Impact of COVID-19 on ports, multimodal logistics and transport sector in India: Responses and policy imperatives.

ABSTRACT

The COVID-19 pandemic spread rapidly in 2020 and led to full or partial lockdowns worldwide. The restrictions led to most economies contracting in the April-June quarter of 2020. As per the IMF World Economic Outlook of June 2020, the global economy was expected to contract by 4.9% in 2020, whereas the Indian economy was expected to contract by 4.5%, affecting a population of more than 1.3 billion. This led to disruption in the global supply chain network, adversely hitting all modes of transport, including ports and multimodal logistics. Based on the survey results of 98 respondents in the Indian ports, multimodal logistics and transport ("PMT") sector conducted during the lockdown in May-June 2020, an adverse impact on profitability, employment, operations and capital expenditure was identified, which is consistent with observations from previous economic crises. Additionally, we have estimated the financial impact on different categories of organisations in the industry. Based on these impacts, this study identified key factors required to support the sector and build resilience for the future through technology interventions, developing multimodal transport systems, and providing financial support and employment support for small and medium enterprises (SMEs). By providing an analysis of the impact of COVID-19 on the different categories of organisations based on data collected during and shortly after the lockdown, the study makes a novel contribution to understanding the impact of such crises on the PMT industry at a granular level and the aggregate-level impacts with guidance for policy and managers and in particular, in an emerging economy context.