Logistics and Operations Management

This report focuses on Pakistan’s Intermodal Limited PIL, to identify the strategic management strategies as well as the features of the intermodal. It also discusses the problems associated with Pakistan’s logistics network, including how they can be solved, and the government’s involvement in the process.

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Logistics and Operations Management
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Course
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Introduction
A segmented and un-integrated transportation system has been due to increased
competition between modes and the high rate of competition. Each mode, most essentially the
carriers that initially operated them have focused at exploiting the intermodal transportation due
to the safety, reliability, service as well as the costs associated with it. The carriers have aimed at
increasing their revenue by maximizing the haul-line while retaining the business.
Notwithstanding, due to the different regulatory regime as well as the competition rules, there
has been an enhanced rate in mistrust and suspicion. Additionally, the public policy also has
resulted in the lack of integration between various modes. This has led to placing the modes
under the country’s direct monopoly control. The purpose of an intermodal is to enhance the
economic performance of the transport chain. This report will focus on Pakistan’s Intermodal
Limited PIL, to identify the strategic management strategies as well as the features of the
intermodal. Some of the problems associated with Pakistan’s logistics network are identified,
including how they can be solved, and the government’s involvement in the process.
Important Features of an Intermodal
According to Bouchery and Fransoo (2015), among the most essential characteristics of
an intermodal include: first is the operations that take place both in the intermodal and logistics
terminals. Problems that are associated with intermodal operations, including logistics operations
affect the country’s intermodal freight traffic.1 Such operational issues that may affect a
country’s intermodal traffic and which relate to the intermodal terminals include the time-of-day
activities at the terminals that have a direct effect on the time-of-day drayage activities of the
1 Vaggelis Giannikas and Duncan Mcfarlane, “Product Intelligence in Intermodal Transportation:
The Dynamic Routing Problem” [2013] Dynamics in Logistics Lecture Notes in Logistics59.

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truck trips.2 For example, there might be a correspondence of the rush-hour drayage trucking
activities with the primary freight corridors and access routes’ peak-hour auto traffic. This may
result in congestion, cause safety problems, and lead to adverse environmental problems.
Among the intermodal features identified by Bouchery and Fransoo (2015), the most
crucial feature is the drayage. The term drayage is used to refer to the movement of containers by
use of trucks between intermodal stations. In regard to the intermodal transportation, the term is
particularly applied from a freight modeling view since they require to be constituted in the right
way.3 By so doing, they can assist in determining the total number of truck cruises on a given
highway network. In addition, it is important to have a clear understanding and to develop a
time-of-day distribution of the drayage cruises. It is essential to also understand how the two
interact with the auto traffic that is created in the activities involved in the intermodal terminals.
Additionally, handling of the cargo at the intermediate facilities is the other feature of an
intermodal. In the case of movements involving intermodal freights where cargo storage and
control are involved during the modal exchanges, the factors that have an impact on a country’s
distribution of the freight flows and its magnitude include the operations, location, the location of
the storage facilities, and the intermediate cargo handling.4 Some of the operations and their
effects on various intermediate facilities consist of: first is the bulk transfer facilities that include
2 M Postan and M Postan, “Method of Assessment of Insurance Expediency of Quay Structures
Damage Risks in Sea Ports” [2013] Marine Navigation and Safety of Sea Transportation123.
3 Laurent Deroussi, “A Review of Logistic Problems” [2016] Metaheuristics for Logistics13.
4 Roland Jachimowski, “Review of Horizontal Transport Decision Problems in the Marine
Intermodal Terminal” (2017) 44 Archives of Transport35.

