Focus on Growth & Opportunities for Indian Railways

An Assessment of Major Transportation Modes

Submitted by :

Ankit Rastogi
Research Associate, IRITM, Lucknow
Facilitated by :

Sri Ravij Seth

FA & Sr. ro!. "Fin. & #, IRITM, Lucknow

Sometimes feels, its too much now..... Struggling with same challenge daily while travelling from home to office and from office to home. It similar to the winning a war, really trust me!! First you have to check the local conveyance to reach bus stop, railway station or metro station, airport. Then you have to clear the hurdle of getting ticket at right price. Then finally you get chance to sit on your seat, dont remember to share ad!ust your seat with other passengers. So do I really got that , for what I struggle an paid appropriate fare charges. Somehow if you manage to ad!ust with environment, then most of the time that particular mode of transportation is going to be delayed by new reasons. So if you have to travel "#$"% km, then you have to keep #& hours apart from your scheduled work. 'ut we irritate at that moment and after some time forget about it. I think we are very ad!ustable by nature so we manage each and every time and it becomes a habit of us. (e are &nd largest country by population and ne)t big economic power in the world. These all big achievements !ust give few minutes satisfaction but not the permanent solution of this particular issue. *very time when people think to travel from one destination to another, they become horrified by !ust thinking of that. *ither they wish to travel in the vicinity or to travel far away they have to consider lots of factors. The primaryfactors considered by every travellersuch as getting a confirm ticket according to their plan, getting a conveyance to reach the appropriate starting point and on time. They also have additional concerns about their !ourney like Safety, Timely, *conomical, *fficient, Safe, +eliable, environment friendly and regionally balanced transport system and so on.This paper features analysis on the key developments and opportunities across various modes of transportation , including road, rail, air, ports and water, which could rightly be termed as Focus on -rowth . /pportunities for Indian +ailways. In this conte)t, I have researched the potential pro!ects and trends imperative to reali0e an efficient, effective, lean and reliable Indian transportation network. In present days it becomes very veryhard to take care all of these factors under consideration and we all are compromising with the present situation. 1ll these issues are present with all ma!or transportation modes whether its a +ailway...the heart line of the country, +oads....connecting the dots or 1viation.... lets fly efficiently. (e all have encountered these problems at least once in our life time... I know lots of you will agree with me. It2s surprising me that, when we have great policies, better technology and huge man power, so why we are lacking in the transportation area. The Transportationcomes under the Infrastructure sub $ sectorof Service sector. 1nd agree with you that it re3uires enormous investments. Since governments is lacking on this front so they embraced the 444 model for fast development of infrastructure. 5nder 444 mode there is a lot of pro!ects are done many are under progress. The 444 mode gives win $ win situation to both of the parties ie. for government and private players.

'ut e)cept 444 still there is a lot of scope for the improvement in the transportation sector. (e are far behind in this sector in comparison to the rest of world or other developing countries. In present, we are the fastest growing country in terms of population and economy. economy Finance is a ma!or source of worry in India, as international funding is limited. The inefficient infrastructure hinders economic growth. Infrastructure is also being affected by global forces. The *uro 0one and the 5.S. economy are having an impact on the infrastructure sector in India. They directly affect the general economy and also specific sectors such as railway freight. freight. India is an integrated and globali0ed country, country slowdowns in larger and more developed economies affect its e)ports and imports and growth rate. There is great need of better transportation mode because of several reasons such as very fast growing population, tion, urbani0ation, 6ob opportunities, increasing income level, access to basic utilities. 1ny up down movement in the infrastructure sector directly impact the growth of the economy of the nation. Infrastructure development acts as catalyst for nations economic conomic development and prosperity. The development of cities mainly depends upon their physical, social and institutional culture. 7ence, the importance of transportation is paramount. Indias transport sector is large and diverse8 it serves the need of billions illions of people. (e can see this sectors contribution to the nations -94 in the figure :";.

The vision of the twelfth five year plan :&#"&$"=; :&#"& "=; is motivated by a modal mi) which will lead to a Sustainable, Economical, Efficient, Safe, Reliable, environment environment friendly and regionally balanced transport system.<a!or <a!or transport investments may have significant impacts that are not well captured through conventional cost$benefit cost benefit analysis. >onventional economic evaluations of ma!or transport infrastructure investments stments tend to focus on the direct costs and benefits arising from travel, including time savings for travellers, cost savings for operators, and reductions in aspects like

air pollution, noise, and accidents.The impact in terms of economic exchanges, accessibility, and productivity gains are expected to be significant, and extend beyond traditional transport savings. ?ow you are e)cited to know the reasons behind these kind inefficient transportation modes. (e will analy0e the all ma!or transportation modes with special focus on their passenger and freight operations, and the current sub sector trends. So before going in details, !ust have a overview of all four ma!or transportation modes performance.

FDI Flows to infrastructure (US $ million) Sector Air Trans ort Sea Trans ort !orts Railwa" Relate# $om onents
Apr-Nov 2009-10 2010-11 2010-11 2011 2012

&&.@ &BC.D @%.C AC.&

"A@.## A##.%" "#.D& =#.@@

A".&& "&D.A@ #.## C&.==

&=.%# DD.C& #.## A%."@

"A.=& A@.&A #.## "=.=D

Share and Growth of Indias Services Sector (at factor cost) Transport $ai%wa&s Transport '& other (eans 200001 "." C." %.# =.= 200 0! #.D =.% %.= D.A 200!0" #.D ""." %.= D.# 200"0# ".# D.B %.@ B.= 200#09 #.D =.= %.% %.A 200910 #.D B.B %.A =.A 201011 #.B %.D %.A B.&

(%) 201112 #.= =.% %.C B.@

Indicators) *erfor(ance of Indias service sector Sector Indicators Airline passengers (domestic and international) Port traffic +nit *eriod 2010-11 @C.%

200#-09 CD.%

2009-10 %C.%

2011-12 =#.&

2012-1, @=.%

Aviation

<illion <illion Tonnes <illion Tonnes million

*orts

=CC.#& BAA.A" %AB&&@

B%#.#A BB=.DD %BC=@#

BB%.C% BA&.=% CCC%"%

D"".@B D@D.=B @AD=@B

C%%.== =A%.A& C=#D%@

Freight traffic by rail ays $ai%wa&s !et tonne km of rail ays

-o(parison 'etween .a/or transportation (odes .ode Growin0 1e(and

-reater connectivity between different cities, towns and villages has led to increased road traffic over the years There has been increasing movement of goods within the country as well -reater connectivity between different cities, towns and villages has led to increased road traffic over the years There has been increasing movement of goods within the country as well -rowth in passenger traffic likely to go up as incomes rise and more tourists flow in Freight traffic also likely to go up as trade with the rest of the world increases

