per cent. Advanced logistics providers now offer tailored end-to-end services, such as free trade warehousing zones and value-added capabilities within these premises, enabling businesses to proactively manage fluctuating demand. When layered with integrated logistics expertise, multimodal solutions pave the way for more resilient, dependable and sustainable cargo movement—both within India and beyond.
Planning for the Future
Multimodal transportation delivers a range of clear advantages: lower logistics costs, reduced dependence on road networks, shorter delivery timelines, and a smaller environmental footprint. Today, approximately 60 per cent of India’s freight moves via road. Government initiatives to modernise logistics infrastructure and digitalise supply chains are playing a pivotal role in enabling faster adoption of multimodality.
Dedicated freight corridors with strong potential for intermodal operations are set to expand rail capacity and increase rail’s share in freight transport. Greater modal integration across rail, road and water will help businesses improve their reliability and resilience, ensuring the timely supply of raw materials and efficient delivery of finished goods to multiple markets.
Equally, multimodal logistics maximises asset utilisation by mitigating the effects of supply chain shocks. It offers a practical, scalable approach to boosting the performance of India’s manufacturing sector. By embracing a multimodal logistics ecosystem, India will be better positioned to meet domestic consumption demands and reinforce its role as a trusted, agile contributor to global supply chains.
ABOUT THE AUTHOR
Adhendru Jain, Vice President of Rail and Inland Terminals, DP World Subcontinent