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Back to News FeedTechnologyThe Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%
TradeS56 · TechnologyFreeSummary

The Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
13 Oct 2026, 12:09 IST10 min read1.8K views

Updated 15 Oct 2026, 17:29 IST

Technology: illustrative image for "The Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%"
Software, AI and digital technology: illustrative image for Technology coverage. Photo: Unsplash.
378
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Nhava Sheva fell to 45 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Technology shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 10.4%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Key takeaways

  • Rail now carries 22.8% of sector export volume on the new corridor.
  • Container dwell time at Nhava Sheva fell to 45 hours from 62 a year ago.
  • Modern warehouse occupancy is above 90 percent as rents climb 10.4%.
  • A shared visibility platform pilots next quarter at Nhava Sheva.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Infosys said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 4.9% of its volume to rail. The company estimates a saving of $457 million a year and a reduction in emissions intensity of roughly 10.4%, a point increasingly requested by European customers.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Netherlands and Saudi Arabia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

By the numbers

Dwell time
40 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.7%
-4 pts
physical inspection rate
Rail share
28.3%
+9 pts
export volume by rail
Logistics saving
9.9%
cost cut
logistics spend saved

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Nhava Sheva will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

Sunita Ghosh, Head of Trade Policy

Rail, warehousing and the middle mile

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

Average container dwell time at Nhava Shevahours
Average container dwell time at Nhava ShevaAverage container dwell time at Nhava Sheva: from 35.3 hours in W1 to 23.6 hours in W8; high 35.3 in W1, low 23.6 in W8.21.224.828.331.835.335.3W1W2W3W427.4W5W6W723.6W8

Source: IGEN Intelligence analysis of reserve bank of india data. Illustrative mock data.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Nhava Sheva to inland container depots now carries 22.8% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra4920.7%4.4%
Nhava Sheva5815.5%2.4%
Chennai5425.5%5%
Kolkata6324.2%4.8%
Visakhapatnam396.9%3.4%
Source: Ministry-level press releases; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Timeline of key events

  1. 11 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 19 Sep 2026
    Rail corridor opens

    Double-stack services begin between Nhava Sheva and the inland depot.

  3. 27 Sep 2026
    Network redesign

    Infosys consolidates three warehouses into one automated hub.

  4. 5 Oct 2026
    Dwell hits low

    Average dwell time drops to 45 hours, a multi-year low.

  5. 13 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $4.3 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Expert commentary

“Resilience is becoming a commercial differentiator, not a cost centre.”

DM
Divya Menon
Partner, Customs & Trade Law, Menon & Partners

“The risk I would watch is a sudden policy move in Netherlands. Everything else can be hedged or absorbed.”

SG
Sunita Ghosh
Head of Trade Policy, Federation of Exporters

“Buyers are paying a premium for certainty. Suppliers who can document, deliver and communicate will capture it.”

VM
Vikram Malhotra
Industry Analyst, Manufacturing, IGEN Intelligence

Where the next savings are

Warehousing is evolving in parallel. Grade-A capacity near Nhava Sheva reached 1,062 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 10.4%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Infosys Adani Ports Larsen & Toubro Titan Company Anita Deshmukh Dev Malik

Frequently asked questions

To 45 hours at Nhava Sheva, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Reserve Bank of India: Exchange-rate and trade-credit bulletins
  2. Ministry-level press releases: Scheme guidelines and cabinet decisions
  3. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  4. Company filings and earnings calls: Disclosures on order books and capex

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Technology#SupplyChain#Logistics#Ports#Netherlands
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Ministry of Electronics & IT · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Technology and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
T
Tanvi Joshi
38m ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

D
Deepa Nair
2h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

F
Faisal Khan
5h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

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S56 · Technology

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Back to News FeedTechnologyThe Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%
TradeS56 · TechnologyFreeSummary

The Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
13 Oct 2026, 12:09 IST10 min read1.8K views

Updated 15 Oct 2026, 17:29 IST

Technology: illustrative image for "The Multimodal Bet: How Technology Firms Are Cutting Logistics Cost by 4.9%"
Software, AI and digital technology: illustrative image for Technology coverage. Photo: Unsplash.
378
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Nhava Sheva fell to 45 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Technology shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 10.4%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Key takeaways

