ACKNOWLEDGEMENT
We would like to express our deep felt gratitude in the warmest manner possible towards our professor Mrs. Priya Gawade for assigning us such a marvelous project. We have immense pleasure in presenting this PROJECT ON TRANSPORTATION. The topic was an interesting one. It gave us an opportunity to have a detailed study on the topic and showed how things work in the practical world. We came to understand and analyse the importance of TRANSPORTATION in the Economy and we appreciate its scope in the field of other services. We had a great time working on the project and we have provided information to the fullest of our knowledge and our findings.
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INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Topic Service Industry Introduction & Importance of Transportation Modes of Transport Advantages & Disadvantages of Different Modes of Transport 7 P’s of Transportation Swot Analysis Indian Transportation Sector National Highways Development Project Golden Quadrilateral Challenges Faced by Transportation Sector Key Government Strategies World Bank Support Transport Infrastructure Measuring Relative Importance Of Each Mode Company Profile & Report Conclusion Page No. 5-6 7-10 11-18 19 20-21 22-23 24-27 28 29 32-33 34-35 36-37 38 39 40-47 48
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About services:
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Services include all economic activities whose output is not a physical product or construction is generally consumed at time it t is produced and provides added value in forms such as convince timeliness, comfort or health. That is essentially intangible concerns of its first purchaser. Services means service of any description which is made available potential users and includes the provision of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising. The service sector now accounts for more than half of India's GDP: 51.16 per cent. This sector has gained at the expense of both the agricultural and industrial sectors through the 1990s. The rise in the service sector's share in GDP marks a structural shift in the Indian economy and takes it closer to the fundamentals of a developed economy (in the developed economies, the industrial and service sectors contribute a major share in GDP while agriculture accounts for a relatively lower share). Some economists caution that if the service sector bypasses the industrial sector, economic growth can be distorted. They say that service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. It is true that, in India, the service sector's contribution in GDP has sharply risen and that of industry has fallen (as shown above). But, it is equally true that the industrial sector too has grown, and grown quite impressively through the 1990s (except in 1998-99). Three times between 1993-94 and 1998-99, industry surpassed the growth rate of GDP. Thus, the service sector has grown at a higher rate than industry which too has grown more or less in tandem. The rise of the service sector therefore does not distort the economy.
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Reasons for the growth of service industry
Service characteristics Intangibility Marketing implications ? Cannot be stored ? No patents ? No ready display ? Communication Inseparability problem ? Consumer involved in production ? No mass production ? Supply match ? Employees Heterogeneity effect ? Industrialized ? Customize control the service outcome ? Standardization difficult ? Quality difficult ? No sure knowledge if service delivered matches what was planned promoted and demand Strategies implications ? Tangible clues ? Personal source ? Organizational image ? Cost accounting for prices ? Selection training of contact person ? Manage consumer ? Multisite location to deal with
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Introduction:
We use various products in our daily life. But do we know where
are they produced? Many of them are produced at different places far away from our locality. So how do we get them at our place? These are carried on from all those places through rail, road or air and are made available to us at our locality. You must have seen trucks, tempo, and bullock carts etc., which carry products or even raw materials from one place to another. Similarly, you also must have seen people traveling from one place to another by buses, trains, cars, scooters, rickshaws, cycles, etc. This movement of goods and individuals is very important in business. Because of this, raw materials reach the place of manufacture, finished products reach the place of sale or consumption, individuals move around to manage the business, etc. In this lesson, let us learn how goods and passengers move from one place to another.
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Objectives:
??Sate the meaning of transport; ??Recognise the importance of transport; ??Identify the various modes of transport; and ??Describe the advantages and limitations of different modes of transport.
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MEANING Transport is one of the important aids to trade. It makes possible production and distribution of goods and services. It makes possible production because of transfer of raw materials and other requirements from the place of supply to the production. It makes possible distribution because it supplies the goods from the place of production to the place of consumption. Transport or transportation is the movement of people, goods, signals and information from one place to another. The term is derived from the Latin ‘trans’ ("across") and ‘portare’ ("to carry").
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Definition of Transport
Transport refers to the activity that facilitates physical movement
of goods as well as individuals from one place to another. In business, it is considered as an auxiliary to trade, that means, it supports trade and industry in carrying raw materials to the place of production and distributing finished products for consumption. Individuals or business firms that engage themselves in such activities are called transporters. Generally, transporters carry raw material, finished products, passengers, etc. from one place to another. So it removes the distance barrier. Now-adays goods produced at one place are readily available at distant places. People move freely throughout the world because of transport. It is associated with every step of our life. Without transport, we, as well as business units cannot move a singe step.
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Importance of Transport
Followings are the points of importance of transport.
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a. Makes available raw materials to manufacturers or producers: Transport makes it possible to carry raw materials from places where they are available, to places where they can be processed and assembled into finished goods. b. Makes available goods to customers: Transport makes possible movement of goods from one place to another with great ease and speed. Thus, consumers spread in different parts of the country have the benefit of consuming goods produced at distant places. c. Enhances standard of living: Easy means of transport facilitates large-scale production at low costs. It gives consumers the choice to make use of different quantities of goods at different prices. So it raises the standard of living of the people. d. Helps during emergencies and natural calamities: In times of national crisis, due to war or internal disturbance, transport helps in quick movement of troops and the supplies needed in the operation.
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e. Helps in creation of employment: Transport provides employment opportunity to individuals as drivers, conductors, pilots, cabin crew, captain of the ship, etc. who are directly engaged in transport business. It also provides employment to people indirectly in the industries producing various means of transport and other transport equipments.
Transport People can also provide repairing and maintenance services by opening service
centers at convenient locations. f. Helps in labour mobility: Transport helps a lot in providing mobility to workers. You may be aware that people from our country go to foreign countries to work in different industries and factories. Foreigners also come India to work. In India, people also move from one part to another in search of work. Similarly, it is not always possible to have workers near the factory. Most industries have their own transport system to bring the workers from where they reside to the place of work. g. Helps in bringing nations together: Transport facilitates movement of people from one country to another. It helps in exchange of cultures, views and practices between the people of different countries. This brings about greater understanding among people and awareness about different countries. Thus, it helps to promote a feeling of international brotherhood.
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? Modes of Transport:
Transportation modes are an essential component of transport systems since they are the means by which mobility is supported. Geographers consider a wide range of modes that may be grouped into three broad categories based on the medium they exploit: land, water and air. Each mode has its own requirements and features, and is adapted to serve the specific demands of freight and passenger traffic. This gives rise to marked differences in the ways the modes are deployed and utilized in different parts of the world. Recently, there is a trend towards integrating the modes through intermodality and linking the modes ever more closely into production and distribution activities. At the same time, however, passenger and freight activity is becoming increasingly separated across most modes. ? Railway:
India has amongst the largest railway network in the world. Every city, town, village has a rail connection. Through railways very large volumes of goods can be transported economically over long distances to remote places in the country. But railways in general incur high fixed costs because of expensive equipment (i.e. railways must maintain their own rail track meant exclusively for them) switching yards and terminals. However the railways experience relatively low variable operating costs.
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Railways help to transport raw materials from extractive industries which are located at considerable distances. Besides this railways also transport massive amount of steel, automobiles, war equipment, across the country. There are also various different types, such. as articulated cars for extended Rail chassis, double stack railcars, have 2 levels of containers, thereby doubling the capacity of each car. It also reduces chances of damage because of their design. These technologies are being applied by railroads to reduce weight, increase carrying capacity, and facilitate interchange.
?Road Transport
Road transport forms an essential part of any transport activity, whether rail, sea or air. It is essential as a supplementary and complementary mode of transport to complete movement by other modes of transport. Eg. From one terminal i.e. the railway station the goods have to be carried to the destination like an area by road.
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Water transport
One of the oldest modes of transportation is water. In terms of time factor, they may be slow. But, they can carry more shipment, at reduced cost over longer distance. Water transport could be of inland type or oceanic transport.
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Inland water transport
Inland water transport is used mainly for transport; within a
country. In our country Inland water transport through rivers and canals is quite popular because of the low cost and bulk transport. But here, the inland water transport system heavily depends upon the rain and in many places on the tides. So, in our country, we cannot guarantee the functioning of inland water throughout the year at the same efficiency.
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Oceanic Transport
Oceans act as huge waterways for transport of goods form one
country to another. Oceanic transportation includes import and export of crude and bulky commodities like materials which are removed from mines, cement, chemical, crude oil, iron ore, coal, chemicals like sulphur, crude petroleum, and selected agricultural products, etc. 12
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Pipelines
Primarily, pipeline is used for the transport of crude petroleum, refined petroleum and natural gas. Pipelines are also used for the transportation of certain types of chemicals, Pulverized dry bulk materials such as cement and flour via hydraulic suspension system, and sewage and water in cities. A significant fixed cost is incurred while setting up the pipeline and related infrastructures. Thus, given the nature of costs, pipelines are the best suited when relatively large and stable flows of materials are required. E.g.: pipeline may be best suited to transport crude petroleum from the port to the refinery. But, to transport refined petrol to a gas station does not justify the use of a pipeline and this is better done by a truck. There is a talk going on between India, Iran and Pakistan regarding the transportation of crude oil from Iran to India with the help of a pipeline which will pass through Pakistan. This will reduce the cost of transporting crude oil from Iran to India. In comparison with the other modes of transport, pipelines operate on a 24 hour basis, seven days a week. They stop functioning due to change in the commodity to be transported, or due to maintenance. Unlike other modes of transport, pipeline does not have any empty containers or vehicles which are to be returned to the origins. A high fixed cost for pipelines normally results from the right of way constructions and requirements at the control stations and pumping capacity. 13
Another-disadvantage of pipeline is that they are not flexible.