2pport3nities
Freight traffic is set to increase manifold, thanks to investments and private sector participation <etro rail pro!ects are being envisaged across many cities over the ne)t ten years +oads and bridge infrastructure industry to be worth 5S9&" billion by FE"= 1ppro)imately D,%## kilometres of pro!ects are e)pected to be awarded by ?71I during &#"&$"A -rowth in aviation accentuating demand for <+/ facilities 'right prospects due to location advantage8 there is no <+/ facility within a five $ hour fly 0one of the country 'y &#&#, <+/ industry is likely to touch 5S9".% billion

*o%ic& S3pport
-overnment has increased the scope of 444, to beyond providing maintenance and other such supporting roles -overnment is providing new lines, increasing the rolling stock to build up capacity

$ai%wa&s

$oads

Aviation

+oad infrastructure is a key government priority8 the sector has received strong budgetary support over the years *ncouragement to private sector participation8 rela)ation of foreign investment norms The government has been encouraging private sector participation Ta) incentives for developers8 liberalisation of the aviation sector $ /pen Sky 4olicy -overnment has allowed CD per cent F9I in aviation for foreign carriers

4vo%3tion of (a/or Transportation Sectors) 15 Railways India has the worlds fourth largest rail network and also second largest under single management, It has a total route network of about @C,%## km spread across B,&C" stations, /perates more than "D,### trains every day, It has &&D,AB" wagons, %D,="A coaches and B,C"= locomotives, I+s total assets at the end of FE"" amounted to 5S9%%.% billion, *ara(eters Net $even3es *assen0er Traffic 6rei0ht Traffic No of Stations $3nnin0 Trac8 +nit "!# billion $illion %illion metric tonnes && 'm 6719 1 67 2011

#.% ".A =A.& %,D=@ %D,A"%

@A.% =.B D&@.C B,&C" B=,""C

25 Roads India has the second largest road network in the world :C." million kilometres; +oads bear about D# per cent of the countrys passenger traffic and @% per cent of freight traffic *ara(eters 9en0th of Nationa% hi0hwa&s *assen0er vehic%e sa%es N:1* to%% co%%ection :i0hwa& pro/ects awarded '& N:AI Share of infrastr3ct3re in tota% 'an8 f3ndin0 +nit 'm 670, 67 2011

%B,""& =#=,###

=",==& &,@A,=B= CA% @CD" "C

+S1 (i%%ion 'm %

@C.% @== &.A

,5 Aviation Dth largest civil aviation market in the world India is ranked Cth in domestic passenger volumes :C%.A millionF; Indias civil aviation market is set to become the worlds Ard largest by &#&# India has "A@ airports, "&B of which are owned by 11I +nit mn km && && million && 67 2000 67 2011

*ara(eters Sched3%ed air%ines) distance f%own Non-sched3%ed air%ines in operation N3('er of aircraft *assen0er hand%in0 capacit& at airports N3('er of operationa% airports

"DD AD &&% @@ %#

=@& "A@ ""BB :&#"&; &AA million :&#"&; "&% :&#"&;

Internationa% airports 2thers

Aircraft (ove(ent =D G &"G

6rei0ht Traffic D@G CG

*assen0er Traffic BCG "@G

Si0nificant Govern(ent Spendin0 2n Infrastr3ct3re The Indian government has earmarked about I?+ %#,### billion according to the HII Five Eear plan :&#"&$"=; against I?+ &%,### billion in the HI Five year 4lan :&##=$"&; for infrastructure investment. 1round one$fourth of this investment is e)pected to be in roads, rail, and aviation and port pro!ects representing a sharper focus on transportation infrastructure. For e)ample, I?+ &B" billion has been allocated for the &=##km$long 9edicated +ail Freight >orridor pro!ect.

(ource) Planning *ommission of "ndia, 'P%+ Analysis

-o(parison on ;e& para(eter

(ource) *ygnus $usiness *onsulting , #esearch, 'P%+ Analysis

Disaster Risk Sha#ow on !!! !rojects Few weeks back there was climatic disaster in $ttarakhand and there is debate %oin% on &e'elo(ment )*s &isaster mana%ement. So I am includin% this to(ic o! +&isaster Risk Shadow on ro,ects- which %i'es essences o'er the debate to(ic. As all mode, so it is 'ery im(ortant to (ro,ects the %o'ernment has

in!rastructure (ro,ects are now e.ecutin% throu%h minimi/e the disaster results. As we all know that in

'ery low control o'er the e.ecutin% (ri'ate (artners and latter has little interest in lon% term sa!ety issues o! the (ro,ects. Accordin% to the 0lobal Assessment Re(ort "0AR# on disaster risk reduction !or Asia (aci!ic, an $1 study noti!ied India that its 'ast in!rastructure assets e.(osed to disaster risk. These (artnershi( (ro,ects trans!er their shared costs to the (ublic sector as they do not necessarily lead to im(ro'ed disaster risk assessment and mana%ement. As (er re(ort (ro,ection durin% 12th Fi'e 2ear lan, an in'estment in in!rastructure de'elo(ment is worth about 31 trillion (ro(erty !acin% disaster risk !rom unsa!e (ublic assets. The re(ort (uts the estimated e.(osure o! economic assets in Mumbai alone was increased !rom $46 billion in 2005 to $15 ! billion in 20"0. In the middle and low income countries the e.(osure such as urban %rowth, natural and arti!icial subsidence, sea le'el rise and climate chan%e are likely to rise si%ni!icantly. Its ad'ised by the $n to the %o'ernment to inte%rate disaster risk in!ormation into in'estment decisions4 buildin% (ublic (ri'ate risk %o'ernance and disclosin% disaster risks and costs on balance sheets o! com(anies. The 0AR concerns s(eci!ically in areas o! S%&s' (lo)alise# Su l" $hains which enhance the 'ulnerability o! disaster.

Railways

Spanning 64,456 km with more than 7,133 railway stations, Indias rail network is the largest in Asia and the second largest in the world ( ehind the !S"#$6 %he Indian &ailways operates 1',((( trains daily, transporting $#65 ))% o* *reight and $3 million passengers across the co+ntry# ,owe-er Indias rail in*rastr+ct+re s+**ers *rom chronic +nder.in-estment, d+e to which its potential *or *reight mo-ement remains largely +ntapped# &ail *reight has grown at aro+nd 7 / o-er the past *i-e years# It is e0pected to+ch the 1 illion ton mark in $(13, with a 31/ share o* total *reight mo-ement across all modes o* transport# %his is in stark contrast to its share o* 1'/ in 1'51#2onsidering the re3+irements o* the economy and si4e o* the co+ntry, the e0pansion o* the railway network has een inade3+ate# Indian &ailways ha-e added 11,164 km o* new lines since independence#It has not een a le to co-er ma5or areas in many states and has -ery little presence in the 6orth.7ast States and the ,imalayan region#%he network needs e0tensi-e modernisation, increase o* speeds, impro-ement in sa*ety and modernisation o* rolling stock to meet the needs o* a rapidly growing economy# Indian Railways Financial Position Overview

