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Back to News FeedTourismThe Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%
TradeS58 · TourismFreeSummary

The Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%

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

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
13 Oct 2026, 15:54 IST7 min read1.8K views

Updated 15 Oct 2026, 20:14 IST

Tourism: illustrative image for "The Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%"
Global cities and diplomacy: illustrative image for Tourism coverage. Photo: Unsplash.
318
3
Sponsored

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

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

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in United Kingdom and UAE 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.

Key takeaways

  • A shared visibility platform pilots next quarter at Mundra.
  • Rail now carries 11.5% of sector export volume on the new corridor.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Modern warehouse occupancy is above 90 percent as rents climb 9%.
  • Physical inspection rates dropped to 9% under risk-based clearance.

What changed at the port

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.

Adani Ports said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 13.2% of its volume to rail. The company estimates a saving of $472 million a year and a reduction in emissions intensity of roughly 9%, a point increasingly requested by European customers.

By the numbers

Dwell time
39 hrs
-24 hrs YoY
average container dwell
Inspection rate
1.7%
-4 pts
physical inspection rate
Rail share
33.9%
+9 pts
export volume by rail
Logistics saving
10.5%
cost cut
logistics spend saved

Warehousing is evolving in parallel. Grade-A capacity near Mundra reached 854 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 9%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

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

Arvind Pillai, Chairman

Rail, warehousing and the middle mile

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Mundra 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.

Average container dwell time at Mundrahours
Average container dwell time at MundraAverage container dwell time at Mundra: from 22.6 hours in W1 to 15.5 hours in W8; high 22.6 in W1, low 15.5 in W8.1416.118.320.422.622.6W1W2W3W419.3W5W6W715.5W8

Source: IGEN Intelligence analysis of central board of indirect taxes & customs data. Illustrative mock data.

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra3911.6%2.2%
Nhava Sheva6921.1%5.7%
Chennai3418.3%5.5%
Kolkata3716%5.3%
Visakhapatnam3616.6%3.4%
Source: Ministry-level press releases; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

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 $3.2 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Timeline of key events

  1. 30 Aug 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 10 Sep 2026
    Rail corridor opens

    Double-stack services begin between Mundra and the inland depot.

  3. 21 Sep 2026
    Network redesign

    Adani Ports consolidates three warehouses into one automated hub.

  4. 2 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.

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.

Expert commentary

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

KS
Karthik Subramanian
Logistics & Ports Reporter, IGEN News

“The data is clear on direction and less clear on pace. I would plan for slower and be pleasantly surprised.”

AP
Arvind Pillai
Chairman, Southern Ports Association

“For Tourism, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

SK
Sanjay Kulkarni
Banking & Trade Finance Editor, IGEN News

Where the next savings are

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Mundra to inland container depots now carries 11.5% 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.

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

Adani Ports Dr. Reddy's Laboratories Wipro Larsen & Toubro Dev Malik Nikhil Kamath

Frequently asked questions

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

Sources

  1. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  2. Ministry-level press releases: Scheme guidelines and cabinet decisions
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Reserve Bank of India: Exchange-rate and trade-credit bulletins

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

#Tourism#SupplyChain#Logistics#Ports#UnitedKingdom
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Tourism · 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 Tourism 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.

F
Faisal Khan
2h ago

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

A
Ankit Sharma
5h ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

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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  5. 05The Multimodal Bet: How Ayush & Herbal Medicine Firms Are Cutting Logistics Cost by 14%
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S58 · Tourism

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Back to News FeedTourismThe Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%
TradeS58 · TourismFreeSummary

The Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%

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

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
13 Oct 2026, 15:54 IST7 min read1.8K views

Updated 15 Oct 2026, 20:14 IST

Tourism: illustrative image for "The Multimodal Bet: How Tourism Firms Are Cutting Logistics Cost by 13.2%"
Global cities and diplomacy: illustrative image for Tourism coverage. Photo: Unsplash.
318
3
Sponsored

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

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

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in United Kingdom and UAE 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.

Key takeaways

  • A shared visibility platform pilots next quarter at Mundra.
  • Rail now carries 11.5% of sector export volume on the new corridor.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Modern warehouse occupancy is above 90 percent as rents climb 9%.
  • Physical inspection rates dropped to 9% under risk-based clearance.

