FEASIBILITY STUDY ON

CHOICE OF
TRANSPORTATION MODE

KIRAN BHARAT DHOBALE

ROLL NO: HPGD/APR16/1064

SPECIALIZATION:- SUPPLY CHAIN

MANAGEMENT

WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT & RESEARCH

YEAR OF SUBMISSION: SEPTEMBER, 2018

1|Page
 Acknowledgment

This project consumed huge amount of work, research and dedication. Still,
implementation would not have been possible if we did not have a support of many
individuals and organizations. Therefore I would like to extend our sincere gratitude to all of
them.

I am very thankful to my office staff for their support and for providing necessary
guidance concerning projects preparation.

I would also like to express our special thanks towards my friend who devoted her
time and knowledge in the preparation of this project.

Nevertheless, I express my gratitude toward my Family for his kind co-operation and
encouragement which help me in completion of this project.

2|Page
Certificate from the Guide

3|Page
Undertaking

4|Page
 Table of Contents
Page
Sr.No. Particulars
No.

1 Introduction 6-7

2 Transport infrastructure development 8-9

3 Mode of transport 10-27

4 Digitalisation of Transport and Logistics 28

5 Factors to consider when choosing mode of transport 29-32

6 Advantages & Disadvantages of transport 33-54

7 Intermodal Transportation 55-56

8 Customer Value Chain 57-58

8 Bibliography 59

9 END & Thank You 60

5|Page
 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.

Transport (British English) or transportation (American English) is the

movement of people and goods from one place to another. 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. 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. 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. Transport
creates time utility.

6|Page
 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. Transport ensures even flow of commodities into the
hands of the consumers throughout the period of consumption. 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. 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. 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.

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.

Proponents of increasing investment in transportation infrastructure argue there is a

substantial need to invest in transportation infrastructure and that infrastructure is central to a
modern economy. The quality of transport infrastructure is a key determinant of performance
in the transport sector and development of transport infrastructure supports economic growth.

7|Page
 Transport infrastructure development

Transport is vital to the well-functioning of economic activities and a key to

ensuring social well-being and cohesion of populations. Transport ensures everyday mobility of
people and is crucial to the production and distribution of goods. Adequate infrastructure is a
fundamental precondition for transport systems. In their endeavour to facilitate transport,
however, decision-makers in governments and international organizations face difficult
challenges.

These include the existence of physical barriers or hindrances, such as insufficient

or inadequate transport infrastructures, bottlenecks and missing links, as well as lack of funds to
remove them. Solving these problems is not an easy task. It requires action on the part of the
governments concerned, actions that are coordinated with other governments at international
level.

The UNECE Governments have long-standing experience and expertise in the

development of coherent international transport networks in Europe. They have created four
main transport network agreements aimed at the development of coherent networks for road,
rail, inland water and combined transport respectively. The UNECE transport network
agreements include:

Transportation infrastructure refers to the framework that supports our transport

system. It consists of rights-of-way, vehicles, and carriers operating within five basic modes.
A mode identifies basic transportation method or form: Rail, Road, Air , Water (Sea/Inland)

8|Page
,Pipeline ,Ropeways Transport is vital to the well functioning of economic activities and a
key to ensuring social well-being and cohesion of populations. Transport ensures everyday
mobility of people and is crucial to the production and distribution of goods. Adequate
infrastructure is a fundamental precondition for transport systems. In their endeavor to
facilitate transport, however, decision-makers in governments and international organizations
face difficult challenges. These include the existence of physical barriers or hindrances, such
as insufficient or inadequate transport infrastructures, bottlenecks and missing links, as well
as lack of funds to remove them. Solving these problems is not an easy task. It requires action
on the part of the governments concerned and actions that are coordinated with other
governments at international level.

A key element in the benefits supplied by transport infrastructure in any form

is connectivity, which in turn provides growth and distributional effects. Connectivity
improves information flow, reduces time in travel, and reduces overall transaction costs.
Within a social context, adequate infrastructure provides for general prosperity and health. At
a general level, these elements within themselves can serve economic efficiency, less
consumption of resources and a more sustainable society. Modern urban systems are
dependent on transport infrastructure networks to make their economic and social systems
function effectively. First, transportation infrastructure can enter in the production process as
direct input and in many cases as an unpaid factor of production. Second, transportation
infrastructure may make other existing inputs more productive.

For instance, a well-designed road allows goods to be transported to market in

less time and hence, reducing the transportation cost in the production process. Third,
transport infrastructure can act as magnet of regional economic growth by attracting
resources from other regions, which is called agglomeration. Transport infrastructure
accounts now for a major share of energy consumption in India, especially for petroleum
products and the consequent development in that sector.

However, the link between transport infrastructure growths causing economic

growths appears to be relatively weak in a country like India. Still, since substantial economic
expansion is expected in India over the next two decades, building of transport infrastructure
to cause or facilitate it should at least be modest. But there are other drivers of the transport
sector. The recent high growth in India is resulting not only from the country’s rapid

9|Page
 Mode of transport

Mode of transport is a term used to distinguish substantially different means of

conveyance. The different modes of transport are air, water, and land transport, which
includes rail, road and off-road transport. Other modes also exist, including pipelines, cable
transport, and space transport. Human-powered transport and animal-powered transport are
sometimes regarded as their own mode, but these normally also fall into the other categories.

In general, transportation is used for the movement of people, animals, and other
things. Each mode of transport has a fundamentally different technological solution, and
some require a separate environment. Each mode has its own infrastructure, vehicles,
and operations.

Air

A fixed-wing aircraft, typically airplane, is a heavier-than-air flight vehicle, in which the

special geometry of the wing generates lift. Fixed-wing aircraft ranges from small trainers
and recreational aircraft to military cargo aircraft. For short distances or in places without
runways, helicopters can be practical. Other types of aircraft, like autogyros and airships, are
not a significant portion of air transport.

10 | P a g e
 Air transport is the fastest method of transport, Commercial jets reach speeds of
up to 955 kilometres per hour and a considerably higher ground speed if there is a jet
stream tailwind, while piston-powered general aviation aircraft may reach up to 555
kilometres per hour or more. This celerity comes with higher cost and energy
use, and aviation's impacts to the environment and particularly the global climate require
consideration when comparing modes of transportation.

The Intergovernmental Panel on Climate Change (IPCC) estimates a

commercial jet's flight to have some 2-4 times the effect on the climate than if the same
CO2 emissions were made at ground level, because of different atmospheric chemistry
and radiative forcing effects at the higher altitude.

WHO estimates that globally as many as 500,000 people at a time are on planes.
The global trend has been for increasing numbers of people to travel by air, and individually
to do so with increasing frequency and over longer distances, a dilemma that has the attention
of climate scientists and other researchers, the press, and the World Wide Web. The issue of
impacts from frequent travel, particularly by air because of the longer distances that are easily
covered in one or a few days, is called hypermobility and has been a topic of research and
governmental concern for many years.

