BASIC MODE OF TRANSPORTATION 1) RAILWAY Railways are primarily long-distance, large volume movers of low volume high density

goods. Railways, which fall within the group of business undertakings labelled as natural monopolies require a large investment in terminals equipment and track age to begin operation. Today s railway industry is changing considerably in response to the economy, deregulation and the logistic approach to business. It is imperative for railways to improve service and to integrate with other modes. The Indian railways is the monopoly carrier of this mode of transportation in India. The rail network in India consists of broad gage and meter gage railway tracks with the broad gage catering to almost all of the freight traffic. Advantages of Railways 1. The major advantage that the railway offers is the efficient transportation of larger loads over long distances 2. The variable cost per ton-mile of transportation is lower for railways as compare s to other modes of transportation. 3. The availability in terms of service frequency to all categories of shippers . 4. The physical capability of transporting all types of commodities. 5. Railways also offer more reliable and safe transportation under all weather conditions as compare to other modes of transportation 6. Traditionally railways have been the most economical mode of transportation for low value high density and high volume products and hence the preferred mode for inbound logistical movements for firms. 7. the utilisation of standardise containers which can be easily transferred to and from other transportation vehicles have facilitated intermodal transportation along with railways. Utilisation of container on flatcar (COFC), Trailer on flat car and double stack railcars have help improve the performance of railways.

Disadvantages of railways 1. Railwayincur higher fixed cost due to requirement of infrastructure like railway tracks, specialized equipment s and terminals. 2. Low accessibility, the inability to service areas where railway tracks are not present. However, this short coming can be overcome by multimodal transportation, for example, in combination with roadways.

3. Slow speed due to consolidation of rail wagon into complete train units for a particular route, and breaking out of rail wagons that have reached their destination or have to be transferred to other trains for different routes. 4. The packaging costs for railway is higher due to the impact experienced by goods during the coupling of the rail cars. 5. In India, metre gauge routes remain underutilized due to the problem of transfer of loads from broad to metre gauge routes being uneconomical

2) ROADWAYS/MOTOR CARRIER Motor carriers very much the part of any firms logistics supply chain; almost every logistics operation utilizes the motor truck, from the smallest pickup truck to largest trailercombination, in some capacity. The motor carrier industry, unlike railroad industry, consists of for-hire and private carriers. Private motor carriers transport freight that is owned by the firm that owns/leases and operates the trucks. The motor carrier industry is characterised by a large number of small carriers. The large number of carriers is due in part to the low capital that entering the trucking business requires. High variable cost and low fixed cost characterized the cost structure. The motor carrier does not require extensive terminal and equipment investment and does not invest in its own highway, and the carrier pays for highway use through fees such as use of taxes licencing charges. These variable expenses contribute to the high variety cost structure. Motors carriers are classified in manner as truckload and less than truck load. Less than truck load carrier accept small packages of shipment where truckload carrier accepts shipment of full truckload size. ADVANTAGES OF ROADWAYS 1.road transportation offers advantages of speed, door-to-door flexibility and widespread geographic coverage. 2. the major advantage of motor transport over the modes is its inherent ability to provide service to any location. 3. the large number of motor carriers suggest a high availability. For example,many more motor carriers than railroad facilities are available in an area. 4. motor carriers do not need to consolidate wagons together or decouple wagons at various locations on the route as it in railway transport it speeds up the transportation. 5. motor carriers used in road transportation have lower fixed capital costs as compared to other modes of transportation. 6. due to the lower entry costs of capital, this mode of transportation is characterized by competition and high availability. 7.the packaging requirements for motor carriers are less strigent than required for railway or air.

8. the characteristics of road transportation make it suitable for high value small shipments over short distances. 9 road transportation enables firms to reduce inventory carrying cost because of the facility of small shipments and improvement in customer service level due to the speed of transportation.

DISADVANTAGE OF ROADWAYS 1.Roadways have higher variable costs of fuel, driver, tyres and other components, repairs, taxes, and toll charges for right of way usages. 2.because of higher variable cost, motor carrier rates are the second highest among all mades of transportation after air. 3.the relatively high cost of using a motor carrier suggests that commodities moved by truck must be of value high enough to sustain the transportation costs. 4.motor carriers are affected by adverse weather or traffic conditions. This affect their reliability. 5. although motor carriers can cary almost anything, tey are subject to gross weight and lenghth restrictions. 6.the physical and legal constraints on carrying capacity make motor transport suitable for small shipments.

3) WATER CARRIERS Water carriers are primarily long-distance movers of low value high density cargoes that mechanical device easily loads and unloads. This type of transportation is used for low value to weight relationship products and commodities like minerals, chemicals, cement, and agricultural. Wqater carriers compete heavily with railroads along certain routes andwith pipeline for movement of products like petroleum. Routes can be internal waterways, coastal waterways and international shipping routes. In india it is limited to coastal and international routes. Water carriers are classified as private or for-hire, domestic, international and trumps or liners. Advantages of WATER CARRIERS 1.water transportation offers advantage of low cost for bulk shipment. 2.the cost of water transportation is lowest amongst all mode of transportation. 3.it has capacity to move very large shipment. 4.water transportation is most advantageous for commodities with low value to weight ratio. 5.the water transport requires only the entry capital necessary for equipment.

Disadvantage of water transportation 1.slow speed of transportation. 2.limited range of availability near the waterways. 3.weather conditions and low water level disrupt services. 4. water carriers are unreliable compared to other modes of transport and suffers from high degree of variability in delivery shedules. 5.they depend upon other modes of door to door delivery.

4) PIPELINES Pipelines are used for the transportation of fluids and slurries including the water and sewage. The products generally transported are petroleum products, natural gases and chemicals, pipelines can either be privately owned by users or available for hire. In India however most of the pipelines are owned by public sector for distributing their products; although, some pipelines in a joint sector and the private sector are coming through. Pipelines have the highest investment cost or fixed costs amongst all the transportation modes. Advantages of Pipeline 1.pipelines have the basic advantage of being available all the time including during the adverse weather conditions. 2.pipelines also provide the benefit of transportation of very large quantities in a single continuous shipment. 3.due to protection provided by the pipeline throughout the route, losses, deterioration and pilferage of the products are avoided. 4.it is the most dependable way of transport. 5.weather conditions do not disrupt pipeline service. 6.Low cost, as compared with other modes is the major advantage of using oil pipelines.

Disadvantages of Pipelines 1.geographic accessibility to pipeline is limited to the routes. 2.pipelines transportation is not suitable for general commodity transportation. 3.the speed of transportation through pipelines is quite slow resulting in long transit times.