What changed at the port

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.

Adani Ports said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 13.2% of its volume to rail. The company estimates a saving of $472 million a year and a reduction in emissions intensity of roughly 9%, a point increasingly requested by European customers.

By the numbers

Dwell time
39 hrs
-24 hrs YoY
average container dwell
Inspection rate
1.7%
-4 pts
physical inspection rate
Rail share
33.9%
+9 pts
export volume by rail
Logistics saving
10.5%
cost cut
logistics spend saved

Warehousing is evolving in parallel. Grade-A capacity near Mundra reached 854 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 9%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

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

Arvind Pillai, Chairman

Rail, warehousing and the middle mile

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Mundra 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.

Average container dwell time at Mundrahours
Average container dwell time at MundraAverage container dwell time at Mundra: from 22.6 hours in W1 to 15.5 hours in W8; high 22.6 in W1, low 15.5 in W8.1416.118.320.422.622.6W1W2W3W419.3W5W6W715.5W8

Source: IGEN Intelligence analysis of central board of indirect taxes & customs data. Illustrative mock data.

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra3911.6%2.2%
Nhava Sheva6921.1%5.7%
Chennai3418.3%5.5%
Kolkata3716%5.3%
Visakhapatnam3616.6%3.4%
Source: Ministry-level press releases; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

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 $3.2 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Timeline of key events

  1. 30 Aug 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 10 Sep 2026
    Rail corridor opens

    Double-stack services begin between Mundra and the inland depot.

  3. 21 Sep 2026
    Network redesign

    Adani Ports consolidates three warehouses into one automated hub.

  4. 2 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.

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.

Expert commentary

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

KS
Karthik Subramanian
Logistics & Ports Reporter, IGEN News

“The data is clear on direction and less clear on pace. I would plan for slower and be pleasantly surprised.”

AP
Arvind Pillai
Chairman, Southern Ports Association

“For Tourism, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

SK
Sanjay Kulkarni
Banking & Trade Finance Editor, IGEN News

Where the next savings are

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Mundra to inland container depots now carries 11.5% 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.

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

Adani Ports Dr. Reddy's Laboratories Wipro Larsen & Toubro Dev Malik Nikhil Kamath

Frequently asked questions

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

Sources

  1. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  2. Ministry-level press releases: Scheme guidelines and cabinet decisions
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Reserve Bank of India: Exchange-rate and trade-credit bulletins

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

#Tourism#SupplyChain#Logistics#Ports#UnitedKingdom
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Tourism · 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 Tourism 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.

F
Faisal Khan
2h ago

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

A
Ankit Sharma
5h ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

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. 01Why UAE Is Becoming the Fastest-Growing Market for Indian Film Making
  2. 02$5.9 billion Investment Wave Reshapes Steel: Plants, Talent and the Race for Capacity
  3. 03$1.4 billion Investment Wave Reshapes Communications: Plants, Talent and the Race for Capacity
  4. 04Maruti Suzuki Commits $8.8 billion to Atomic Energy Expansion as Global Customers Seek a Second Source
  5. 05The Multimodal Bet: How Ayush & Herbal Medicine Firms Are Cutting Logistics Cost by 14%
Topic
S58 · Tourism

Ministry of Tourism

United KingdomUAE

More to read

All headlines →
Trade · Film Making

Why UAE Is Becoming the Fastest-Growing Market for Indian Film Making

10 min read
Company · Steel

$5.9 billion Investment Wave Reshapes Steel: Plants, Talent and the Race for Capacity

7 min read
Technology · Communications

$1.4 billion Investment Wave Reshapes Communications: Plants, Talent and the Race for Capacity

9 min read
Sector · Atomic Energy

Maruti Suzuki Commits $8.8 billion to Atomic Energy Expansion as Global Customers Seek a Second Source

4 min read
Sector · Ayush & Herbal Medicine

The Multimodal Bet: How Ayush & Herbal Medicine Firms Are Cutting Logistics Cost by 14%

4 min read
Technology · Civil Aviation

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

10 min read