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 sharead!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
far behind in this sector in comparison
we are the fastest growing country in terms of population and economy
worry in India, as international funding is limited. The inefficient infrastructure hinders
growth. Infrastructure is also being affected by global forces. The
are having an impact on the infrastructure sector in India. They directly affect the general economy
and also specific sectors such as railway freig
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, urbani0ation, 6ob opportunities,
1ny updown movement in the infrastructure sector directly impact the growth of the economy of
the nation. Infrastructure development acts
prosperity. The development of cities mainly depends upon their physical, social and institutional
culture. 7ence, the importance of transportation is paramount.
diverse8 it serves the need of billions of people. (e can see this sectors contribution to the nations
-94 in the figure :";.
The vision of the twelfth five year plan :&#"&
Sustainable, Economical, Efficient, Safe, Reliable, enviro
transport system.<a!or transport investments may have significant impacts that are not well
captured through conventional cost
transport infrastructure investments tend to focus on the
travel, including time savings for travellers, cost savings for operators, and reductions in aspects like
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. Finance is a ma!or source of
worry in India, as international funding is limited. The inefficient infrastructure hinders
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. India is an integrated and globali0ed 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
tion, urbani0ation, 6ob opportunities, increasing income level, access to basic utilities.
1ny updown movement in the infrastructure sector directly impact the growth of the economy of
development acts as catalyst for nations economic development
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
illions of people. (e can see this sectors contribution to the nations
The vision of the twelfth five year plan :&#"&$"=; is motivated by a modal mi) which will lead to a
Sustainable, Economical, Efficient, Safe, Reliable, environment friendly and regionally balanced
<a!or transport investments may have significant impacts that are not well
captured through conventional cost$benefit analysis. >onventional economic evaluations of ma!or
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
improvement in the transportation sector. (e are
to the rest of world or other developing countries. In present,
Finance is a ma!or source of
worry in India, as international funding is limited. The inefficient infrastructure hinders economic
and the 5.S. economy
are having an impact on the infrastructure sector in India. They directly affect the general economy
ht. India is an integrated and globali0ed 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
level, access to basic utilities.
1ny updown movement in the infrastructure sector directly impact the growth of the economy of
conomic development and
The development of cities mainly depends upon their physical, social and institutional
Indias transport sector is large and
illions of people. (e can see this sectors contribution to the nations

"=; is motivated by a modal mi) which will lead to a
nment friendly and regionally balanced
<a!or transport investments may have significant impacts that are not well
benefit analysis. >onventional economic evaluations of ma!or
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 2009-10 2010-11 2010-11
Apr-Nov
2011 2012
Air Transort &&.@ "A@.## A".&& &=.%# "A.=&
Sea
Transort
&BC.D A##.%" "&D.A@ DD.C& A@.&A
!orts @%.C "#.D& #.## #.## #.##
Railwa"
Relate#
$omonents
AC.& =#.@@ C&.== A%."@ "=.=D

Share and Growth of Indias Services Sector (at factor cost) (%)
Transport
2000-
01
200-
0!
200!-
0"
200"-
0#
200#-
09
2009-
10
2010-
11
2011-
12
$ai%wa&s
"." #.D #.D ".# #.D #.D #.B #.=
C." =.% ""." D.B =.= B.B %.D =.%
Transport
'& other
(eans
%.# %.= %.= %.@ %.% %.A %.A %.C
=.= D.A D.# B.= %.A =.A B.& B.@

Indicators) *erfor(ance of Indias service sector
Sector Indicators +nit
*eriod
200#-09 2009-10 2010-11 2011-12 2012-1,
Aviation
Airline
passengers
(domestic and
international)
<illion CD.% %C.% @C.% =#.& @=.%
*orts Port traffic
<illion
Tonnes
=CC.#& B%#.#A BB%.C% D"".@B C%%.==
$ai%wa&s
Freight traffic by
railays
<illion
Tonnes
BAA.A" BB=.DD BA&.=% D@D.=B =A%.A&
!et tonne km of
railays
million %AB&&@ %BC=@# CCC%"% @AD=@B C=#D%@




