Multimodal Transport Operator (MTO) - R R Padmanabhan, Director - Exim Academy

Multimodal Transport Operator (MTO)

Courtesy: slideshare.net


There are 5 different modes of transport namely road, rail, sea, air and pipeline.  Businesses have become too complex that it is no longer possible to transport goods from one place to another through a single mode of transport alone.  In many cases, different modes of transport are being to carry the cargo from one place to another.  For example, a consignment of knitted Garments from Tiruppur, Tamil nadu to Hamburg, Germany will first pass through road network to chennai and from there to Hamburg by sea. 

One might wonder what is so big deal in this instance?  Under MTO, the operator will undertake to transport the goods from Tiruppur to Hamburg under his name and style in spite of using 2 different modes of transport and issue a single transport document namely the Bill of Lading.  This single document is called Multimodal transport document. 

A Bill of lading is a document of title conveying ownership of goods upon the person whose name is written in the document.  Being a legal document, it is transferable.  So, in this case, instead of a having a Lorry receipt for the first leg of transport (namely Tiruppur to Chennai) and Bill of lading for the second leg of transport (namely chennai to Hamburg), there will be a single transport document.  Further instead of having to deal with 2 different operators, the exporter will be talking to a single transport operator who assumes the total responsibility for the safe carriage of consignment from Tiruppur to Hamburg, Germany.  

The Multimodal transport operations have been recognised in terms of Multimodal transport Act 1993 and rules and regulations governing the issue of licence to operate and conduct of multimodal transport business. Transport Operators who would like to register as MTO should be having contacts/offices in at least 2 foreign locations and should have turnover of more than Rs.50 lakhs in the preceding financial year.

Source: Shri Sanjiv Garg, CILT India

wherein container handling of 3 Oxygen Tank Containers which were airlifted to Hyderabad was done by CONCOR by deploying In a first of its kind, CONCOR carried out a special operation equipment at Air Force base, Begumpet and moved to Sanathnagar Terminal under FMLM for onward movement by rail to Angul... Multi-modal logistics in true sense!


R R Padmanabhan
Director - Exim Academy

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