Multimodal Transport
Name: Marwan Hassan Allam
Reg.: 16108106
1-What is multimodal transport?
Sometimes, a single-mode of transportation is simply not enough. For those products and
commodities that require multiple modes of transportation – the multimodal transport option
or combined transport is a safe, and efficient way to move products throughout the supply
chain. This type of service is offered by professional third-party logistics providers to
distribution, retail, and manufacturing companies.
The multimodal transportation industry has several layers, benefits, and a few hurdles that
3PL’s can help their clients navigate. International multimodal transport means the carriage of
goods by at least two different modes of transport on the basis of a multimodal transport
contract from a place in one country at which the goods are taken in charge by the multimodal
transport operator to a place designated for delivery situated in a different country. The
operations of pick-up and delivery of goods carried out in the performance of a unimodal
transport contract, as defined in such contract, shall not be considered an international
multimodal transport.”
2-Development of multimodal transport?
The port system has a crucial importance for the overall traffic and the cargo flows as a
connection point of two or more transport modes, as well as implementation of cargo
transshipment from the sea-land transport and vice versa. Consequently, the port has a
fundamental role in the development of economies, since the global economy increasingly
requires efficient transfers of cargo and other resources from the areas with relatively low
efficiency to destinations where these efficiencies are relatively high. With the modern
technologies in ports, a better control of ships navigating at port basins and entrances is
provided together with more effective control of transshipment operations. Modern ports are
supposed to be increasingly involved into physical changes of cargo form, from small packed
cargo items to large and/or integrated cargos. Nowadays, most of the ports are actively
participating in the activities of collecting, processing and producing new goods resulting in
the continuous modernization, expansion and provision of new port capacities. The port
development is greatly influenced by multimodal transport, as a modern form of port system
containerization. Apart from that, multimodal transport changed the organizational and
marketing structure of the port and its hinterland and it also significantly affected the
development of port competition. This paper aims at the importance and role of multimodal
transport in the port system modernization, since the development of multimodal transport is
directly reflected on the improvement of management and control of terminal operations, as
well as the improvement of coordination among participants in the transport chain. Since the
port system as a complex entity includes and combines multiple modes of transport and
subsystems necessary for its functioning, when considering the impact of multimodal transport
on the development of port system containerization, in the consideration of certain problems
the method of systematic approach is used. Furthermore, in this paper functional elements of
multimodal transport are elaborated for the purpose of port system containerization
development. The paper also provides analysis of the most important factors within multimodal
transport, directly reflected on the development of containerization in ports and, in broader
sense, they affect a higher level of quality of maritime transportation services.
3- The legal aspects of multimodal transport (Un on MT 1980)
United Nations Convention on International Multimodal Transport of Goods
)Geneva, 24 May 1980 (
THE STATES PARTIES TO THIS CONVENTION
RECOGNIZING
that international multimodal transport is one means of facilitating the orderly expansion of )a(
;world trade
the need to stimulate the development of smooth, economic and efficient multimodal )b(
;transport services adequate to the requirements of the trade concerned
the desirability of ensuring the orderly development of international multimodal transport )c(
in the interest of all countries and the need to consider the special problems of transit
;countries
the desirability of determining certain rules relating to the carriage of goods by )d(
international multimodal transport contracts, including equitable provisions concerning the
;liability of multimodal transport operators
the need that this Convention should not affect the application of any international )e(
;convention or national law relating to the regulation and control of transport operations
the right of each State to regulate and control at the national level multimodal transport )f(
;operators and operations
the need to have regard to the special interest and problems of developing countries, for )g(
example, as regards introduction of new technologies, participation in multimodal services of
their national carriers and operators, cost efficiency thereof and maximum use of local labour
;and insurance
the need to ensure a balance of interests between suppliers and users of multimodal )h(
;transport services
the need to facilitate customs procedures with due consideration to the problems of transit )i(
;countries
AGREEING to the following basic principles
that a fair balance of interests between developed and developing countries should be )a(
established and an equitable distribution of activities between these groups of countries should
;be attained in international multimodal transport
that consultation should take place on terms and conditions of service, both before and after )b(
the introduction of any new technology in the multimodal transport of goods, between the
multimodal transport operator, shippers, shippers' organizations and appropriate national
;authorities
;the freedom for shippers to choose between multimodal and segmented transport services )c(
that the liability of the multimodal transport operator under this Convention should be )d(
,based on the principle of presumed fault or neglect
4-The role of multimodal transport operator in providing multimodal transport services?