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trans-loading of both liquid and bulk goods such as petroleum which is moved between transport
modes, for instance, petroleum that is moved between road and rail. It is also important to
consider the number of truck cruises which are made between the bulk movement warehouse and
the client’s warehouse. LTL cross-docking station is the other operation. In the incidence of a
long-haul LTL shipment, it involves many other short-haul transportation truck cruises which are
essential in the pickup as well as the movement between an LTL receiver and the LTL’s cross-
docking terminals.5 The last factor is the trans-loading docks that are found at the distribution
centers and the warehouses. Both the distribution centers and the warehouses are crucial freight
facilities that provide cargo holding between modal interchange and contain the necessary
intermediate cargo handling.
Strategies in Logistics Management
According to Kanafani, Wang and Griffin (2012), when a logistics strategy is created by
a company, the focus is always to define the service levels within which logistics is cost-
effective in that organization.6 As a result of the constant changes in the supply chain, a company
may opt to develop many logistics strategies depending on the nation, products, or even the
customers. The main objective of a logistics management strategy is to make sure that little
money is spent on delivering the costumers’ requirements. Since a logistics strategy facilitates
flexibility within the supply chain, it is important for the Pakistan Intermodal Limited to develop
their logistics strategy. Over the past few years, the company has become overwhelmed by the
5 Katarzyna Anna Kuzmicz and Erwin Pesch, “Approaches to Empty Container Repositioning
Problems in the Context of Eurasian Intermodal Transportation” [2018] Omega.
6 Violeta Roso, “Sustainable Intermodal Transport via Dry Ports - Importance of Directional
Development” (2013) 4 World Review of Intermodal Transportation Research140.

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quantity of information from the customers as well as the suppliers who are located in different
geographic locations.7 This is due to the problems that face the company, including expanding its
market, quality standards, global operations, and stricter regulations. This makes it necessary to
come up with strategies that will help in managing data properly. This includes all the data found
in all the stages of the supply chain that consist of tax documents, rental contracts, labor
agreements, direct and the indirect materials, and compliance certificates among others.
Notteboom (2012) notes that if the Pakistan Intermodal Limited adopts a data
management and integration strategy, it can be in a position to solve its operational challenges.
To achieve this, the organization should consider connecting its supply chain system to those of
its shippers and the partners.8 The data management and integration strategy would assist
Pakistan Intermodal Limited to obtain the required visibility and control over its logistics system.
Additionally, the raw data that comes from the companies’ customers, suppliers, including the
partners are both structured and unstructured, thus making it difficult for the firms’ to take in,
asses, and come up with insightful information from the disjointed pieces of data.9 Putting in
7 KYNg Adolf and John Liu, “Government Policies and the Role of Institutions” [2014] Port-
Focal Logistics and Global Supply Chains114.
8 Nan Yu, Zhehui Zhang and Shuhui Zhang, “Optimization for Time-Limited Intermodal
Transportation Route Selection Considering Carbon Emission Costs” [2017] Proceedings of the
2017 2nd International Conference on Materials Science, Machinery and Energy Engineering
(MSMEE 2017).
9 Xi Chen and Xiao Ning Zhu, “Logistics Infrastructure Network Evaluation Method Research
Based on Logistics Resource Integration in Railway Logistics Enterprises” (2014) 933 Advanced
Materials Research941.

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place an effective management and integration strategy is helpful to the organizations in
transforming this kind of raw data into formats which are compatible, and which are necessary
for all the supply chain management systems in ensuring that there is a seamless flow.
Issues with the Present Logistics System in Pakistan
According to Uddin (2013), by considering every logical indicators that include the
transport infrastructure and the quality of trade, Pakistan’s performance is poor if compared with
the other Asian nations.10 The current transport system has failed in availing the required
desirable services, which is an indicator of the present logistics that is made of the intermodal
transportation and which is crucial in combining the different transport modes into a single
integrated transport system. The following are some of the issues that face Pakistan’s logistic
system:
Bouchery and Fransoo (2015) note that among the problems facing Pakistan’s logistics
system is the lack of planning as well as the high rates of corruption both in the private and the
public sector. The role of the private sector, failure to come up with a high-capacity logistics
system, as well as the failure of not maximizing on the use of the current land patterns to
construct an efficient and reliable logistics system have been noted to be the most essential
elements that are needed in coming up with an efficient logistic system in Pakistan.11
Nonetheless, the country is also faced with the problem of poor or lack of infrastructure. It is
10 Ghulam Shabbir, Mumtaz Anwar and Shahid Adil, “Corruption, Political Stability and
Economic Growth” (2016) 55 The Pakistan Development Review689.
11 Dong-Wook Song, “Researching Global Logistics and Supply Chain Issues” (2016) 24 Korean
Journal of Logistics1.