Directorate General of Civil Aviation is the national regulatory body for the aviation
industry. It is controlled by the Ministry of Civil Aviation.

The ministry also controls aviation related autonomous organisations like the Airports
Authority of India (AAI), Bureau of Civil Aviation Security (BCAS), Indira Gandhi
Rashtriya Uran Akademi and Public Sector Undertakings including Air India, Pawan Hans
Helicopters Limitedand Hindustan Aeronautics Limited.

Air India is India's national flag carrier after merging with Indian (airline) in 2011 and
plays a major role in connecting India with the rest of the world. IndiGo, Jet Airways, Air
India, Spicejet and GoAir are the major carriers in order of their market share.

These airlines connect more than 80 cities across India and also operate overseas
routes after the liberalisation of Indian aviation. Several other foreign airlines connect Indian
cities with other major cities across the globe.

However, a large section of country's air transport potential remains untapped, even
though the Mumbai-Delhi air corridor was ranked 10th by Amadeus in 2012 among the
world's busiest routes.
11 | P a g e
 As of 2013, there are 45 heliports in India. India also has the world's
highest helipad at the Siachen Glacier at a height of 6400 m (21,000 ft) above mean sea level.

Pawan Hans Helicopters Limited is a public sector company that provides

helicopter services to ONGC to its off-shore locations, and also to various State Governments
in India, particularly in North-east India

There are 16 helicopter emergency ambulance services covering the whole country
with reported average response times of 17 minutes and transfer times of 10 minutes. The
decision to use a helicopter is not straightforward and the transfer of a seriously injured
patient by helicopter may be hazardous and transportation by road may often be a safer
option. There are various guidelines for the appropriate use of helicopters to transport
patients.

Algorithms have been developed to analyse those trauma patients who do not require
spinal immobilisation before transfer via helicopter but one study found these to be unhelpful.
Enable early initiation of management by highly trained medical staff and with special
equipment.

Faster mobilisation than fixed-wing aircraft.Needs smaller landing space and can
land closer to or at hospitals.

12 | P a g e
 Human

Human powered transport, a form of sustainable transportation, is the transport of

people and/or goods using human muscle-power, in the form
of walking, running and swimming. Modern technology has allowed machines to enhance
human power.

Human-powered transport remains popular for reasons of cost-

saving, leisure, physical exercise, and environmentalism; it is sometimes the only type
available, especially in underdeveloped or inaccessible regions.

Although humans are able to walk without infrastructure, the transport can be
enhanced through the use of roads, especially when using the human power with vehicles,
such as bicycles and inline skates. Human-powered vehicles have also been developed for
difficult environments, such as snow and water, by watercraft rowing and skiing; even the air
can be entered with human-powered aircraft.

Walking has constituted a major form of transport in ancient times. This mode of
transport has always been a first for humans. People used to cover long distances on foot or
bullock carts. For instance, AdiSankaracharya travelled all over India from Kalady
near Kochi.

13 | P a g e
 Walking still constitutes an important mode of transport in urban areas. In the city
of Mumbai, to further improve the transit conditions for pedestrians, the Mumbai
Metropolitan Region Development Authority, has commenced the construction of more than
50 skywalks, as part of the Mumbai Skywalk project, which is very helpful as walk
enthusiasts take part in reducing traffic.

Palanquins are also known as palkis or pallakiis, was one of the luxurious methods
primarily used by the rich and noblemen for travelling and also to carry a deity (idol) of a
God. Many temples have sculptures of God being carried in a palki. Modern use of the
palanquin is limited to Indian weddings, pilgrimage and carrying idols of Gods.

It was a luxury on the part of the pre-modern aristocratic and affluent people to move
in palanquins, which were of many sizes and designs. The smallest and most austere one was
called doli, which was borne by two persons only. The larger palanquins were borne by four
to eight persons. The very affluent and aristocratic people used to move in large and
decorated palanquin borne by eight bearers.

14 | P a g e
 Rail

Rail transport is a means of conveyance of passengers and goods by way of

wheeled vehicles running on rail track, known as a railway or railroad. The rails are anchored
perpendicular to railroad train consists of one or more connected vehicles that run on the
rails. Propulsion is commonly provided by a locomotive, that hauls a series of unpowered
cars, that can carry passengers or freight.

The locomotive can be powered by steam, diesel or by electricity supplied

by trackside systems. Alternatively, some or all the cars can be powered, known as a multiple
unit. Also, a train can be powered by horses, cables, gravity, pneumatics and gas turbines.

Railed vehicles move with much less friction than rubber tires on paved roads, making trains
more energy efficient, though not as efficient as ships.

Intercity trains are long-haul services connecting cities modern high-speed rail is
capable of speeds up to 430 km/h (270 mph), but this requires a specially built
track. Regional and commuter trains feed cities from suburbs and surrounding areas, while
intra-urban transport is performed by high-capacity tramways and rapid transits, often making
up the backbone of a city's public transport. Freight trains traditionally used box cars,
requiring manual loading and unloading of the cargo.

15 | P a g e
Since the 1960s, container trains have become the dominant solution for general freight,
while large quantities of bulk are transported by dedicated trains.

Darjeeling Himalayan Railway in West Bengal is a World Heritage Site, and one of the
only few steam locomotive operated railway lines in India

Country-wide rail services in India, are provided by the state-run Indian

Railways under the supervision of the Ministry of Railways. IR is divided into seventeen
zones including the Kolkata Metro Railway. The IR are further sub-divided into sixty seven
divisions, each having a divisional headquarters.

The railway network traverses through the length and breadth of the country, covering
more than 7,000 stations. It also owns locomotive and coach production facilities. It operates
both long distance and suburban rail systems on a network of broad gauge

16 | P a g e
 The IR runs a number of special types of services which are given higher priority.
The Rajdhani trains introduced in 1969 provides connectivity between the national capital,
Delhi and capitals of the states. On the other hand, Shatabdi Express provides connectivity
between centres of tourism, pilgrimage or business. The Shatabdi Express trains run over
short to medium distances and do not have sleepers while the Rajdhani Expresses run over
longer distances and have only sleeping accommodation. Both series of trains have a
maximum permissible speed of 110 to 140 km/h but average speed of less than 100 km/h.
The Duronto Express (without any commercial stop between the origin and the destination
but with a few technical stops for crew change and food intake) and Garib Raths express that
provide cheap no-frill airconditioned rail travel.

Besides, the IR also operates a number of luxury trains which cater to various tourist circuits.
For instance, the Palace on Wheels serves the Rajasthan circuit and The Golden
Chariot serves the Karnataka and Goa circuits. There are two UNESCO World Heritage
Siteson IR, the Chhatrapati Shivaji Maharaj Terminus and the Mountain railways of India

The Mumbai Suburban Railway is the first rail system in India which began services in
Mumbai in 1853, transports 6.3 million passengers daily and has the highest passenger
density in the world. The Kolkata Suburban Railway, was established in Kolkata in 1854.

