MULTIMODAL TRANSPORTATION

AND PORT AGENCY

 Concept of Multimodal transportation
in India
• Multimodal transport is the movement of good from point A to point B using different modes of transport

by a single transport operator

• In the 1960s, Indian Railways played a crucial role in promoting multimodal transport in India. In 1966,

Indian Railways containerized goods to give birth to intermodal freight transport in India.

• Indian Railways then started moving cargo in specialized DSO containers. Standardized ISO containers

began to be used from the 1970s and it was in 1981 when the first ISO container was moved inland by

Railways to the country’s first ICD at Bengaluru (then Bangalore).

• In 1988, CONCOR was established as an offshoot of Indian Railways and took over the existing network

of seven ICDs in the country.

• Multimodal transport was a monopoly on CONCOR till the early 2000s when licenses were given to

private companies to operate their own freight trains .

• The Multimodal transport act was passed by Indian Parliament in the year 1993; the
main objective of the act was to establish a liability regime for Multimodal Transport
operators.
• The major manufacturing hubs are located in Punjab, Haryana, Uttar Pradesh and
National Capital Region and they contribute a major part of exports. The states of
Gujarat, Maharashtra and Tamil Nadu sum up the remaining part.
• India’s international trade (both exports and imports combined) is growing at a brisk
pace of 10 to 12 per cent
• Indian Railways had opened the container transportation to private players in 2006
with the intention of bringing in more cargo to rail from road.
 SAGARMALA
• The Sagarmala Programme is an initiative by the government
of India to enhance the performance of the country's logistics
sector. The programme envisages unlocking the potential of
waterways and the coastline to minimize infrastructural
investments required to meet these targets.It entails investing
Rs. 8.5 trillion (2018) to set up new mega ports, modernizing
India's existing ports, developing of 14 Coastal Economic
Zones (CEZs) and Coastal Economic Units, enhancing port
connectivity via road, rail, multi-modal logistics parks,
pipelines & waterways and promoting coastal community
development, with the aim of boosting merchandise exports by
US$110 billion and generating around 10,000,000 direct and
indirect jobs. 
• Objectives of Sagarmala Project
•  Port Led Development − Undertake development of
Coastal economic zones with projects likeport based
industrialization, coastal tourism, Logistics parks,
warehousing, fisheries etc. SOURCE: Ministry of
Shipping
•  Port Infrastructure Enhancement − Action points on
transforming existing ports into world class ports by
developing deep drafts, mechanization of existing
berths, creation of new capacity & greenfield ports
•  Efficient Evacuation − Expansion of rail / road
network / inland waterways connected to ports &
identification of congested routes − Find optimized
transport solution for bulk and container cargo
TYPES OF CARGO
 What is Container Leasing?

• Containers are large shipping devices that can be

utilized on land and on sea with equal ease. The
uniform shape and dimensions of containers makes it
very easy to secure the devices to a flatbed trailer or
rail car and move goods across highway or rail
systems. Containers can also be stacked and secured
in place on barges, making them ideal for water
transport. While some companies choose to purchase
containers, others find that container leasing is more
practical and cost-effective.
• Top 10 Container Leasing Companies
• 1 TRITON International
• 2 Florens Container Leasing
• 3 Textainer Group
• 4 Seaco Global
• 5 Seacube Containers
• 6 CAI International
• 7 Beacon Intermodal
• 8 Touax Container Solutions
• 9 Blue Sky Intermodal
• 10 CARU Containers
 Maintenance and
Agreement Duration Drop-off Location
Repair