-o(parison 'etween .a/or transportation (odes
.ode Growin0 1e(and 2pport3nities *o%ic& S3pport
$ai%wa&s
-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
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
-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
$oads
-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
+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
+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
Aviation
-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
-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
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 +nit 67191 67 2011
Net $even3es "!# billion
#.% @A.%
*assen0er Traffic $illion
".A =.B
6rei0ht Traffic %illion metric
tonnes
=A.& D&@.C
No of Stations &&
%,D=@ B,&C"
$3nnin0 Trac8 'm
%D,A"% 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 +nit 670, 67 2011
9en0th of Nationa%
hi0hwa&s
'm
%B,""& =",==&
*assen0er vehic%e
sa%es

=#=,### &,@A,=B=
N:1* to%% co%%ection +S1
(i%%ion
@C.% CA%
:i0hwa& pro/ects
awarded '& N:AI
'm
@== @CD"
Share of infrastr3ct3re
in tota% 'an8 f3ndin0
%
&.A "C

,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
*ara(eters +nit 67 2000 67 2011
Sched3%ed air%ines)
distance f%own
mn km
"DD =@&
Non-sched3%ed air%ines
in operation
&&
AD "A@
N3('er of aircraft && &&% ""BB :&#"&;
*assen0er hand%in0
capacit& at airports
million
@@ &AA million :&#"&;
N3('er of operationa%
airports
&&
%# "&% :&#"&;

Aircraft (ove(ent 6rei0ht Traffic *assen0er Traffic
Internationa% airports =D G D@G BCG
2thers &"G CG "@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
in!rastructure (ro,ects are now e.ecutin% throu%h mode, so it is 'ery im(ortant to
minimi/e the disaster results. As we all know that in (ro,ects the %o'ernment has
'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% 12
th
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# Sul" $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 ale 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: 12
th
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 gloal standards, Indias track length per s3# km# is +n*a-o+rale at 44 km o*
track per 1,((( s3# km# o* arale land, as against 137 km in the !S and 417 km in :ermany#

Traffic
;assenger %ra**ic went +p eca+se o* rising income, +ranisation dri-ing passenger tra**ic
growth# !ran pop+lation in India increased *rom 17#3 per cent o* the total pop+lation in
1'51 to 31#$ per cent in $(11< this has led to increase in tra**ic etween +ran and r+ral areas
in the co+ntry# Impro-ement o* +ran.r+ral connecti-ity y rail has een another ma5or
contri+tor to passenger growth# =+rther, passenger tra**ic contin+es to en5oy signi*icant
priority o-er rail *reight# In addition to *irst right o* mo-ement, passenger rates are highly
s+sidi4ed y *reight
operations +tili4ing +p to
7$#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 capa
modes s+ch as e0pressways, w
transportation, speci*ically on high
other modes# Additionally, rail o*
%he originating passenger tra**ic achie-ed in
millionwhich is,3#$/ lower than the original 7le-enth
cent higher than the re-ised target o* the 7le-enth ;lan#
&ailways are making large re-en+e
s++ran segments# 6on.re-isiono*
I&#
Infrastructure Caacity Creation
%he 7le-enth ;lan attempted a paradigm shi*t *rom the earlier incremental approaches to one o*
signi*icant in*rastr+ct+re capacity addition to handle the 3+ant+m increase in tra**ic le-els and to
s+stain moility on the network y setting amitio+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 e