17 | P a g e
Mumbai Metro is a rapid transit system serving the city of Mumbai, Maharashtra, and the
wider MMR urban agglomeration. The system is designed to reduce traffic congestion in the
city, and supplement the overcrowded Mumbai Suburban Railway network. It is being built
in three phases over a 15-year period, with overall completion expected in 2025. When
completed, the core system will comprise eight high-capacity metro railway lines, spanning a
total of 235 kilometres (146 mi)

In June 2006, Prime Minister Manmohan Singh laid the foundation stone for the first phase of
the Mumbai Metro project, although construction work began in February 2008. A successful
trial run was conducted in May 2013, and the system's first line entered into operation on 8
June 2014. Many metro projects were being delayed because of opposition by political
parties, late environmental clearances and land acquisition troubles. The proposed 15 km line
would link Kalyanand Shil Phata with 13 stations, bringing metro connectivity to Kalyan
East, Dombivli, Ambernath and Diva.

18 | P a g e
Monorail is generally considered as feeder system for the Metro trains in India. The Mumbai
Monorail, which started in 2014, is the first operational monorail network in India (excluding
the Skybus Metro) since the Patiala State Monorail Trainways closed in 1927.

19 | P a g e
 Road

A road is an identifiable route of travel, usually surfaced with gravel, asphalt or

concrete, and supporting land passage by foot or by a number of vehicles.

The most common road vehicle in the developed world is the automobile, a wheeled
passenger vehicle that carries its own motor. As of 2002, there were 591 million automobiles
worldwide. Other users of roads include motorcars, motorcycles, buses, trucks, bicycles and
pedestrians, and special provisions are sometimes made for each of these.

For example, the use of bus lanes give priority for public transport, and cycle lanes provide
special areas of road for bicycles to use.

Motorcars offer high flexibility, but are deemed with high energy and area use, and
the main source of noise and air pollution in cities; buses allow for more efficient travel at the
cost of reduced flexibility. Road transport by truck is often the initial and final stage of
freight transport.

20 | P a g e
Bicycles (simply called cycles in India) have ownership rates ranging from around 30% to
75% at the state level. Along with walking, cycling accounts for 50 to 80% of the commuter
trips for those in the informal sector in urban areas. However, recent developments suggest
that bicycle riding is fast becoming popular in the metro cities of India.

Buses are an important means of public transport in India. Due to this social significance,
urban bus transport is often owned and operated by public agencies, and most state

21 | P a g e
governments operate bus services through a State Road Transport Corporation. These
corporations have proven extremely useful in connecting villages and towns across the
country. Alongside the public companies are many private bus fleets: 2012, there were
131,800 publicly owned buses in India, but 1,544,700 buses owned by private companies.

However, the share of buses is negligible in most Indian cities as compared to personalised
vehicles, and two-wheelers and cars account for more than 80 percent of the vehicle
population in most large cities. Many Indian states government have their own fleet of buses
which are run under their State Transport Department. Some of the top bus fleet are as
follows:

The first utility vehicle in India was manufactured by Mahindra. It was a copy of the
original Jeep and was manufactured under licence. The vehicle was an instant hit and made
Mahindra one of the top companies in India. The Indian Army and police extensively use
Mahindra vehicles along with Maruti Gypsys for transporting personnel and equipment.

Tata Motors, the automobile manufacturing arm of the Tata Group, launched its first utility
vehicle, the Tata Sumo, in 1994. The Sumo, owing to its then-modern design, captured a 31%
share of the market within two years. The Tempo Trax from Force Motors till recently was
ruling the rural areas. Sports utility vehicles now form a sizeable part of the passenger vehicle
market. Models from Tata, Honda, Hyundai, Ford, Chevrolet and other brands are available.

22 | P a g e
 Most of the taxicabs in India are either Premier Padmini or Hindustan
Ambassador cars. However, with app based taxi services like Ubercoming to India as well as
homegrown Indian app based taxi services like Ola coming to the fore, taxicabs now include
Sedans, SUV and even motorcycle taxis.

Depending on the city/state, taxis can either be hailed or hired from taxi-stands. In cities
such as Bangalore, Hyderabad and Ahmedabad, taxis need to be hired over phone, whereas in
cities like Kolkata and Mumbai, taxis can be hailed on the street. According to government of
India regulations, all taxis are required to have a fare-meter installed. There are additional
surcharges for luggage, late-night rides and toll taxes are to be paid by the passenger. Since
2006, radio taxis have become increasingly popular with the public due to reasons of safety
and convenience.

In cities and localities where taxis are expensive or do not ply as per the government or
municipal regulated fares, people use share taxis. These are normal taxis which carry one or
more passengers travelling to destinations either on one route to the final destination, or near
the final destination. The passengers are charged according to the number of people with
different destinations.

23 | P a g e
 Water

Water transport is the process of transport that a watercraft, such as a barge,

boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If
a boat or other vessel can successfully pass through a waterway it is known as a navigable
waterway. The need for buoyancy unites watercraft, and makes the hull a dominant aspect of
its construction, maintenance and appearance. When a boat is floating on the water the hull of
the boat is pushing aside water where the hull now is, this is known as displacement.

In the 1800s, the first steamboats were developed, using a steam engine to drive a paddle
wheel or propeller to move the ship. The steam was produced using wood or coal.

Now, most ships have an engine using a slightly refined type of petroleum called bunker
fuel. Some ships, such as submarines, use nuclear power to produce the steam.

Recreational or educational craft still use wind power, while some smaller craft
use internal combustion engines to drive one or more propellers, or in the case of jet boats, an
inboard water jet. In shallow draft areas, hovercraft are propelled by large pusher-prop fans.

Although slow, modern sea transport is a highly effective method of transporting

large quantities of non-perishable goods. Transport by water is significantly less costly than
air transport for transcontinental shipping; short sea shipping and ferries remain viable in
coastal areas.

24 | P a g e
 International Container Transhipment Terminal at Kochi Port, the only
transshipment facility in India. This port lies closest to international shipping routes among
all Indian ports.

The distinction between major and minor ports is not based on the amount of cargo
handled. The major ports are managed by port trusts which are regulated by the central
government. They come under the purview of the Major Port Trusts Act, 1963. The minor
ports are regulated by the respective state governments and many of these ports are private
ports or captive ports.

Water transport is the process of transport a watercraft, such as a barge, boat, ship
or sailboat, over a body of water, such as a sea, ocean, lake, canal or river. The need
for buoyancy unites watercraft, and makes the hull a dominant aspect of its construction,
maintenance and appearance.