The functions of the operator, in other words, the key person in the organization of multimodal
transport, can be served by a forwarder, logistics or sea, air, or a car carrier. The operator
signing the contract also guarantees that he takes full responsibility for the transported goods,
the completeness, degree of damage, or encountered transport problems.
The operator has the right to sign a contract with other carriers, thereby increasing and
improving the services offered. However, he is then responsible for checking and coordinating
their activities.
Operators can be divided into direct, who have their communication and transport fleet, or
indirect, who must hire subcontractors to bring the transport order to effect.What is more, we
can divide multimodal transport into intermodal transport and combined transport. Mostly they
are used interchangeably. However, there are several things which are different.
Intermodal transport concerns the transportation of cargo using various modes of transport;
however, in one load unit, e.g., in the same container, such a container is not opened during the
whole transport process.
Combined transport is a service in which the unit is transported between various transshipment
points by rail, sea, or inland waterway; however, its delivery from the sender and transport to
the recipient uses road transport.
The most important document for this kind of transport is “FIATA Multimodal Transport.” Its
creation facilitated many issues for importers and exporters. According to the rules of this
document, the forwarder is responsible for the goods and damages caused on the whole route,
and not only in individual means of transport.
Nowadays, this kind of transport is very popular. It brings many benefits and good solutions.
Customers thanks to this option, can quickly, efficiently, and also cheaply transport their goods
at different distances.
5-FIATA documents:(MT B/L)
FIATA is the acronym for the French term „Fédération Internationale des Associations de
Transitaires et Assimilés“, which in English means „International Federation of Freight
Forwarders Associations“. It is a non-governmental organization representing the interests of
around 40,000 members who are mainly forwarding and logistics firms across 150 countries.
FIATA has created several documents and forms to establish a uniform standard for use by
their members worldwide. These FIATA documents have an excellent reputation internationally
and are recognized as documents of tradition and trust, the FIATA Bill of Lading being one of
them.
For the carriage of goods, the FIATA members use below forms as their Bill of Lading.
FBL (negotiable FIATA Multimodal Transport Bill of Lading)
FWB (non-negotiable FIATA Multimodal Transport Waybill)
So how is a FIATA Bill of Lading different from a Carrier’s Bill of Lading or other House Bills
of Lading issued by other forwarders?
In terms of the role of the bill of lading, the FIATA bill of lading performs the same role of a
forwarder or carrier’s bill of lading which is :
Evidence of contract of carriage
Receipt of goods
Document of title to goods
The main difference is that the FIATA bill of lading has its own terms and conditions to cover
their members. Only paid-up members of FIATA are allowed to use these bills of lading legally
and only paid-up members receive the FIATA Bill of Lading stationery with the FIATA
logo.The member freight forwarder may further customise it with their own logo but always
keeping the FIATA logo visible and on the FIATA Bill it is usually a watermark.
The FIATA bill of lading may be printed and issued only by associations or members
authorized by FIATA which ensures the security of the bill of lading. Any claims received for
shipments under a FIATA bill of lading may be entertained only if the claiming member is fully
subscribed with FIATA.
The FIATA multimodal transport bill of lading is recognized worldwide. It is considered and
acknowledged as a negotiable document of title in line with the International Chamber of
Commerce Uniform Rules.
The FIATA bill carries the logo of the ICC in addition to that of FIATA and may carry the logos
of the freight forwarder and any other association that the freight forwarder may belong to, like
BIFA (British International Freight Association). Since FIATA is such a prestigious institution,
many scamsters and fraudsters use the FIATA logo illegally on their website and/or bill of
lading to gain mileage out of this association. FIATA encourages their members to always use
the FIATA website to verify the authenticity of the forwarders displaying the FIATA logo.
The FIATA bill of lading is very commonly mentioned in Letters of Credit and shipping
instructions as the preferred document of transport and is recognized by the ICC Banking
Commission Group as a carrier’s bill of lading. In line with the digitalization of the freight
industry, FIATA has joined forces with essDOCS to offer FIATA members and their customers
an electronic version of the FIATA Bill of Lading (eFBL).
FIATA has created several documents and forms to establish a uniform standard for use by
freight forwarders worldwide. The documents are easily distinguishable as each has a
distinctive colour and carries the FIATA logo which can be seen at the head of this page.
