1.

1 INTRODUCTION
From the beginning of history, human sensitivity has revealed an urge for
mobility leading to a measure of Society's progress. The history of this
mobility or transport is the history of civilization. For any country to develop
with right momentum modern and efficient Transport as a basic infrastructure
is a must. It has been seen throughout the history of any nation that a proper,
extensive and efficient Road Transport has played a major role. Transporters'
perform one of the most important activities, at every stage of advanced
civilization. Where roads are considered as veins and arteries of a nation,
passenger and goods transported are likened to blood in circulation.
Passenger Road Transport Service (PRTS) is an essential connected to the
economic development. Transport is the essential convenience with which
people not just connect but progress. Throughout history, people's progress
has been sustained on the convenience, speed and safety of the modes of
transport. Road transport occupies a primary place in to-day's world as it
provides a reach unparallel by any other contemporary mode of transport.

1.2 TRANSPORT
Transport (British English) or transportation (American English) is the
movement of people and goods from one place to another. The term is
derived from the Latin trans ("across") and portare ("to carry").

1.3 FUNCTIONS OF TRANSPORT

1. Transport contributes in Growth of industries whose product requires
quick marketing. Perishable articles like fish and green vegetables are
carried to various consumers quickly even in distant markets through
transport.
2. Transport helps in increase in the demand for goods. Through
transport newer customers in newer places can be easily contacted and
products can be introduced to them. Today markets have become national
or international only because of transport.

3. Transport creates place utility. Geographical and climatic factors force

industries to be located in particular places far away from the markets and
places where there may not be any demand for the products. Transport
bridges the gap between production and consumption centers.
4. Transport creates time utility. Of late transport has started creating the
time utility also. It has been made possible by virtue of the improvements in
the speed of transport. It helps the product to be distributed in the
minimum possible time.
5. Transport helps in stabilization of price. Transport exerts considerable
influence upon the stabilization of the prices of several commodities by
moving commodities from surplus to deficit areas. This equalizes the
supply and demand factor sand makes the price of commodities stable as
well as equal.
6. Transport ensures even flow of commodities into the hands of the
consumers through out the period of consumption.
7. Transport enables the consumers to enjoy the benefits of goods not
produced locally. This increases the standard of living, an essential
factor for further development of marketing and economy.
8. Transport identifies competition, which in turn, reduces pries. Prices
are also reduced because of the facilities offered by transport for large-scale
production. Advantages op large-scale production is possible only due to
transport.
9. Transport increases mobility of labor and capital. It makes people of
one place migrate to other places in search of jobs. Even capital,
machineries and equipments are imported from foreign countries through
transport alone.

1.4 MEANS OF TRANSPORT

The means of transport are classified on the basis of the way, the vehicle, the
motive power used and terminals.

Introduction

1.

LAND TRANSPORT

Land Transport may be classified as

Chart 1.2
Modes of Land Transport

Pathways:
In remote villages, forest and hilly areas pathways are still an important amongst
the different modes of transport. It further be subdivided into Head
loads (is also known as human transport. It is used in the hilly areas where
even animals cannot reach) and Pack animals (is also known as animal
transport. It is used in the backward areas. The animals like horse, pony, donkey,
ass, buffaloes, camel, elephant, yak, sheep etc. are used for this purpose.
Roadways:
Road Transport is one of the most important modes of transport. The history
Road Transport started from ancient civilizations. Gradually it becomes
and more polpular means of transport. Road Transport further

of

more

subdivided into

Vehicular Transport (Cars, Trucks, Buses, Lorries, Autoricksaws, Bullock Carts,

Tongas, Tumtums, and Hand Carts etc.) and
Animals like Camel, Dogs, Elephant,

Non-vehicular Transport (Hamals,

Horse, Mules etc.)

Tramways:
Tramway is one of the cheaper, longer, quicker and safer modes of Land

Transport which is suitable in large cities. However due to certain limitations like
slowly ness, huge investment, inflexibility etc. gradually it replaced by

other

means of Land Transport.

Railways:
Railway has been the pioneer of modern mechanical transport. It has brought
the greatest revolution in transport. It accelerated commercial and industrial
development of various countries. Until the introduction of Motor Transport,
Railway had the monopoly as the Land Transport. In India, it is the principal
means of transport. It carries over 80 per cent of goods traffic and over 70 per
cent of passenger traffic. It provides for more than 60000 kilometers of
railways all over the country.

2.

