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Modes of Transport
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Transportation
Helps in positioning inventory geographically
Main factors in transportation
1. Cost Payment for movement between two
locations, expenses related to administration and
maintaining in-transit inventory. Logistics
management should strive for minimization of all
these costs.
2. Speed Time required to complete a specific
movement.
Faster Service may imply higher rates.
Faster Service may imply shorter time interval
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Transportation
Efficient
Economic
Reliable
Meeting customer needs in a timely manner
Capable of meeting special needs,
emergencies.
In large companies, there is separate
department for handling this.

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Transport Infrastructure
Land, Building
Labour
Place for packing
Roads
Lighting
Weighing Scales, handling equipments
Receipt and despatch procedures
Proper timings
Adequate vehicles.

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Road Transport
One of the largest networks in the world
However, it is low in efficiency and speed
1. A large portion (50%) is unsurfaced roads
2. Overdependence on National Highways
3. NH account for less than 2% of the total road
network but account for 40% of the road traffic.
Govt. of India has been implementing its golden
quadrilateral programme to link the four metros
with world class roads (4 laned) which would
also provide link to major ports in the country.
NHAI is the implementing authority.
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Road Transport
Losses due to poor roads 200bn p.a
(Mohan, 1996)
Commercial vehicles are able to run only
250 km per day as compared to 600 km/day
in the developed countries.
Concept of toll roads is slowly gaining
importance.
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Road Transport
Over 1.5 mn trucks on Indian Roads
Heavy Commercial Vehicle, Light Commercial
Vehicle, Tractors and Containers.
Private Sector operations
Trucking Companies and Truck operators
Overloading a common phenomenon
Delay at Checkpoints
Branding for express distribution system with
provision for penalty
Liberal financing required for the growth of the
sector.
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Water Transport
India has a coastline of 6000 km.
Navigation by sea is comparatively cheaper.
13 big ports and 139 small and medium sized sea
ports.
Central Govt. manages big ports while the others
are in the concurrent list.
13 ports handle around 90% of the sea-borne
trade.
Not very suitable for urgent movements.
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Water Transport
Mumbai MPT and JNPT
Chennai CPT and Ennore Port
Kolkata Kolkata and Haldia
Vizag/Paradeep/Kandla/Tuticorin/Mangalore
/Mazgaon and Kochi are the other major
ports.
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Water Transport
Over 100 shipping companies in the country
operating in both coastal and overseas trade.
Pre-berthing delays makes the cargo from Indian
ports cost inefficient and non-competitive in the
global market.
Of this SCI is the PSU under GOI.
IWAI is entrusted with the responsibility of
development, maintenance and regulation of
national waterways.- rivers/canals etc.
Allahabad and Haldia Ganga 1620 km
Sadia Dhubri Brahmaputra 891 km
Kollam - Kottapuram West Coast canal 168 km
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Air Transport
Air India and Indian Airlines were
established under Air Corporation Act, 1953.
However, they are now merged as National
Aviation Company of India and operate
under the brand Air India.
Vayudoot was established in 1981 as a
service to the north east. Subsequently it
became a subsidiary of Indian Airlines as
Alliance Air.
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Air Transport
Pawan Hans was established for running
helicopter services.
The opening of this sector has seen the
emergence of private carriers from the mid
nineties.
Currently Jet, kingfisher, Indigo, Spice jet
are some of the major aviation operators.
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Air Transport
Need for efficient and speedy door to door cargo
and courier service has fueled the demand for air
cargo services though expensive.
Well suited for high value or perishable items.
Exclusive Cargo terminals and complexes are
operated at major international airports.
Freight operators like BlueDart have their own
aircraft for cargo operations.
OnBoard Couriers provide services to small
courier operators.
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Rail Transport
Broad, Meter and Narrow gauges
Gauge conversion an ambitious project
1.2 mn tonne of freight traffic daily (1997-98)
Thousands of railway stations to accept cargo
Bulk cargo coal, cement, wheat, rice etc.
handled easily.
RRs are documents which are accepted by Banks
for negotiation.
No barriers/checkposts/traffic problems enroute
and so no hold ups.
Severe competition from the Road
Many measures initiated

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Railway Freight Strategies
Carrying Capacity - Loading + 10 tons
24 hour Loading/ Unloading
Empty Flow direction 30% discount
Lean Period discounted tariffs
Mini rake for small customers
Volume discount for large customers
Wagon Investment Scheme

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Pipeline Transportation
For Petroleum products
Coal, iron ore pellets, water and sewage
Pipeline network in India is not adequate
Cheaper, safer and less prone to losses.
Petronet LNG a company formed for this
purpose with equity participation by major oil
PSUs.

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Multimodal Transport
Usage of more than one mode for transport
in an seamless and integrated manner from
the origin to the destination.
Containerisation is a key technology in
multimodal transport
This is provided by CONCOR, apart from a
few private companies.
Terminal infrastructure like Inland Container
Depots (ICD) and Container Freight Station
(CFS) is provided by CWC.
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Containerisation Benefits
Door to Door delivery
Speedy intermodal transfers
Low handling costs
Reduced breakage and pilferage
Lower insurance costs.
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RORO Services
Roll on Roll off Services promote multi
modal services
1. Trucks using ferries.
2. Trucks on rail (Konkan Railway)



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Postal Authorities
Permit booking of cargo/documents
Use different modes like
air/tempos/vans/railways to carry the goods
Wide network comes in handy.
A few restrictions on volume apply.
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Other modes
Hand carts
Bullock carts
Tongas
Camel
Cycle Rickshaws
Auto/Taxis/Vans
Ropeways in hilly areas/mines.

All the above used mainly for small distance
transportation.
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Assignment 2
Write a short note on cargo services offered
by any one of the following:

Airline Operator
Indian Railways
Transport Company
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Thank You