FIATA FCR (Forwarders Certificate of Receipt)
FIATA FCT (Forwarders Certificate of Transport)
FWR (FIATA Warehouse Receipt)
FBL (negotiable FIATA Multimodal Transport Bill of Lading)
FWB (non-negotiable FIATA Multimodal Transport Waybill)
FIATA SDT (Shippers Declaration for the Transport of Dangerous Goods)
FIATA SIC (Shippers Intermodal Weight Certificate)
FFI (FIATA Forwarding Instructions)
FIATA documents have an excellent reputation and are recognised as documents of tradition
and trust. They have greatly contributed in the past to the facilitation of international
exchanges and will continue in the future to be valuable instruments in the service of world
trade.
Benefits
Shipping Instructions can be sent to FIATA members electronically, while CargoDocs™
Collaborative Drafting tool improves the eFBL drafting process
This reduces time for drafting/approving documents, allowing faster release of eFBL to
shipper/exporter, with more accuracy
No courier fees or delays resulting from physical distribution of documents
Significant time and cost saving when eFBLs or other documents require amending (e.g., if
Bank finds a discrepancy against L/C, or a COD requires new documents)
In Trade Finance applications, eDocs are delivered directly to the L/C or eDoc Collection
team, bypassing the local office and speeding up L/C review
Eliminates risk of fraudulent B/Ls being presented at destination for collection of goods
No more lost bills of lading
eDocs archived electronically, and searchable so can be accessed at any time, reducing paper
storage
6-container revolution and multimodal transport?
Theo Quick:
Vice President, Transportation & Hospitality, Atos:
The last 100 years have brought multiple innovations to the transport industry. Each day, a
billion people take a car, bus or subway, around 11 million passengers fly and nearly 200
million parcels are delivered.
But major changes are on the way. Everywhere, new entrants are challenging existing transport
practices. Online providers leverage mobile to create new relationships with travelers.
Marketplaces exploit peer-to-peer to move from a world of vehicle possession to one based on
usage. New players use the power of real-time data to offer personalized door-to-door travel
and logistics services.
Digital driving change
By interconnecting people, vehicles and infrastructure, digital technologies are enabling traffic
to be radically optimized. They are transforming passengers’ and freight owners’ experiences
along their journey. They are revolutionizing economic models through multimodal services
and the sharing economy. And they promise to disrupt the market further with autonomous
vehicles, drone-taxis, hyperloop trains and hypersonic air transport.
Rethinking transportation
In the face of rapid change, incumbent transport providers must react if they do not want to be
outpaced. This evolution can be a threat but can also offer extraordinary opportunities to
thrive.
In the face of profound changes that challenge many assumptions of the past, transport
companies and organizations must not only rethink the way they handle their businesses but
also create new avenues for the future. Passenger relationships, operations, business models,
and trust and compliance must all be reinvented.
7-how the multimodal transport can improve the international trade?
The system of Multimodal Transport Operations (MTO) is aimed at facilitating international
movement of traffic on a door-to-door basis. Such a system involves the integration of the
marine, port and inland transport sectors of trading partners. The existing transportation
systems in tropical Africa do not meet the standards required for such operations. This paper
examines the deficiencies in the transport systems and analyses the implications of introducing
the MTO system on transport policies, investment, insurance matters and port consolidation in
tropical Africa.
An efficient transport system is essential for an efficient supply chain to facilitate international
trade. To utilize all cheaper resources, such as labor in Bangladesh, companies receive supplies
from one country, produce the products in another country, and sell them in other countries.
The transport filling the gaps among them. To perform the transport function a carrier may
require the use of more than one mode, the so-called multimodal transport. Multimodal
transport, an integrated systems approach, can be defined as the most cost-and time-effective
way of moving goods from shipper to consignee. But in developing countries like us transport
system is still operating in a conventional fragmented way where modal integration has not
been achieved. This paper focuses on efficiency of multimodal transportation for international
trade facilitation. The paper gives an overview of multimodal development in Bangladesh. The
present attempts to fill this gap through an in-depth literature review of international freight
transport of developed and developing countries and a qualitative study based on the survey.
Data were collected from both the primary and secondary sources using field methods and
document analysis respectively. Primary sources of data were from the various freight
forwarding company, logistics company. The Secondary sources of data were published books
and unpublished materials relevant to the study. This study describes the major issues behind
the efficiency of multimodal transportation. It finds out the root causes of inefficiency in
multimodal transportation. Identified causes are infrastructure problem, customs problem,
policy problem. The study proffered some strategies like-simplification of customs, use
integrated transport system etc. At the end this study states some recommendations for the
development of multimodal transportation. These includes-Infrastructure
Development,standard customs clearance system, establishment of sufficient number of inland
terminals, implement integrated transport policy.