WATER TRANSPORT

Water transport is the cheapest and the oldest form of transport for heavy
goods and bulk cargoes. Waterways are the natural gifts, hence it does not
required large amount of capital expenditure for the construction of road and
railway tracks, except canal transport, as in the case of land transport. In
addition to that the cost of running is also very less. Water transport may be
classified as under:
Chart 1.3
Modes of Water Transport

INLAND WATERWAYS

Inland waterways may be subdivided into

River Transport:
Rivers are the water highways given by nature. River Transport is suitable for
small boats and steamers. It was highly developed in the pre-railway days.
But with the development of railways, river transport was neglected and
decayed gradually.
Canal Transport:
Canals are the artificial waterways constructed for the purpose of navigation
and irrigation.
B

OCEAN TRANSPORT

Ocean Transport or shipping may be subdivided into

Coastal Shipping:
Coastal shipping is a cheaper, speedy, flexible and economical form of
transport for the movement of bulky and heavy cargoes. Usually coastal
shipping trade is reserved for the national shipping. In India also from 1951
and onwards the coastal shipping trade is extremely reserved for the national
ships.
Overseas Shipping:
On the basis of their working, overseas shipping may be divided into The
Liner (those ships which follow defined routes with fixed places and fixed time
table), The Tramps (those ships which have no set routes or fixed time table) and
The Oil Tanker (special sea carriers of crude oil in very large quantity).

The

Liners may again be subdivided into Passenger Liners and the Cargo Liners.
3.

AIR TRANSPORT

Air transport is the gift of twentieth century to the world. It is the latest means
of transport. The first flight in the air was made in 1903.only for twelve
seconds. Successfully it was used as a means of transport after the First
World War (1914-1918). The first air service was started in 1919 between
London and Paris. Since then it has made notable progress and provide tough
competition to Railways. Air Transport can again be subdivided into
and cargo.

passenger

Chart 1.4
Means of Air Transport

1.5

TRANSPORTATION IN INDIA

A well-knit and coordinated system of transport plays an important role in the

sustained economic growth of a country. The transport system in India comprises
a number of distinct modes and services, notably railways, roads, road transport,
ports, inland water transport, coastal shipping, airports, and airlines. Railways
and roads are the dominant means of transport carrying

more than 95% of

total traffic generated in the country. Although other modes such as coastal
shipping and inland water transport would play a greater role, the railways and
roads would continue to dominate the transport landscape in the foreseeable
future.
1.

Road Transport in India

A good road network is a critical infrastructure requirement for rapid growth. It

provides connectivity to remote areas; provides accessibility to markets,
schools, and hospitals; and opens up backward regions to trade and
investment. Roads also play an important role in inter-modal transport
development, establishing links with airports, railway stations, and ports.
India has one of the largest road networks in the world, of 33.14 lakh km,
consisting of (i) national highways (NHs), (ii) State highways (SHs), (iii) major
district roads (MDRs), and (iv) RRs that include other district roads and village
roads. NHs with a length of 66590 km comprises only 2.0% of the road
network but carry 40% of the road-based traffic. SHs with a length of about
137000 km and MDRs with a length of 300000 km together constitute the

secondary system of road transportation which contributes significantly to the

development of the rural economy and industrial growth of the country. The
secondary system also carries about 40% of the total road traffic, although it
constitutes about 13% of the total road length. RRs, once adequately
developed and maintained, hold the potential to provide rural connectivity vital
for generating higher agricultural incomes and productive employment
opportunities besides promoting access to economic and social services. The
map follows:
Table 1.1
Status of National Highways as on 31st March, 2008
No.

Roads/Ways

Length (Km.)

Expressways

200

National Highways

66,590

State Highways

1,31,899

Major District Roads

4,67,763

Rural and Other Roads

26,50,000

Single Lane/Intermediate Lane

32%

Double Lane

56%

Four or more Lanes

12%

Source: National Highways Authority of India

The transport demand for freight and passenger movement within the country
is met mainly through road transport and railways. Between these two modes,
road transport has steadily expanded its scope of operation and is now not
merely a mode for the last haul but is also handling freight over long
distances. It also plays a complementary role to railways in moving freight
from and to railheads vis-a-vis the Origin-Destination movements of cargo. Its
intermodal share in carrying freight, which was around 14% in 1950-51, had
increased to around 61% in 2004-05. The share of road transport in
passenger movement has also witnessed a quantum jump from 15% in 195051 to an estimated 87% of the total traffic by the end of the Tenth Plan.

2.

Rail transport in India:

Railways are ideally suited for long distance travel and movement of bulk
commodities. Regarded better than road transport in terms of energy
efficiency, land use, environment impact and safety it is always in forefront during
national emergency.

Indian Railways, a historical legacy, are a vital force in our economy.

Spanning

nearly two centuries Indian Railways has been serving the country with utmost
pride. It was only in 1851 when the first train ran in the country for hauling
construction material in Roorkee and by 16 th April 1853 the first passenger train
service became operational running between Bori Bunder, Bombay and Thane.
Fourteen railway carriages carried about 400 guests
covering a distance of 21 miles, thus marking the
India. Since then there has been no looking
though the railways were introduced to

from Bombay to Thane

formal birth of rail network in

back. It is interesting to note that

facilitate the commercial interest of the

British it played an important role in unifying the country.

