As Asia cements its role as a global trade engine, the region faces a growing imperative: to integrate its fragmented transport systems into efficient, multimodal logistics networks. With trade patterns shifting eastward and supply chains diversifying under strategies like “China+1,” the ability to move goods fluidly across ports, rail, roads, and airfreight terminals is no longer optional—it’s essential.
South and Southeast Asia are projected to account for over a quarter of global trade growth by 2030. Yet the infrastructure and regulatory frameworks needed to support this transformation remain uneven, siloed, and, in many cases, outdated.
Aligning policy
“The complexity of modern trade requires a networked mindset, not sequential infrastructure planning,” said N. Sivasailam, former special secretary (logistics) for the Government of India. “Ports, airports, roads, data systems—they must all function in tandem, not as independent silos.”
Historically, logistics infrastructure in many Asian economies has been developed in isolation—airports without cargo connectivity, ports without hinterland linkages, roads without data integration. This disjointed planning has inflated costs and throttled throughput.
According to Yukki Nugrahawan Hanafi, chairman of the International Federation of Freight Forwarders Associations’ regional chapter, regulatory harmonisation is just as crucial as physical infrastructure. “If regional supply chains are to be truly agile, then multimodal corridors must be backed by aligned customs regimes, interoperable digital systems, and multilateral investment platforms,” he said.
India’s National Logistics Policy, launched in 2022, aims to cut logistics costs from 14 percent of GDP to below 8 percent by 2030. However, with less than 20 percent of the country’s 148 airports equipped to handle airfreight efficiently, progress is patchy. The absence of certified cargo terminals, bonded warehousing, and cold chain infrastructure at regional airports remains a major bottleneck.
Logistics momentum
Vietnam offers a compelling case of how strategic investment can elevate a country’s logistics profile. “Vietnam’s container throughput grew by over 7 percent in 2024 alone, and our logistics sector now contributes nearly 5 percent to national GDP,” Nguyen Duy Minh, vice chairman of the Vietnam Logistics Business Association, said.
Efforts include developing integrated logistics parks near deep-sea ports and expanding airfreight capabilities in cities like Da Nang and Ho Chi Minh City. Minh also stressed the rising value of “air-sea connectivity,” where regional airports with direct access to seaports are attracting fresh investment from express logistics providers looking to bypass congested air hubs.
Transhipment opportunity
India has ambitious infrastructure plans, including the Vizhinjam deep-sea port, dedicated freight corridors, and a new cargo hub at Jewar Airport. But infrastructure alone, Daljit Singh Kohli, India representative of the Port of Antwerp-Bruges, is not enough.
“Policy agility must match private sector momentum,” said Kohli, highlighting the potential of digital twin technologies—virtual replicas of physical infrastructure—to help planners simulate and optimise logistics flows before construction begins.
Multimodalequation
Airfreight, while only one part of the logistics landscape, repeatedly emerged as a focal point for both opportunity and challenge. IATA projects a 4.5 percent rebound in global airfreight volumes by 2025, following a 3.8 percent drop in 2023. Much of that recovery is expected from Asia, fuelled by electronics, pharmaceuticals, and cross-border e-commerce.
“Multimodalism is not just physical connectivity—it’s about ensuring data, compliance, and cargo flow without friction,” said Hanafi. He pointed to examples such as Japan’s Shinagawa freight cluster and Singapore’s Tuas megaport, where seamless integration between air, sea, and rail is embedded into planning.
But digital infrastructure is still lagging behind. “Customs and logistics software still operate in silos,” noted one industry participant.