Once the route of a pipeline is fixed, it is not changeable. Again pipelines are restricted with respect to the types of commodities which can be transported through them. Only products in the form of gas, liquid slurry can be handled by the pipelines. One advantage of pipelines is that, once they have been constructed, they are not labour intensive for operational purposes as other modes of transport. So, their variable operating cost is low.
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Ropeway transport
Ropeway refers to a mode of transport, which connects two places
on the hills, or across a valley or river. In the hilly areas, trolleys move on wheels connected to a rope and are used for carrying passengers or goods, especially building materials, food, etc. The famous “Uran Khatola Jagdamba” in Gujarat that carries pilgrims to the temple is an example of ropeway transport, which carries more than 100 passengers at a time.
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Other Modes of Transport:Other modes of transportation includes the freight forwarder who
accepts small shipments and charge less carload (or less truck load or plane load) rates and consolidates the small shipments into carload truckload, or planeload tots, which are then sent by the lower quantity rates. Frequently, the freight forwarder acts as a traffic department for small companies, which usually ship in less carload lots. Shippers' cooperatives offer much the same services as the forwarder in consolidating small shipments into larger ones, except that the profits of the business are returned to the members of the cooperative. Small packages can also be sent via speed post, and can use some of the, expedited delivery services the Indian Post System now offers
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Multimodal Transport/lntermodal Transport
Multimodal/lntermodal transportation is the use of more than one mode of transport for the movement of shipment from the origin to its destinations. In this system lntermodal operators use multiple modes of transport to take the advantage of the inherent economies of each & thus provide integrated service at the lowest total cost. Multimodalism is all about coordination 1. Coordination of the different modes of transport. 2. Coordination of the documentation. 3. Coordination of the commercial & physical aspects of the commercial Transaction between the buyer & the seller.
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Intermodal transport chain
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Four major functions define an lntermodal transport chain:
* Composition. The process of assembling and consolidating freight at a terminal that
offers an Intermodal interface between a local / regional distribution system and a national / international distribution system. Ideally, loads of freight coming from different suppliers are assembled at distribution centers so they can be forwarded to high capacity modes such as rail and maritime shipping. The dominant mode for such a process tends to be trucking as it offers flexibility and door-to-door services. Activities such as packaging and warehousing are also included in the composition process, which is closely linked with the function of production.
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* Connection. Involves a consolidated modal flow, such as a freight train or a containership (or even fleets of trucks), between at least two terminals, which happens on the realm of national or international freight distribution systems. The efficiency of a connection mainly derives from economies of scale, such as double stacking or postpanamax containerships.
* Interchange. The major Intermodal function takes place at terminals whose purpose is to provide an efficient continuity within a transport chain. Those terminals are dominantly within the realm of national or international freight distribution systems, with ports being the most notable example.
* Decomposition. Once a load of freight has reached a terminal close to its destination it has to be fragmented and transferred to the local / regional freight distribution system. This function, which is linked with the function of consumption, dominantly occurs within metropolitan areas and involves unique distribution problems also known as urban logistics.
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? Method
Road
Advantage and Disadvantages: Advantages Disadvantages
Cheap, convenient, flexible, Noisy, pollutes the environment, less private safe than alternatives, stressful for drivers, potential delays, can be expensive where there are congestion or road charges Fast, safe, more environmentally friendly than alternatives, does not add to congestion Fast for long distance deliveries, safe Limited routes, inflexible routes and timetables, expensive, sometimes unreliable
Rail
Air
Expensive, unsuitable for some goods, limited routes, inflexible timetables, environmental pollution, airport taxes Very slow, relatively few ports, inflexible routes and timetables, port duty/taxes - requires inland transportation for door-to-door delivery Expensive, weight of deliveries is limited Insecure due to viruses and hackers, limited to certain goods and services
Sea
Cheap for large volumes
Courier
Fast, reliable, secure
Electronic delivery
Instant, cheap, for international and domestic deliveries
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7P’s of transportation:
? Product:
The decision regarding the transport product depends upon the nature of the user. Railways main products are concerned with passengers and goods services. Railways have to take suitable steps to check the diversion of traffic to road by introducing domestic container service, freight forwarder scheme in goods and parcel. In road transport, the designing of product mix is needed. Increase in the number of quality buses, introduction of new design of bodies for buses and trucks, safety and comfort, special attention to daily commuters and students, construction of metal roads and insurance facilities for goods and passengers are some components to be considered.
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Price:
Price in transportation is what the customer has to pay for getting transportation services that is called “Fare” & “Freight”. Price is decided as per the distance & mode of transport. The Indian Railways do not have the freedom to adjust their fare and freight rates. The pricing policy of these organisation should assign due weightage to social welfare but at the same time compensate the losses by charging more from the affluent section.
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Place:
The place is where the customer get the transportation services i.e.
for getting Railway Services customer have to come at Railway – stations, Water ways – Ports, whereas in road ways they have lots of choice. Door step is also possible in road ways.
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Promotion:
By using advertising, print media, by provide good infrastructure of mode. The Indian Railways have strengthened impersonal measures by advertisement
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and publicity, but due to low magnitude of creativity, the rate of acceptability is not so impressive.
As far as state road transports are concerned their financial position stands as a major constrain while adopting the promotion measure. But it is not possible unless innovative marketing practices are used. Rail and road transport are the two important pillars of the surface transport. They together carry more than 95 % of the total goods and passenger traffic in one country. It is also essential to develop other modes of traffic such as inland waterways, coastal shipping, pipe lines and air cargo.
People:
In transportation services, people are Government Department, Traffic Police, Labour Customer, Businessmen, General Public, Drivers, Staff, Ticket collectors, etc.
Process:
Process in transportation varies as per nature of mode, For e.g.: -Road: Where the passenger want to go i.e. from origin till destination and after paying the fair the process of Road will get over. Railway: First Customer has to pay for buying ticket then from one station origin till the destination station. Water: First customer has to pay for buying ticket then from one station origin till the destination station. But in this transportation lots of lengthy procedure is followed.
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Physical Evidence:
Road toller, Speed Breaker, Staff, Stations, Ports, Traffic Police, Drivers, Ticket, Freight Receipts, Signals, Trains, Ships, Rickshaws.
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? SWOT ANALYSIS: ? ?
Strength:
Globalization: Had made the transportation sector to increase an alarming rate. Due to connectivity to all over the world things have rapidly changed. It has motivated the foreign players to start its business in India. With the large involvement of Multinationals players in Indian Transportation sector, have also encouraged the Domestic Players.
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Geographic Locations: As India is surrounded by water from its three sides, which makes
water transport to play a vital role in transportation sector. As water transport is cheapest mode of transportation, so it is easy to supply heavy load goods by this medium.
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Subsidies: As Rail transport is the oldest medium of transport in India. So to
encourage it government has provided subsidies on it. It also encourages the domestic transport.
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On time Delivery level Different types of Transport Mode Good Logistics
Good use of Technology
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Reasonable Prices (Road & Rail)
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? ? ? ? ? ? ?
Weakness
Huge Competition Risk (Guarantee) Poor Infrastructure Change in Government Policies High Prices (Air Transport) More Formalities Long Procedure (Water & Air)
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Opportunities
Rail (Managed by Private Sector)
Provide Better Infrastructure. Reducing the Price.
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Threat
Change in Political Relations: It is another critical situation. Bad political relations may hamper
trade between the two countries. There will be losses from both the sides like India & Pakistan.
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Increasing Fuel Prices: If fuel price increases then it will create a heavy burden on
transport industries. It will directly effect to inflation.
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Indian Transportation Sector
India’s transport sector is large and diverse; it caters to the needs
of 1.1 billion people. In 1997, the sector contributed 4.4 percent to the nation’s GDP, with road transportation contributing the lion’s share. Good physical connectivity in the urban and rural areas is essential for economic growth. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services by around 10 percent a year. However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. Major improvements in the sector are therefore required to support the country's continued economic growth and to reduce poverty.
Railroads in India
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India's railroad system is the government's largest public enterprise (see fig. 12). Its route length extends 62,458 kilometers. The railroads of India are the fourth most heavily used system in the world, which suggests the large investment made in rail transportation. In the mid-1990s, the railroad system employed 1.7 million people and carried around 66 percent of India's goods traffic (some 350
Million tons in FY 1992) and 40 percent of passenger traffic (3.7 billion passenger journeys in FY 1992) Indian Railways is administered and managed by the Railway Board, which is subordinate to the Ministry of Railways. The minister of railways is assisted by the minister of state for railways. Indian Railways is Asia's largest railroad system and the second largest state-owned system under a single management in the world. The 62,458 kilometers of route-length track run in three gauges: narrow gauge (610 and 762 millimeters), meter gauge (1,000 millimeters), and broad gauge (1,676 millimeters). Around 17 percent, or about 11,000 kilometers, of all gauges is electrified, and about 27 percent, or 10,859 kilometers, of the broad-gauge track is electrified. Some 14,600 kilometers are double or multiple tracked. As of FY 1991, there were some 116,000 railroad bridges and some 7,100 railroad stations. The railroad system is divided into nine zones: central, eastern, northern, northeastern, northeast frontier, southern, south-central, southeastern, and western. As of FY 1993, Indian Railways had 1,725 steam, 4,069 diesel, and 2,012 electric locomotives; 3,444 electric multiple-unit coaches; 30,298 conventional passenger coaches; 6,163 other passenger cars (including luggage and mail cars in which passengers sometimes travel); and 337,562 freight cars of all kinds. The Eighth Five-Year Plan provided for a Rs45 trillion investment in railroad development. Priority was to be given to track and roadbed renovation, additional electrification, conversion of high-use meter-gauge lines to 24
broad-gauge track, the replacement of all steam locomotives, and improved signalling and telecommunications. By 1992, however, the funds actually approved by the government were only 80 percent of the eighth plan's amount, and only 42 percent would be covered by the central government budget. Indian Railways was expected to come up with the balance. Thus, in FY 1994, the outlay was set at Rs65.1 billion;
Rs11.5 billion was to come from central government revenues, Rs43.1 billion from internal railroad resources, and Rs10.5 billion from loans. Some of the investment funds, as in the past, were expected from the World Bank. The only way to cover these outlays with such low budgetary support was with drastic increases in fares and rates in passenger service. In FY 1993, Indian Railways made capital expenditures amounting to US$2 billion for items such as new rolling stock, new line construction, track renewal, and electrification. An example of the scale of new rail line construction is the new broad-gauge high-speed Konkan Railway, a 760-kilometer coastal connection between Bombay and Mangalore featuring fifty-five stations, seventy-three tunnels, 143 major bridges, and some 1,670 minor bridges. The line crosses several mountain ranges and runs some 380 kilometers through an earthquake-prone zone. Besides opening up an all-weather transportation infrastructure between two important cities, it cuts the distance by rail between them by 1,127 circuitous kilometers. India has a major railroad-equipment production industry. Although some state-of-the-art electrical components and equipment are imported, India is developing sufficient industrial capacity to meet most of its standard locomotive and passenger-car and ancillary equipment needs and has made plans to export locomotives. The Research, Design, and Standards Organisation of Indian Railways engages in research and simulations aimed at further improving the quality of domestic achievements, which have included high-speed passenger trains (up to 25
140 kilometers per hour) and freight trains (up to 80 kilometers per hour) and solidstate signalling equipment. Because some two-thirds of the nation's freight is carried by train, there is a serious freight car shortage.