8- Major challenges in implementing multimodal transportation in egypt:
infrastructure,custom
clearance procedures,skilled man power,multimodal transport operator,modern
information technology.
The Egypt Multisector Infrastructure Assessment Program report was funded by the British
Government through the UK-WB Trust Fund in Egypt, and was prepared by a team led by:
Aijaz Ahmad (Task Team Leader, Senior Public Private Partnership Specialist, GTIFP) and
Helen Martin (Co-Task Team Leader, Senior Public Private Partnership Specialist, GTIDR),
under the supervision of Clive Harris (Practice Manager, GTIMF) and Ashish Khanna
(Program Leader, MNC03). Members of the core team included: Fatma El Zahraa Yassin Aglan
(Agriculture Specialist, GFA05), Tu Chi Nguyen (Energy Specialist, GEE05), and Aleksandra
Liaplina (Consultant, GTIAK).
The team would like to acknowledge the support of Asad Alam, Chief of Staff, Office of the
President and Walid Labadi, Country Manager (CMEEC).
The team would also like to acknowledge the invaluable active support of the following
Practice Managers: Alejandro Alvarez de la Campa (GFCM1), Carmen Nonay (GWA05), Erik
Magnus Fernstrom (GEE05), Jean Denis Pesme (GFCMW), Julian Lampietti (GFA03), Olivier
Le Ber (GTD05), Renaud Seligmann (GGOMN), and Yolanda Tayler (GGOPM).
The team is indebted to the following individuals for the contribution and inputs to various
sector pieces: IBRD: Wael Zakout (Senior Advisor, GSULN) Tracey Lane (Program Leader,
MNC03), Arnaud Dornel (Lead Financial Sector Specialist, GFCLT), Alan Moody (Lead
Economist, GFCME), Laurent Gonnet (Lead Financial Sector Specialist, GFCAW), Diep
Nguyen-Van Houtte (Lead Transport Specialist, GTD05), Osama Hamad (Lead Water Supply
and Sanitation Specialist, GWA05), Christopher Brett (Lead Agribusiness Specialist,
GFAGE), , Ibrahim Saeed Chowdhury (Senior Economist, GMTMN), Katharine Baragona
(Senior Infrastructure Finance Specialist, GEE05), Hatem Chahbani (Senior Transport
Specialist, GTD03), Sami Ali (Senior Transport Specialist, GTD05), Sandra Broka (Senior
Agriculture Specialist, GFA05), Mohamed Nada (Senior Urban Specialist, GSU11), Sameh
Mobarek (Senior Energy Specialist, GEE05), Alexander Johannes Huuderman (Senior Gas
Specialist, GEEX2), Mohamed Yehia Ahmed Said Abd El Karim (Senior Financial
Management Specialist, GGOMN), Jamal Abdulaziz (Senior Procurement Specialist,
GGOPM), Farid Tadros (Senior Private Sector Specialist, GFCM1), Kilara Suit (Economist,
GMTA4), Joern Huenteler (Energy Specialist, GEE01), Mariam Sameda (Private Sector
Specialist, GFCM1), Mekbib Haile (Young Professional, GFA03), Aldo Baietti (Consultant,
GWAGP), Dina Elabd (Consultant, GTD05), Xuanhe Wang, (Consultant, GFCLT), Enas
Shaaban (Team Assistant, MNCEG), Hebatallah Aboelleil (Team Assistant, MNCEG), Ingy
Awad (Team Assistant, MNCEG); IFC: Ignacio De Calonje (Chief Investment Officer,
CNGOG), Pierre Pozzo di Borgo (Chief Industry Specialist, CN3SI), Ashruf Megahed
(Principal Investment Officer,CM3A3), Malak Draz (Investment Officer, CN3IN), , Mark
Sorial (Investment Officer, CN3IN), Jean-Louis Morcos (Investment Officer, CNGOG),
Mohamed El Atfy (Associate Investment Officer, CM3MP),; MIGA: Abir Burgul, Senior
Underwriter (MIGOP).
Finally, the team would like to thank the peer reviewers of this report; Martin Raiser (Country
Director, LCC5C); Marianne Fay (Chief Economist, GGSCE), Merli Margaret Baroudi
(Director, MIGES) and Bernard Sheahan (former Director of Global Infrastructure and Natural
Resources, IFC). Additional written comments were provided by Sajjad Ali Shah (Manager,
MNADE).
(http://documents.worldbank.org/curated/en/588971544207642729/pdf/132784-v2-WP-
PUBLIC-Final-Report-Egypt-InfraSAP-English.pdf)