Source: 12th Five year Plan Report

%he Indian railways (I&" ha-e consistently lost o+t to road, as the pre*erred mode *or goods mo-ement across the co+ntry# 8hile tra**ic on rail has grown more than ten*old etween 1'51 and $((7, rail track length has only grown 1#4 times d+ring the same period# )oreo-er, tr+nk ro+tes constit+te merely 16/ o* the network and transport morethan 5(/ o* total tra**ic, res+lting in ma5or congestion and a low a-erage speed o* $5 km9hr *or *reight trains#$7

As compared to glo al standards, Indias track length per s3# km# is +n*a-o+ra le at 44 km o* track per 1,((( s3# km# o* ara le land, as against 137 km in the !S and 417 km in :ermany# Traffic ;assenger %ra**ic went +p eca+se o* rising income, +r anisation dri-ing passenger tra**ic growth# !r an pop+lation in India increased *rom 17#3 per cent o* the total pop+lation in 1'51 to 31#$ per cent in $(11< this has led to increase in tra**ic etween +r an and r+ral areas in the co+ntry# Impro-ement o* +r an.r+ral connecti-ity y rail has een another ma5or contri +tor to passenger growth# =+rther, passenger tra**ic contin+es to en5oy signi*icant priority o-er rail *reight# In addition to *irst right o* mo-ement, passenger rates are highly s+ sidi4ed y *reight

operations +tili4ing +p to 7$#3/ o* network capacity +t contri +ting only 3(/ to re-en+e, while passenger

segment acco+nts only *or $7#7/#

Source: KPMG in India Analysis

>espite these apparent limitations, rail contin+es to

e among the *astest and most

economical modes o* transport *or *reight in India# %wo.thirds o* *reight in India is transported o-er medi+m and long distances, *or which rail transportation o**ers signi*icant time and cost sa-ings# Percentage Share of Rail - Road in Freight Traffic Movement

Source:World Ban !"""!data#an !"orl d#an !or$

%he capital cost o* setting +p rail capacity capa is aro+nd 4(/ lower than that o* compara le modes s+ch as e0pressways, when w meas+red on a ton.kilometer asis# =+rther, costs o* rail transportation, speci*ically on high.tra**ic high density corridors, are considera ly lower than *or other modes# Additionally, rail o**ers o* speed and capacity.related ene*its# %he originating g passenger tra**ic achie-ed in the terminal year o* the 7le-enth ;lan is 1,13' millionwhich is,3#$/ lower than the original 7le-enth ;lan target o* 1,4(( million m +t (#75 per cent higher than the re-ised target o* the 7le-enth ;lan# &ailways ilways are making large re-en+e losses in passenger tra**ic *ic oth in s+ +r an as well as non. s+ +r an segments# 6on.re-isiono* re-isiono* tari** *or se-eral years has led to poor *inancial health o* I&#

Source: 12th Five year plan Report

Infrastructure Ca acity Creation

%he 7le-enth ;lan attempted a paradigm shi*t *rom the earlier incremental approaches to one o* signi*icant in*rastr+ct+re +re capacity addition to handle the 3+ant+m increase in tra**ic le-els and to s+stain mo ility on the network y setting am itio+s targets as compared to the per*ormance d+ring the %enth ;lan# %he targets in respect o* new lines and electri*ication ha-e een een e0ceeded#

Source: 12th Five year plan Report

%he e0panding re3+irements o* the economy will need m+ch *aster e0pansion o* the *reight network along with its a ility to carry larger *reight per wagon, impro-e e**iciency o* the &ail system to deli-er it *aster and e0pand the network# %here will also e need to impro-e the share o* the &ailways in the o-erall national *reight market# 8ith increasing incomes, passenger tra**ic will increase +t plan *or e0pansion m+st *actor in the *act that demand will e *or etter 3+ality ser-ices *or which passengers will e willing to pay# %he rail network has to de-elop a strategy to e part o* an e**ecti-e m+lti.modal m+lti modal transport system to ens+re en-ironmental.*riendly *riendly and economically e**icient transport mo-ement#In-estment n-estment needs to

e prioritised in the important areas, -i4# -i >edicated =reight 2orridors, high capacity rolling stock, last mile rail linkages and port connecti-ity# connecti-ity

India has a well.de-eloped &ail network in dire need o* moderni4ation and is str+ggling to increase its highway and e0pressways# Rationali!ation of Railway freight and assenger fare" ?etween $((4.(5 and $(1(.11 the I&s inp+t costs increased y 1(#6/ per ann+m# ?+t

passenger *ares remained +nchanged 9 red+ced in lower classes# %his ca+ses constraining internal reso+rce generation, essential *or replacement 9 renewal o* assets, operation and maintenance acti-ities and critical sa*ety and passenger amenity works# Also the cross. s+ sidy thro+gh the *reight +siness was no longer *easi le eca+se o* *ast e-ol-ing

competition *rom other modes o* transport# @eeping these *actors in mind, an increase in passenger *ares was anno+nced on ' Aan+ary $(13, e**ecti-e *rom the Aan+ary $(13# # gradation of Passenger $menities
%o pro-ide the asic *acilities like drinking water, *+nctioning toilets, catering ser-ices, waiting rooms, dormitories especially *or lady passengers and etter signage, In $((' the Adarsh station scheme was introd+ced# B+t o* identi*ied '76 stations 616 stations ha-e de-eloped as Adarsh stations# %he other initiati-es are, the !%S was made a-aila le at 1(,17$ co+nters (noC1$", the total een

installed AD%)s was aro+nd 1(1 (1$.13", the =BIS (=reight Bperation in*ormation System" and its mod+le &)S (&ake )anagement System" was installed at more stations# High-Speed Passenger Trains Indian &ailways is adopting a m+lti. pronged strategy to pro-ide sa*er, *aster, cleaner, and more

com*orta le passenger trains# Se-en corridors ha-e een identi*ied *or

cond+cting pre.*easi ility st+dies *or Source: http:%%"""!uic!or$%IMG%&p$%carte'inde!&p$

r+nning high.speed trains (pop+larly re*erred to as +llet trains" at speeds a o-e 35( kmph#%hese corridors will e set +p thro+gh ;;; ro+te# Initially, the )+m ai.Ahmeda ad corridor has een taken +p *or which the pre.*easi ility st+dy has een completed# 8ork is in progress in respect o* the remaining corridors# A st+dy is also eing done on the >elhi.)+m ai ro+te *or raising the speed o* passenger trains *rom 16( kmph to $(( kmph, i#e# *or r+nning semi.high speed trains#

Ma%or trends in Indian Railways

1# %here is a rapid increase in demand *or +r an mass transportation systems in the co+ntry# Se-eral metro rail pro5ects are in progress to impro-e connecti-ity within cities< the >elhi )etro has emerged as an internationally acclaimed -ent+re# $# Indian &ailways (I&" la+nched mo ile ticketing ser-ices in A+g+st $(11 to make the ticket iss+ing process more e**icient# !sers can directly +y a ticket *rom their mo iles that wo+ld e deli-ered to them thro+gh a non.trans*era le S)S# 3# I& has attracted increasing in-estments *rom o-erseas thro+gh strategic alliances with -ario+s co+ntries o-er the last *ew years# S+ sidiaries o* *oreign companies are eing set +p to cater to the h+ge demand o**ered y I&# 4# I& is planning to +ild se-en high.speed rail corridors to pro-ide *aster rail connecti-ity across the co+ntry# %he trains will e capa le o* r+nning at speeds +p to 3(( kilometres per ho+r#