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Railways
Indian Railways is the largest railway in Asia and the fourth
most heavily used system in the world. It carries some 14 million passengers a day and is one of the world’s largest employers. Till recently, the railways played a leading role in carrying passengers and cargo across India’s vast territory. However, with tariff policies that overcharge freight to subsidize passenger travel, the movement of freight is increasingly shifting from railways to roads.
?Roads
Roads are the dominant mode of transportation in India today. They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight. The density of India’s highway network -- at 0.66 km of highway per square kilometer of land -- is similar to that of the United States (0.65). It is also much greater than that of China (0.16) or Brazil (0.20). However, most highways in India are narrow and congested and have poor surface quality.
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National Highways Development Project
The National Highways Development Project is a project to upgrade major roads in India to a higher standard. "National Highways” account for only about 2 per cent of the total length of roads, but carry about 40 per cent of the total traffic across the length and breadth of the country. This project is managed by the National Highways Authority of India under the Ministry of Road, Transport and Highways. The NHAI has been mandated to implement US$ 25 billion for the project. Considering the importance of the National Highways and the rapid increase in traffic, the Government has taken up the National Highways Development Project (NHDP), which consists of the following components:
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DP Phase-I: The Golden Quadrilateral (GQ; 5,846 km) connecting the four major cities of Delhi, Mumbai, Chennai and Kolkata. NHDP Phase-II: The North-South and East-West Corridor (NS-EW; 7,300 km) connecting Srinagar in the north to Kanyakumari in the south, including spur from Salem to Kochi, and Silchar in the east to Porbandar in the west.
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Port connectivity and other projects — 1,157 km. NHDP Phase III-A (4,015 km): 4-laning of over 4000 km in the year 2005 approved at an estimated cost of US$ 4.9 billion.
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Future Plans
The Indian Government has set ambitious plans for upgradation of the National Highways in a phased manner in the years to come. The details are as under:
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4-laning of 10,000 km (NHDP Phase- III) including 4,000 km that has been already approved. An accelerated road development programme for the North Eastern region.
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2-laning with paved shoulders of 20,000 km of National Highways under NHDP Phase-IV. 6-laning of GQ and some other selected stretches covering 6,500 km under NHDP Phase-V. Development of 1,000 km of express ways under NHDP Phase-VI. Development of ring roads, bypasses, grade separators, service roads, etc. under NHDP Phase-VII
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? Golden Quadrilateral
The Golden Quadrilateral (GQ) is the largest expressway project in India. It is the first phase of the National Highways Development Project (NHDP), and consists of building 5,846 kilometres of four/six lane expressways connecting Delhi, Mumbai, Kolkata and Chennai (thus forming a quadrilateral of sorts), at a cost of Rs. 60,000 crores (US$ 12.317 billion) (at 1999 prices) (Rs 580 billion). As of May 31 2006, 92% of the entire work has been completed, with the final completion date set as December 2006, approximately two years behind schedule, this has been mainly due to issues with the various states about giving up land for the national highway. 28
The GQ project is managed by the National Highways Authority of India (NHAI) under the Ministry of Road, Transport and Highways. The MumbaiPune Expressway, the first controlled-access toll road to be built in India is a part of the GQ Project though not funded by NHAI. Infrastructure Leasing & Financial Services (IL&FS) has been one of the major contributors to the infrastructural development activity in the GQ project.
? Current Status
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Delhi-Kolkata (NH-2): 1192/1453 km i.e. 82% complete (as on 31 May 2006). Delhi-Mumbai (NH-8): 1419/1419 km i.e. 100% complete. Completed in Nov 2005. Mumbai-Chennai (NH-4) : 1212/1290 km i.e. 94% complete (as on 31 May 2006). Kolkata-Chennai (NH-5) : 1537/1684 km i.e. 91% complete (as on 31 May 2006).
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Ports
India’s coastline of about 6,000 km is dotted with 11 major, 11
intermediate and 168 minor ports. Nearly 95 per cent of the country’s foreign cargo (by volume) moves by sea and, therefore, ports/and their development assume an important place in policy making. Development and maintenance of India’s major ports are the responsibility of the Central Government, while Other Ports are in the Concurrent list. Major Ports: India’s major ports are governed by the Indian ports Act 1908 and the Major Port Trusts Act 1963. The former allow the Statutory to declare any port a major port, define port limit, levy charges etc. while the formation of Port trust Boards and vests the administration control and management of major ports in these Boards. 29
At the time of independence, India had five major Ports, viz. Mumbai, Calcutta, Vishakhapatnam, Chennai, and Cochin. With the Karachi Port going to Pakistan after Partition, there was the for a major port on the western coast. A new port was developed at Kandla, which was declared a major port in 1955. The Marmugao Port, developed by the Portugues, joined the ranks of major ports in 1964 after the liberation of Goa in 1962. Para deep, on the eastern coast, was declared a major port in 1966. Eight years later, New Mangalore and Tuticoin were added to the list of major ports. The inclusion of the Jawaharlal Nehru Port at Nhava Sheva on the western coast took the number of major ports to 11. Development of port after the independence, the development of major ports was taken up in a planned manner. Mechanization and modernizations of cargo-handling facilities at Ports have been a thrust area in recent years, with emphasis on development of dedicated infrastructure. Deepening of ports to receive lager vessels has been another priority area. Vishakhapatnam and Chennai ports have already been deepened. Minor and intermediate ports Minor and intermediate ports fall in the Concurrent list and their administration is the responsibility of the respective coastal states. Their number as well as their categorization into minor or intermediate Ports has varied from time to time, depending upon the volume of cargo and the number of passenger they handle. In 1996, there were 11 intermediate and 168 minor ports and state wise distribution was: Orissa -2, Andhra Pradesh - 12, Tamil Nadu -10, Pondicherry - 1, Andarnan and Nicobar - 22, Lakshadweep -10, Kerala - 13, Karnataka - 9, Goa - 5, Maharashtra - 53, Daman &Diu and Gujarat - 40.
Name of the 11 major ports
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Calcutta, Haidia, Paradeep, Mumbai, Chennai Cochin, Tuticorin, JNPR, Kandla Vishakhapatnam, New Mangalore, and Marmugao.
? Challenges Faced by Transportation Sector:
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The major challenges facing the sector are:
India’s roads are congested and of poor quality.
Lane capacity is low - most national highways are two lanes or less. A
quarter of all India's highways are congested, reducing truck and bus speeds to 30-40 kmph. Most roads are of poor quality. Road maintenance remains significantly underfunded - only around one-third of maintenance needs are met. This leads to the deterioration of roads and high transport costs for users.
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Rural areas have poor access.
Roads are significant for the development of the rural areas -
home to almost 70 percent of India's population. Although the rural road network is extensive, some 40 percent of India’s villages do not have access to all-weather roads and remain cut off during the monsoon season. The problem is more acute in India's northern and northeastern states which are poorly linked to the country’s major economic centers.
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The railways are facing severe capacity constraints.
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All the country’s high-density rail corridors face severe capacity constraints. Also, freight transportation costs by rail are much higher than in most countries as freight tariffs in India have been kept high to subsidize passenger traffic.
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Urban centers are severely congested.
In Mumbai and other metropolitan centers,
roads are often severely congested during the rush hours. The dramatic growth in vehicle ownership – at some 15 percent a year during the past decade - has reduced rush hour speeds to 5-10 km an hour in the central areas of major cities.
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Ports are congested and inefficient.
Port traffic has more than doubled during the 1990s, touching 385 million tons in 2001-02. This is expected to grow further to about 900 million tons by 2011-12. India's ports need to significantly ramp up their capacity and efficiency to meet this surging demand.
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Key Government Strategies
According to India’s Tenth Five Year Plan, the
Government aims to modernize, expand, and integrate the country's transport services. It also seeks to mobilize resources for this purpose and to gradually shift the role of government from that of a producer to an enabler. In recent years, the Government has made substantial efforts to tackle the sector’s shortcomings and to reform its transport institutions. These include:
• •
Increasing public funding for transportation in its Five Year Plans. Improving the major road corridors by launching the National Highway Development Program between Delhi, Mumbai, Chennai and Kolkata, popularly called the Golden Quadrilateral.
•
Financing the development and maintenance of roads by creating a Central Road Fund (CRF) through an earmarked tax on diesel and petrol.