Master Lease variable Leasing Company restrictive

Long-Term Lease 5-8 years Lessee super restrictive

Short-Term Lease greater than 6 Lessee super restrictive

months

One-way lease variable Lessee shipper’s desire

• What is Deconsolidation?
• Deconsolidation is essentially the opposite of
consolidation. It is the logistics technique of
breaking down an inbound shipment into
multiple shipments so that they can be
distributed to a retailer through the outbound
vehicle. This allows manufacturers to send
goods to multiple locations more efficiently
and in a more cost-effective manner.
• CY is short for ‘Container Yard’, which is where
containers are stored on the terminal or dry
port before they are loaded or offloaded from
a ship. Containers are either stored for loading
to be transported elsewhere, or offloaded as
they arrive into the port or terminal
 INDIAN SHIPPING INDUSTRY
• Introduction
• According to the Ministry of Shipping, around 95 per cent of India's
trading by volume and 70 per cent by value is done through maritime
transport.
• India has 12 major and 205 notified minor and intermediate ports.
Under the National Perspective Plan for Sagarmala, six new mega ports
will be developed in the country. The Indian ports and shipping
industry play a vital role in sustaining growth in the country’s trade and
commerce. India is the sixteenth largest maritime country in the world
with a coastline of about 7,517 kms. The Indian Government plays an
important role in supporting the ports sector. It has allowed Foreign
Direct Investment (FDI) of up to 100 per cent under the automatic
route for port and harbour construction and maintenance projects. It
has also facilitated a 10-year tax holiday to enterprises that develop,
maintain and operate ports, inland waterways and inland ports.
• Market Size
• In FY20, major ports in India handled 704.82 million tonnes
(MT) of cargo traffic, implying a CAGR of 2.74 per cent
during FY16-FY20. Cargo traffic at non-major ports reached
447.21 MT in FY20 (till December 2019).
• The major ports had a capacity of 1,514.09 MT per annum
(MTPA) in FY19P. The Maritime Agenda 2010-20 has a 2020
target of 3,130 MT of port capacity.
• The Government has taken several measures to improve
operational efficiency through mechanisation, deepening
the draft and speedy evacuations.
• Government Initiatives
• Some of the major initiatives taken by the government to promote the ports
sector in India are as follows:
• As of November 2019, projects worth Rs 13,308.41 crore (US$ 1.90 billion) were
awarded in the last three years on upgradation of the major ports. 
• As per Union Budget 2020-21, the total allocation for the Ministry of Shipping
stands at Rs 1,800 crore (US$ 257.22 million).
• Major Port Authorities Bill 2020 was introduced in the Loksabha, which intends to
provide regulation, operation and planning of major ports in India and to vest the
administration, control and management of such ports upon the Boards of Major
Port Authorities and for matters connected therewith or incidental thereto.
• Net profit at major ports increased from Rs 1,150 crore (US$ 178.4 million) in
FY13 to Rs 3,413 crore (US$ 529.6 million) in FY18, while operating margin
increased from 23 per cent to 44 per cent.
• In May 2018, Ministry of Shipping allowed foreign flagged ships to carry
containers for transhipment.
• In March 2018, a revised Model Concession Agreement (MCA) was approved to
make port projects more investor-friendly and make investment climate in the
sector more attractive.
• Achievements
• Following are the achievements of the government in
the past four years:
• Turnaround time at major ports stood at 64.69 hours
in FY20 (till September 2019).
• Project UNNATI was started by the Government of
India to identify opportunities for improvement in the
operations of major ports. Under the project, 116
initiatives were identified, out of which 91 initiatives
were implemented as of November 2018
• what is stowage planning..??
• In simple terms, it is the act of allocating space
on board the ship for containers that have to
be loaded from a certain port(s) to be
discharged at certain port(s) without those
containers having to be rehandled at any of
the way ports along the route..
• On container ships the position of containers are identified by a bay-row-tier coordinate
system. The bays illustrate the cross sections of the ship and are numbered
from bow to stern. The rows run the length of the ship and are numbered from the
middle of the ship outwards, even numbers on the portside and odd numbers on
the starboard side. The tiers are the layers of containers, numbered from the bottom
and up.
• Bay – a space in the ship that can hold containers, container ships has several bays,
these bays are divided into two parts: on-deck and under-deck (hold). If the bay number
is odd it is suitable for 20 feet containers, if the bay number is even it is suitable for 40
feet containers.
• Container slot, position or cell – names of the spaces that containers can be loaded in.
On a stowage plan their positions are identified by a six-digit coordinate number: Bay-
Bay-Row-Row-Tier-Tier.
• In the example image the position coordinates of the containers are:
• Blue container; 530788
• Red Container: 531212
• Green container: 551184
• The most common and noted type of containers are the 20 feet and 40 feet containers.
There are also containers with an extent in height called "High Cube" containers.The
fixed exterior dimension of the standard size boxes are:
• 20 feet container size is: 20 ft (6.1 m) length by 8 ft (2.4 m) width by 8.6 ft (2.6 m)
height.
• 40 feet container size is: 40 ft (12 m) length by 8 ft (2.4 m) width by 8.6 ft (2.6 m) height.
• The Hague–Visby Rules is a set of
international rules for the
international carriage of goods by sea. They
are a slightly updated version of the
original Hague Rules which were drafted in
Brussels in 1924.
 Hamburg Rules

• The Hamburg Rules are a set of rules governing the

international shipment of goods, resulting from
the United Nations International Convention on the
Carriage of Goods by Sea adopted in Hamburg on 31
March 1978. The Convention was an attempt to
form a uniform legal base for the transportation of
goods on oceangoing ships A driving force behind
the convention was the attempt of developing
countries' to level the playing field. It came into
force on 1 November 1992
• History
• The first of the international conventions on the carriage of goods by sea
was the Hague Rules of 1924. In 1968, the Hague Rules were updated to
become the Hague-Visby Rules, but the changes were modest. The
convention still covered only "tackle to tackle" carriage contracts, with no
provision for multimodal transport. The industry-changing phenomenon
of containerization was barely acknowledged.
•  The 1978 Hamburg Rules were introduced to provide a framework that
was both more modern, and less biased in favour of ship-operators.
Although the Hamburg Rules were readily adopted by developing
countries, they were shunned by richer countries who stuck with Hague
and Hague-Visby. It had been expected that a Hague/Hamburg
compromise might arise, but instead the more extensive Rotterdam
Rules appeared.
• United Nations Convention on the Carriage of Goods by Sea
(The Hamburg Rules) Hamburg, 30 March 1978

