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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.
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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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