•
Operationalising the National Highway Authority to act as an infrastructure procurer and not just provider.
•
Amending the National Highway Act to expedite land acquisition, permit private financing and allow tolling.
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•
Improving rural access by launching the Pradhan Mantri Gram Sadak Yojana (Prime Minister’s Rural Roads Program).
•
Reducing the congestion on rail corridors along the Golden Quadrilateral and improving port connectivity by launching the National Rail Vikas Yojana (National Railway Development Program).
•
Upgrading infrastructure and connectivity in the country's twelve major ports by initiating the National Maritime Development Program.
•
Regulating tariffs in the port sector by establishing a Tariff Authority for Major Ports (TAMP).
•
Initiating the process of privatization and expansion of the Mumbai and New Delhi Airports.
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?
World Bank Support
The World Bank has been a major investor in the transport
sector in India. Till 2005, it has provided 16 loans for improving the national and state highways and rural roads, as well as urban transportation in Mumbai. It has also provided 18 loans for the railways. At present, World Bank’s total loan commitments for the transport sector in India are US$4.8 billion. The main activities include:
•
National Highway Development Project:
The World Bank is financing highway
construction on the Agra-Dhanbad and Lucknow-Muzaffarpur corridors. It is also involved in other sector activities such as improving road transport efficiency, upgrading road safety, including private sector participation, and improving asset management.
•
Rural Roads Program:
The program provides for the provision of all weather roads to
villages in four states – Uttar Pradesh, Jharkhand, Rajasthan and Himachal Pradesh.
35
•
State Roads Projects:
State Highways are being upgraded in the states of Gujarat,
Karnataka, Kerala, Mizoram, Uttar Pradesh, and Tamil Nadu.
•
Mumbai Urban Transport Project:
The project aims to improve transportation in the Mumbai
Metropolitan Region by fostering the development of an efficient and sustainable urban transport system - suburban rail, bus and link roads - and building effective institutions. While the Bank will continue to support the upgrading and development of roads and highways in the country, it plans to scale up its involvement in urban transportation, railways and ports.
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Transport infrastructure
Infrastructure is the main facilitator for any activity to take place. For transportation to take place a strong infrastructure is primary. If this infrastructure is inadequate transportation gets slowed down resulting into a major obstacle in the growth of trade and business in that area.
Elements of transportation infrastructure
• • • • •
Terminal facilities - well maintained loading unloading facilities, space for movement of vehicles, platforms, railway yards Vehicles- trucks, ships or wagons depending on the mode. Their size, shape & speed Right of way- passage to move on. Rails, roads, airways, limitations on speed, weight, height etc. If we use this particular passage. Prime movers – the powerhouses moving the vehicle of transport shortage of which seriously affect transportation. Shortage of good locomotives impairs the utility of railway as a mode of transport. Carrier organizations – are the transportation service providers in business. Transportation is their core business Good service provides a vital fillip to business and trade. Railways, roadways, airlines, shipping lines are service providers 37
.
? Measuring Relative Importance Of Each Mode
We measure relative importance of each mode as of now or over a specific time span by measuring the modal characteristics. Importance is the popularity or wide spread usage of this mode in business. Modal characteristics are System mileage, Traffic volume, nature of traffic composition and revenue. System mileage: Mileage covered by the modal net work. Like total length of roads in the road network in miles or kilometers is System mileage for road as a mode. This measure explains to what extent road is being used or how popular in business as a mode of transport today. Traffic volume: is the amount of ton kilometers moved by a mode. This is a better measure as this indicates the tonnage shipped by this mode as well. Revenue: is the amount of transportation business in rupees or dollars transacted by a mode. In simple terms how many rupees worth material is shipped in this mode. Nature of traffic composition: what variety of goods are moved by this mode is a measure to indicate the spectrum of goods handled. This speaks of the flexibility of the mode.
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Watercraft Logistics Pvt. Ltd.
Room no: 27, 3rd floor, Tulsi terrace, 275, Sahid Bhagat Singh Road, Fort, Mumbai - 1, Maharashtra, INDIA Tele: +91 22 30222888 Fax: +91 22 30222893 E-mail: [email protected] www.watercraft.co.in ? Visit Report:
In the Morning conversation started with Mr. Leeladhar, Manager, Watercraft Logistics Pvt. Ltd. Speaking about Transportation, he explained us how important it is to provide best services and make the customer satisfied.
? Company Profile:
M/s. Watercraft logistics Pvt. Ltd. is a leading NVOCC/Freight Forwarder based in Mumbai with regular LCL/FCL shipments to worldwide destinations. We are an organization form by a team with a broad range of experience and vision in all areas of logistics to offer ranging from Sea freight, Air freight, NVOCC, Transshipment, Warehousing & Transportation services for world wide destinations. Known for our efficient regular & reliable services for HongKong, Valencia, Singapore, Europe, U.S.A., Port Kelang, Veracruz, Spain, South Central & Latin America.
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Our business associates around the world provide us with a global network that integrates with our promise to deliver your goods on time every time. Our clientele encompasses a broad spectrum of business world from small exporters & importers to large Multinational Corporation moving volumes of freight worldwide.
? All Services under one roof
Watercraft logistics Pvt. Ltd. Division utilizes a total transportation concept that coordinates and monitors projects from the drawing board through completion. We assist our clients with every phase of heavy lift and turnkey projects from door to job-site, including: planning and consultations, heavy lift operations, sourcing, consolidations, warehousing, full and part charters, insurance, export packing, customs clearance and documentation - all solidified by a team of truly dedicated professionals.
Services Offered:
? Planning and consultations ? Heavy lift operations ? Sourcing ? Consolidations ? Warehousing ? Full and part charters ? Insurance ? Export packing ? Customs clearance and documentation
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?
Ocean Logistics:
The Fastest and most competitive consolidation services for LCL
& FCL cargoes from JNPT, N S I C T & Mumbai Port to worldwide destinations, we also provide dedicated regular direct services towards Hong-Kong, Valencia, Singapore, Europe, U.S.A., Port Kelang, Veracruz, Spain, South Central & Latin America. They ensure trouble free cargo delivery based on precise coordination between Our Customer-Support Division & world wide associates. ? Transshipment Service ? World wide consolidations ? Handling Dangerous Cargo ? Insurance ? Documentation ? Oversized & Project cargo
Air Logistics:
A team of experienced professional’s to cater swift movement of your cargo, when time matters most you can avail cost effective AIR LOGISTIC SERVICES.
Other value additional services:
? All kinds of NVOCC operations ? Competitive Rates ? Stuffing & De-stuffing ? Insurance ? Documentation ? All Kind of goods transportation ? Custom Clearance 42
? M.T.O. Register bill of lading
Warehousing:
Sufficiently capacitated we provide reliable &economical storage facility for your goods. Using only the most advanced tools & team of trained professionals on all ports for safe stuffing-de-stuffing & packing / labeling of goods.
Transportation:
To integrate your business with market we have a close and wellcoordinated network of road carriers to provide individual as well as comprehensive road services, ensuring most efficient, yet cost effective carriers to deliver your goods.
? OUR STRENGTH: ? Very well organized office infrastructure ? More then 25 well experienced executive staff ? Having enough spacious ? Warehouse at Dronagiri Shed No.4 ? Having very good terms in Carriers ? In House all Pelletization Facility ? Fork Lifts and Cranes are available on site for heavy goods
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?
Boom in transport industry
The transport industry or the Indian freight sector is estimated to
be over Rs 45,000 crore. The average productivity of a truck is 200/250 Km /day in our country as against over 1200Km / day in developed countries. Besides, only around 47 per cent of Indian roads are paved. The road network, though extensive, is unable to handle high traffic density at many places and has poor riding quality in some segments. The economic loss to the national exchequer due to substandard roads and inadequate roads is estimated to be over Rs 20,000 crore. “I foresee all these will be corrected in the span of three to five years and containers will eventually come up for reasons of security and safety,” says an optimistic Agarwal. Banks, too, are ready to support this quest for success. Vijay Chandok, GM, ICICI Bank, says: “The recent growth in the economy has been admirably supported by the logistics industry. With the economy poised to continue on the high growth path, the industry is expected to gear up to support this growth through expansion and technological upgradation to deliver international quality service. We are keen to partner the industry in this journey.” Highlighting the need for speed and good service, Puneet Agarwal , Director, Delhi Assam Roadways Corporation Ltd. (DARCL), says: “Decades ago the customers were content with just reaching of materials and now it is tracking, Just-in-Time (JIT) and with definite cost reduction with committed service.” The need of IT, too, in the logistics sector can hardly be overemphasized and with the reduced costs of internet connectivity, it has become feasible to have online systems.
However, the use of IT has been limited to the few top players in the industry since a majority of players in this sector are unorganised or have very small operations. Majority of Fleet owners/Truck Suppliers have very small scale 44
operations and uneducated work force and penetration of IT is almost nonexistent. Vehicle Tracking Units based upon GPS/GSM tech is very limited and popular technologies like RFID are still to come to India. “India is touted as the future destination for logistics service providers all over the world. SMEs can play a significant role by using the vehicles of automation, IT, technology and better labour productivity to play a leading role in the global economy,” says Sushil Jiwarajka, Chairman, Western Regional Council, and FICCI. They all have a valid point. India’s cargo and logistics industry looks promising. A strong commitment from private sector operators coupled with determined efforts by the government and regulators can transform the sector. With rapid tech development and integration of global economies and supply chains, India can play a significant role in global logistics industry.
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?
Conclusion
Of late, Transportation has emerged as an important sector of an economy. It is found to be an economic bonanza that contributes substantially to the development process. If, the managerial decisions are creative, innovative and sensitive, we expect a lot from the Transportation Industry. However, still world class professional excellence is essential without which all the efforts are to be ineffective.