Modernisation of Indian Railways

%o moderni4e Indian &ailways, the *oc+s is on two *+ndamental dri-ers . Sa*ety and :rowth and along a *i-e.pronged strategy 1. )odernise core assets . %hey are key re-en+e generating assets 2. 70plore new re-en+e models . %o meet the *+nding needs *or modernisation and growth 3. &e-iew pro5ects . %o ens+re *inancial -ia ility, social ene*its, and timely

implementation 4. =oc+s on ena lers . =or a holistic and long term approach to modernisation and

e0ec+tion 5. )o ili4e reso+rces . %o capitalise on an opport+nity

Benefits of High Speed Rail...more Sustainable Transportation Impro-e the economic de-elopment o* the regions ser-ed, increase their competiti-eness and red+ce their peripherally< 2ontri +te to the co+ntrys longer.term en-ironmental goals y attracting passengers *rom air and car, whilst also taking the press+re o** r+nway capacity and %hro+gh the release o* rail capacity, +nlock the de-elopment o* impro-ed comm+ter and regional ser-ices whilst permitting impro-ement in oth the capacity and transit times o* *reight ser-ices# %he latter wo+ld make a signi*icant contri +tion to the de-elopment o* the strategic *reight network that the rail ind+stry has een de-eloping# %here is need *or capacity as well as speed# 6ew in*rastr+ct+re sho+ld e capa le o* deli-ering :reater 2apacity, Impro-ed Ao+rney %imes E S+pport ,igh Speed Ser-ices# Bther ene*its wo+ld e in terms o* a red+cing the car on *ootprint o* passengers attracted *rom air and car, contri +ting to potentially red+ced demand *or r+nway capacity and enco+raging a signi*icant shi*t *rom car, with a red+ction in congestion# )ore work is re3+ired to +nderstand and 3+anti*y s+ch ene*its# ,igh speed lines ased on ad-anced rail technology ha-e the ad-antage o* eing compati le with the con-entional rail network, so that trains can +se e0isting city centre stations, or r+n thro+gh to destinations where a new high speed line co+ld not e 5+sti*ied# 8hilst energy cons+mption increases as speed rises, this can e o**set thro+gh e**ecti-e system and rolling stock design, and the higher capacity o* trains mean that emissions per passenger kilometre remain low compared with other modes# 7+rostar, *or e0ample, o**ers passengers a car on ne+tral 5o+rney# %he lead time *or de-elopment and constr+ction o* ,S& is -ery high s+ch as $( years, and this is why it is right to plan now *or lines that will e re3+ired in near *+t+re# It is also why it is essential that :o-ernment contin+es to in-est in +pgrading capacity and capa ility o* e0isting ro+tes to meet the growth in demand o* *+t+re# Impact the co+rse o* *+t+re de-elopment within the region# At the regional scale, the increased accessi ility a**orded y high speed rail can ser-e to concentrate de-elopment in and aro+nd comm+nities Sustainabilit speaks to decision making that considers the impacts o* o+r actions now on *+t+re generations# 8hen de-eloping ma5or in*rastr+ct+re, s+ch as high.speed rail in India, program designers sho+ld de-elop a program that sa*eg+ards the capacity o* *+t+re generations to en5oy a 3+ality li*e# %his is achie-ed y alancing a -ariety o* *actors, incl+ding en-ironmental, economic, political and c+lt+ral *actors to de-elop a high.speed rail system that will ene*it the India *or decades to come#

Strategy
,igh speed rail is a -ery comple0 system, comprised y state o* the art o* a lot o* elements (%rack Fayo+t, 2i-il 8orks, ?ridges, %+nnels, %rack, Switches, Stations Sit+ation and %ype, &olling Stock *rom %echnical ;oint B* Diew, &olling Stock *rom 2+stomer ;oint B* Diew, %ra**ic =orecasting, )arketing, =inancing, A+ridical Aspects, 7n-ironment, 2omm+nication ;rogramme, 7tc#"# ,igh speed rail is a highl benefi!ial transport s stem for !ustomers and So!iet , not applica le in the same conditions in e-ery case# %he conception o* one o* s+ch system is not +ni3+e and it m+st e adapted to each case and each co+ntry# ,igh Speed is a key element *or inter+r an passengers transport in the *+t+re d+e to capacity, respect to en-ironment and sa*ety#

&ac'ground
%he e0pected de-elopment o* high speed railways at the glo al le-el in the coming years is e0tremely spectac+larG in the ne0t 15 years the n+m er o* kilometres o* new dedicated high speed lines will m+ltiply y *o+r the e0isting ones ( +ilt d+ring the last 43 years"# Also the ind+strial de-elopment (*or e0ample, more than 5#((( trains sets e0pected in the ne0t $( years" and the *inancial re3+irements calls *or a partic+lar attention to high speed railways#

(lo)al *igh S eed Passenger Rail +evelo ment ,$s Of -uly 2012.

So+rceG >ata o tained *rom the International &ailway !nions high.speed rail we site, accessed on 6 Aan+ary $(13GhttpG99www#+ic#org9I):9pd*9$(1$(7(1Ha1HhighHspeedHlinesHinHtheHworld#pd*

+edicated Freight Corridor ,+FC.

>edicated =reight 2orridor can e 5+sti*ia ly called an inno-ation in rail transport in India eca+se o* a n+m er o* reasons# %he a-erage speed o* *reight trains will go +p *rom $5 kmph to 7( kmph which will red+ce the transit time y less than hal* *rom the present le-es#%o dri-e a *+ndamental shi*t in the modal mi0 *rom less e**icient, +s+ally +neconomic and en-ironmentally +n*riendly road. ased transportation to rail, pro5ects similar to the en-isioned >=2 wo+ld play an important role in the *+t+re# ,owe-er, it is e0pected to mark a paradigm shi*t in the transportation scenario, res+lting *rom the segregation o* *reight on tr+nk ro+tes, impro-ing ser-ice deli-ery and generating additional *reight. carrying capacity# %he pro5ect en-isages the constr+ction o* two corridors, one each on the west and east ro+tes, spanning a total length o* a o+t 3,3(( km# %he 7astern 2orridor, starting *rom F+dhiana in ;+n5a , will pass thro+gh the states o* ,aryana, !ttar ;radesh and ?ihar and terminate at >ank+ni in 8est ?engal# %he 8estern 2orridor will r+n *rom >adri to )+m ai, passing thro+gh the states o* >elhi, ,aryana, &a5asthan, :+5arat and )aharashtra#

O)%ectives of+edicated Freight Corridor ,+FC.