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evident that the nation has got inadequate intermodal connections with the other modes that
include the maritime ports, inland distribution centers, and the railroads. Also, there is a lack of
the required infrastructure to link the truck transportation system with the rail. Regardless of the
transport sector remaining operational, it is however faced with several problems such as being
unreliable, poor quality, and prolonged traveling times, particularly the rail transport.
Giannikas and McFarlane (2013) argue that the poor planning combined with enhanced
motorization have resulted in the increased levels of pollution and traffic congestion, mainly in
the urban areas.12 As a result, there has been a decrease in export competitiveness, higher costs of
carrying out business, and it also limits Pakistan’s ability to integrate into the global supply
chain. Despite, the geography has enabled the nation to possess the capability to increase
economic gains since it is a hub for regional trade both in China, Central Asia, India, as well as
Iran, the policies made by Pakistan’s government will determine if the country will be able to
capitalize on the opportunity. Relating to the logistics system, there has been a controversy in
Pakistan between the professionals and the policymakers. Due to political pressure, in the past,
the railways have maintained uneconomical rail stations and opened new ones, making the
maintenance of the transport system to be an issue.13 There is also inconsistency in customs
inspections, making the average time the containers remain in the ports to be double that of the
international average.
12 Nisha Taneja, et al, “Emerging Issues in India–Pakistan Trade: An Introduction” [2016] India-
Pakistan Trade Normalisation1.
13 Daniel Link, Bernd Hellingrath and Christian Bültemann, “Information Categories for
Infrastructure and Logistic Resource Assessments in Humanitarian Logistics” [2014] Logistics
Management Lecture Notes in Logistics445.

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How the Issues can be Resolved
Abbas and Hassan (2013) argue that a logistics network that is cost-effective and efficient
is essential if a company is to remain competitive. Nonetheless, a good logistics network also has
got a direct impact on the economic growth of a country. Pakistan’s logistics issues can be
solved by putting the following in place; by enhancing Pakistan’s basic infrastructure, it implies
that the logistics and the supply chain will become cost-effective and efficient.14 Basically, the
primary reason for the existence of an organization is to serve the clients by making sure that
goods are delivered efficiently and at the right time. If the infrastructure is developed, the
logistics system also improves, thus resulting in an increase in Pakistan’s competitiveness as well
as its ability to attract more investors. Pakistan’s economic and physical configuration can only
be reshaped by improving the country’s logistics network and the infrastructure. This would
make Pakistan develop into a hub for regional trade.
According to Samad and Ahmed (2014), Pakistan’s current interest rates have made the
financing of facilities to become problematic in regards to logistics network and freight
forwarding industry development.15 Also, there is an issue in growing the working capital
requirements. In this case, Pakistan’s government can be helpful in resolving this issues by
developing a mechanism to reduce the interest rates and search for finances to develop Pakistan’s
logistics network. Additionally, it is essential that Pakistan’s government develops a
transportation policy that is comprehensive and futuristic and which is based on actualable short
14 Mariusz Jedliński, “Dynamic Logistics Strategies In The Company Logistics Potential
Management” (2015) 2 Russian Journal of Logistics and Transport Management3.
15 Cecília Vale and Isabel Ribeiro, “Optimized Intermodal Roundtrips in Transport Networks”
[2016] Traffic Management95.