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doc_932610687.doc
We would like to express our deep felt gratitude in the warmest manner possible towards our professor Mrs. Priya Gawade for assigning us such a marvelous project. We have immense pleasure in presenting this PROJECT ON TRANSPORTATION. The topic was an interesting one. It gave us an opportunity to have a detailed study on the topic and showed how things work in the practical world. We came to understand and analyse the importance of TRANSPORTATION in the Economy and we appreciate its scope in the field of other services. We had a great time working on the project and we have provided information to the fullest of our knowledge and our findings.
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INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Topic Service Industry Introduction & Importance of Transportation Modes of Transport Advantages & Disadvantages of Different Modes of Transport 7 P’s of Transportation Swot Analysis Indian Transportation Sector National Highways Development Project Golden Quadrilateral Challenges Faced by Transportation Sector Key Government Strategies World Bank Support Transport Infrastructure Measuring Relative Importance Of Each Mode Company Profile & Report Conclusion Page No. 5-6 7-10 11-18 19 20-21 22-23 24-27 28 29 32-33 34-35 36-37 38 39 40-47 48
?
About services:
3
Services include all economic activities whose output is not a physical product or construction is generally consumed at time it t is produced and provides added value in forms such as convince timeliness, comfort or health. That is essentially intangible concerns of its first purchaser. Services means service of any description which is made available potential users and includes the provision of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising. The service sector now accounts for more than half of India's GDP: 51.16 per cent. This sector has gained at the expense of both the agricultural and industrial sectors through the 1990s. The rise in the service sector's share in GDP marks a structural shift in the Indian economy and takes it closer to the fundamentals of a developed economy (in the developed economies, the industrial and service sectors contribute a major share in GDP while agriculture accounts for a relatively lower share). Some economists caution that if the service sector bypasses the industrial sector, economic growth can be distorted. They say that service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. It is true that, in India, the service sector's contribution in GDP has sharply risen and that of industry has fallen (as shown above). But, it is equally true that the industrial sector too has grown, and grown quite impressively through the 1990s (except in 1998-99). Three times between 1993-94 and 1998-99, industry surpassed the growth rate of GDP. Thus, the service sector has grown at a higher rate than industry which too has grown more or less in tandem. The rise of the service sector therefore does not distort the economy.
4
Reasons for the growth of service industry
Service characteristics Intangibility Marketing implications ? Cannot be stored ? No patents ? No ready display ? Communication Inseparability problem ? Consumer involved in production ? No mass production ? Supply match ? Employees Heterogeneity effect ? Industrialized ? Customize control the service outcome ? Standardization difficult ? Quality difficult ? No sure knowledge if service delivered matches what was planned promoted and demand Strategies implications ? Tangible clues ? Personal source ? Organizational image ? Cost accounting for prices ? Selection training of contact person ? Manage consumer ? Multisite location to deal with
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?
Introduction:
We use various products in our daily life. But do we know where
are they produced? Many of them are produced at different places far away from our locality. So how do we get them at our place? These are carried on from all those places through rail, road or air and are made available to us at our locality. You must have seen trucks, tempo, and bullock carts etc., which carry products or even raw materials from one place to another. Similarly, you also must have seen people traveling from one place to another by buses, trains, cars, scooters, rickshaws, cycles, etc. This movement of goods and individuals is very important in business. Because of this, raw materials reach the place of manufacture, finished products reach the place of sale or consumption, individuals move around to manage the business, etc. In this lesson, let us learn how goods and passengers move from one place to another.
?
Objectives:
??Sate the meaning of transport; ??Recognise the importance of transport; ??Identify the various modes of transport; and ??Describe the advantages and limitations of different modes of transport.
6
MEANING Transport is one of the important aids to trade. It makes possible production and distribution of goods and services. It makes possible production because of transfer of raw materials and other requirements from the place of supply to the production. It makes possible distribution because it supplies the goods from the place of production to the place of consumption. Transport or transportation is the movement of people, goods, signals and information from one place to another. The term is derived from the Latin ‘trans’ ("across") and ‘portare’ ("to carry").
?
Definition of Transport
Transport refers to the activity that facilitates physical movement
of goods as well as individuals from one place to another. In business, it is considered as an auxiliary to trade, that means, it supports trade and industry in carrying raw materials to the place of production and distributing finished products for consumption. Individuals or business firms that engage themselves in such activities are called transporters. Generally, transporters carry raw material, finished products, passengers, etc. from one place to another. So it removes the distance barrier. Now-adays goods produced at one place are readily available at distant places. People move freely throughout the world because of transport. It is associated with every step of our life. Without transport, we, as well as business units cannot move a singe step.
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?
Importance of Transport
Followings are the points of importance of transport.
•
a. Makes available raw materials to manufacturers or producers: Transport makes it possible to carry raw materials from places where they are available, to places where they can be processed and assembled into finished goods. b. Makes available goods to customers: Transport makes possible movement of goods from one place to another with great ease and speed. Thus, consumers spread in different parts of the country have the benefit of consuming goods produced at distant places. c. Enhances standard of living: Easy means of transport facilitates large-scale production at low costs. It gives consumers the choice to make use of different quantities of goods at different prices. So it raises the standard of living of the people. d. Helps during emergencies and natural calamities: In times of national crisis, due to war or internal disturbance, transport helps in quick movement of troops and the supplies needed in the operation.
8
e. Helps in creation of employment: Transport provides employment opportunity to individuals as drivers, conductors, pilots, cabin crew, captain of the ship, etc. who are directly engaged in transport business. It also provides employment to people indirectly in the industries producing various means of transport and other transport equipments.
Transport People can also provide repairing and maintenance services by opening service
centers at convenient locations. f. Helps in labour mobility: Transport helps a lot in providing mobility to workers. You may be aware that people from our country go to foreign countries to work in different industries and factories. Foreigners also come India to work. In India, people also move from one part to another in search of work. Similarly, it is not always possible to have workers near the factory. Most industries have their own transport system to bring the workers from where they reside to the place of work. g. Helps in bringing nations together: Transport facilitates movement of people from one country to another. It helps in exchange of cultures, views and practices between the people of different countries. This brings about greater understanding among people and awareness about different countries. Thus, it helps to promote a feeling of international brotherhood.
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? Modes of Transport:
Transportation modes are an essential component of transport systems since they are the means by which mobility is supported. Geographers consider a wide range of modes that may be grouped into three broad categories based on the medium they exploit: land, water and air. Each mode has its own requirements and features, and is adapted to serve the specific demands of freight and passenger traffic. This gives rise to marked differences in the ways the modes are deployed and utilized in different parts of the world. Recently, there is a trend towards integrating the modes through intermodality and linking the modes ever more closely into production and distribution activities. At the same time, however, passenger and freight activity is becoming increasingly separated across most modes. ? Railway:
India has amongst the largest railway network in the world. Every city, town, village has a rail connection. Through railways very large volumes of goods can be transported economically over long distances to remote places in the country. But railways in general incur high fixed costs because of expensive equipment (i.e. railways must maintain their own rail track meant exclusively for them) switching yards and terminals. However the railways experience relatively low variable operating costs.
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Railways help to transport raw materials from extractive industries which are located at considerable distances. Besides this railways also transport massive amount of steel, automobiles, war equipment, across the country. There are also various different types, such. as articulated cars for extended Rail chassis, double stack railcars, have 2 levels of containers, thereby doubling the capacity of each car. It also reduces chances of damage because of their design. These technologies are being applied by railroads to reduce weight, increase carrying capacity, and facilitate interchange.
?Road Transport
Road transport forms an essential part of any transport activity, whether rail, sea or air. It is essential as a supplementary and complementary mode of transport to complete movement by other modes of transport. Eg. From one terminal i.e. the railway station the goods have to be carried to the destination like an area by road.
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?
Water transport
One of the oldest modes of transportation is water. In terms of time factor, they may be slow. But, they can carry more shipment, at reduced cost over longer distance. Water transport could be of inland type or oceanic transport.
?
Inland water transport
Inland water transport is used mainly for transport; within a
country. In our country Inland water transport through rivers and canals is quite popular because of the low cost and bulk transport. But here, the inland water transport system heavily depends upon the rain and in many places on the tides. So, in our country, we cannot guarantee the functioning of inland water throughout the year at the same efficiency.
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Oceanic Transport
Oceans act as huge waterways for transport of goods form one
country to another. Oceanic transportation includes import and export of crude and bulky commodities like materials which are removed from mines, cement, chemical, crude oil, iron ore, coal, chemicals like sulphur, crude petroleum, and selected agricultural products, etc. 12
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Pipelines
Primarily, pipeline is used for the transport of crude petroleum, refined petroleum and natural gas. Pipelines are also used for the transportation of certain types of chemicals, Pulverized dry bulk materials such as cement and flour via hydraulic suspension system, and sewage and water in cities. A significant fixed cost is incurred while setting up the pipeline and related infrastructures. Thus, given the nature of costs, pipelines are the best suited when relatively large and stable flows of materials are required. E.g.: pipeline may be best suited to transport crude petroleum from the port to the refinery. But, to transport refined petrol to a gas station does not justify the use of a pipeline and this is better done by a truck. There is a talk going on between India, Iran and Pakistan regarding the transportation of crude oil from Iran to India with the help of a pipeline which will pass through Pakistan. This will reduce the cost of transporting crude oil from Iran to India. In comparison with the other modes of transport, pipelines operate on a 24 hour basis, seven days a week. They stop functioning due to change in the commodity to be transported, or due to maintenance. Unlike other modes of transport, pipeline does not have any empty containers or vehicles which are to be returned to the origins. A high fixed cost for pipelines normally results from the right of way constructions and requirements at the control stations and pumping capacity. 13
Another-disadvantage of pipeline is that they are not flexible.