1. &ed+ction in +nit cost o* tranportation y spreading +p *reight train operations and increasing prod+cti-ity# 2. Increase o* rail *reight share in modal mi0 thro+gh c+stomi4ed logistic ser-ices# 3. Segregation o* *rieght and passenger lines *or *oc+sed approach 4. 2reation o* additional rail *rieght capacity to cater to high le-els o* transport demand 5. Introd+ction o* time ta led *reight ser-ices *or g+aranted transit time and impro-ed ser-ice 3+ality ". Adoption o* high end technlogy to track *reight and real time data analysis

Pro osed timelines for +FC construction

Aviation

Aviation is the fastest means of transportand has expanded rapidly with the opening up of domestic skies to the private carriers in the second half of the 10th plan via public private partnership investment in the airport infrastructure. The air transport on long distance routes handles substantial traffic. This sector also enhances the productivity and efficiency in the movement of goods and services. It also has an important role to play on routes which involve difficult territory. Aviation sector contributes significantly in development by generating employment opportunities. As per estimation, the total manpower re uirement !including numbers of pilots, cabin crew, aircraft engineers and technicians, ground handling staff, cargo handling staff, administrative and sales staff" of airlines will rise from #$000 in $011 to 11%000 by $01%. Aviation to India becomes strategically important in the absence of widespread water ways network and the delayed development of infrastructure pro&ects related to other modes of transportation. Indias Major Airports with Passenger Traffic

Source: AAI Air cargo works as a vital link between domestic and international markets.The total volume of air cargo traffic presently constitutes about 1 per cent of total trade, it accounts for close to $' per cent of total trade value. This present status is only been possible when in $00' (oI adopted )pen *ky policy for the air cargo sector. This sector has seen the significant growth from 0.% ++T in 1'',-'# to $.% ++T in $011-1$. As Indian in-house demand increases in e uivalent with enhancedintegration with the global economy, it is foreseen that air freight traffic would grow five times over the next two decades.

Growth projection for the 12th Five %ear P#an Passenger/Freight

Passenger (millions) Domestic International Cargo (MMTPA) Domestic International

2011
106 38 0.9 1.5

2016-17
209 60 1.7 2.7

Average ann&a# 'ate of Growth

12% 8% 12% 10% Source: 12th "ive #ear $lan

Performance of Major Operators

1005 '05 705 %05 Percentage
69

#05 ,05 605 .05 $05

65.2

64.4 67.7 58.4

129.6

27.2

105 05

19.3

18.5 7.6 3.5

23.8

Jet Airwa!s "#ite$

Indigo

Air India (picejet Operators

Go Air

)ingfisher

Market Share (%)

Flight Occupancy Rate (%)

Source: All statistics are for the month of September 2012 as published by Directorate General of Civil Aviation India has become the ninth largest civil aviation market in the world. According to an estimate, airlines in India are expected to add around .%0 aircrafts worth /s. 1,0000 0r to their fleet by $01%. There are several ma&or drivers behind the growth of aviation sector in India such as increased 12I in3ows ows, higher house hold incomes, , the 4ntry of low cost carriers increased Source: : India Brand !uity "oundation

cargo movement,strong economic growth, surging tourist in3ow sustained business growth and supporting government policies are the ma&or drivers for the growth of aviationsector in India. According to the 1orecasts made by AAI, for the next , years, it has pro&ected a sustainable growth rate of 1#5 for international and $05 for domestic aviation sector. There are total 1.# airports are in India, in which 1$7 are managed by AAI and rest of them are by non-AAI. There are also some achievements of the Indian aviation sector which they achieved during $000-$01$. The no of operational airports are increased from ,0 in the year $000 to 1$, in the year $01$. There is also increase in the aircraft from $$, in the year $000 to 1177 in the year $01$. And result of these two causes the expansion of passenger handling capacity at airports from ## million to $.. million in between $000-$01$.

The growth in total passenger traffic has been robust recent years with a passenger traffic record of 1#$.# million in $01$ along with growth rate of 1..65. 2uring the $01$ domestic passenger traffic grew 1,.% per cent while international passenger traffic expanded %.$ per cent.

Source: India Brand !uity "oundation The above figures stats reflects from 11th plan period to 1$th plan period, that there is significant and continuous growth in both passenger and 1reight traffic in domestic and international segments. Total freight traffic increased from 1.60 +T in the year to the $.$# +T in the year $01$. And it is expected that the freight traffic will be , times the current level by the end of the two decades. In $01$, domestic freight traffic was 0.706 +T whereas international freight traffic was 1.6'6 +T.

Major Trends of the Airport (ector

2uring this growth period the, this industry has been witness of several changes and trends, such as policy initiatives taken by government to increase private sector participation. At present movement there are # ma&or private sector player linked with it. There is rise in per capita income, more disposable income and growing middle in comparison to previous years, hence more and more people are travelling by air. There is also hike in user development fees by airport developers and

operators. The another important trend is the focus on non-aeronautical revenue like increase the beverages and food retail segment at airports due to absence of complementary meals in low 8 cost airlines. And all the above mentioned reasons aid higher aircraft movement.

Investment in Airport sector

Through the 999 mode the private sector investments in airport has raised up. There are five most remarkable examples of international airports via 999 mode. The investment in airport infrastructure has grown substantially over the last three 1ive-:ear plans with /s. .#1.6 billion of investment set aside in the 11th plan. According to 1$th 1ive :ear plan, there is a provision for investments of /s. #%, billion. Apart from those private investments has multiplied $.$ times, from .6.6 5 during the 10th plan to %6.15 during the 1$th plan.

Air Passenger & Cargo Traffic: Traffic Domestic passenger International passenger Domestic cargo 2011 107 million .#.$0 million Almost same as in the corresponding period of the next year 1..% ++T 2012 10# million .%.7 million

0.%. ++T

International cargo

1..0 ++T

2uring year $01$, AI;s passenger load factor was %0.' 5 and yield at /s. 6..1 per revenue passenger kilometre and it;s expected that company will achieve positive 4<I2TA !earnings before income, taxes, depreciation and Amorti=ation" in the results for the 1inancial :ear $01$-1.. The aim of 11th plan was to provide world class infrastructure for safe, reliable and affordable air services, hence increase the passenger growth and cargo traffic and air connectivity to remote and inaccessible areas. >ow as per 1$th plan, (oI aims to propel India among the top five civil aviation markets in the world with the base of the 11th plan. Airport Infrastr&ct&re The Twelfth 1ive :ear 9lan !$01$-1%" envisages an investment of /s. #,,000 crore at Indian airports, of which a contribution of about /s. ,0,000 crore is expected from the private sector. As per the investment plans of the operators, the passenger terminal capacity is expected to be $.0$60 million by $01$ and by $01% it would be about .%0 million. According to an independent estimate there will be an additional re uirement of .0 functional airports by the end of $01% and about 170 functional airports in the next 10 years. <ecause of this substantial traffic growth in passenger and cargo re uires ample amount of investment for construction of new airports, expansion and modernisation of existing airports, improvement in connecting infrastructure !road, metro, sea link, and so on" and better airspace management. *pecial attention is re uired for developing airports in remote areas. Price (tr&ct&re The cost of Aviation Turbine 1uel !AT1" constitutes almost 60-,0 5 of the total operating cost. The high cost of AT1 is aggravated by taxes, which badly affects the financial health of airlines.it is around #0 5 costlier than competing hubs like 2ubai, *ingapore and hurts India;s competitiveness. According to latest five year plan report, it should be either included in in the unified (oods and *ervice tax or accorded the status of 2eclared (ood that carries lower and uniform tax rate. M&#ti Moda# Connectivit! ?hoever travelled by air, can easily understand the pain of the reaching airport, whether you are talking about >ew 2elhi or <angalore traveller facing the same issue. As the, ma&or airports in India are mostly located in the outskirts of the city. This issue adversely affects the comparative advantage in terms of saving times and also causing inconvenience to the passengers. The airports should be connected by metros, expressways to the cities to get the full advantage of air transportation by reducing the total travel time, take example of >ew 2elhi metro airport express.