Ship transport is primarily used for the carriage of people and non-perishable goods,
generally referred to as cargo.

Ship transport is used for a variety of unpackaged raw materials ranging from
chemicals, petroleum products and bulk cargo such as coal, iron ore, cereals, bauxite. So
called "general cargo" covers goods that are packaged to some extent in boxes,
cases, pallets, barrels, etc. Since the 1960s containerization has revolutionized ship transport.

25 | P a g e
 Pipelines

Oil and gas industry in India imports 82% of its oil needs and aims to bring that down to
67% by 2022 by replacing it with local exploration, renewable energy and indigenous ethanol
fuel

Pipelines are most convenient, efficient and economical mode of transporting liquids like

petroleum, petroleum products, natural gas, water, milk, etc. Even solids can also be
transported through pipelines after converting them into slurry.

Transportation by pipelines is a new development in India. Pipelines have relieved the

increasing pressure on the existing surface transport system (railways and roadways).

The country had a network of about 5,035 km long pipelines in 1980 which has increased to
over 7,000 km now.

26 | P a g e
They are ideally suited to transport the liquids and gases. Pipelines can be laid through

difficult terrains as well as under water It involves very low energy consumption. It needs
very little maintenance. Pipelines arc safe, accident-free and environmental friendly.

Gathering pipelines These are smaller interconnected pipelines forming complex networks
with the purpose of bringing crude oil or natural gas from several nearby wells to a treatment
plant or processing facility. In this group, pipelines are usually short - a couple of hundred
meters - and with small diameters. Also sub-sea pipelines for collecting product from deep
water production platforms are considered gathering systems.

Transportation pipelines Mainly long pipes with large diameters, moving products (oil,
gas, refined products) between cities, countries and even continents. These transportation
networks include several compressor stations in gas lines or pump stations for crude and
multiproducts pipelines.

Distribution pipelines Composed of several interconnected pipelines with small diameters,

used to take the products to the final consumer. Feeder lines to distribute gas to homes and
businesses downstream, also pipelines at terminals for distributing products to tanks
and storage facilities are included in this group.

Beverage pipelines bars in the Veltins-Arena, a major football ground in Gelsenkirchen,

Germany, are interconnected by a 5 km long beer pipeline. It is the favourite method for
distributing beer in such large stadiums because the bars have to overcome big differences
between demands during various stages of a match; this allows them to be supplied by a
central tank.

27 | P a g e
 Digitalisation of Transport and Logistics
President Juncker identified Jobs, Growth and Investment and A Digital Single Market as the
first two priorities for EU policy. The goal is to foster growth, competiveness, jobs and the
internal market, in particular through making better use of the opportunities offered by digital
technologies. Specifically in the transport sector, such tools could improve the use of existing
resources and the daily life of citizens. In order to take the digital agenda in transport further,
the European Commission launched on 1st July 2015 the Digital Transport and Logistics
Forum (DTLF) .

In transport, digitalization can significantly improve traffic and transport management

through more accurate information on traffic and infrastructure conditions and on the location
of vehicles and/or goods. Better access to and sharing of digital transport (traffic, travel,
vehicle, cargo etc.) data for both public and private stakeholders along the supply chain can
foster seamless information flows, and open up a wide range of new business opportunities:

 Shippers would benefit from better information on available transport services.

 Factories would have information on goods arrival time to optimise their inventory
management and production.
 Logistics service providers would be able to optimise transport operations in real-time
and to react to unexpected events.
 Public authorities could benefit from more accurate and reliable information on
infrastructure use and cargo, thereby contributing to better efficiency and operational
safety of networks.
 The development of information pipelines along the TEN-T Corridors would enable
continuity and integration of services as well as facilitate administrative requirements
through one stop shops and easy access and sharing of data.

In order to address these topics the European Commission launched on 1st July 2015
the Digital Transport and Logistics Forum (DTLF) . The Forum will work for three years
and aims at the further digitalisation of freight transport and logistics. It brings together
Member States and stakeholders from transport and logistics communities in order to identify
areas where common action in the EU is needed, to provide recommendations and solutions,
and to work on their implementation, where appropriate. The DTLF envisages in particular
addressing the following topics.

28 | P a g e
 Factors to consider when choosing mode of transport

Accessibility this primarily deals with the ease of getting boarding a vehicle. If a mode is not
easily accessible then it loses its usefulness because of its unavailability in a certain
condition.

Cost of service considering large number of trips taking place for different purposes and a
modern capitalist economy, cost becomes one of the single most important determining
factor. It can also be linked to affordability of the user. This factor is one of the most dynamic
as the willingness to pay changes on the basis or urgency and need to travel/transport.
The cost of transportation adds to the cost of the goods so it should always be kept in mind.
Rail transport is comparatively a cheaper mode of transport for carrying heavy and bulky
traffic over long distances. Motor transport is best suited and economical to carry small
traffic over short distances. Motor transport saves packing and handling costs.

Water transport is the cheapest mode of transport. It is suitable to carry only heavy and bulky
goods over long distances where time is not an important factor. Air transport is the most
costly means of transport but is particularly suited for carrying perishable, light and valuable
goods which require quick delivery

Fuel efficiency with the growing environmental concerns many people and companies prefer
to choose an option with smaller carbon footprint. Some people prefer electric vehicle solely
because of the “green” label associated with them. Fuel efficiency is closely linked with
carbon emission while doing a comparative study, getting more output from same quantity of
fuel is always desirable.

Speed this factor is another most important and deterministic factor depending upon the
situation. Fastest mode may seem to be best option but cost associated with it makes it less
lucrative, a cheap mode might result in delay and the purpose of whole trip may be defeated.
In cases of emergency speed gains much more significance as compared to day to day trips.

Carrying Capacity this is another important factor especially for logistic companies, it
becomes important in case of travelling in a group. While going on a trip with your complete

29 | P a g e
class you cannot expect to take multiple vehicles because of safety and security concerns,a
vehicle with more carrying capacity will be preferred. In case of transporting goods the
concept of scale of economies is best exploited for economic profit while dealing with bulk
orders. Air transport is the quickest mode of transport but it is costliest of all. Motor transport
is quicker than railways over short distances. However, the speed of railways over long
distances is more than that of other modes of transport except air transport and is most
suitable for long distances. Water transport is very slow and thus unsuitable where time is an
important factor

Some people prefer electric vehicle solely because of the “green” label associated with them.
Fuel efficiency is closely linked with carbon emission while doing a comparative study,
getting more output from same quantity of fuel is always desirable.

Integration with other modes for long trips or trips which requires change of mode this
factors becomes most significant for completion of the trip. In case the selected mode is not
integrated with other modes than the trip will never get completed. In some cases to
overcome the problem of integration a heavy cost will be incurred to complete the required
trip.