Once the route of a pipeline is fixed, it is not changeable. Again pipelines are restricted with respect to the types of commodities which can be transported through them. Only products in the form of gas, liquid slurry can be handled by the pipelines. One advantage of pipelines is that, once they have been constructed, they are not labour intensive for operational purposes as other modes of transport. So, their variable operating cost is low.
?
Ropeway transport
Ropeway refers to a mode of transport, which connects two places
on the hills, or across a valley or river. In the hilly areas, trolleys move on wheels connected to a rope and are used for carrying passengers or goods, especially building materials, food, etc. The famous “Uran Khatola Jagdamba” in Gujarat that carries pilgrims to the temple is an example of ropeway transport, which carries more than 100 passengers at a time.
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Other Modes of Transport:Other modes of transportation includes the freight forwarder who
accepts small shipments and charge less carload (or less truck load or plane load) rates and consolidates the small shipments into carload truckload, or planeload tots, which are then sent by the lower quantity rates. Frequently, the freight forwarder acts as a traffic department for small companies, which usually ship in less carload lots. Shippers' cooperatives offer much the same services as the forwarder in consolidating small shipments into larger ones, except that the profits of the business are returned to the members of the cooperative. Small packages can also be sent via speed post, and can use some of the, expedited delivery services the Indian Post System now offers
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?
Multimodal Transport/lntermodal Transport
Multimodal/lntermodal transportation is the use of more than one mode of transport for the movement of shipment from the origin to its destinations. In this system lntermodal operators use multiple modes of transport to take the advantage of the inherent economies of each & thus provide integrated service at the lowest total cost. Multimodalism is all about coordination 1. Coordination of the different modes of transport. 2. Coordination of the documentation. 3. Coordination of the commercial & physical aspects of the commercial Transaction between the buyer & the seller.
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Intermodal transport chain
?
Four major functions define an lntermodal transport chain:
* Composition. The process of assembling and consolidating freight at a terminal that
offers an Intermodal interface between a local / regional distribution system and a national / international distribution system. Ideally, loads of freight coming from different suppliers are assembled at distribution centers so they can be forwarded to high capacity modes such as rail and maritime shipping. The dominant mode for such a process tends to be trucking as it offers flexibility and door-to-door services. Activities such as packaging and warehousing are also included in the composition process, which is closely linked with the function of production.
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* Connection. Involves a consolidated modal flow, such as a freight train or a containership (or even fleets of trucks), between at least two terminals, which happens on the realm of national or international freight distribution systems. The efficiency of a connection mainly derives from economies of scale, such as double stacking or postpanamax containerships.
* Interchange. The major Intermodal function takes place at terminals whose purpose is to provide an efficient continuity within a transport chain. Those terminals are dominantly within the realm of national or international freight distribution systems, with ports being the most notable example.
* Decomposition. Once a load of freight has reached a terminal close to its destination it has to be fragmented and transferred to the local / regional freight distribution system. This function, which is linked with the function of consumption, dominantly occurs within metropolitan areas and involves unique distribution problems also known as urban logistics.
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? Method
Road
Advantage and Disadvantages: Advantages Disadvantages
Cheap, convenient, flexible, Noisy, pollutes the environment, less private safe than alternatives, stressful for drivers, potential delays, can be expensive where there are congestion or road charges Fast, safe, more environmentally friendly than alternatives, does not add to congestion Fast for long distance deliveries, safe Limited routes, inflexible routes and timetables, expensive, sometimes unreliable
Rail
Air
Expensive, unsuitable for some goods, limited routes, inflexible timetables, environmental pollution, airport taxes Very slow, relatively few ports, inflexible routes and timetables, port duty/taxes - requires inland transportation for door-to-door delivery Expensive, weight of deliveries is limited Insecure due to viruses and hackers, limited to certain goods and services
Sea
Cheap for large volumes
Courier
Fast, reliable, secure
Electronic delivery
Instant, cheap, for international and domestic deliveries
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7P’s of transportation:
? Product:
The decision regarding the transport product depends upon the nature of the user. Railways main products are concerned with passengers and goods services. Railways have to take suitable steps to check the diversion of traffic to road by introducing domestic container service, freight forwarder scheme in goods and parcel. In road transport, the designing of product mix is needed. Increase in the number of quality buses, introduction of new design of bodies for buses and trucks, safety and comfort, special attention to daily commuters and students, construction of metal roads and insurance facilities for goods and passengers are some components to be considered.
?
Price:
Price in transportation is what the customer has to pay for getting transportation services that is called “Fare” & “Freight”. Price is decided as per the distance & mode of transport. The Indian Railways do not have the freedom to adjust their fare and freight rates. The pricing policy of these organisation should assign due weightage to social welfare but at the same time compensate the losses by charging more from the affluent section.
?
Place:
The place is where the customer get the transportation services i.e.
for getting Railway Services customer have to come at Railway – stations, Water ways – Ports, whereas in road ways they have lots of choice. Door step is also possible in road ways.
?
Promotion:
By using advertising, print media, by provide good infrastructure of mode. The Indian Railways have strengthened impersonal measures by advertisement
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and publicity, but due to low magnitude of creativity, the rate of acceptability is not so impressive.
As far as state road transports are concerned their financial position stands as a major constrain while adopting the promotion measure. But it is not possible unless innovative marketing practices are used. Rail and road transport are the two important pillars of the surface transport. They together carry more than 95 % of the total goods and passenger traffic in one country. It is also essential to develop other modes of traffic such as inland waterways, coastal shipping, pipe lines and air cargo.
People:
In transportation services, people are Government Department, Traffic Police, Labour Customer, Businessmen, General Public, Drivers, Staff, Ticket collectors, etc.
Process:
Process in transportation varies as per nature of mode, For e.g.: -Road: Where the passenger want to go i.e. from origin till destination and after paying the fair the process of Road will get over. Railway: First Customer has to pay for buying ticket then from one station origin till the destination station. Water: First customer has to pay for buying ticket then from one station origin till the destination station. But in this transportation lots of lengthy procedure is followed.
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Physical Evidence:
Road toller, Speed Breaker, Staff, Stations, Ports, Traffic Police, Drivers, Ticket, Freight Receipts, Signals, Trains, Ships, Rickshaws.
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? SWOT ANALYSIS: ? ?
Strength:
Globalization: Had made the transportation sector to increase an alarming rate. Due to connectivity to all over the world things have rapidly changed. It has motivated the foreign players to start its business in India. With the large involvement of Multinationals players in Indian Transportation sector, have also encouraged the Domestic Players.
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Geographic Locations: As India is surrounded by water from its three sides, which makes
water transport to play a vital role in transportation sector. As water transport is cheapest mode of transportation, so it is easy to supply heavy load goods by this medium.
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Subsidies: As Rail transport is the oldest medium of transport in India. So to
encourage it government has provided subsidies on it. It also encourages the domestic transport.
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On time Delivery level Different types of Transport Mode Good Logistics
Good use of Technology
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Reasonable Prices (Road & Rail)
?
? ? ? ? ? ? ?
Weakness
Huge Competition Risk (Guarantee) Poor Infrastructure Change in Government Policies High Prices (Air Transport) More Formalities Long Procedure (Water & Air)
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Opportunities
Rail (Managed by Private Sector)
Provide Better Infrastructure. Reducing the Price.
? ?
Threat
Change in Political Relations: It is another critical situation. Bad political relations may hamper
trade between the two countries. There will be losses from both the sides like India & Pakistan.
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Increasing Fuel Prices: If fuel price increases then it will create a heavy burden on
transport industries. It will directly effect to inflation.
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?
Indian Transportation Sector
India’s transport sector is large and diverse; it caters to the needs
of 1.1 billion people. In 1997, the sector contributed 4.4 percent to the nation’s GDP, with road transportation contributing the lion’s share. Good physical connectivity in the urban and rural areas is essential for economic growth. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services by around 10 percent a year. However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. Major improvements in the sector are therefore required to support the country's continued economic growth and to reduce poverty.
Railroads in India
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India's railroad system is the government's largest public enterprise (see fig. 12). Its route length extends 62,458 kilometers. The railroads of India are the fourth most heavily used system in the world, which suggests the large investment made in rail transportation. In the mid-1990s, the railroad system employed 1.7 million people and carried around 66 percent of India's goods traffic (some 350
Million tons in FY 1992) and 40 percent of passenger traffic (3.7 billion passenger journeys in FY 1992) Indian Railways is administered and managed by the Railway Board, which is subordinate to the Ministry of Railways. The minister of railways is assisted by the minister of state for railways. Indian Railways is Asia's largest railroad system and the second largest state-owned system under a single management in the world. The 62,458 kilometers of route-length track run in three gauges: narrow gauge (610 and 762 millimeters), meter gauge (1,000 millimeters), and broad gauge (1,676 millimeters). Around 17 percent, or about 11,000 kilometers, of all gauges is electrified, and about 27 percent, or 10,859 kilometers, of the broad-gauge track is electrified. Some 14,600 kilometers are double or multiple tracked. As of FY 1991, there were some 116,000 railroad bridges and some 7,100 railroad stations. The railroad system is divided into nine zones: central, eastern, northern, northeastern, northeast frontier, southern, south-central, southeastern, and western. As of FY 1993, Indian Railways had 1,725 steam, 4,069 diesel, and 2,012 electric locomotives; 3,444 electric multiple-unit coaches; 30,298 conventional passenger coaches; 6,163 other passenger cars (including luggage and mail cars in which passengers sometimes travel); and 337,562 freight cars of all kinds. The Eighth Five-Year Plan provided for a Rs45 trillion investment in railroad development. Priority was to be given to track and roadbed renovation, additional electrification, conversion of high-use meter-gauge lines to 24
broad-gauge track, the replacement of all steam locomotives, and improved signalling and telecommunications. By 1992, however, the funds actually approved by the government were only 80 percent of the eighth plan's amount, and only 42 percent would be covered by the central government budget. Indian Railways was expected to come up with the balance. Thus, in FY 1994, the outlay was set at Rs65.1 billion;
Rs11.5 billion was to come from central government revenues, Rs43.1 billion from internal railroad resources, and Rs10.5 billion from loans. Some of the investment funds, as in the past, were expected from the World Bank. The only way to cover these outlays with such low budgetary support was with drastic increases in fares and rates in passenger service. In FY 1993, Indian Railways made capital expenditures amounting to US$2 billion for items such as new rolling stock, new line construction, track renewal, and electrification. An example of the scale of new rail line construction is the new broad-gauge high-speed Konkan Railway, a 760-kilometer coastal connection between Bombay and Mangalore featuring fifty-five stations, seventy-three tunnels, 143 major bridges, and some 1,670 minor bridges. The line crosses several mountain ranges and runs some 380 kilometers through an earthquake-prone zone. Besides opening up an all-weather transportation infrastructure between two important cities, it cuts the distance by rail between them by 1,127 circuitous kilometers. India has a major railroad-equipment production industry. Although some state-of-the-art electrical components and equipment are imported, India is developing sufficient industrial capacity to meet most of its standard locomotive and passenger-car and ancillary equipment needs and has made plans to export locomotives. The Research, Design, and Standards Organisation of Indian Railways engages in research and simulations aimed at further improving the quality of domestic achievements, which have included high-speed passenger trains (up to 25
140 kilometers per hour) and freight trains (up to 80 kilometers per hour) and solidstate signalling equipment. Because some two-thirds of the nation's freight is carried by train, there is a serious freight car shortage.
