Asia’s Drive Toward Multimodal Logistics Integration Accelerates

June 2, 2025, As Asia continues to cement its position as the world’s most dynamic trade hub, the urgency to transform its fragmented transportation systems into fully integrated multimodal logistics networks has never been greater. With global supply chains shifting under strategies like “China+1” and regional trade volumes rapidly expanding, seamless connectivity across ports, railways, highways, and air cargo terminals is becoming a competitive necessity rather than a long-term aspiration.

By 2030, South and Southeast Asia are forecasted to contribute more than 25% of global trade growth. However, inconsistent infrastructure development and outdated regulatory mechanisms continue to create barriers to achieving cohesive, cost-efficient logistics operations across the region.

Policy Integration: From Siloed to Synchronized

“Modern trade demands an interconnected ecosystem, not isolated infrastructure projects,” emphasized N. Sivasailam, former special secretary (logistics), Government of India. “For logistics to be truly effective, ports, airports, roads, and digital systems must operate in harmony planned as an integrated whole, not individual components.”

In many Asian countries, transport infrastructure has historically evolved in isolation. Airports were developed without sufficient cargo handling capabilities, ports lacked inland connectivity, and highways were constructed without smart data integration leading to inefficiencies, rising logistics costs, and underutilized assets.

Yukki Nugrahawan Hanafi, chairman of the regional chapter of the International Federation of Freight Forwarders Associations (FIATA), pointed out that regulatory harmonization is as vital as infrastructure investment. “True multimodal corridors require more than physical connections. They need aligned customs processes, shared digital platforms, and coordinated investment strategies across borders,” he said.

India’s National Logistics Policy (NLP), launched in 2022, aims to cut logistics costs from 14% of GDP to under 8% by 2030. Yet despite this ambition, significant gaps remain. Less than 20% of India’s 148 airports are equipped to efficiently manage air cargo, and a lack of bonded terminals, certified freight zones, and temperature-controlled facilities continues to restrict progress especially in tier-2 and tier-3 cities.

Vietnam’s Logistics Transformation: A Model for the Region

Vietnam provides a compelling example of how targeted policy and infrastructure development can rapidly elevate a country’s logistics performance. “In 2024, Vietnam’s container throughput grew by over 7%, and the logistics sector now contributes nearly 5% to our GDP,” said Nguyen Duy Minh, Vice Chairman of the Vietnam Logistics Business Association.

Strategic projects, such as integrated logistics parks near key deep-sea ports and new airfreight facilities in Ho Chi Minh City and Da Nang, are expanding the country’s multimodal capabilities. Minh also noted the growing significance of “air-sea connectivity,” where regional airports with immediate port access are attracting major investment from international express logistics companies seeking to bypass congested air hubs.

India’s Infrastructure Vision: Matching Investment with Agility

India has announced a slate of large-scale infrastructure initiatives, including the Vizhinjam deep-sea port, dedicated freight corridors, and a new cargo aviation hub at Jewar Airport. While these projects are ambitious and necessary, industry experts caution that infrastructure alone cannot solve the region’s logistics challenges.

“Policy agility must evolve alongside infrastructure expansion,” said Daljit Singh Kohli, India representative for the Port of Antwerp-Bruges. Kohli emphasized the value of digital twin technologies, virtual models of physical assets which can help simulate logistics scenarios and optimize supply chain planning before construction even begins.

The Role of Airfreight in the Multimodal Equation

Air cargo continues to play a pivotal role in Asia’s logistics landscape. The International Air Transport Association (IATA) projects global airfreight volumes will rebound by 4.5% in 2025 after a dip in 2023, with Asia leading the recovery driven by demand for high-value shipments such as electronics, pharmaceuticals, and cross-border e-commerce.

Yet airfreight success depends not only on physical infrastructure but also on the digital and regulatory frameworks that support it. “Multimodalism is about eliminating friction not just in the movement of goods, but in the flow of data, documentation, and regulatory compliance,” added Hanafi.

Countries like Japan and Singapore are setting the regional benchmark. Japan’s Shinagawa freight cluster and Singapore’s Tuas Megaport illustrate how deep integration between air, sea, and rail can be designed into national infrastructure from the outset, creating fluid, responsive supply chains.

Bridging the Digital Divide

Despite progress, digital infrastructure remains one of the weakest links in Asia’s multimodal evolution. Legacy customs systems, fragmented logistics software, and lack of interoperability across platforms continue to hinder visibility and efficiency.

“Digital integration must move beyond pilot projects and into national-scale adoption,” said one industry stakeholder. Streamlining documentation, creating unified data platforms, and building regionally interoperable customs systems will be critical for unlocking the full potential of multimodal logistics in Asia.

*This article has been adapted and professionally rewritten to align with the audience and editorial standards of Worldcraft Logistics.