Analysing the modal shift from road-based to coastal shipping-based distribution – a case study of outbound automotive logistics in India

Abstract

This paper analyses the modal shift from a primary road-based to coastal shipping-based freight distribution. A mathematical model is developed to optimize the coastal shipping route planning under a multimodal distribution scenario. The model is applied to a case study of the outbound automotive logistics in India. Exploratory insights on the enablers and challenges to adopting coastal shipping-based distribution are presented along with the route configuration and the level of modal shift achievable based on the model results. The results of the study suggest that the current business and regulatory environment is appropriate to achieve almost one-third shift to intermodal coastal shipping, although investments in infrastructure and substantial cost reductions in ship and port operations need to be implemented to ensure further modal shift.