Reliability of the vehicle mode the chosen mode must be reliable. All factors will turn out to
be useless if the vehicle develops some fault or is prone to develop fault. If the mode is not
reliable than it will result in loss of both time and money. Reliability again becomes
important on the basis of situation.

Comfort this factor is at times ignored while some makes it priority depending upon the
affordability. This is essential in case of travelling and ignored in case of transporting goods.
Humans undertakes the trip for various purpose like work, leisure journey, picnic, shopping
and thus always prefer comfort. Those who can afford to pay more are expected to get more
comfort while some prioritize cost over comfort depending on their personal decision.

Safety considering the increased cases of accidents safety becomes another important factor.
Anyone will wish to ensure maximum available safety for their loved ones. In case of
logistics also safety matters a lot especially while dealing with fragile material. Safety and
security of goods in transit also influence the choice of a suitable means of transport. Motor

30 | P a g e
transport may be preferred to railway transport because losses are generally less in motor
transport. Water transport exposes the goods to the perils of sea and, hence from safety point
of view, sea transport is thought of as a last resort

Privacy this factor is usually ignored and comes into mind in some cases especially when the
purpose of trip is confidential like in case of business trips. All conversation taking place
during the journey are required to be kept confidential. It can also be required when a person
wishes to spend quality time with someone. Public transport does not provide option of
privacy or if in some cases they do provide than its negligible. Private vehicles can provide
high level of privacy.

Employment generation this factor is not considered for individuals and companies but is
essential for government while making policies as employment generation becomes their
responsibility.

Frequency a mode with higher frequency is desirable as the waiting time reduces thus saving
time. Modes with good frequency helps especially in cases of delays.

Flexibility railways, water and air transport are inflexible modes of transport. They operate
services on fixed routes and at preplanned time schedules. The goods have to be carried to the
stations, ports and airports and then taken from there. Motor transport provides the most
flexible service because it is not tied to fixed routes or time schedules. It can operate at any
time and can reach the business premises for loading and unloading.

Regularity of Service railway service is more certain, uniform and regular as compared to
any other mode of transport. It is not much affected by weather conditions. On the other
hand, motor transport, ocean transport and air transport are affected by bad weather such as
heavy rains, snow, fog, storms etc.

Nature of Commodity rail transport is most suitable for carrying cheap, bulk and heavy
goods. Perishable goods which require quick delivery may be carried through motor transport
or air transport keeping in mind the cost and distance.

31 | P a g e
Other Considerations a number of special services such as warehousing, packing, loading
and unloading are also taken into consideration while deciding about a mode of transport.
From the above discussion it is clear that each mode of transport is suited for a particular type
of traffic.

It can also be required when a person wishes to spend quality time with someone. Public
transport does not provide option of privacy or if in some cases they do provide than its
negligible. Private vehicles can provide high level of privacy.

This is essential in case of travelling and ignored in case of transporting goods.

Humans undertakes the trip for various purpose like work, leisure journey, picnic, shopping
and thus always prefer comfort. Those who can afford to pay more are expected to get more
comfort while some prioritize cost over comfort depending on their personal decision.

32 | P a g e
 Advantages of road transport

 Less Capital Outlay:

Road transport required much less capital Investment as compared to other modes of
transport such as railways and air transport. The cost of constructing, operating and
maintaining roads is cheaper than that of the railways. Roads are generally constructed by
the government and local authorities and only a small revenue is charged for the use of
roads.

 Door to Door Service:

The outstanding advantage of road transport is that it provides door to door or warehouse to
warehouse service. This reduces cartage, loading and unloading expenses.

 Service in Rural Areas:

Road transport is most suited for carrying goods and people to and from rural areas which are
not served by rail, water or air transport. Exchange of goods, between large towns and small
villages is made possible only through road transport.

 Flexible Service:

33 | P a g e
Road transport has a great advantage over other modes of transport for its flexible service, its
routes and timings can be adjusted and changed to individual requirements without much
inconvenience.

 Suitable for Short Distance:

It is more economic and quicker for carrying goods and people over short distances. Delays
in transit of goods on account of intermediate loading and handling are avoided. Goods can
be loaded direct into a road vehicle and transported straight to their place of destination.

 Lesser Risk of Damage in Transit:

As the intermediate loading and handling is avoided, there is lesser risk of damage, breakage
etc. of the goods in transit. Thus, road transport is most suited for transporting delicate goods
like chinaware and glassware, which are likely to be damaged in the process of loading and
unloading.

 Saving in Packing Cost:

As compared to other modes of transport, the process of packing in motor transport is less
complicated. Goods transported by motor transport require less packing or no packing in
several cases.

 Rapid Speed:

If the goods are to be sent immediately or quickly, motor transport is more suited than the
railways or water transport. Water transport is very slow. Also much time is wasted in
booking the goods and taking delivery of the goods in case of railway and water transport.

 Less Cost:

Road transport not only requires less initial capital investment, the cost of operation and
maintenance is also comparatively less. Even if the rate charged by motor transport is a little
higher than that by the railways, the actual effective cost of transporting goods by motor
transport is less. The actual cost is less because the motor transport saves in packing costs and
the expenses of intermediate loading, unloading and handling charges.

34 | P a g e
  Private Owned Vehicles:

Another advantage of road transport is that big businessmen can afford to have their own
motor vehicles and initiate their own road services to market their products without causing
any delay.

Disadvantages of road transport

 Seasonal Nature:

Motor transport is not as reliable as rail transport. During rainy or flood season, roads become
unfit and unsafe for use.

 Accidents and Breakdowns:

There are more chances of accidents and breakdowns in case of motor transport. Thus, motor
transport is not as safe as rail transport.

 Unsuitable for Long Distance and Bulky Traffic:

This mode of transport is unsuitable and costly for transporting cheap and bulky goods over
long distances.

 Lack of Organization:

35 | P a g e
The road transport is comparatively less organised. More often, it is irregular and
undependable. The rates charged for transportation are also unstable and unequal.The road
transport is one of the most important means of transport and is indispensable to the
development of commerce and industry. All the movement of goods begins and ultimately
ends by making use of roads. Roads act as an important feeder to the other modes of transport
such as railways, ships and airway.

 Suitability of Road or Motor Transport:

Though road transport has certain limitations, it is indispensable to the development of

commerce and industry. It plays a very significant role in the economic development of a
country. For carrying goods which are very cheap, heavy or bulky; For transporting goods of
perishable nature such as vegetables, fruits, eggs, milk, etc. for carrying goods and people
over short distances; For transporting delicate goods such as chinaware or glassware. For
forests, hilly and rural areas where the other modern modes of transport are not available.

 Bad Roads:

The roads in India are in bad shape. The link roads are not properly metaled and many are
even Kucha Roads. The vehicles have to bear more wear and tear and the cost of operating
them is unreasonably high.