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Railways
Indian Railways is the largest railway in Asia and the fourth
most heavily used system in the world. It carries some 14 million passengers a day and is one of the world’s largest employers. Till recently, the railways played a leading role in carrying passengers and cargo across India’s vast territory. However, with tariff policies that overcharge freight to subsidize passenger travel, the movement of freight is increasingly shifting from railways to roads.
?Roads
Roads are the dominant mode of transportation in India today. They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight. The density of India’s highway network -- at 0.66 km of highway per square kilometer of land -- is similar to that of the United States (0.65). It is also much greater than that of China (0.16) or Brazil (0.20). However, most highways in India are narrow and congested and have poor surface quality.
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National Highways Development Project
The National Highways Development Project is a project to upgrade major roads in India to a higher standard. "National Highways” account for only about 2 per cent of the total length of roads, but carry about 40 per cent of the total traffic across the length and breadth of the country. This project is managed by the National Highways Authority of India under the Ministry of Road, Transport and Highways. The NHAI has been mandated to implement US$ 25 billion for the project. Considering the importance of the National Highways and the rapid increase in traffic, the Government has taken up the National Highways Development Project (NHDP), which consists of the following components:
•
DP Phase-I: The Golden Quadrilateral (GQ; 5,846 km) connecting the four major cities of Delhi, Mumbai, Chennai and Kolkata. NHDP Phase-II: The North-South and East-West Corridor (NS-EW; 7,300 km) connecting Srinagar in the north to Kanyakumari in the south, including spur from Salem to Kochi, and Silchar in the east to Porbandar in the west.
•
• •
Port connectivity and other projects — 1,157 km. NHDP Phase III-A (4,015 km): 4-laning of over 4000 km in the year 2005 approved at an estimated cost of US$ 4.9 billion.
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Future Plans
The Indian Government has set ambitious plans for upgradation of the National Highways in a phased manner in the years to come. The details are as under:
•
4-laning of 10,000 km (NHDP Phase- III) including 4,000 km that has been already approved. An accelerated road development programme for the North Eastern region.
•
2-laning with paved shoulders of 20,000 km of National Highways under NHDP Phase-IV. 6-laning of GQ and some other selected stretches covering 6,500 km under NHDP Phase-V. Development of 1,000 km of express ways under NHDP Phase-VI. Development of ring roads, bypasses, grade separators, service roads, etc. under NHDP Phase-VII
•
• •
? Golden Quadrilateral
The Golden Quadrilateral (GQ) is the largest expressway project in India. It is the first phase of the National Highways Development Project (NHDP), and consists of building 5,846 kilometres of four/six lane expressways connecting Delhi, Mumbai, Kolkata and Chennai (thus forming a quadrilateral of sorts), at a cost of Rs. 60,000 crores (US$ 12.317 billion) (at 1999 prices) (Rs 580 billion). As of May 31 2006, 92% of the entire work has been completed, with the final completion date set as December 2006, approximately two years behind schedule, this has been mainly due to issues with the various states about giving up land for the national highway. 28
The GQ project is managed by the National Highways Authority of India (NHAI) under the Ministry of Road, Transport and Highways. The MumbaiPune Expressway, the first controlled-access toll road to be built in India is a part of the GQ Project though not funded by NHAI. Infrastructure Leasing & Financial Services (IL&FS) has been one of the major contributors to the infrastructural development activity in the GQ project.
? Current Status
• •
Delhi-Kolkata (NH-2): 1192/1453 km i.e. 82% complete (as on 31 May 2006). Delhi-Mumbai (NH-8): 1419/1419 km i.e. 100% complete. Completed in Nov 2005. Mumbai-Chennai (NH-4) : 1212/1290 km i.e. 94% complete (as on 31 May 2006). Kolkata-Chennai (NH-5) : 1537/1684 km i.e. 91% complete (as on 31 May 2006).
•
•
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Ports
India’s coastline of about 6,000 km is dotted with 11 major, 11
intermediate and 168 minor ports. Nearly 95 per cent of the country’s foreign cargo (by volume) moves by sea and, therefore, ports/and their development assume an important place in policy making. Development and maintenance of India’s major ports are the responsibility of the Central Government, while Other Ports are in the Concurrent list. Major Ports: India’s major ports are governed by the Indian ports Act 1908 and the Major Port Trusts Act 1963. The former allow the Statutory to declare any port a major port, define port limit, levy charges etc. while the formation of Port trust Boards and vests the administration control and management of major ports in these Boards. 29
At the time of independence, India had five major Ports, viz. Mumbai, Calcutta, Vishakhapatnam, Chennai, and Cochin. With the Karachi Port going to Pakistan after Partition, there was the for a major port on the western coast. A new port was developed at Kandla, which was declared a major port in 1955. The Marmugao Port, developed by the Portugues, joined the ranks of major ports in 1964 after the liberation of Goa in 1962. Para deep, on the eastern coast, was declared a major port in 1966. Eight years later, New Mangalore and Tuticoin were added to the list of major ports. The inclusion of the Jawaharlal Nehru Port at Nhava Sheva on the western coast took the number of major ports to 11. Development of port after the independence, the development of major ports was taken up in a planned manner. Mechanization and modernizations of cargo-handling facilities at Ports have been a thrust area in recent years, with emphasis on development of dedicated infrastructure. Deepening of ports to receive lager vessels has been another priority area. Vishakhapatnam and Chennai ports have already been deepened. Minor and intermediate ports Minor and intermediate ports fall in the Concurrent list and their administration is the responsibility of the respective coastal states. Their number as well as their categorization into minor or intermediate Ports has varied from time to time, depending upon the volume of cargo and the number of passenger they handle. In 1996, there were 11 intermediate and 168 minor ports and state wise distribution was: Orissa -2, Andhra Pradesh - 12, Tamil Nadu -10, Pondicherry - 1, Andarnan and Nicobar - 22, Lakshadweep -10, Kerala - 13, Karnataka - 9, Goa - 5, Maharashtra - 53, Daman &Diu and Gujarat - 40.
Name of the 11 major ports
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Calcutta, Haidia, Paradeep, Mumbai, Chennai Cochin, Tuticorin, JNPR, Kandla Vishakhapatnam, New Mangalore, and Marmugao.
? Challenges Faced by Transportation Sector:
• •
The major challenges facing the sector are:
India’s roads are congested and of poor quality.
Lane capacity is low - most national highways are two lanes or less. A
quarter of all India's highways are congested, reducing truck and bus speeds to 30-40 kmph. Most roads are of poor quality. Road maintenance remains significantly underfunded - only around one-third of maintenance needs are met. This leads to the deterioration of roads and high transport costs for users.
•
Rural areas have poor access.
Roads are significant for the development of the rural areas -
home to almost 70 percent of India's population. Although the rural road network is extensive, some 40 percent of India’s villages do not have access to all-weather roads and remain cut off during the monsoon season. The problem is more acute in India's northern and northeastern states which are poorly linked to the country’s major economic centers.
•
The railways are facing severe capacity constraints.
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All the country’s high-density rail corridors face severe capacity constraints. Also, freight transportation costs by rail are much higher than in most countries as freight tariffs in India have been kept high to subsidize passenger traffic.
•
Urban centers are severely congested.
In Mumbai and other metropolitan centers,
roads are often severely congested during the rush hours. The dramatic growth in vehicle ownership – at some 15 percent a year during the past decade - has reduced rush hour speeds to 5-10 km an hour in the central areas of major cities.
•
Ports are congested and inefficient.
Port traffic has more than doubled during the 1990s, touching 385 million tons in 2001-02. This is expected to grow further to about 900 million tons by 2011-12. India's ports need to significantly ramp up their capacity and efficiency to meet this surging demand.
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?
Key Government Strategies
According to India’s Tenth Five Year Plan, the
Government aims to modernize, expand, and integrate the country's transport services. It also seeks to mobilize resources for this purpose and to gradually shift the role of government from that of a producer to an enabler. In recent years, the Government has made substantial efforts to tackle the sector’s shortcomings and to reform its transport institutions. These include:
• •
Increasing public funding for transportation in its Five Year Plans. Improving the major road corridors by launching the National Highway Development Program between Delhi, Mumbai, Chennai and Kolkata, popularly called the Golden Quadrilateral.