• PART I - GENERAL PROVISIONS

• Article 1 - Definitions
• Article 2 - Scope of application
• Article 3 - Interpretation of the Convention

• PART II - LIABILITY OF THE CARRIER

• Article 4 - Period of responsibility
• Article 5 - Basis of liability
• Article 6 - Limits of liability
• Article 7 - Application to non-contractual claims
• Article 8 - Loss of right to limit responsibility
• Article 9 - Deck cargo
• Article 10 - Liability of the carrier and actual carrier
• Article 11- Through carriage

• PART III - LIABILITY OF THE SHIPPER

• Article 12- General rule
• Article 13 - Special rules on dangerous goods
• PART IV - TRANSPORT DOCUMENTS

• Article 14 - Issue of bill of lading

• Article 15- Contents of bill of lading
• Article 16 - Bills of lading: reservations and evidentiary effect
• Article 17 - Guarantees by the shipper
• Article 18 - Documents other than bills of lading
• PART V - CLAIMS AND ACTIONS
• Article 19 - Notice of loss, damage or delay
• Article 20 - Limitation of actions
• Article 21 - Jurisdiction
• Article 22 - Arbitration

• PART VI - SUPPLEMENTARY PROVISIONS

• Article 23 - Contractual stipulations
• Article 24 - General average
• Article 25 - Other conventions
• Article 26 - Unit of account

• PART VII - FINAL CLAUSES

• Article 27- Depositary
• Article 28 - Signature, ratification, acceptance, approval, accession
• Article 29- Reservations
• Article 30 - Entry into force
• Article 31- Denunciation of other conventions
• Article 32 - Revision and amendment
• Article 33 - Revision of the limitation amounts and unit of account or monetary unit
• Article 34 - Denunciation
•  United Nations Conference on Trade and
Development (UNCTAD) was established in 1964 as
a permanent intergovernmental body.
• UNCTAD is the part of the United Nations
Secretariatdealing with trade, investment, and
development issues. The organization's goals are to:
"maximize the trade, investment and development
opportunities of developing countries and assist them
in their efforts to integrate into the world economy on
an equitable basis". UNCTAD was established by
the Unite Nations General Assembly in 1964 and it
reports to the UN General Assembly and United
Nation Economic and Social Council.
• The International Chamber of Commerce (ICC; French: Chambre de
commerce internationale) is the largest, most representative business
organization in the world. Its over 45 million members in over 100
countries have interests spanning every sector of private enterprise.
• ICC's current chairman is Ajaypal Sing Banga and John W.H. Denton
AO is the current Secretary General.
• ICC has three main activities: rule setting, dispute resolution,
and policy advocacy
• The International Chamber of Commerce was founded in 1919 to serve
world business by promoting trade and investment, open markets for
goods and services, and the free flow of capital.
• The organization's international secretariat was established in Paris and
the ICC's International Court of Arbitration was created in 1923.
• ICC's first chairman was 20th-century French Minister of
Finance Etienne Clémentel.
 UNCTAD/ICC Rules· for" Multimodal
Transport Documents
• RULE I - Applicability
• RULE 2- Definitions
• RULE 3- Evidentiary effect of the information contained in the transport
document
• RULE 4- Resposibi!ities of the multimodal transport operator
• RULE 5- Liability of the multimodal transport operator
• RULE 6-Limitation of liability of the multimodal transport
• RULE 7-Loss of the right of the multimodal transport operator
• RULE 8-Liability of consignor
• RULE 9-Notice of Loss
• RULE I0-Time bar
• RULE I1-Applicability of the rules of action
• RULE I2- Applicability of the rules to the multimodal operators servant and
agents
• RULE I3-Manadatory law
 European Agreement concerning the International
Carriage of Dangerous Goods by Road

• The European Agreement concerning the International Carriage of Dangerous Goods by Road
(ADR) was done at Geneva on 30 September 1957 under the auspices of the United Nations
Economic Commission for Europe, and it entered into force on 29 January 1968. The
Agreement itself was amended by the Protocol amending article 14 (3) done at New York on
21 August 1975, which entered into force on 19 April 1985.
• Annex A: General provisions and provisions concerning dangerous articles and substances
• Part 1
• General provisions
• Part 2
• Classification
• Part 3
• Dangerous goods list, special provisions and exemptions related to limited and excepted quantities
• Part 4
• Packing and tank provisions
• Part 5
• Consignment procedures
• Part 6
• Requirements for the construction and testing of packagings, intermediate bulk containers (IBCs), large
packagings, tanks and bulk containers
• Part 7
• Provisions concerning the conditions of carriage, loading, unloading and handling
• Annex B: Provisions concerning transport equipment and transport operations
• Part 8
• Requirements for vehicle crews, equipment, operation and documentation
• Part 9
• Requirements concerning the construction and approval of vehicles