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and long-run plans. To achieve this, Pakistan’s government may consider integrating modern
technology, mode approach, and engage the private investors both locally and external.
Pakistan’s Government Involvement in solving Logistics Issues
Pakistan’s urban transport issues can only be solved by constructing larger and better
roads. In contrast, the use of low cost public transport are encouraged by the principles of
sustainable logistics and they could perform effectively in the country’s high density cities.
Pakistan’s government needs to develop future comprehensive logistics policies that are founded
on short and long-term plans and which are realistic if it is to solve the current logistics issues.16
Over the past ten years, there has been several transformations in the country’s logistics sector
whereby cities that include Islamabad, Karachi, as well as Lahore have put into place actions to
improve their streets and roads. This includes measures to mitigate the traffic issues along with
police efficiency. However, there is much more that needs to be done such as putting in place
future projects under the short and the long-term plans by making use of the modern technology,
integrated mode, and actively involving the private investors both from the country and outside
the country.17 Currently, the country’s population is growing and there are many vehicles being
16 Arkadiusz Kawa and Anna Maryniak, “Logistic Sector as a Support Segment for Sustainable
Supply Chains” [2015] EcoProduction Technology Management for Sustainable Production and
Logistics81.
17 Ghazal Assadipour, Ginger Y. Ke and Manish Verma, "Planning And Managing Intermodal
Transportation Of Hazardous Materials With Capacity Selection And Congestion" (2015)
76 Transportation Research Part E: Logistics and Transportation Review.

10
added into the country every day. As such, the government should consider building Light Rail
vehicle (LRV) trains in the cities and apply the Park and Ride concept.
The first option that the government may consider in regard to the LRV is plan to
construct a line that runs from the new airport that is located in Islamabad Secretariat to south
Rawalpindi. The Light Rail Vehicle Authority should provide individuals with a Park and Ride
(P & R) that is free and secure in all the stations to facilitate people to park their cars and ride the
Light Rail Vehicle.18 The government should make sure that individuals without cars use private
minivans as well as buses to run from the neighborhoods to the nearest Light Rail Vehicle
stations. Despite this option being convenient, it is not sustainable due to the heavy traffic that
results from cars and the motorcycles that are going to the rail stations.
The second option the government should consider proposing Park and Rides lots in the
neighborhoods such that they are located far away from the Light Rail Vehicle stations.19 In this
case, there should be no cars and motor vehicles that should be allowed on the roads which lead
to the LRV stations. The only cars that should be allowed to ferry passengers from the Park and
Ride lots to the LRV stations are the cars used for public transport.20 Adopting this option will
assist in minimizing the traffic congestion as well as environmental pollution inside the
Rawalpindi and Islamabad cities. Additionally, it is evident that CDA and the Rawalpindi local
18 Daniel Link, Bernd Hellingrath and Christian Bültemann, “Information Categories for
Infrastructure and Logistic Resource Assessments in Humanitarian Logistics” [2014] Logistics
Management Lecture Notes in Logistics445.
19 Rickard Bergqvist and Jason Monios, "The Role Of Contracts In Achieving Effective
Governance Of Intermodal Terminals" (2014) 5(1) World Review of Intermodal Transportation
Research.

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government has continuously improved the country’s road, and should at least provide walkways
along with new bicycle tracks. The country should also plan for a multi-modal logistics system
and actualize its plan for the new international airport. Nonetheless, Pakistan’s government
should expand and enhance its research facilities which are located at the Pakistan’s National
Research Center and Military College of Engineering and develop a Multi-Modal Transportation
Research Center at COMSATS Institute of Technology.
Conclusion
There is a lot of income which is generated by Pakistan’s large population which is over
160 million for the intermodal organizations; such as the Pakistan Intermodal Limited, to achieve
the demand as well as the supply in the local markets. Nonetheless, the core issues that do hinder
the investment opportunities and increases the capabilities of capitalizing on the current gaps are
the underserved logistics infrastructure. If Pakistan’s port is to develop into a hub, it is essential
that the government declares and provides the required infrastructure. In addition, it is also
important that necessary logistics regulations should be well-developed to make sure that the
issues which are linked to Pakistan’s logistics network are solved. Having a better logistics
network in a country is important for its growth because it assures safety, ensures there are
timely travel and delivery of goods to the customers and reduces the costs associated with
transportation. Additionally, it gives the producers the opportunity to access the marketplace.
20 Bartosz Grucza , “Selected Problems Of Intermodal TerminalDevelopment Projects In Poland”
(2017) 67 Zeszyty Naukowe Uniwersytetu Gdańskiego. Ekonomika Transportu i Logistyka23.