%he e0panding re3+irements o* the economy will need m+ch *aster e0pansion o* the *reight network
along with its aility 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
will e willing to pay#
%he rail network has to de-elop a strategy to e part o* an e**ecti-e m+lti
ens+re en-ironmental.*riendly and economically e**icient transport mo-ement#
e prioritised in the important areas, -i
stock, last mile rail linkages and port connecti-ity
%he capital cost o* setting +p rail capacity is aro+nd 4(/ lower than that o* comparale
modes s+ch as e0pressways, when meas+red on a ton.kilometer asis# =+rther, costs o* rail
transportation, speci*ically on high.tra**ic density corridors, are consideraly lower than *or
other modes# Additionally, rail o**ers speed and capacity.related ene*its#
g passenger tra**ic achie-ed in the terminal year o* the 7le-enth ;lan is 1,13'
than the original 7le-enth ;lan target o* 1,4(( m
than the re-ised target o* the 7le-enth ;lan#
ilways are making large re-en+e losses in passenger tra**ic oth in s++ran as well as
re-isiono* tari** *or se-eral years has led to poor *inancial
Source: 12
th
Five year plan Report
Infrastructure Caacity Creation
%he 7le-enth ;lan attempted a paradigm shi*t *rom the earlier incremental approaches to one o*
+re capacity addition to handle the 3+ant+m increase in tra**ic le-els and to
s+stain moility on the network y setting amitio+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 e0ceeded#
Source: 12
th
Five year plan Report
%he e0panding re3+irements o* the economy will need m+ch *aster e0pansion o* the *reight network
along with its aility 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
%he rail network has to de-elop a strategy to e part o* an e**ecti-e m+lti.modal transport system to
*riendly and economically e**icient transport mo-ement#In-estment
important areas, -i4# >edicated =reight 2orridors, high capacity rolling
and port connecti-ity#
than that o* comparale
asis# =+rther, costs o* rail
consideraly lower than *or
the terminal year o* the 7le-enth ;lan is 1,13'
;lan target o* 1,4(( million +t (#75 per
*ic oth in s++ran as well as non.
years has led to poor *inancial health o*

Five year plan Report
%he 7le-enth ;lan attempted a paradigm shi*t *rom the earlier incremental approaches to one o*
+re capacity addition to handle the 3+ant+m increase in tra**ic le-els and to
s+stain moility on the network y setting amitio+s targets as compared to the per*ormance d+ring
en e0ceeded#

Five year plan Report
%he e0panding re3+irements o* the economy will need m+ch *aster e0pansion o* the *reight network
along with its aility 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
e *or etter 3+ality ser-ices *or which passengers
modal transport system to
n-estment needs to
high capacity rolling
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 *easile 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 $((' the Adarsh station scheme was
introd+ced# B+t o* identi*ied '76
stations 616 stations ha-e een
de-eloped as Adarsh stations#
%he other initiati-es are, the !%S
was made a-ailale at 1(,17$
co+nters (no- C1$", the total
installed AD%)s was aro+nd 1(1
(1$.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*ortale passenger trains# Se-en
corridors ha-e een identi*ied *or
cond+cting pre.*easiility 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 ao-e 35( kmph#%hese
corridors will e set +p thro+gh ;;; ro+te# Initially, the )+mai.Ahmedaad corridor has een taken
+p *or which the pre.*easiility 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.)+mai 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 +ran 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 moile 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 moiles that wo+ld e
deli-ered to them thro+gh a non.trans*erale 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 capale 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
-iaility, social ene*its, and timely
implementation
4. =oc+s on enalers . =or a holistic and long
term approach to modernisation and
e0ec+tion
5. )oili4e 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 capale 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 caron *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 compatile
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
caron 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 capaility 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 accessiility 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 sstem for !ustomers and So!iet, not applicale 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+ran 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 gloal le-el in the coming years is e0tremely
spectac+larG in the ne0t 15 years the n+mer 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 $( years" and the *inancial re3+irements
calls *or a partic+lar attention to high speed railways#
(lo)al *igh Seed Passenger Rail +eveloment ,$s Of -uly 2012.

