Abstract
This paper presents a case study in a SAP-LAP format in respect of a maiden modal shift logistic project in India. The purpose of this paper is to show how a modal shift from railways to inland water transportation led to improvement in supply chain qualitatively and quantitatively (cost wise). SAP-LAP framework has been applied and major actors instrumental in the modal shift are briefly taken up. It is a real-life project initiated and piloted by the Government of India through Inland Waterways Authority of India (IWAI). This paper helps to understand the project for implementing IWT by modelling its enablers using interpretive structural modelling (ISM) technique and analysing various issues using SAP-LAP framework in order to improve the economics of supply chain. Structured modelling has helped in understanding the critical enablers. Based upon the inputs from experts, major actors suggested a different set of incentives. A concessional user charge for the use of fairway and cargo assurances as opposed to cash subsidy approach was the game changer. It provides a good model for the improvement of economics of supply chain.
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