Transportation

Presented by: Praveenkumar Bodduna Siddhesh Chavan Pradnya Salve Pragati Uparkar #07 #12 #41 #53

Transportation
It is defined as a means through which goods are transferred from one place to another.
It is fundamentally an important function and has the most visible cost, hence there is a lot of importance given to transportation.

Importance of Transportation
Makes available raw materials to manufacturers or producers
Makes available goods to customers Enhances standard of living Helps during emergencies and natural calamities Helps in creation of employment Helps in labour mobility Helps in bringing nations together

Participants in Transportation
Public

Government

Shipper (sender)

Carrier

Consignee

Decision Factors

The three main factors: Cost

Speed Consistency

Modes of Transportation
Land Transport
Road Rail Pipeline Ropeway

Air Transport
Water Transport Intermodal Transport

Road
The most popular mode of transport. Good flexibility to provide door to door delivery. Perishable goods can be transported at a faster speed by road carriers over a short distance. It is a flexible mode of transport as loading and unloading is possible at any destination.

Road
Advantages
Lower costs Accessibility/Flexible Fast Small, frequent shipments

Disadvantages
Speed Capacity

Range
Dangerous

Air
Mostly for high value & low volume goods from distant supplier.

It is also suitable for emergency items to be delivered for some specific requirements. It is the costliest.
Used for small volumes.

Air
Premium transportation

Advantages
Speed delivery Reliable Limited losses Range

Disadvantages
Price Non-direct points Add-on charges Necessary?

Rail
The most economical and safe mode. It is good for long distance transport.

Rail
It is suitable for carrying heavy goods in large quantities over long distances.
Its operation is less affected by adverse weathers conditions like rain, floods, fog, etc.

Rail
Advantages
Lowest overall cost per unit weight Consistent time schedule Large loading capacity Speed Weather

Rail

Disadvantages
Inflexibility Potential damage of goods Ineffective with small shipments

Water
Suitable for heavy and bulky goods and suitable for products with long lead times. It is a safe mode of transport with respect to occurrence of accidents. The cost of maintaining and constructing routes is very low as most of them are naturally made.

Water
There are mainly two types of water transport

Inland water transport

It uses boats, launches, barges, streamers etc to carry goods and passengers on river and canal route.

Ocean Transport
It refers to movement of goods and passengers with the help of ships through sea or ocean waterways. It plays an important role in the development of international

trade.
i. Coastal Shipping

ii. Overseas Shipping

Water
Advantages
Large volumes Cheap No restriction on loading capacity Long distances

Disadvantages
Slower than air travel Transshipment at port Not flexible Limited access

Some constraints to water transport

Ships have to wait long for berthing Manual handling and poor labour productivity Old type of equipment Night navigation unavailable

Poor availability of railway wagons and road trucks

Insufficient warehousing Tardy procedure

Measures of different Modes

Table Modes Road Criteria Relative Speed Reliability Moderate Good Moderate Good Slow Limited Very High Very Good Rail Sea Air

Cost per ton/km Flexibility

Medium High

Low/Medium Low

Low/Very low Low

High Medium

Pipeline

Transport of homogeneous materials

The transportation of goods through a pipe.

Liquids and gases are sent.

Pipeline
Advantages
Lower transportation costs than other modes

Disadvantages
Higher initial costs Unable to transport a variety of materials

Ropeway
Ropeway refers to a mode of transport, which connects two places on the hills, or across a valley or river In the hilly areas, trolleys move on wheels connected to a rope and are used for carrying passengers or goods, especially building materials, food, etc The famous Uran Khatola Jagdamba in Gujarat that carries pilgrims to the temple is an example of ropeway transport, which carries more than 100 passengers at a time.

Ropeway
Advantages
No grade restrictions Ideal for severe weather conditions (no guideway heating needed) Lower life cycle costs High level of safety (no collision possibility) Simpler control system

Disadvantages
Distance Speed Alignment (Curvature) Expansion Operation

Intermodal

The movements of passengers or freight from one mode of transport to another, commonly taking place at a terminal specifically designed for such a purpose Use of various transportation modes Containers More popular due to globalization

Benefits of Intermodal Transportation Cost

Environmental
Flexibility Security

Intermodal Transport In Future Faster

Better
Smarter More Profitable

Containerization
Containerization is an important element of the logistics revolution that changed freight handling on ships, railways and trucks in the 20th century. Containers are built to standardized dimensions, and can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to anothercontainer ships, rail and semi-trailer truckswithout being opened.
40 ft 20ft

Transportation Cost Elements

Transport Mode Inventory Costs Transit Capital Obsolescence Packaging Insurance Breakages Pilferage Deterioration Transport Costs

Cost Ratio
Cost Ratio

Movement 7.8%
Packaging 11.90% Warehousing 17.00% Inventory 17.40% Ordering 5.50% Management 11%

Transportation 29.40%

Transportation Patterns

Fig. The transport pattern of traditional business

Fig. The transport pattern of e-commerce

Summary
Each mode of transportation has its own strengths and weaknesses

The effectiveness of each mode depends on several factors including distance, price, and timeliness

Services exist to help choose the best modes of transportation

Conclusion
The key concepts in todays world economy derive their existence because

of the physical and electronic linkages developed by the technology

It constitutes the basic linkage between the supply and demand centres

Peaks and troughs in the demand of transportation.

Cont..

Conclusion
Public nature of transport infrastructure

Relationship between the nature of the individual commodities and the modes of transportation preferred by the commodity

Modes of transportation used for bulk freight traffic

Over years inland freight traffic has been shifting from rail to road

Thank You