  • Rail now carries 22.8% of sector export volume on the new corridor.
  • Container dwell time at Nhava Sheva fell to 45 hours from 62 a year ago.
  • Modern warehouse occupancy is above 90 percent as rents climb 10.4%.
  • A shared visibility platform pilots next quarter at Nhava Sheva.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Infosys said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 4.9% of its volume to rail. The company estimates a saving of $457 million a year and a reduction in emissions intensity of roughly 10.4%, a point increasingly requested by European customers.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Netherlands and Saudi Arabia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

By the numbers

Dwell time
40 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.7%
-4 pts
physical inspection rate
Rail share
28.3%
+9 pts
export volume by rail
Logistics saving
9.9%
cost cut
logistics spend saved

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Nhava Sheva will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

Sunita Ghosh, Head of Trade Policy

Rail, warehousing and the middle mile

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

Average container dwell time at Nhava Shevahours
Average container dwell time at Nhava ShevaAverage container dwell time at Nhava Sheva: from 35.3 hours in W1 to 23.6 hours in W8; high 35.3 in W1, low 23.6 in W8.21.224.828.331.835.335.3W1W2W3W427.4W5W6W723.6W8

Source: IGEN Intelligence analysis of reserve bank of india data. Illustrative mock data.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Nhava Sheva to inland container depots now carries 22.8% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra4920.7%4.4%
Nhava Sheva5815.5%2.4%
Chennai5425.5%5%
Kolkata6324.2%4.8%
Visakhapatnam396.9%3.4%
Source: Ministry-level press releases; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Timeline of key events

  1. 11 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 19 Sep 2026
    Rail corridor opens

    Double-stack services begin between Nhava Sheva and the inland depot.

  3. 27 Sep 2026
    Network redesign

    Infosys consolidates three warehouses into one automated hub.

  4. 5 Oct 2026
    Dwell hits low

    Average dwell time drops to 45 hours, a multi-year low.

  5. 13 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $4.3 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Expert commentary

“Resilience is becoming a commercial differentiator, not a cost centre.”

DM
Divya Menon
Partner, Customs & Trade Law, Menon & Partners

“The risk I would watch is a sudden policy move in Netherlands. Everything else can be hedged or absorbed.”

SG
Sunita Ghosh
Head of Trade Policy, Federation of Exporters

“Buyers are paying a premium for certainty. Suppliers who can document, deliver and communicate will capture it.”

VM
Vikram Malhotra
Industry Analyst, Manufacturing, IGEN Intelligence

Where the next savings are

Warehousing is evolving in parallel. Grade-A capacity near Nhava Sheva reached 1,062 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 10.4%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Infosys Adani Ports Larsen & Toubro Titan Company Anita Deshmukh Dev Malik

Frequently asked questions

To 45 hours at Nhava Sheva, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Reserve Bank of India: Exchange-rate and trade-credit bulletins
  2. Ministry-level press releases: Scheme guidelines and cabinet decisions
  3. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  4. Company filings and earnings calls: Disclosures on order books and capex

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Technology#SupplyChain#Logistics#Ports#Netherlands
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Ministry of Electronics & IT · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Technology and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
T
Tanvi Joshi
38m ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

D
Deepa Nair
2h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

F
Faisal Khan
5h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

Trending now

  1. 01Green Hydrogen to Grid Storage: Inside the Biotechnology Transition Investments
  2. 02Vietnam Market Brief: Demand, Tariffs and Where Indian Gaming Fits
  3. 03$1.9 billion Investment Wave Reshapes Ports: Plants, Talent and the Race for Capacity
  4. 04Inside India's Civil Aviation Build-Out: Capex, Bottlenecks and the 2029 Target
  5. 05$8.3 billion Investment Wave Reshapes Textiles: Plants, Talent and the Race for Capacity
Topic
S56 · Technology

Ministry of Electronics & IT

NetherlandsSaudi Arabia

More to read

All headlines →
Industry · Biotechnology

Green Hydrogen to Grid Storage: Inside the Biotechnology Transition Investments

5 min read
Country · Gaming

Vietnam Market Brief: Demand, Tariffs and Where Indian Gaming Fits

8 min read
Technology · Ports

$1.9 billion Investment Wave Reshapes Ports: Plants, Talent and the Race for Capacity

10 min read
Technology · Civil Aviation

Inside India's Civil Aviation Build-Out: Capex, Bottlenecks and the 2029 Target

10 min read
Company · Textiles

$8.3 billion Investment Wave Reshapes Textiles: Plants, Talent and the Race for Capacity

9 min read
Industry · Film Making

Earnings Call Takeaways: Maruti Suzuki Raises Film Making Capex Plan to $8.3 billion

6 min read