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Financing the development and maintenance of roads by creating a Central Road Fund (CRF) through an earmarked tax on diesel and petrol.
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Operationalising the National Highway Authority to act as an infrastructure procurer and not just provider.
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Amending the National Highway Act to expedite land acquisition, permit private financing and allow tolling.
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Improving rural access by launching the Pradhan Mantri Gram Sadak Yojana (Prime Minister’s Rural Roads Program).
•
Reducing the congestion on rail corridors along the Golden Quadrilateral and improving port connectivity by launching the National Rail Vikas Yojana (National Railway Development Program).
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Upgrading infrastructure and connectivity in the country's twelve major ports by initiating the National Maritime Development Program.
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Regulating tariffs in the port sector by establishing a Tariff Authority for Major Ports (TAMP).
•
Initiating the process of privatization and expansion of the Mumbai and New Delhi Airports.
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?
World Bank Support
The World Bank has been a major investor in the transport
sector in India. Till 2005, it has provided 16 loans for improving the national and state highways and rural roads, as well as urban transportation in Mumbai. It has also provided 18 loans for the railways. At present, World Bank’s total loan commitments for the transport sector in India are US$4.8 billion. The main activities include:
•
National Highway Development Project:
The World Bank is financing highway
construction on the Agra-Dhanbad and Lucknow-Muzaffarpur corridors. It is also involved in other sector activities such as improving road transport efficiency, upgrading road safety, including private sector participation, and improving asset management.
•
Rural Roads Program:
The program provides for the provision of all weather roads to
villages in four states – Uttar Pradesh, Jharkhand, Rajasthan and Himachal Pradesh.
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•
State Roads Projects:
State Highways are being upgraded in the states of Gujarat,
Karnataka, Kerala, Mizoram, Uttar Pradesh, and Tamil Nadu.
•
Mumbai Urban Transport Project:
The project aims to improve transportation in the Mumbai
Metropolitan Region by fostering the development of an efficient and sustainable urban transport system - suburban rail, bus and link roads - and building effective institutions. While the Bank will continue to support the upgrading and development of roads and highways in the country, it plans to scale up its involvement in urban transportation, railways and ports.
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Transport infrastructure
Infrastructure is the main facilitator for any activity to take place. For transportation to take place a strong infrastructure is primary. If this infrastructure is inadequate transportation gets slowed down resulting into a major obstacle in the growth of trade and business in that area.
Elements of transportation infrastructure
• • • • •
Terminal facilities - well maintained loading unloading facilities, space for movement of vehicles, platforms, railway yards Vehicles- trucks, ships or wagons depending on the mode. Their size, shape & speed Right of way- passage to move on. Rails, roads, airways, limitations on speed, weight, height etc. If we use this particular passage. Prime movers – the powerhouses moving the vehicle of transport shortage of which seriously affect transportation. Shortage of good locomotives impairs the utility of railway as a mode of transport. Carrier organizations – are the transportation service providers in business. Transportation is their core business Good service provides a vital fillip to business and trade. Railways, roadways, airlines, shipping lines are service providers 37
.
? Measuring Relative Importance Of Each Mode
We measure relative importance of each mode as of now or over a specific time span by measuring the modal characteristics. Importance is the popularity or wide spread usage of this mode in business. Modal characteristics are System mileage, Traffic volume, nature of traffic composition and revenue. System mileage: Mileage covered by the modal net work. Like total length of roads in the road network in miles or kilometers is System mileage for road as a mode. This measure explains to what extent road is being used or how popular in business as a mode of transport today. Traffic volume: is the amount of ton kilometers moved by a mode. This is a better measure as this indicates the tonnage shipped by this mode as well. Revenue: is the amount of transportation business in rupees or dollars transacted by a mode. In simple terms how many rupees worth material is shipped in this mode. Nature of traffic composition: what variety of goods are moved by this mode is a measure to indicate the spectrum of goods handled. This speaks of the flexibility of the mode.
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Watercraft Logistics Pvt. Ltd.
Room no: 27, 3rd floor, Tulsi terrace, 275, Sahid Bhagat Singh Road, Fort, Mumbai - 1, Maharashtra, INDIA Tele: +91 22 30222888 Fax: +91 22 30222893 E-mail: [email protected] www.watercraft.co.in ? Visit Report:
In the Morning conversation started with Mr. Leeladhar, Manager, Watercraft Logistics Pvt. Ltd. Speaking about Transportation, he explained us how important it is to provide best services and make the customer satisfied.
? Company Profile:
M/s. Watercraft logistics Pvt. Ltd. is a leading NVOCC/Freight Forwarder based in Mumbai with regular LCL/FCL shipments to worldwide destinations. We are an organization form by a team with a broad range of experience and vision in all areas of logistics to offer ranging from Sea freight, Air freight, NVOCC, Transshipment, Warehousing & Transportation services for world wide destinations. Known for our efficient regular & reliable services for HongKong, Valencia, Singapore, Europe, U.S.A., Port Kelang, Veracruz, Spain, South Central & Latin America.
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Our business associates around the world provide us with a global network that integrates with our promise to deliver your goods on time every time. Our clientele encompasses a broad spectrum of business world from small exporters & importers to large Multinational Corporation moving volumes of freight worldwide.
? All Services under one roof
Watercraft logistics Pvt. Ltd. Division utilizes a total transportation concept that coordinates and monitors projects from the drawing board through completion. We assist our clients with every phase of heavy lift and turnkey projects from door to job-site, including: planning and consultations, heavy lift operations, sourcing, consolidations, warehousing, full and part charters, insurance, export packing, customs clearance and documentation - all solidified by a team of truly dedicated professionals.
Services Offered:
? Planning and consultations ? Heavy lift operations ? Sourcing ? Consolidations ? Warehousing ? Full and part charters ? Insurance ? Export packing ? Customs clearance and documentation
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?
Ocean Logistics:
The Fastest and most competitive consolidation services for LCL
& FCL cargoes from JNPT, N S I C T & Mumbai Port to worldwide destinations, we also provide dedicated regular direct services towards Hong-Kong, Valencia, Singapore, Europe, U.S.A., Port Kelang, Veracruz, Spain, South Central & Latin America. They ensure trouble free cargo delivery based on precise coordination between Our Customer-Support Division & world wide associates. ? Transshipment Service ? World wide consolidations ? Handling Dangerous Cargo ? Insurance ? Documentation ? Oversized & Project cargo
Air Logistics:
A team of experienced professional’s to cater swift movement of your cargo, when time matters most you can avail cost effective AIR LOGISTIC SERVICES.
Other value additional services:
? All kinds of NVOCC operations ? Competitive Rates ? Stuffing & De-stuffing ? Insurance ? Documentation ? All Kind of goods transportation ? Custom Clearance 42
? M.T.O. Register bill of lading
Warehousing:
Sufficiently capacitated we provide reliable &economical storage facility for your goods. Using only the most advanced tools & team of trained professionals on all ports for safe stuffing-de-stuffing & packing / labeling of goods.
Transportation:
To integrate your business with market we have a close and wellcoordinated network of road carriers to provide individual as well as comprehensive road services, ensuring most efficient, yet cost effective carriers to deliver your goods.
? OUR STRENGTH: ? Very well organized office infrastructure ? More then 25 well experienced executive staff ? Having enough spacious ? Warehouse at Dronagiri Shed No.4 ? Having very good terms in Carriers ? In House all Pelletization Facility ? Fork Lifts and Cranes are available on site for heavy goods
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?
Boom in transport industry
The transport industry or the Indian freight sector is estimated to
be over Rs 45,000 crore. The average productivity of a truck is 200/250 Km /day in our country as against over 1200Km / day in developed countries. Besides, only around 47 per cent of Indian roads are paved. The road network, though extensive, is unable to handle high traffic density at many places and has poor riding quality in some segments. The economic loss to the national exchequer due to substandard roads and inadequate roads is estimated to be over Rs 20,000 crore. “I foresee all these will be corrected in the span of three to five years and containers will eventually come up for reasons of security and safety,” says an optimistic Agarwal. Banks, too, are ready to support this quest for success. Vijay Chandok, GM, ICICI Bank, says: “The recent growth in the economy has been admirably supported by the logistics industry. With the economy poised to continue on the high growth path, the industry is expected to gear up to support this growth through expansion and technological upgradation to deliver international quality service. We are keen to partner the industry in this journey.” Highlighting the need for speed and good service, Puneet Agarwal , Director, Delhi Assam Roadways Corporation Ltd. (DARCL), says: “Decades ago the customers were content with just reaching of materials and now it is tracking, Just-in-Time (JIT) and with definite cost reduction with committed service.” The need of IT, too, in the logistics sector can hardly be overemphasized and with the reduced costs of internet connectivity, it has become feasible to have online systems.
However, the use of IT has been limited to the few top players in the industry since a majority of players in this sector are unorganised or have very small operations. Majority of Fleet owners/Truck Suppliers have very small scale 44
operations and uneducated work force and penetration of IT is almost nonexistent. Vehicle Tracking Units based upon GPS/GSM tech is very limited and popular technologies like RFID are still to come to India. “India is touted as the future destination for logistics service providers all over the world. SMEs can play a significant role by using the vehicles of automation, IT, technology and better labour productivity to play a leading role in the global economy,” says Sushil Jiwarajka, Chairman, Western Regional Council, and FICCI. They all have a valid point. India’s cargo and logistics industry looks promising. A strong commitment from private sector operators coupled with determined efforts by the government and regulators can transform the sector. With rapid tech development and integration of global economies and supply chains, India can play a significant role in global logistics industry.
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?
Conclusion
Of late, Transportation has emerged as an important sector of an economy. It is found to be an economic bonanza that contributes substantially to the development process. If, the managerial decisions are creative, innovative and sensitive, we expect a lot from the Transportation Industry. However, still world class professional excellence is essential without which all the efforts are to be ineffective.
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