 Slow Growth of Vehicles:

The growth of commercial vehicles has been very slow because of higher operation costs.
The rates of fuel are growing up every now and then. The prices of vehicles are very high due
to heavy excise duties. The taxes on commercial vehicles are also exorbitant. All these factors
are responsible for the slow growth of commercial vehicles.

 Lack of Co-ordination:

There is a lack of co-ordination between the centre and the states. The states want the centre
to construct and maintain main highways but on the other hand centre is trying to shift this
burden on the states. It has resulted in the blocking of rapid development of roads in India.

36 | P a g e
  Competition among Different Modes:

There is a competition among different modes of transport. The transport policies of different
states are different. Some highways have more traffic while on others there are not sufficient
transport services.

Advantages of rail transport

The railways have been the ‘pioneer of modern mechanical transport.’ The first Indian
railway rolled on its 34 km track Mumbai to Thane on April 16, 1853. Since its beginning
and up to the advent of motor transport, it enjoyed monopoly as land transport.Railways have
played a very significant role in the economic, social and political development of many
countries in the world. Though the railway requires a very huge capital outlay as compared to
other modes of transport, it is our principal means of transport.

 Public Utility Service:

Railways provide an essential service to the public. It being a public utility service, requires
protection and investments by government.

37 | P a g e
  Monopoly:
Railways have monopoly in India. The rail transport is managed by the Railways Department
of the Central Government. No private operator is allowed to enter this transport sector

 Huge Investments:
The railways require huge investments for purchase of land, laying of tracks,
constructing railway stations and sheds, buying automobiles, etc. No single individual
can afford to make all these investments.

 Privileges:
The railways require special privileges to provide efficient transport service. Railways’
require special property rights for purchase of land, construction of bridges and railway lines.

 Special Rate Fixation:

The railways fix separate rate for passengers and goods traffic. The same rates are applicable
to all persons and all areas of the country. Rail services are available to all members or the
public on equal terms.

 Non-transferability:
Once the railway lines are laid down then these tracks cannot be used for any other purpose.
So railway services are non- transferable.

 Suitability of Rail Transport:

Though rail transport has certain limitations, it plays a very significant role in the economic,
social and political development of a country.

38 | P a g e
The rail transport is particularly suited:

1. For carrying heavy and bulky goods.

2. For carrying cheap goods.

3. For carrying passengers and goods (bulky and heavy) over long distances.

 Rail-Road Competition:
Rail and road are the two most popular modes of land transport. A businessman has to choose
one mode of transport while sending goods to other destinations. The rapid progress of motor
transport has raised the problem of rail-road competition. Both the modes try to attract
customers towards them. The competition in these modes is not justified in the national
interest.

 Rail road Co-ordination:

There is need to co-ordinate the services of road transport and railways. The two modes
should be made to act as complementary to each other and not competitive to each other.
Road transport can act as a feeder to the rail transport. Both modes are suited to different;
kinds of traffic and they should act in such a manner so as to enable the traffic to go by that
means of transport which is the most economical in its carriage.

Co-ordination of transport brings about the following/advantages:

1. Better utilisation of scarce resources.

2. Elimination of wasteful competition and the evils of cut-throat competition.

3. Elimination of duplicate and overlapping services.

4. Minimisation of cost.

5. Providing efficient transport services,

6. Serving the vital national needs of the country,

7. Economic development

39 | P a g e
  Dependable:

The greatest advantage of the railway transport is that it is the most dependable mode of
transport as it is the least affected by weather conditions such as rains, fog etc. compared to
other modes of transport.

 Better Organised:

The rail transport is better organised than any other form of transport. It has fixed
routes and schedules. Its service is more certain, uniform and regular as compared to
other modes of transport

 High Speed over Long Distances:

Its speed over long distances is more than any other mode of transport, except airways. Thus,
it is the best choice for long distance traffic.

 Suitable for Bulky and Heavy Goods:

Railway transport is economical, quicker and best suited for carrying heavy and bulky goods
over long distances.

 Cheaper Transport:

It is a cheaper mode of transport as compared to other modes of transport. Most of the

working expenses of railways are in the nature of fixed costs. Every increase in the railway
traffic is followed by a decrease in the average cost. Rail transport is economical in the use of
labour also as one driver and one guard are sufficient to carry much more load than the motor
transport.

 Safety:

Railway is the safest form of transport. The chances of accidents and breakdowns of railways
are minimum as compared to other modes of transport. Moreover, the traffic can be protected
from the exposure to sun, rains, snow etc.

40 | P a g e
  Larger Capacity:

The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic
which can easily be increased by adding more wagons.

 Public Welfare:

It is the largest public undertaking in the country. Railways perform many public utility
services. Their charges are based on ‘charge what the traffic can bear’ principle which helps
the poor. In fact, it is national necessity.

Disadvantages of rail transport

 Huge Capital Outlay:

The railway requires is large investment of capital. The cost of construction, maintenance and
overhead expenses are very high as compared to other modes of transport. Moreover, the
investments are specific and immobile. In case the traffic is not sufficient, the investments
may mean wastage of huge resources.

 Lack of Flexibility:

Another disadvantage of railway transport is its inflexibility. Its routes and timings cannot be
adjusted to individual requirements.

41 | P a g e
  Lack of Door to Door Service:

Rail transport cannot provide door to door service as it is tied to a particular track.
Intermediate loading or unloading involves greater cost, more wear and tear and wastage of
time

 Monopoly:

As railways require huge capital outlay, they may give rise to monopolies and work against
public interest at large. Even if controlled and managed by the government, lack of
competition may breed inefficiency and high costs.

 Unsuitable for Short Distance and Small Loads:

Railway transport is unsuitable and uneconomical for short distance and small traffic of
goods.

 Booking Formalities:

It involves much time and labour in booking and taking delivery of goods through
railways as compared to motor transport.

 No Rural Service:

Because of huge capital requirements and traffic, railways cannot be operated economically
in rural areas. Thus, large rural areas have no railway service even today. This causes much
inconvenience to the people living in rural areas.

 Under-utilised Capacity:

The railway must have full load for its ideal and economic operation. As it has a very large
carrying capacity, under-utilisation of its capacity, in most of the regions, is a great financial
problem and loss to the economy.

42 | P a g e
  Centralized Administration:

Being the public utility service railways have monopoly position and as such there is
centralized administration. Local authorities fail to meet the personal requirements of the
people as compared to roadways.

Advantages of air transport

Air transport is the most recent mode of transport. It is the gift of the 20th century to the
world. The two world wars gave a great impetus to the development of air transport in almost
all the countries of the world. The peculiar characteristic of air transport is that is does not
need a specific surface track for its operations. It has no physical barriers as in the case of
other mode of transport. Political boundaries are also immaterial although it has to observe
the requirements of the International Law. The supreme advantage of air transport lies in its
quickness.