(afet! In the aviation omain sa!ety is o! utmost importance" #ith the a vancement an increasing no o! operations it is $ecome i!!icult to keep the rate o! acci ent an inci ent in check" The increasing num$er o! movements a!!ects run%ay sa!ety& ramp sa!ety& incursions an e'cursions& ramp congestion an other serious situations a!!ecting sa!ety"

Roads

Road Transport is vital to the economic development and social integration of the country. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport an increasingly higher share of both passenger and freight traffic vis--vis other transport modes.India has second largest road networ s in the world !".# million ilometres$, which can be sub-divided into following four categories% Categories &ational 'ighways !&'s$ .tate 'ighways !.'s$ 2a3or 4istrict Roads !24Rs$ 6ther 4istrict and Rural Roads Indias Total Road Network #() /.0) 0.1) 55) Details Total *ength% (#,((+ m and carry ",) of the country-s road traffic Total *ength% #1",1++ m Total *ength% +00,,15 m Total *ength% /0,#(,+", m Source: 12th Five Year Plan Report

In India the transportation sector is still ruled by the road networ . The most important mode of transportation in India is road, and this dominance arises from decades of poor supporting infrastructure development on the rail, coastal, pipeline and air transportationside. The road transportation has share of ".() in India-s 748 in comparison to railways that has a mere #) share. The most expensive

mode of transportation is road however freight transportation ma3ority operations of are

done through it .In the overall road networ , the &ational 'ighways

constitute only +) and they carry around ",) of the total road freight. Source: NHAI website

Roads in India bear about 9,) of the country-s passenger traffic and 01) of freight traffic.in +,,9#,.:ccording to a report by ;827,<Indias lo istics sector is currentl! not onl! constrained b! lac" o# in#rastructure$ it is perhaps even %ore restricted b! the %isuse o# transportation %odes #or certain t!pes o# co%%odit! & as well as li%its on the #ree use o# transportation %odes #or others.= 4espite this growth, the road transportation sector faces many challenges. The industry is highly fragmented, and with low entry barriers, it has seen significant commoditi>ation leading to intense competition among truc ers who find their reali>ations and margins continuing to be s?uee>ed progressively. 4espite the recent privati>ation of the container rail industry, road transportation continues to grow and gain share from rail @ albeit at a slower pace.

Aonse?uently, road networ s continue to lag behind world averages, with road density at +.5/ m per #,,,, people and ((, m of road length per #,,,, s?. m as compared to 0.( m and a 5", m, respectively, globally. India-s low average truc ing speed of /,B", /, ", m per hour ! mph$ as against the global average of 0,B5, 5, mph can, thus, be attributed to the constrained and poor ?uality of the country-s road networ .

Threats Faced by Road Transportation

*ow capital re?uirement, easy available loan, *ow entry barrier with basic basic s ills re?uirements

Threat of

Threat of New Entrants

Substitutes
Its highly customer oriented with multiple vendor options available to customers Its easy for customers to switch loyalties as there is lac ofdifferenti on among vehicles Eery few people offering value added and

'igh bargainig power of bul goods consigners due to presence of small operators, Aommitments of large consignment volumes often force transporters to undercut prices

Forces Impacting

Bargaining Power of

Road Transportation
Bargaining Power of

Consumers
Rivalry among
*ac of differentation in services leads to commoiti>ation and price erosion, *arge players offering value added services are able to influence terms and condition

Supplier Competitors

7overnment influence on fuel prices ma es it difficult for players to predict , control and pass trough fuel costs to customers

'igh

&eutral

Source: 'P() Anal!sis

: study shows that a goods carrying truc , due to long traffic 3ams on nationalCstate highways, on average covers a distance of around +1,-/,, /,, ;m per day in contrast to international norm of (,,-5,, (,, ;mD'owever, 'owever, the completion of the &ational 'ighways 4evelopment 8rogramme !&'48$, which is aimed ai at developing 1,,,,, m of &ational 'ighways by +,#1 in seven phases with an investment of I&R /,,,, billion/9 and moderni>ation of the road cargo transport community, will be game changers for the road transport sector.

4espite the progress in &'s, only +/) of their total length is wider than two lanes, leading to heavy congestion. .hortfall in construction of bypasses, inade?uate capacity, insufficient pavement thic ness and wea , narrow and distressed bridgesCculverts are some of the other deficiencies. deficiencies. The road networ built a huge cost needs to be maintained properly to prevent disintegration and deterioration, ensuring its continuous utili>ation in an optimum manner and road safety of its users.

Lane composition of National Highways (2012) In India the maintenance of roads is treated as a non-plan plan activity and has, therefore, tended of to be
23% 23% Single/Intermediate Lane Double Lane Four/Six/Eight Lane

neglected

because

financial

resources constraints. :part from inade?uacy management of of resources, roads are

54%

unsystematic and inspections are irregular.

Source: 12th Five Year Plan Report The villages which are connected by 8radhan2antri 7ram .ada Fo3ana !827.F$ have several sociosocio economic impacts on villages which indicate multiple benefits generated through it. Hew of them are listed below% ection to the mar ets Improved connection Reducing the time spent in travelling Improving villagers access to timely treatment, especially in emergency Improvement in the accessibility to education :ster access to health facilities 4ecline in infant and child mortality which Improvement in agricultural production, income, employment generation

This ind of initiative can also be exercised at country level to maximi>e the benefit for all, similarly li e villages.

Trends in the Road Sector

1. 7overnment policy to increase private sector participation has proved to be a advantage to the infrastructure industry with a large number of private players entering the business through the 888 model. The type of 888 models used in road pro3ects are G6T toll and G6T annuity. annuity

2. Through #,, per cent H4I in the roads sector, most foreign companies have formed partnerships with Indian players to participate in the sector. 3. Infrastructure is the ey to supporting double-digit 748 growth in India during the medium- to long-termI hence the government has made infrastructure development a ey policy issue and plans to spend J.4#.," trillion during HF#/-#( on the sector. 4. Through Hive-Fear 8lans, India has increased the length of national highways from +#,/(5 ilometres during the late #9",s to (#,((+ ilometres by the end of the ##th Hive Fear 8lan !HF,5#+$. The 9th Hive Fear 8lan !HF#99(-HF,+$ recorded the largest addition to the highway networ !+/,5#" ilometres$.