So+rceG >ata otained *rom the International &ailway !nions high.speed rail wesite, 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*ialy called an inno-ation in rail transport in India eca+se o* a
n+mer 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* ao+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 )+mai, 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 taled *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

Proosed timelines for +FC construction











Aviation 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 10
th
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 reuirement !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 euivalent 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 12
Passenger/Freight
Passenger (millions)
Domestic
International
Cargo (MMTPA)
Domestic
International
Performance of Major Operators
Source: All statistics are for the month of September 2012 as published
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
higher house hold incomes, the
4ntry of low cost carriers increased
23.8
27.2
129.6
69
05
105
$05
.05
605
,05
#05
%05
705
'05
1005
Jet Airwa!s
"#ite$
Indigo
P
e
r
c
e
n
t
a
g
e
Market Share (%)
12
th
Five %ear P#an
2011 2016-17 Average ann&a# 'ate of Growth

106 209
38 60

0.9 1.7
1.5 2.7
Source: 12
Performance of Major Operators
Source: All statistics are for the month of September 2012 as published by Directorate General of Civil
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
There are
several ma&or drivers behind the
growth of aviation sector in India
ows,
, the
4ntry of low cost carriers increased
Source: India Brand !uity "oundation
27.2
19.3 18.5
7.6
69
65.2 64.4
67.7
Indigo Air India (picejet Go Air
Operators
Market Share (%) Flight Occupancy Rate (%)
Average ann&a# 'ate of Growth
12%
8%
12%
10%
Source: 12
th
"ive #ear $lan

by Directorate General of Civil
Aviation

: India Brand !uity "oundation
3.5
58.4
)ingfisher

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 11
th
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 11
th
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 10
th
plan to %6.15 during the 1$
th
plan.


Air Passenger & Cargo Traffic:
Traffic 2011 2012
Domestic passenger 107 million 10# million
International passenger .#.$0 million .%.7 million
Domestic cargo Almost same as in the
corresponding period of the next
year
0.%. ++T
International cargo 1..% ++T 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 11
th
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 reuirement 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 reuires 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 reuired 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 avancement an increasing no
o! operations it is $ecome i!!icult to keep the rate o! accient an incient in check" The
increasing num$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 networs in the world !".# million ilometres$, which can be sub-divided into
following four categories%
Categories Indias Total Road Network Details
&ational 'ighways !&'s$ #() Total *ength% (#,((+m and carry
",) of the country-s road traffic
.tate 'ighways !.'s$ /.0) Total *ength% #1",1++m
2a3or 4istrict Roads !24Rs$ 0.1) Total *ength% +00,,15 m
6ther 4istrict and Rural Roads 55) Total *ength% /0,#(,+",m
Source: 12
th
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 transportation
however ma3ority of
freight operations 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 loistics 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 trucers
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 networs 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 a
respectively, globally. India-s low average trucing speed of /,
global average of 0,B5, mph can, thus, be attributed to the constrained and poor ?uality of the
country-s road networ.
Threats Faced by Road Transportation
'igh

: 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 (,,
;mD'owever, the completion of the &ational 'ighways 4evelopment 8rogramme !&'48$, which is ai
at developing 1,,,,, m of &ational 'ighways by +,#1 in seven phases with an investment of I&R /,,,,
billion/9 and moderni>ation of the road cargo transport community, will be game changers for the road
transport sector.
*ac of differentation in services leads
to commoiti>ation and price erosion,
*arge players offering value added
services are able to influence terms
and condition
'igh bargainig power of bul goods
consigners due to presence of small
operators,
Aommitments of large consignment
volumes often force transporters to
undercut prices
Threat of New Entrants
Bargaining Power of
Consumers
Aonse?uently, road networs continue to lag behind world averages, with road density at +.5/ m per
#,,,, people and ((, m of road length per #,,,, s?. m as compared to 0.( m a
India-s low average trucing speed of /,B", m per hour !mph$ as against the
5, mph can, thus, be attributed to the constrained and poor ?uality of the
Transportation
&eutral
Source: 'P() Anal!sis
truc, due to long traffic 3ams on nationalCstate highways, on average
/,, ;m per day in contrast to international norm of (,,
'owever, the completion of the &ational 'ighways 4evelopment 8rogramme !&'48$, which is ai
at developing 1,,,,, m of &ational 'ighways by +,#1 in seven phases with an investment of I&R /,,,,
billion/9 and moderni>ation of the road cargo transport community, will be game changers for the road
Forces
Impacting
Road
Transportation
*ow capital re?uirement, easy
available loan,
*ow entry barrier with basic
basic sills re?uirements
Its highly customer oriented with
multiple vendor options available
to customers
Its easy for customers to switch
loyalties as there is lac
ofdifferenti on among vehicles
Eery few people offering value
added and
7overnment
prices maes
players to
pass trough
customers
Rivalry among
Competitors
Bargaining Power of
Supplier
Threat of
Substitutes
Aonse?uently, road networs continue to lag behind world averages, with road density at +.5/ m per
#,,,, people and ((, m of road length per #,,,, s?. m as compared to 0.( m and 5", m,
", m per hour !mph$ as against the
5, mph can, thus, be attributed to the constrained and poor ?uality of the