It is the fastest mode of transport. But the cost of its operation is very high and thus it is
suitable for only rich passengers, mails and light and costly cargo. However, in advanced
countries like U.S.A., Germany, etc. it offers a tough competition to the railways.

43 | P a g e
  Unbroken Journey:

Air transport provides unbroken journey over land and sea. It is the fastest and quickest
means of transport.

 Rapidity:

Air transport had the highest speed among all the modes of transport

 Expensive:

Air transport is the most expensive means of transport. There is huge investment in
purchasing aero planes and constructing of aerodromes.

 Special Preparations:

Air transport requires special preparations like wheelers links, meteorological stations, flood
lights, searchlights etc.

 High Speed

The supreme advantage of air transport is its high speed. It is the fastest mode of transport
and thus it is the most suitable mean where time is an important factor.

 Comfortable and Quick Services:

It provides a regular, comfortable, efficient and quick service.

 No Investment in Construction of Track:

It does not require huge capital investment in the construction and maintenance of surface
track.

 No Physical Barriers:

It follows the shortest and direct route as seas, mountains or forests do not come in the way of
air transport.

44 | P a g e
  Easy Access:

Air transport can be used to carry goods and people to the areas which are not accessible by
other means of transport.

 Emergency Services:

It can operate even when all other means of transport cannot be operated due to the floods or
other natural calamities. Thus, at that time, it is the only mode of transport which can be
employed to do the relief work and provide the essential commodities of life.

 Quick Clearance:

In air transport, custom formalities can be very quickly complied with and thus it avoids
delay in obtaining clearance.

 Most Suitable for Carrying Light Goods of High Value:

It is most suitable for carrying goods of perishable nature which require quick delivery and
light goods of high value such as diamonds, bullion etc. over long distances.

 National Defence:

Air transport plays a very important role in the defence of a country. Modern wars have been
fought mainly by aeroplanes. It has upper hand in destroying the enemy in a very short period
of time. It also supports over wings of defence of a country.

 Space Exploration:

Air transport has helped the world in the exploration of space.

45 | P a g e
 Disadvantages of air transport

 Very Costly:

It is the costliest means of transport. The fares of air transport are so high that it is beyond the
reach of the common man.

 Small Carrying Capacity:

Its carrying capacity is very small and hence it is not suitable to carry cheap and bulky goods.

 Uncertain and Unreliable:

Air transport is uncertain and unreliable as it is controlled to a great extent by weather

conditions. Unfavourable weather such as fog, snow or heavy rain etc. may cause
cancellation of scheduled flights and suspension of air service.

46 | P a g e
  Breakdowns and Accidents:

The chances of breakdowns and accidents are high as compared to other modes of transport.
Hence, it involves comparatively greater risk.

 Large Investment:

It requires a large amount of capital investment in the construction and maintenance of

aeroplanes. Further, very trained and skilled persons are required for operating air service.

 Specialised Skill:

Air transport requires a specialised skill and high degree of training for its operation.

 Unsuitable for Cheap and Bulky Goods:

Air transport is unsuitable for carrying cheap, bulky and heavy goods because of its limited
capacity and high cost.

 Legal Restrictions:

There are many legal restrictions imposed by various countries in the interest of their own
national unity and peace.

47 | P a g e
 Advantages of water transport

Water transport is the cheapest and the oldest mode of transport. It operates on a natural
track and hence does not require huge capital investment in the construction and maintenance
of its track except in case of canals. The cost of operation of water transport is also very less.
It has the largest carrying capacity and is most suitable for carrying bulky goods over long
distances. It has played a very significant role in bringing different parts of the world closer
and is indispensable to foreign trade.

Water transport consists of :

(i) Inland water transport

(ii) Ocean-transport

Inland Water Transport:

As shown in the chart, inland water transport consists of transport by rivers, canals and lakes.

 Rivers:

Rivers are a natural waterway which can be used as a means of transport. They are suitable
for small boats as well as big barrages. River transport played a very important role prior to
the development of modern means of land transport. Their importance has gradually declined
on account of more reliable and cheaper transport services offered by the railways.

48 | P a g e
  Canals:

They are artificial waterways made for the purpose of irrigation or navigation or both. Canal
transport requires a huge amount of capital investment in construction and maintenance of its
track i.e., the artificial waterways. The cost of the canal transport is, therefore, higher than
that of river transport. To add to it, the cost of providing water for the canals is also a very big
problem of canal transport.

 Lakes:

Lakes can be either natural like rivers or artificial like canals.

Advantages:

 Low Cost:

Rivers are a natural highway which does not require any cost of construction and
maintenance. Even the cost of construction and maintenance of canals is much less or they
are used, not only for transport purposes but also for irrigation, etc. Moreover, the cost of
operation of the inland water transport is very low. Thus, it is the cheapest mode of transport
for carrying goods from one place to another.

 Larger Capacity:

It can carry much larger quantities of heavy and bulky goods such as coal, and, timber etc.

49 | P a g e
  Flexible Service:

It provides much more flexible service than railways and can be adjusted to individual
requirements.

 Safety:

The risks of accidents and breakdowns, in this form of transport, are minimum as compared
to any other form of transport.

Disadvantages:

 Slow:

Speed of Inland water transport is very slow and therefore this mode of transport is unsuitable
where time is an important factor.

 Limited Area of Operation:

It can be used only in a limited area which is served by deep canals and rivers.

 Seasonal Character:

Rivers and canals cannot be operated for transportation throughout the year as water may
freeze during winter or water level may go very much down during summer.

 Unreliable:

The inland water transport by rivers is unreliable. Sometimes the river changes its course
which causes dislocation in the normal route of the trade.

 Unsuitable for Small Business:

Inland water transport by rivers and canals is not suitable for small traders, as it takes
normally a longer time to carry goods from one place to another through this form of
transport.

50 | P a g e
Ocean water transport:

Ocean transport is indispensable for foreign trade. It has brought the different parts of the
world closer and has knitted together all the nations of the world into one big world market. It
operates on a natural track, i.e., the sea and does not require any investment in the
construction and maintenance of its track. It is, obviously, the cheapest mode of transport.

Ocean transport includes:

1. Coastal Shipping

2. Overseas Shipping

 Coastal Shipping:

It is one of the most important means of transport for carrying goods from one part to another
in a country. It is a cheaper and quicker mode of transport and is most suitable for carrying
heavy, bulky and cheap traffic like coal, iron ore, etc. to distant places. But it can serve only
limited areas. Earlier, coastal shipping in India was mainly in the hands of foreign shipping
companies. But now from 1951 onwards, it is exclusively reserved for Indian ships.

51 | P a g e
  Overseas Shipping:

There are three types of vessels employed in the overseas shipping:-

(i) Liners:

Liners are the ships which have regular fixed routes, time and charges. They are, usually, a
collection of vessels under one ownership, i.e., a fleet. They provide a uniform and regular
service. Liners sail on scheduled dates and time, whether full of cargo or not.