The Railways in India are the principal mode of transportation for freight and
passengers. The railways have played an important role in the development
of industries and agriculture. Indian railways consist of a vast network of 7031
stations spread over a route length of 63221 km, of this 13,000 km is
electrified, with a fleet of 7817 locomotives, 5321 passenger service vehicles,
4904 other coaching vehicles and 228170 wagons 300 yards, 2300
goodsheds, 700 repair shops, and 1.54 million work force. Indian Railways runs
around 11,000 trains everyday, of which 7,000 are passenger trains as on 31st
March 2004.

Indian railways, the largest rail network in Asia and the world's second largest
under one management are also credited with having a multi gauge and multi
traction system. The track kilometers in broad gauge (1676 mm) are 86526 kms,
meter gauge (1000 mm) are 18529 kms and narrow gauge (762/610 mm) are

3651 kms.
Indian Railway has the distinction of being one of the biggest and busiest rail
networks in the world carrying more than 16 million passengers and 11 Lakh
tones of goods on a daily basis. In terms of headcount again Indian Railway
scores as it employs more than 1.6 million employees that are only second to the
Chinese Army in terms of people employed.
The Indian Railways have been a great integrating force for more than 150
years. The Indian Railways network binds the social, cultural and economical
fabric of the country and covers the whole of country ranging from north to south
and east to west removing the distance barrier for its people. The railway
network of India has brought together the whole of country hence creating a
feeling of unity among the Indians. It has helped the economic life of the country
and helped in accelerating the development of industry and agriculture. The map
follows:
Table 1.2
Status of Indian Railway as on 31st March 2007
Indicators

Unit

Data

Total Route

km

63,327

By Gauge

route-km

Broad Gauge (1.676m)

49,819

Meter Gauge (1.000m)

10,622

Narrow Gauge (0.762)

By Type

2,886
route-km

Single Track

45,961

Double Track

16,555.09

Electrified

17,786

Three/Multiple Tracks

810.73

Total Track

km

109,996

3.

Water Transport in India:

India has a long coastline, about 90% of sea borne trade is handled via major
ports of Kandla, Mumbai , Nhava Sheva, Marmagao, Cochin, Tuticorin, Chennai,
Vishakapatnam, Paradwip, Haldia, Goa and Kolkata.
India is bordered by Bay of Bengal, Arabian Sea and Indian Ocean and has a
coastline of more than 7,000 kms. It has an extensive network of inland
waterways and seaports. The inland waterways include rivers, canals,
backwaters and creeks. The total navigable length of inland waterways is
14,500 km. Inland Waterways Authority of India (IWAI) is the statutory authority
in charge of the waterways in India. There are three national waterways in India:
Allahabad Haldia stretch of the Ganga Bhagirathi Hooghly

river,

Sadiya Dhubri stretch of the Brahmaputra river system and Kollam Kottapuram
stretch of West Coast Canal along with Champakara canal and Udyogmandal
canal. These waterways also attract tourists from all parts of

the world, thus

promoting Indian travel & Tourism. There are also many hotels and resorts in
these areas to cater to the lodging needs of the tourists. There are 12 major
ports and about 180 minor and intermediate ports in India. With

the ports

handling more than 95% of the trade in India, they act as the major gateway for
trade. The major ports in India are Calcutta, Haldia, Paradip, Visakhapatanam,
Ennore, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, JNPT, Mumbai
and Kandla. The map follows
Table 1.3
Status of Indian Waterways as on 31st March 2000
Cargo Moved

National Waterways

Distance (kms.)

National Waterway 1

1620

7.31

National Waterway 2

891

0.06

National Waterway 3

205

11.12

Total

2716

18.49

(Lakh Tons)

Source : Inland Waterways Authority of India

Note: NW-1, Allahabad-Haldia stretch of the Ganga-Bhagirathi-Hooghly river

system, NW-2, Sadiya-Dhubri stretch of the Brahmaputra river, NW-3,
Kottapuram-Kollam stretch of the West Coast Canal along with Champakara

12

Canal (23 kms) and Udyogmandal Canal (14 kms).

4.