Source: 'P() Anal!sis
truc, due to long traffic 3ams on nationalCstate highways, on average
/,, ;m per day in contrast to international norm of (,,-5,,
'owever, the completion of the &ational 'ighways 4evelopment 8rogramme !&'48$, which is aimed
at developing 1,,,,, m of &ational 'ighways by +,#1 in seven phases with an investment of I&R /,,,,
billion/9 and moderni>ation of the road cargo transport community, will be game changers for the road
Its highly customer oriented with
multiple vendor options available
to customers
Its easy for customers to switch
loyalties as there is lac
ofdifferenti on among vehicles
Eery few people offering value
added and
7overnment influence on fuel
maes it difficult for
to predict , control and
trough fuel costs to
customers
Bargaining Power of
Supplier
Threat of
Substitutes
4espite the progress in &'s, only +/) of their total length is wider than two lanes, leading to heavy
congestion. .hortfall in construction of bypasses, inade?uate capacity, insufficient pavement thicness
and wea, narrow and distressed bridgesCculverts are some of the other deficien
built a huge cost needs to be maintained properly to prevent disintegration and deterioration, ensuring
its continuous utili>ation in an optimum manner and road safety of its users.
In India the maintenance of roads is
treated as a non-plan activity and
has, therefore, tended to be
neglected because of financial
resources constraints. :part from
inade?uacy of resources,
management of roads are
unsystematic and inspections are
irregular.
The villages which are connected by 8radhan2antri 7ram .adaFo3ana !827.F$ have several socio
economic impacts on villages which indicate multiple benefits generated through it.
listed below%
Improved connection to the marets
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
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 lie
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
only +/) of their total length is wider than two lanes, leading to heavy
congestion. .hortfall in construction of bypasses, inade?uate capacity, insufficient pavement thicness
and wea, narrow and distressed bridgesCculverts are some of the other 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 (
India the maintenance of roads is
plan activity and
has, therefore, tended to be
neglected because of financial
:part from
inade?uacy of resources,
management of roads are
unsystematic and inspections are
Source: 12
th
Five Year Plan Report
The villages which are connected by 8radhan2antri 7ram .adaFo3ana !827.F$ have several socio
economic impacts on villages which indicate multiple benefits generated through it.
ection to the marets
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 lie
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
The type of 888 models used in road pro3ects are G6T toll and G6T annuity
23%
54%
23%
Single/Intermediate
Lane
Double Lane
Four/Six/Eight Lane
only +/) of their total length is wider than two lanes, leading to heavy
congestion. .hortfall in construction of bypasses, inade?uate capacity, insufficient pavement thicness
cies. The road networ
built a huge cost needs to be maintained properly to prevent disintegration and deterioration, ensuring
Lane composition of National Highways (2012)
Five Year Plan Report
The villages which are connected by 8radhan2antri 7ram .adaFo3ana !827.F$ have several socio-
economic impacts on villages which indicate multiple benefits generated through it. Hew of them are
This ind of initiative can also be exercised at country level to maximi>e the benefit for all, similarly lie
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
toll and G6T annuity.
Single/Intermediate
Lane
Double Lane
Four/Six/Eight Lane
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$.
National Highways to be constructed under various Five!ear plans
Source: *oistics a%e chaners + ,rans#or%in Indias loistics industr!-'P()
Jntil +,,1, the road construction maret was dominated by public sector companies. The government
has been eager to involve private sector funding for infrastructure pro3ects and thereby reduce strains on
the budget. The 888 model has emerged as the favoured one for private sector participation in roads
pro3ects. Hrom the investment perspective, a comparison of estimated investments in the road sector in
the Eleventh 8lan !+,,(B#+$ vis--vis pro3ected investments for the Twelfth 8lan !+,#+B#($ indicates a
significant 3ump, approximately +.+-fold.
To encourage private players, the
7overnment has 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
Hihwa!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 maes 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 lie 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 Waterways