(ii) Tramps:

Tramps are ships which have no fixed routes. They have no set rules or rate schedule.
Usually, they do not sail till they have full cargo. They can be chartered by exporters and are
ready to sail anywhere and at any time. They are not as fast in speed as liners. Tramps are
more suitable to carry seasonal and bulky goods.

(iii) Tankers:

Tankers are the vessels which are specially designed to carry oil, petrol and such other
liquids. They have a large capacity, 2 to 3 lakh tons of oil, and very shortly, we may have
super tankers with a capacity of about 10 lakh tons of oil.

52 | P a g e
Advantages:

It operates on a natural track as sea provides a readymade ‘road bed’ for the ships to sail.
Hence, it does not require huge amount of capital investment in the construction and
maintenance of its track.

Due to the smooth surface of sea, comparatively less tractive power is required for its
operation which results in a lesser cost of operation. Thus, it is the cheapest mode of
transport.

It has the largest carrying capacity as compared to any other transport.

The risk of damage in transit of the goods is also less as compared to other modes of
transport. But the goods are exposed to the ‘perils of sea’.

It is the only suitable mode of transport for carrying heavy and bulky goods to distant places.

It is indispensable to foreign trade.

Road transport is still the dominant mode of transportation – both for moving goods and
passengers. India has a huge network of roads comprising of National Highways, State
Highways, Major District Roads and Village and other roads.

The road network is assuming a pivotal role in the movement of goods and passengers. There
has been a substantial shift in the mode of transportation from Railways towards the road
sector.

While the Railways handle only 40% of the freight and 20% of the passengers load, 60% of
the goods and 80% of passenger’s movement takes place through roads. It is anticipated that
the function of the road network will further increase in the foreseeable future.

Here is the list of existing roadways in India with their respective length at present:-

National Highways – 66,754 km

State Highways – 1, 28,000 km

District roads – 4, 70,000 km

53 | P a g e
Village roads – 26, 50,000 km

Road Transportation Manager take overall responsibility for the efficient and safe running
of vehicles carrying passengers and/or goods by road.

Road transport clerks carry out a variety of administrative tasks for bus, coach or road
transport companies. Duties may include dealing with customer enquiries, handling accounts,
organizing vehicles and deliveries, processing orders and arranging staff roads.They are
responsible for carrying out tasks under the direction of a road transport manager. Their tasks
are mainly administrative and financial duties connected to the movement of goods and
passengers by road and are likely to involve the use of computer systems.

Traffic manager determines modes of transportation and routing based on best price and
best service.

Locomotive engineers operate large trains carrying cargo or passengers between stations.
Engineers check the mechanical condition of their locomotives, making any necessary minor
adjustments and documenting issues.

54 | P a g e
 Intermodal Transportation

“The movement of goods (containers) in one and the same loading unit or vehicle which uses
successively several modes of transport without handling of the goods themselves in
changing modes of transport.”

Intermodalism is the concept of utilizing two or more ‘suitable’ modes, in combination, to

form an integrated transport chain aimed at achieving an operationally efficient and timely,
cost-effective delivery of goods in an environmentally sustainable manner from their point of
origin to their final destination. Intermodalism is not a mode of transportation but a system
of coordinating different modes of transport (air-truck, rail-truck, oceantruck, and ocean-rail).
A system in which the individual modes are linked, governed, and managed in a manner that
creates a seamless and sustainable transportation system.

The concept of transportation as a door-to-door service rather than portto-port. Thus,

efficiency is enhanced by having a single carrier coordinating the movement and
documentation among different modes of transportation (FedEx, UPS Worldwide Logistics,
Hub Group Logistics, Schneider Logistics and Ryder Logistics). The movement of
international shipments via container using sequential transportation modes (water, air and
land) makes use of the most efficient cost-effective methods to move goods. In the past, it
was also called balanced, integrated, or comprehensive transportation. Transportation modes
used in the intermodal transportation – trucks, railroad, ocean carriers, steamships, and
airplanes. The most common combination is truck and rail. The terms intermodal, multimodal

55 | P a g e
and combined transport are often interchangeably used. The preferred term of the United
Nations Conference on Trade and Development (UNCTAD) is multimodal transport, which
is defined as the door-to-door movement of goods under the responsibility of a single
transport operator

Advantages Intermodal freight transportation gives you flexibility with how you want to
move your freight. Additionally, you have the opportunity to be creative in finding the most
efficient way to move your freight. Generally, this process involves at least two modes of
transportation. The more efficiently you plan, the more money you will save.

Disadvantages Intermodal freight transportation may be costly depending on the number of

modes of transportation. Some downfalls to intermodal freight transportation involve the high
costs that are associated with moving freight by using several types of modes of
transportation. Lack of communication and idle time of equipment will increase
transportation costs. Similarly, equipment that moves from one location to another empty also
adds to the costs.
………………………………………………………………………………………………

56 | P a g e
 Customer Value Chain

A key component of customer value chain is defining collaborative relationships with

customers and suppliers across all dimensions of those relationships. To create more visibility
and understanding of end-customer behavior and demand patterns, companies are extending
the value chain.

Some companies add value to traditional commodity products by offering services to their
customers over and above the product itself. Organizations increasingly find that they must
rely on effective supply chains, or networks, to compete in the global market and networked
economy.

In recent decades, globalization, outsourcing, and information technology have enabled many
organizations, to successfully operate collaborative supply networks in which each
specialized business partner focuses on only a few key strategic activities. Outsourcing is an
acceptable trend in businesses. Corporations have realized that doing everything by
themselves does not result in effective and efficient use of scarce resources available to them.
It is better to outsource functional areas to experts who can do job at the lowest cost and that

57 | P a g e
too efficiently and effectively. The logic of this trend is that the company will increasingly
focus on those activities in the value chain in which it has a distinctive advantage and
outsource everything else. As shown in the value chain activities of a firm can be categorized
into primary activities Inbound Logistics, Operations, Outbound Logistics, Marketing and
Sales, and Services. Support activities such as Firm Infrastructure, Human Resources,
Technology and Procurement.

 Inbound logistics:

It involves the relationship between the supplier and the firm which has the activities of
supplies of raw materials, the receiving, delivering and storing as well as keeping the raw
materials safe. The distribution to manufacturing of these raw materials is also concerned.

 Operations:

In this type of activity, the process and the steps of transformation of goods and services
means to transform inputs into outputs that is product and services.

 Outbound logistics:

It includes most of the activities from collection to distribution. First, it requires the activity
of collection, then it needs to store the warehouse and the final stage is to distribute those
products.

58 | P a g e
  https://www.nanaimo.ca/docs/.../transportation-feasibility-study

 https://www.unece.org/trans/theme_infrastructure

 International Journal of Management in india by “seema jain”

59 | P a g e
60 | P a g e