National Highways to be constructed under various Five !ear plans

Source: *o istics a%e chan ers + ,rans#or%in Indias lo istics industr!-'P() Jntil +,,1, the road construction mar et was dominated by public sector companies. The government has been eager to involve private sector funding for infrastructure pro3ects and thereby reduce strains on the budget. The 888 model has emerged as the favoured one for private sector participation in roads pro3ects. Hrom the investment perspective, a comparison of estimated investments in the road sector in the Eleventh 8lan !+,,(B#+$ vis--vis pro3ected investments for the Twelfth 8lan !+,#+B#($ indicates a significant 3ump, approximately +.+-fold. To encourage has private players, the

7overnment

announced

several

incentives such as declaring the road sector as an industry, providing #,, ) tax exemptions in any consecutive #, years out of +, years, duty free imports of certain identified construction plants and Source: .risil report /Private participation in National Hi hwa!s to drive invest%ent in roads& 22 (a! 2012

e?uipment, H4I of up to #,, ), and increased concession periods !up to /, years$. 7iven these incentives, the private sector is expected to fund // ) of the total investment in the Twelfth Hive-Fear 8lan. Roads are a ma3or user of construction material especially bitumen and asphalt which are nown to release emission gases into atmosphere. There is need for maximi>ing the investment in RK4, green technology and design for better and safer roads. The ma3or reasons behind the higher road traffic are, growth in small and medium enterprises in India, rising incomes leading to increasing number of vehicle owners, 7rowing movement of goods within the country due to economic integration, Getter ?uality roads ma es road travel cheaper and safer and Increasing roadways leading to greater accessibility between different citiesCtownsCvillages. The number of vehicles has been growing at an average of #,.#0) per annum over the last five years. This strains the road infrastructure.Road-s traffic share of the total traffic in India has grown from #/.5 ) to 01) in freight traffic and from #1.") to 9,) in passenger traffic from #91# to +,##. The main hurdle in the development of highways at a faster pace is the delay in land ac?uisition and statutory clearances. In the absence of stronger land laws, land ac?uisition becomes a contentious issue in a country li e India with a large population. Effective legal framewor and proper execution with respect to land ac?uisition is needed for a faster development of roads. 7overnment must ensure faster procurement of all statutory clearances. Huture prospects remain bright for the roads sector.In future national and state highway pro3ects are estimated to create an opportunity of J.4"#.+ billion and J.4 9.9 billion respectively, over next five years. The Road pro3ects contribute around 0,) of 888 pro3ects in the country. To promote this sector, the government has allowed #,, ) H4I under the automatic route for all road development pro3ects and #,,) income tax exemption is granted for a period of #, years.

Waterways

Indias 95% by volume and 70% by value global merchandise trade is carried out through the sea route. India has a coast line of 7,517 (m with two basic categories of ports. ports India has 13 major ports (Fig. 1); ; 6 on the eastern coast and 7 on the western coast. It also has about 200 non major ports! in which 1/3 are operational."he "he Inland Water "ransport (IW") form

interface between maritime and rail and road transport. #uring 2011-12, 60$ and 40$ of the maritime cargo were handled by major and non% major ports respectively. The aviation sector is struggling for survival, while roadways and railways are bleeding the treasury dry. Inland navigation is

economical and environment-friendly. The Three waterways that have ave been declared as National Waterways are: (a) Allahabad-Haldia Haldia stretch (",)- #ms) of .anga-$hagirathi-/ooghly /ooghly river system was declared National Waterway- I in 0ctober, "! ,. (b) Sadiya-Dhubri stretch ( !" #ms) of the $rahma%utra river was declared National Na Waterways- II in &e%tember, "! .

(c) Kottapuram-Kollam Kollam stretch (", #ms) of the West 1oast 1anal along with 1ham%a#ara canal ("' #ms) and (dyogmandal canal ()* #ms) was declared National Waterways-III W in +ebruary, "!!*. &s we seen the aviation sector sector is struggling for endurance! whereas railways and road transportation are bleeding the capital dry. 'ut due to lac( of long term vision and support from government! hinders the growth of inland waterways. It is ironical that in

spite of being economical! al! efficient and environment friendly! the inland water transport sector remains underutilised.

Traffic and Capacity at Ports

"he capacity creation for major ports during year 2011-12 was projected 1001.80 )" but only 689.83 )" was achieved. "his shows the increase in the capacity of major ports by 36.67$."he capacity of minor ports and private ports was envisaged to increase from 228.31)" to 557)". "he traffic handled by major ports in financial year 2011-12 was 560.12)" which was lower than the projection by26.55$ but increased from 463.78)" of financial year 200607 with the growth of 29.48$. &t the minor ports traffic handled was increased from 186.11)" in the year 2006-07 2006 to 37.00 )" in the year 2011-12! thus registering a growth of 98.81$ and also higher than the projection of 23.26$. Cargo Traffic

600

Cargo Traffic (MMT)

500 400 300 200 100 0 FY 12 FY 11 FY 10 FY 09 FY 08 FY 07

Major Ports Non Major Ports FY 10 FY 11

FY 07

FY 08

FY 09

FY 12

Source: Ministry of Shipping, India Brand Equity Foundation

&ccording to the 12th Five ive year plan! the capacity and "raffic is needed to e*pand. "o meet the he projected traffic of 1758.26 )" (major ports% 943.06 )" and minor ports% ports 815.20 )") by the end of 12th five year plan (2016-17)! the total capacity of the port sector is predicted to be 2289.04 )" (major ports% 1229.24 )" and minor ports% ports 1059.80 )").

Capacity Addition

60 58 !

Capacity Addition (MT)

50 "8 # 40 "$ ! 30 20 10 0 FY0! FY07 $! % "$

FY08

FY09

FY10 &ource: 2inistry of &hi%%ing,

At Major Ports
Total

Traffic (MT)
+*isting (2011-12) 560.15 Forecast (2016-17) 943.06

Capacity (MT)
+*isting (2011-12) 689.93 Forecast (2016-17) 1229.24

Capacity by the end of 12th plan Major Ports +*isting Forecast (2011-12) (2016-17) Total Co odity 689.83 1229.24 Minor Ports +*isting Forecast (2011-12) (2016-17) 544.65 1059.80 Total +*isting Forecast (2011 (2011-12) (2016-17) 1234.48 2289.04

Major Trend in the Waterways Transportation

10)0'

11)&

9)'' ()87

11)7'

11)7!