Indias 95% by volume and 70%
the sea route. India has a coast line of
has 13 major ports (Fig. 1);
the eastern coast and 7 on the
western coast. It also has about
200 non major ports! in which
1/3 are operational."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-
The Three waterways that have been declared as National Waterways are:
(a) Allahabad-Haldia stretch
declared National Waterway-
(b) Sadiya-Dhubri stretch (!" #ms) of the $rahma%utra river was declared Na
Waterways- II in &e%tember, "!.
(c) Kottapuram-Kollam stretch
canal ("' #ms) and (dyogmandal canal ()* #ms) was declared National W
+ebruary, "!!*.
&s we seen the aviation sec
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
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
; 6 on
on the
western coast. It also has about
major ports! in which
"he Inland
Water "ransport (IW") form
interface between maritime and
#uring
$ of the
cargo were handled by
major ports
The aviation sector is struggling
for survival, while roadways and
railways are bleeding the treasury
dry. Inland navigation is
-friendly.
ave been declared as National Waterways are:
Haldia stretch (",)- #ms) of .anga-$hagirathi-/ooghly river system was
I in 0ctober, "!,.
(!" #ms) of the $rahma%utra river was declared Na
II in &e%tember, "!.
Kollam stretch (", #ms) of the West 1oast 1anal along with 1ham%a#ara
canal ("' #ms) and (dyogmandal canal ()* #ms) was declared National W
&s we seen the aviation 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
by value global merchandise trade is carried out through
two basic categories of ports. India
ave been declared as National Waterways are:
/ooghly river system was
(!" #ms) of the $rahma%utra river was declared National
(", #ms) of the West 1oast 1anal along with 1ham%a#ara
canal ("' #ms) and (dyogmandal canal ()* #ms) was declared National Waterways-III in
tor is struggling for endurance! whereas railways and road
transportation are bleeding the capital dry. 'ut due to lac( of long term vision and
support from government! hinders the growth of inland waterways. It is ironical that in
spite of being economical! efficient and environment friendly! the inland water transport
sector remains underutilised.
Traffic and Capacity at Ports
"he capacity creation for major ports during year
only 689.83 )" was achieved.
36.67$."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
lower than the projection by
07 with the growth of 29.48
186.11)" in the year 2006
growth of 98.81$ and also higher than the projection of
Cargo Traffic
&ccording to the 12
th
Five year plan! the capacity and "raffic is needed to
meet the projected traffic of
815.20 )") by the end of 12
sector is predicted to be 2289.04
)").
0
100
200
300
400
500
600
Major Ports
C
a
r
g
o

T
r
a
f
f
i
c

(
M
M
T
)
FY 07
al! efficient and environment friendly! the inland water transport
sector remains underutilised.
at Ports
creation for major ports during year 2011-12 was projected
)" was achieved. "his shows the increase in the capacity of major ports by
$."he capacity of minor ports and private ports was envisaged to increase from
"he traffic handled by major ports in financial year 2011-12 was 560.12
by26.55$ but increased from 463.78)" of financial year
29.48$. &t the minor ports traffic handled was increased from
2006-07 to 37.00 )" in the year 2011-12! thus registering a
$ and also higher than the projection of 23.26$.
Source: Ministry of Shipping, India Brand Equity Foundation

ive year plan! the capacity and "raffic is needed to
he projected traffic of 1758.26 )" (major ports% 943.06 )" and minor ports
12
th
five year plan (2016-17)! the total capacity of the port
2289.04 )" (major ports% 1229.24 )" and minor ports
FY 07
FY 08
FY 09
Major Ports
Non Major
Ports
FY 08 FY 09 FY 10 FY 11 FY 12
al! efficient and environment friendly! the inland water transport
was projected 1001.80 )" but
"his shows the increase in the capacity of major ports by
$."he capacity of minor ports and private ports was envisaged to increase from
560.12)" which was
)" of financial year 2006-
the minor ports traffic handled was increased from
! thus registering a

