Road Transportation

Road Transport in India
Importance of transportation
• The nation has just 13 million cars on its roads which is just over 1% of the
country’s population.
• In addition only 10% of the Indian households own a motorcycle.
• In India, public transport still remains the primary mode of transport.
• Indian railways is the largest and fourth most heavily utilized system in the
world.
Traditional means
Modern transportation
• These are the major means of transportation now a days:

• Railways
• Road ways
• Air ways
• Water ways
Modal Mix: Overview
Passenger Traffic Share Freight Traffic Share

Significance of Road Transport
Economic • Increase in share of high value and low volume commodities.

development leads • Increase in passenger traffic intensity.
to • Demand for quality transport.
Increase in • 10 per cent increase in travel speed labour market expands by

productivity 15 per cent and productivity by 3 per cent.
Significant
contribution to GDP • (about 3 per cent and Rs. 2000 billion).
and government
revenue
Favourable impact on • Participation rate in schools education increases by 100 per

education and
medical facilities cent for girl and 33 per cent for boys
Highly employment • Only next to IWT

intensive.
Issues, Diagnosis and Solutions
Externalities
• Transport sector accounts for nearly 18 per cent consumption of total

energy.
Energy
• Share of road transport is 90 per cent.
and
• 98 per cent of total energy demand is met through petroleum products
Environment
which represent half of consumption of petroleum products.
• CO2 emission of road transport sector is 206.4 million tonnes which is
92 per cent of total emission of transport sector.
Significance Life
• Consider Full life cycle energy and Co2 impact of transport modes
Cycle Analysis
Except one no oil producing country can balance their budget at price less than US$ 100
per barrel.
Safety
• Accidents 4.9 lakh (1 every minute)

Road accidents in
2014 • Deaths 1.40 lakh (one death every 4 minutes)
• Injured 4.63 lakh
Accidents impose • 3 per cent GDP for India

significant costs
• 28.2 per cent of all accidents

Accidents on NH • 34.1 per cent of persons killed
(2014)
•29.9 per cent persons injured
• Drivers’ fault – 78.8 per cent of total accidents in India

Major causes of
accidents •Overloading/overcrowding of vehicles caused 20 per
cent of total accidents
Fiscal Issues
1. Generation of revenue 2. Economic efficiency.
Taxes, user charges and
subsidies serve : 3. Income distribution. 4. Environment sustainability.
i.e. transport input required to produce 1 unit of output is

Transport intensity in • 11 per cent higher than South Africa,
india
• 14 per cent more than China and
• 38 per cent higher than Brazil.
Tax per unit of output • more than 40 per cent higher than South Africa.
in India
Impact of less efficient • Introducing efficiencies under various scenario the

usage transport economy gains 0.042 to 0.0148 in GDP under various
services scenario.
Simplify the • through a mechanism akin to that used for transforming the
multiplicity of state complex state-level sales taxes to the simplified state VAT
level taxes system.
Trend of Road Traffic Fatalities in Selected Countries, in
Numbers
Road Traffic Fatalities in India
in Numbers
National highways
• The main roads constructed & maintained by the central government
• It connects ports, state capitals, industrial and tourist centres
• It span about 67,000 km & handle 40% of total road traffic 0 National lanes
have : 0 1.single lanes (width 3.25 m) 0 2. multi lanes (each have width 3.5
m) 0 3. 14% have 4 or more lanes & 59% have 2 lanes or double lanes
• 4.rest 27% single laned
NHAI(National Highway Authority of India)
• It was constituted in 1988

