Multimodal Transport

Operation
What is Multimodal Transport?
Multimodal transport involves the use of two or more
modes of transportation to move goods from origin to
destination.

It seamlessly integrates different transport methods like

rail, road, sea, and air to create efficient and flexible
supply chains.
Benefits of Multimodal Transport

1 Increased Efficiency 2 Cost Savings

Multimodal transport integrates different Combining multiple transport modes can
modes of transportation, optimizing the lead to reduced operational costs, fewer
logistics chain and reducing delivery delays, and economies of scale.
times.

3 Flexibility and Reliability

The ability to switch between transport
modes enhances supply chain resilience
and reduces the risk of disruptions.
Benefits …. in the case of Ethiopia
Challenges in Multimodal Transport
1 Infrastructure Gaps
Inadequate transportation infrastructure, such as rail networks or limited
port capacity, can hinder the smooth flow of goods across modes.

2 Regulatory Complexities
Customs procedures and documentation requirements across different
modes and jurisdictions can be intimidating.

3 Coordination Challenges
Ensuring timely communication, information sharing, and coordination
between various stakeholders, like carriers, terminals, and customs,
is critical but often difficult to achieve.
Role of a Multimodal Transport
Operator
They coordinate the smooth movement of goods across
different modes of transportation, ensuring efficient and
cost-effective delivery.

They act as the single point of contact for shippers,

managing the entire logistics process from origin to final
destination.
 Unimodal Vs Multimodal

Contract Contract Contract Contract Contract Contract

Payment Payment Payment Payment Payment
Document Follow-up Document Follow-up Document
Insurance Insurance Insurance
Follow-up Follow-up Follow-up

Multimodal Transport
. Single contract with MTO
. Single document
. Limited communication
. Better control
Relationship of multimodal transit operator
with other parties
Common Carriers 1

2 Non-carriers

Other parties 3
1. Common carriers

Shipowners / Road Transport Railways Airlines

Shipping Lines Operators
Railways are contracted Airlines become
Shipowners and Road transport operators by the multimodal subcontractors to the
shipping lines become are engaged by the transport operator to multimodal transport
subcontractors to the multimodal transport provide land operator, providing air
multimodal transport operator to provide land transportation services transportation services.
operator, providing sea transportation services by rail.
transportation services. by truck.
2. Non-carriers – Facility and auxiliary service
providers

1 Container terminals / container yards

2 General warehouses

3 CFS or groupage or consolidation warehouses

4 Container leasing organizations

5 Agencies
3. Other parties – Financial institutions and
authorities
Banks
Insurance companies
Port and terminals
Customs
Government regulatory bodies
 The new opportunity to Panafric

Rate 31.41% 35.95% 45.90% 1.99% 3.78% -2.63%

increase
ESL’s multimodal container import increased 1% annually

• 2012 – 182,859.49 TEU

• 2013 – 184,688.08 TEU
• 2014 – 186,534.96 TEU
• 2015 – 188,400.30 TEU

Let’s assume the four multimodal operators share the above market
equally, then PGL will have 47,100 TEU per year

Currently, Panafric moves 4000+ TEU per year from Dji. (1000+% )
 Duties and Responsibilities of Panafric as MTO
1. Origin management 3. Port of Discharge

 Booking  Port operation

 Receiving goods from shipper  Import paperwork and customs
 Produce appropriate documentation clearance
 Transport the units to port of export  Transport provision, coordination and
 Unloading from the means of follow-up
transport
 Export port operation

4. Dry port and terminal management

2. Sea Transport  Accepting the multimodal unit
 Container location assignment
 Loading cargo on the vessel  Arrival notification to importer
 Follow arrival to destination sea port  Settlement of freight and other
• Djibouti charges
• Mombasa  Cargo release
• Berbera
• …
Thank you!