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Bibliography
Adolf, KYNg and John J Liu, “Government Policies and the Role of Institutions” [2014] Port-
Focal Logistics and Global Supply Chains114
Assadipour, Ghazal, Ginger Y Ke and Manish Verma, “Planning and Managing Intermodal
Transportation of Hazardous Materials with Capacity Selection and Congestion” (2015)
76 Transportation Research Part E: Logistics and Transportation Review45
Bergqvist, Rickard and Jason Monios, “The Role of Contracts in Achieving Effective
Governance of Intermodal Terminals” (2014) 5 World Review of Intermodal
Transportation Research18
Chen, Xi and Xiao Ning Zhu, “Logistics Infrastructure Network Evaluation Method Research
Based on Logistics Resource Integration in Railway Logistics Enterprises” (2014)
933 Advanced Materials Research941
Deroussi, Laurent, “A Review of Logistic Problems” [2016] Metaheuristics for Logistics13
Giannikas, Vaggelis and Duncan Mcfarlane, “Product Intelligence in Intermodal Transportation:
The Dynamic Routing Problem” [2013] Dynamics in Logistics Lecture Notes in
Logistics59
Grucza, Bartosz, “Selected Problems Of Intermodal TerminalDevelopment Projects In Poland”
(2017) 67 Zeszyty Naukowe Uniwersytetu Gdańskiego. Ekonomika Transportu i
Logistyka23

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Haider, Adnan, Musleh Ud Din Musleh Ud Din and Ejaz Ghani, “Consequences of Political
Instability, Governance and Bureaucratic Corruption on Inflation and Growth: The Case
of Pakistan.” (2011) 50 The Pakistan Development Review773
Jachimowski, Roland, “Review of Horizontal Transport Decision Problems in the Marine
Intermodal Terminal” (2017) 44 Archives of Transport35
Jedliński, Mariusz, “Dynamic Logistics Strategies In The Company Logistics Potential
Management” (2015) 2 Russian Journal of Logistics and Transport Management3
Kawa, Arkadiusz and Anna Maryniak, “Logistic Sector as a Support Segment for Sustainable
Supply Chains” [2015] EcoProduction Technology Management for Sustainable
Production and Logistics81
Kuzmicz, Katarzyna Anna and Erwin Pesch, “Approaches to Empty Container Repositioning
Problems in the Context of Eurasian Intermodal Transportation” [2018] Omega
Link, Daniel, Bernd Hellingrath and Christian Bültemann, “Information Categories for
Infrastructure and Logistic Resource Assessments in Humanitarian Logistics”
[2014] Logistics Management Lecture Notes in Logistics445
Postan, M and M Postan, “Method of Assessment of Insurance Expediency of Quay Structures
Damage Risks in Sea Ports” [2013] Marine Navigation and Safety of Sea
Transportation123
Roso, Violeta, “Sustainable Intermodal Transport via Dry Ports - Importance of Directional
Development” (2013) 4 World Review of Intermodal Transportation Research140

14
Shabbir, Ghulam, Mumtaz Anwar and Shahid Adil, “Corruption, Political Stability and
Economic Growth” (2016) 55 The Pakistan Development Review689
Song, Dong-Wook, “Researching Global Logistics and Supply Chain Issues” (2016) 24 Korean
Journal of Logistics1
Taneja, Nisha et al, “Emerging Issues in India–Pakistan Trade: An Introduction” [2016] India-
Pakistan Trade Normalisation1
Vale, Cecília and Isabel Ribeiro, “Optimized Intermodal Roundtrips in Transport Networks”
[2016] Traffic Management95
Yu, Nan, Zhehui Zhang and Shuhui Zhang, “Optimization for Time-Limited Intermodal
Transportation Route Selection Considering Carbon Emission Costs” [2017] Proceedings
of the 2017 2nd International Conference on Materials Science, Machinery and Energy
Engineering (MSMEE 2017)