Air Transport in India:

Air travel is a fastest means to reach in any part of the world. Domestic air
services are looked after by Indian airlines and private airlines while the
international airport service is looked after by Air India. Mumbai, Chennai,
Kolkata and Delhi are the four major international airports of India
Air transport being the most modern and the quickest mode of transport has
been gaining popularity. However, the exorbitant rates have made it the mode of
travel of the rich or of the business community for whom time is more expensive
than air travel. But the entry of private Airlines and their various schemes have
reduced airfare drastically. The recent tax relaxation on air fuel and such sops
will further make air travel within the reach of a greater section

of the Indian

Populace.
India had bilateral air services agreements with 93 countries as on May 31,
1999. Air India Limited is the major international carrier of the country. It
operates services to USA Europe, the Russian Confederation, the Gulf/Middle
East, East Asia, Far East and Africa. Air India owns a fleet of 26 aircraft
consisting of six B-747-200, two B747-300 (Combi), seven B747-400, three A
300-B4 and eight A 310-300 aircraft. During 1998-99, Air India carried 3.15
million passengers as against 3.06 million in 1997-98.
Indian Airlines is the major domestic air carrier of the country. It operates to

57

domestic stations (including Alliance Air operations) and 17 international stations

in 14 countries, viz., Pakistan, Maldives, Nepal, Sri Lanka, Malaysia,
Bangladesh, Thailand, Singapore, UAE, Oman, Myanmar, Kuwait, Qatar and
Bahrain. Its operations, including Alliance Air cover 76 destinations including 16
abroad. The Airlines owns a fleet of eleven A-300, thirty A-320, twelve B- 737
and three Dornier -228 aircraft. All Boeing B-737 aircrafts are being operated by
its wholly owned subsidiary Alliance Air.
The domestic scene is now dotted with private airlines as the government has

13

now very wisely ended the monopoly of Indian Airlines. The International
service is however, still the monopoly of Air India as the private operators are

14

only allowed to operate within the country. Some of the leading domestic
private airlines are Air Sahara, Jet Airways and Air Deccan. The government has
been in the process of disinvestment of both Indian Airlines and Air India for the
betterment of services.

Pawan Hans Helicopters Limited has been providing helicopter support

services to the petroleum sector including ONGC, Oil India Limited and Hardy
Exploration at Chennai. Apart from these, it also provides services to certain
state governments and public sector undertakings and in the northeastern
states.
Foreign airlines carrying international passenger traffic to and from India
existed long before Independence. Their operations are governed by bilateral
agreements signed from time to time between the Government of India and
the governments of respective countries. In 1980-81, the number of such
airlines was 35. It rose to 49 in 1996-97.The share of foreign airlines in India's
scheduled international traffic has increased. In 1971, their share was 55.58
per cent, which went up to 65 per cent and declined to 58 per cent during
1972-75. It fell to 55.72 per cent in 1976 and further to 55.02 per cent in 1977.
Between 1978 and 1990 it gradually increased and rose to 75.93 per cent. In
1996, the share was nearly 72 per cent.
The development of airports is no longer solely under the public sector;
instead private participation is allowed and encouraged. An International
green field airport has been developed in Cochin, Kerala, with contributions
from NRIs and loans from financial institutions. Approval for the reconstruction
of four Metro Airports ( Delhi, Mumbai, Kolkata and Chennai) has been given
to make them world class. New International airports are to be set up in
Banglore, Hyderabad and Goa with the help of the private sector. In the past
few years, several investments have been made in the Indian air industry to
make use of its vast unutilized air transport network. Many low cost air
carriers have also entered the Indian market in the past two to three years.

15

Thus, Road transport is vital to the economic development and social

integration of the country. Road transport fulfils a major role in the Indian
economy involving a wide range of industries and services from vehicle
manufacturers and suppliers to infrastructure builders,

services, energy

providers, public authorities, insurance and many others. Road transport,

together with the other modes of transport, provides indispensable mobility for
all citizens and goods and contributes to the economic prosperity of a nation.
It is a key factor to social, regional and economic cohesion, including the
development of rural areas. However, the impact of road transport on the
environment and health remains a major challenge in many aspects. Easy
accessibility, flexibility of operations, door-to-door service and reliability have
earned road transport an increasingly higher share of both passenger and
freight traffic vis-a-vis other transport modes. In addition to these factors,
transit time, availability of capacity on alternative modes, quality and reliability
of the service, associated costs like warehousing and demurrage etc. all
influence the choice of the mode of transport. The alternative modes of
transport viz. roadways, railways, waterways, airways, mass transit etc., each
contribute to the transportation requirements of the economy. Transport
sector accounts for a share of 6.4 per cent in Indias Gross Domestic Product
(GDP). The composition of various sub-sectors of the transport sector in
terms of GDP is given in Table 1.4 as under:
Table 1.4
Share of Different Modes of Transport in GDP

Sector

1999
2000

2000
01

2001
02

2002
03

2003
04

2004
05

2005
06

2006
07

As percentage of GDP (at factor cost and constant prices)

Transport of
5.8
6.0
5.9
6.2
6.3
6.6
6.5
6.4
which:
Railways 1.2
1.2
1.2
1.2
1.2
1.2
1.2
1.2
Road
3.8
3.9
3.8
4.1
4.3
4.5
4.5
4.5
Transport
Water
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
Transport
Air
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
Transport
Services 0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
Source: Central Statistical Organisation

16