Professor Jonathan Aremu, a renowned expert in international economic relations, has emphasised the importance of multimodal transport in facilitating trade under the African Continental Free Trade Area (AfCFTA).
Speaking at a webinar organised by the African Shipowners Association, titled Consolidated Approach to Shipping under AfCFTA on Friday 22nd November, 2024. Prof. Aremu highlighted the benefits of multimodal transport in optimizing the movement of goods from origin to destination
He explained that the multimodal transport is the optimisation process of the location, movement and storage of resources from one point of origin, through various economic activities to the final consumer and also the multimodal transport operator (MTO)s will help in the the fulfillment of the multimodal transport contract and will charge the shipper only once for the freight of the entire trip as only one contract of carriage of the transport document is used for the entire trip
While emphasising on the benefits of multimodal transport in trade facilitation, Aremu said that the MTO will Bring about short term benefits to local traders and transport operators as well as longer term consequences in the structural changes of a country’s transport and international trade development and the key players involved in this process are the service providers, the government and transport users
Speaking on cargo consolidation, he said that in the ever expanding global market place, efficent and cost effective shipping solutions are povital to the success of business worldwide under AfCFTA also noting that the initiative has gained importance as the operations of consolidated have become key in the shipping and logistics sector while offering cost efficient services to importers
Mr Aremu who spoke from the import perspective said cargo consolidation is quickly becoming the other of the day with the growing number of SME importers, in which most of them import through the aid of cargo consolidation agents
” The idea of multimodal transport is that a product is brought from the door of its origin to the door of its end users by making sure of at least two modes of transport which is commonly known as the door to door service.
” Based on fact it is a commercial, service and international activity and the service innovation ensures that the goods will move to their destination as fast and securely as possible at a price known in advance. The three key players involved in this operation are the government who help in designing and implementing national laws , service providers which consist of freight forwarder, MTO, banking institutions and insurance companies and also the transport users who are the importers and exporters
” Cargo consolidation particularly, when mixed with multimodal transport has emerged as a strategic and effecient shipping solution in the modern trade landscape. It’s ability to reduce cost, enhance efficiency and expand market reach makes it a game charger for businesses especially SMEs across the globe
” By leveraging these innovative logistics approach, businesses can effectively navigate the complexities of international shipping and reap rewards of a more connected and prosperous AfCFTA market”