11)1&

()!2

()9(

&)&2

&)!7

&)&&

97&'

10071

10&7(

10&82

107('

109!7

200!%07

2007%08

2008%09

2009%10

2010%11

2011%12

A&era'e (re-berthin' berthin' Detention Time A&era'e )utput per ship berth days

A&era'e Turnaround Time &ource: ") +ive 3ear 4lan,

th

&s shown in above graph! that there is improvement in turnaround time in 2011-12. "he average turnaround time is influenced by feature such as si5e of parcel! cargo type! and entrance path."here "here is an improvement of average output per ship berth day from 9,745 )" in year 2006-07 to 10,967 )" in year 2011-12. #ue to port associated inefficiency at Indian ports around 57$ of turnaround turnaround time of ships is delayed. "he .re%berthing #etention trendis only one that continuous shows the increasing style. "he other important trends seen in this sector is ,etting up of port based ,+-s! Increasing Private Participation, Participation Specialist Terminal ased Ports and Landlord Port Model. 'ecause of favourable investment condition and strong growth potential! encourages both the investor! i.e. .rivate and Foreign. "he private player aggressively investing in port logistics services. Further! to attract private investments! investments the government has shifting from the /Service Port6 model (port authority provide all services) to a /Landlord Port6 model (port authority acts as a regulator and landlord while port operations are done by the private companies)."he companies)."he major ports such as 78."! 0hennai! 1isa(hapatnam and "uticorn are e*ample of this reformed. "enefits of #ater$ays Transport Efficient and Economic: "he cost of infrastructure development for IW" sector is also very low as compared to roadways. &s per )r. , ,riraman of Walchand 2irachand .rofessor of "ransport +conomics! 3niversity of )umbai. , #andapat! chief engineer! IW&I. IW&I It is 5 to 10per cent than that of roadways. 4and ac9uition cost accounts for :; per cent of the total cost of building a road or a railway line. line "he fuel used in waterways transportation is diesel. &s per the study! one litre of diesel would carry about 105tonnes over a (ilometre through waterways! 85 tonnes through

railways and24tonnes through roadways. 2ence there is an opportunity to convert these comparisons into monetary savings. Affordable: "here was a2012report! by a subgroup of the Wor(ing >roup on .orts and ,hipping under the 8ational "ransport .olicy #evelopment 0ommittee (8".#0) (8".#0) of the .lanning 0ommission. It highlighted the issue that! for moving a tonne of cargo over a (ilometre (ilometr through waterways would cost <s. 0.37! while via railways and roadways it would be <s. 0.50 and <s. 0.96 respectively. &s per 8".#0! one horsepower can move = tonnes by waterways! 0.5 tonnes by railways and 0.15 tonnes by roadways. 2ence the operating cost per tonne (ilometre in waterways is <s 0.53 as against <s 1.32in railways and <s 2.75 in roadways. Safe and Environment Friendly: Friendly &ccording to the 8ational 0ouncil of &pplied +conomic <esearch (80&+<s 80&+<s)report! the avoidance of accidents as a result of cargo movement on national waterways saved <s 36crore in 2004-05. While in i the road sector! yearly losses due to accidents and congestions amount to <s 150,000 crore. /"hese losses will come down considerably with the growth of inland water transport (IW")!6 says , , )ishra! member of Inland Waterways &uthority of India (IW&I). In the waterways sector! fuel consumption is also less! which means low levels of carbon emissions."he 2012report by a sub group of the Wor(ing >roup on .orts and ,hipping under 8"#.0states states that! the waterways vessel emits less than 50per cent of carbon a truc( emits. "he Indian 8etwor( on 0limate 0hange &ssessment (I800&) estimates that in 2007 the transport sector emitted 142 million tonnes of greenhouse gases. ,hare of different transportation modes! &t present! no study has been conducted in the country to estimate the emission level of IW"! although it is negligible. 'etween 2005 and 2035! emissions from the roadways will increase si* fold! estimates I800&. I800&
1* '* 7*

<oad &viation <ailways

87*

8avigation

Source: Indian Network on Cli ate Change !ssess ent, "##$

Conclusion
Efficient mobility of people is one of the key factors for the progress and prosperity of a society and a nation. Public Transport services play a major role in reducing the poverty and keeping deprivation at check in rural areas. Apart from offering the rural population a viable and convenient way to market their agricultural produce, it also enables them to access other sources of income such as engagement in informal services in nearby urban nodes and formal employment in manufacturing, food processing, transport and other industries, etc. Certain inherent characteristics of the us transport system make it the ideal mode for meeting the huge and increasing demand for passenger transport services. us transport makes the most optimum use of the available road space and fossil fuel by transporting the ma!imum number of people per unit of road space. "n an average, a car consumes nearly # times more energy than an average bus, while two wheelers consume about $.% times and three&wheelers consume '.( times more energy in terms of per passenger km. The transport sector of )ndia is facing several challenges which can be taken as opportunities to overcome from them and make )ndia leader of this sector in the group of developing countries. The challenges are, Congested and inefficient ports, *evere capacity constraints facing by +ailways, Airport infrastructure is strained, ,interland connectivity by different modes of transport +oads are congested and poor in -uality

.rom the below given table we can see that government of )ndia heavily in all major transportation modes.

Ministry /Department wise 12th Five Year Plan Outlays for Transport Sectors
Ministry 2inistry of +oad Transport 5 ,ighways 2inistry of Civil Aviation 2inistry of +ailways 2inistry of *hipping G S Outlay 0''(#6 0#673 06'$$0 #6#8 !" # #'73' 0#$0% $$%888 $0668 *ource/ 0$th .ive 1ear Plan

Way forward
E!panding construction capacity& construction industry capacity already overstretched& -uality, price affected )mproving Contract 2anagement& on average publicly financed road construction contracts suffering 3%4 cost over runs

Poor -uality of designs and site investigations 9and ac-uisition Tariff :pricing policy 2ulti modal connectivity& connectivity it;s very important, as it work as back bone for the all major transportation modes. )t reduces total journey time, reduce congestions. .ocus on high&growth growth potential of )ndia;s waterways segment remains largely untapped and underutili<ed )n my opinion at present time, we have to shift the passenger passenger traffic from railways to airways, because they have the vacant capacity and railways have the e!tra passengers. *o it balance the traffic and win =win win for both transportation modes. .rom the below given table we can see the losses every year railways made. ma

Source: 12th Five Year Plan Report

Bibliography
1. Twelfth Five Year Plan(20122017)- !ono"i! #e!tor$% &ol ''% by (o' 2. 'n)ia Bran) *+ity Fo+n)ation (,ar!h 201-)% -. . /eport on 0ogi$ti!$ ga"e!hanger$ - Tran$for"ing 'n)ia1$logi$ti!$ in)+$try by 2P,(% 3. .))ing 4heel$- 'nve$ting in the 'n)ian tran$portation 5 0ogi$ti!$ 'n)+$try by 2P,(% 6. 7(8. web$ite 9. :at+ral highway$ p+bli$he) in 7own to arth 7. 'n)ian /ailway$ web$ite ;. The /oa) .hea) highway$ PPP in 'n)ia <. ,ini$try of /oa) Tran$port 5 =ighway$% (o'