Transportation Indian Scenario

8/9/2019 Transportation Indian Scenario

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Alkesh Dinesh Mody Institute

For Financial And Management Studies

Topic Name:- Transportation

Subject:- Logistics

2009-10

Submitted By- Rahul Salunkhe

Submitted to,

Prof. Krishnamurthy


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Transportation


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What is transportation?

- one of the function of logistics management.

- contribution in logistics cost.

- its movement of goods from

one location to another.

Alkesh Dinesh Mody Inst. For Financial & Mangt. Studies


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Functions of transportation:-

- Product Movement

Raw material

Semi-finished items

Work in progress itemsPackaging material

Rejected items

- Product Storage Useful when loading & unloading is costly

Storage space is not available



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Objectives of transportation:-

To facilitate trade & business

To meet objectives of logistical management

To keep production process running

To meet customers demand for product & service at

lower cost.



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Principles of Transportation:-

1. Economy of scale-

- Bulk shipping bring down per unit

transportation cost

2. Economy of Distance:-

- Cost per unit Km decreases as the distancemoved increases



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Basic modes of Transportation

a) Rail Transport

b) Road Transport

c) water Transport

d) Pipelines

e) Rope ways

f) Air Transport



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RailTransportation



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Largest network- every city, town, many villages are

connected

- Total Rail route length- more than 63,327 kilometres

- stations covered - 6,909 stations

Cheapest Transport mode- large volume of goods over long

distances at economic rates.

Ideal for heavy volume shipment & which are not time

sensitive. adds time at transition stage- wait for cars to get attached

to train



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Developments in this area:-

Recent customer friendly attitude

Inter modal transport through alliances and

acquisitions as in US, providing single windowservice to customers

Development of Specialized Equipment to suit the

needs of bulk volume of customersUnit trains

Container trains

Double stack containersAlkesh Dinesh Mody Inst. For Financial & Mangt. Studies


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Unit Train



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Road Transportation



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Large road network- over 3.314 million Km

Second largest in world

High flexibility and speed

Ultimate mode of transport

Low capital cost as compared to railways

Operating costs are higher

Ideal for small shipments over short

distances

Labor intensive

Bad and unsafe road conditions



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Developments in this area:-

Entry of several manufacturers of trucks-entry of Daimler

to produce Mercedes CVs

National grid of multi lane highways

Road widening schemes, bypass to cities

Pay and use roads private road builders

Express ways

The Golden Quadrilateral



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Water Transportation



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In India limited scope for deep water transport

Limited extent of navigable inland water transport -

lakes, rivers, canals

Main advantage of water transportation is extremely

large shipments & low cost

Importance of deep water vessels & deep water ports to

fully realize benefits of water transport



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Inland water Transport is not used to its fullpotential

Main hurdles appear to be1. Low priority in policy

2. Construction of dams

3. Receding water levels in the rivers4. Tough competition by other modes



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Pipeline



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What is transported in a pipe line?

Liquids - oils, crude, petroleum products

In India, extensively used for transporting crude and

petroleum products

More than 5,000 km of pipeline exists in India for crude

and petroleum products Slurries - coal slurry, iron ore, lime

Huge quantity of water is necessary which is a concern

for environment

In India pipe line is used for transporting iron ore.

Gases and vapors- natural gas, LPG

in India LPG pipe line is in existence



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Main features of this mode of transport

Reliable all weather means of transport

Low energy consumption

Pipeline being under ground space occupation is minimal

Pipe line operates all the time except when it is shut down

for maintenance

Highest fixed costs, right of way and laying of pipeline, and

lowest operating costs



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No empty container or wagon to be brought back

Not labour intensive

Physical state of the commodity is a limitation.

This mode of transport can release capacity ofother modes for transport of essential commodities



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Ropeways



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Hilly and otherwise inaccessible area

Cause minimum ecological imbalance

Point of supply and demand can be connected by

shortest route

Logistics of fruits in Himachal Pradesh



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Air

Transportation



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Speed of transport is highest

Fixed costs are lower than rail or road or pipe line. Butoperating costs are highest

Air transport brings distant markets closer - perishables

market in gulf countries

Overcomes the hassle and cost of setting up depots andservice centers overseas

Full potential of peak seasonal demand can be taken

Products can be shipped directly from the factory



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RAIL ROAD WATER AIR PIPE

LINE

CAPITAL EX II IV III V HIGHEST I

OPERATING

COST

III II IV I V

SYSTEM KM Morethan

63,327

kms

Over 3.314million

kms

15544kms[IWT]

(Inland

W- ways)

5000 kms

SPEED III II IV I V

AVAILABILTY

[ABILITY TO

SERVE A SET

OF LOCATIONS]

II I IV III V

Transportation Modes Selection



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Rail Road Water Air Pipeline

Dependability[minimum deviation

from schedule,

weather, congestion&

other problems]

III II IV V I

Capability

[ capacity to tackle any

size of the load]

II III I IV V

Frequency [quantity of

scheduled movement]

IV II V III I



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Transportation Indian Scenario

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