• It is responsible for the development , maintenance and management of
National Highways
• It is currently undertaking developmental activities under (National
Highways Development Project)
Golden quadrilateral
• An expressway is a controlled-access highway; it is a highway that controls
entrances to it and exits from it by incorporating the design of the slip
roads for entry and exit into the design of the highway itself. Access-
control should not be confused with collection of toll. An expressway may
be free to use and may not collect toll at all. Expressways are the highest
class of roads in the Indian Road Network. These are six or eight lane
highways with controlled-access. India has approximately 942 km
expressways.
• National Highway system of India consists of approximately 10,000 km
(6,200 mi) of fourlaned highways that collect toll from users but do not
have control of access and cannot be called expressways. Currently, a
massive project is underway to expand the highway network and the
Government of India plans to add an additional 18,637 km (11,580 mi) of
expressways to the network by the year 2022.
The Road Freight
• The biggest advantage of that means of transportation is that you have

your cargo delivered at the doorstep.
• Another pro of road freight can be seen with regard to its economical
aspect. If your place is not located that far from a seller’s place, road
• The biggest plus of road freight is that goods are delivered by freight
forwarders at a purchaser’s doorsteps. Hence, door to door service
offered by freight forwarders can be the greatest incentive for you. Apart
from obvious pros, road freight has its drawbacks too.
• The biggest shortcoming of this means of transportation is that you
cannot deliver everything you want because certain restrictions are
imposed with regard to size and weight of delivered items. Bear in mind
those pluses and minuses of road freight before you decide on this means
of transportation.
Factors influencing growth in Road Logistics
• Price
• Transit Time and Variability
• Loss and Damage
Comparison of Transport Modes:
Innovation in land transport
• The land transport sector has been characterised in past decades by

significant regulatory reform processes (in rail and passenger road
transport), major shifts in paradigms (the high speed train), and some
radical innovation
• radical innovations in road freight, in particular the advent of platooning –
where trucks run close to each other, similarly to the wagons of a train – is
likely to provide strong environmental efficiencies, reductions in
congestion, and increases in competition between road and rail freight in
some market segments.
• road transportation prices attempt to internalise externalities such as
environmental and congestion costs through taxes on gasoline and
highway charges
• At the same time, rail services are heavily subsidised, usually to take into
account the costs of building, maintaining and operating rail
infrastructures. Current price distortions lead to inefficient decisions and a
highly distorted use of public money. Moving towards market based
prices in transportation services could avoid these distortions and lead to
a better allocation of resources.
Road Transport Sector and its importance
• Often only direct effects of road transport generated by the

transportation of goods and people are considered, ignoring its positive
multiplier effects on industry, commerce, small trade and the service
sector
1. Road Transportation
• Public sector
• Main supplier of road transport infrastructures.
• Unpractical to use a similar pricing system than a commercial enterprise.
• Most roads are not economically profitable but must be socially present
as they are essential to service populations.
• Only possible on specific trunks that have an important and stable traffic.
• Toll roads:
• Highways linking large cities.
• Bridge and tunnels.
• Can expropriate the necessary land for road construction.
• Economies of scale and their indivisibility.
Road Transportation
• Costs
– Rights of passage.
– Development costs (planning).
– Construction and expropriation costs.
– Maintenance and administration costs.
– Losses in land taxes (urban environment).
– External costs (accidents and pollution).
• Income
– Registration.
– Gas (taxes)
– Purchases of vehicles (taxes).
– Tolls, parking, and insurance fees.
Road Logistics in India
Key Issues – Indian Road Logistics
• Lack participation of private sector

• Network Connectivity
• Travel time
• Maintainance
• Reliability
• High Co2 Emission


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Road Transport in India

• These are the major means of transportation now a days:

Passenger Traffic Share Freight Traffic Share

Economic • Increase in share of high value and low volume commodities.

Increase in • 10 per cent increase in travel speed labour market expands by

Favourable impact on • Participation rate in schools education increases by 100 per

Highly employment • Only next to IWT

• Transport sector accounts for nearly 18 per cent consumption of total

• Accidents 4.9 lakh (1 every minute)

Accidents impose • 3 per cent GDP for India

• 28.2 per cent of all accidents

• Drivers’ fault – 78.8 per cent of total accidents in India

i.e. transport input required to produce 1 unit of output is

Impact of less efficient • Introducing efficiencies under various scenario the

• It was constituted in 1988

• The biggest advantage of that means of transportation is that you have

• The land transport sector has been characterised in past decades by

• Often only direct effects of road transport generated by the

• Lack participation of private sector

• High Co2 Emission

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