Intermodal Transportation and Logistics Management Strategies: A Case Study of Pakistan Intermodal Limited

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Logistics and supply Chain Management
By (Name): Abbas Muhammad Ahsan
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Introduction
History, as well as rivalry between modes, has resulted to the production of segmented
and un-integrated transportation systems. Every mode, particularly the carriers that used to
operate them, has aimed at exploiting intermodal transportation relating to its cost, safety,
service, as well as reliability. These carriers have sought to retain the business while maximizing
their revenue through maximization of the haul-line under their control. All the modes consider
the other modes to be rivals. Additionally, there is a certain level of mistrust as well as suspicion
as a result of the different rivalry rules and regulatory regime. Public policy as well accentuated
to the lack of integration between modes, thus preventing organizations from owning companies
in other modes or has led to the placement of the modes under the state’s direct monopoly
control. Modalism has been favored by the technical challenges that arise when transferring
goods from a particular mode to the other, hence leading to incurring additional costs as well as
delays, the primary reason being that there was a need to change the load unit that is necessary
for bulk transportation. Initially, this started with the aim of enhancing the productivity of
shipping goods and later evolved into an integrated supply chain management system across
different modes. This has involved the use of more than one different mode in shipping through
the use of an intermodal transport chain. This has permitted integration of many transportation
networks. Thus intermodal aims at improving transport’s chain economic performance. This
essay aims at addressing the Pakistan Intermodal Limited PIL, analyzing intermodal’s features,
and identifying strategic management strategies. Also, crucial problems related to logistics
network in Pakistan are identified, as well as how they can be solved. The sustainability of the
various activities is based on the several qualitative studies conducted.

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Pakistan Intermodal Limited is the latest Marine Group companies’ initiative located in
Pakistan aimed at developing intermodal service within the nation through the use of freight train
operations that meet international standards both at the local and regional level. The company
avails road-rail connectivity, having ports trough inland ports with the primary goal of providing
efficient logistics solutions as well as assist to develop a cost-effective transportation across both
the local and the international corridors (Abbasi and Hassan, 2013, pp.61). According to the
company, some of the benefits associated with intermodal transportation include: there are
reduced costs in using intermodal transportation. Firms have the capability of reducing
transportation costs by moving their freights in intermodal containers. For instance, the use of
rail and trucks avails major saving on fuel. The trains consume less diesel compared to the
trucks. For long-haul trucking, fuel can be considered to be a huge expense. However, trains
assist in easing the impact (Assadipour, Ke and Verma, 2015, pp.53). Nonetheless, trains help in
reducing a company’s carbon footprint. Shipping in containers also reduces costs since no
individual handling is required. Second, with intermodal transportation, there is consistency in
capacity. For instance, rail and truck provide reliable capacity. Less rivalry in securing freight in
intermodal transport not only lowers costs but also offers capacity when it is needed.
Nonetheless, intermodal transportation offers quality services. Compared to the other modes,
intermodal is more resourceful (Bergqvist and Monios, 2014, pp.26). This is because it is safer
and secure for cargo transportation. It is obvious that trains are on fixed a track hence they are
less likely to be involved in an accident as they carry hazardous or very combustible freight.
Important Features of an Intermodal
Mohmand and Wang,(2013) elaborates on the primary features of an intermodal logistic
system. The most essential feature of intermodal transportation is the drayage. Drayage refers to

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a containers’ movement on trucks between an intermodal station such as marine or road and the
client’s warehouse. In intermodal transportation, drayage movements are specifically applicable
from a freight modeling viewbecause they are supplementary truck cruisesthat require being
constituted to correctly determine the total truck cruises on a given highway network(Bouchery
and Fransoo, 2015, pp.391). Nonetheless, there is importance to have an understanding and
developing a time-of-day drayage cruises’ distribution as well as the manner in which the two
interact with auto traffic, which is established on the intermodal terminals’ activities (Bozorgi-
Amiri, Jabalameli and Al-e-Hashem, 2013, pp.918). The second feature is the equipment’s type
that is used, which has a great influence on the modal intermodal freight flows’ magnitude and
distribution in a particular region. The equipment’s types that play a crucial part in goods’
movement using the intermodal transportation include containers, the intermodal terminal,
transportation equipment such as track-tractors, and intermodal chassis. The freight flows are
affected by the possession and the lease problems that relate to the intermodal equipment.
The third feature is the logistics and the intermodal terminals’ operations. Issues related
to logistics and intermodal operations have an impact on a region’s intermodal freight traffic. An
example of an operational issue that is related to intermodal terminals basically in a modeling
view is the time-of-day terminals’ activities which impacts directly on the time-of-day drayage
truck trips’ activities (García, et al, 2013, pp.222). For instance, the rush-hour drayage trucking
operations may correspond with the peak-hour auto traffic on the main freight corridors as well
as the access routes, hence causing congestion and adverse environmental and safety issues. The
last feature is the cargo handling at the intermediate facilities. In intermodal freight movements’
instance where cargo control, as well as storage, are involved between the modal exchanges, the
location, as well as the intermediate cargo handling and storage facilities’ locations and