Source: Ministry of Shipping, India Brand Equity Foundation
ive year plan! the capacity and "raffic is needed to e*pand. "o
)" and minor ports%
)! the total capacity of the port
)" and minor ports% 1059.80
FY 09
FY 10
FY 11
FY 12
Capacity Addition

At Major
Ports
+*isting
(2011-
Total 560.15

Capacity by the end of 12
th
Major Ports
+*isting
(2011-12)
Total
Coodity
689.83

Major Trend in the Waterways Transportation

0
10
20
30
40
50
60
FY0!
58!
C
a
p
a
c
i
t
y

A
d
d
i
t
i
o
n

(
M
T
)
&ource: 2inistry of &hi%%ing,
Traffic (MT) Capacity
+*isting
12)
Forecast
(2016-17)
+*isting
(2011-12)
560.15 943.06 689.93
th
plan
Ports Minor Ports
Forecast
(2016-17)
+*isting
(2011-12)
Forecast
(2016-17)
+*isting
(2011
1229.24 544.65 1059.80 1234.48
in the Waterways Transportation
FY07
FY08
FY09
FY10
"8#
$!%
"$!
"$

&ource: 2inistry of &hi%%ing,
Capacity (MT)
Forecast
(2016-17)
1229.24

Total
+*isting
(2011-12)
Forecast
(2016-17)
1234.48 2289.04
&s shown in above graph! that there is
average turnaround time is influenced by
entrance path."here is an improvement of average output per ship berth day from
)" in year 2006-07 to 10,967
Indian ports around 57$ of turna
#etention trendis only one that continuous shows the
"he other important trends seen in this sector is ,etting up of port based ,+-s!
Increasing Private Participation
Model. 'ecause of favourable
encourages both the investor! i.e. .rivate and Foreign. "he private player aggressively
investing in port logistics services.
government has shifting from the /
services) to a /Landlord Port
while port operations are done by the private companies).
0hennai! 1isa(hapatnam and "uticorn
"enefits of #ater$ays Transport
Efficient and Economic:
"he cost of infrastructure development for
roadways. &s per )r. , ,riraman of Walchand 2irachand .rofessor of "ransport
+conomics! 3niversity of )umbai. , #andapat! chief engineer! IW&I
than that of roadways. 4and
building a road or a railway line
"he fuel used in waterways transportation
would carry about 105tonnes over a (ilometre through waterways!
200!%07 2007%08
97&'
10071
()!2
()9(
10)0'
11)&
A&era'e (re-berthin' Detention Time
A&era'e )utput per ship berth days
&ource: ")
that there is improvement in turnaround time in
average turnaround time is influenced by feature such as si5e of parcel! cargo type! and
"here is an improvement of average output per ship berth day from
10,967 )" in year 2011-12. #ue to port associated inefficiency at
$ of turnaround time of ships is delayed.
one that continuous shows the increasing style.
"he other important trends seen in this sector is ,etting up of port based ,+-s!
Participation, Specialist Terminal ased Ports and Landlord
. '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
shifting from the /Service Port6 model (port authority provide all
Landlord Port6 model (port authority acts as a regulator and landlord
while port operations are done by the private companies)."he major ports such as 78."!
0hennai! 1isa(hapatnam and "uticorn are e*ample of this reformed.
"enefits of #ater$ays Transport
"he cost of infrastructure development for IW" sector is also very low as compared to
, ,riraman of Walchand 2irachand .rofessor of "ransport
+conomics! 3niversity of )umbai. , #andapat! chief engineer! IW&I. It is
4and ac9uition cost accounts for :; per cent of the total cost of
building a road or a railway line.
"he fuel used in waterways transportation is diesel. &s per the study! one litre of diesel
tonnes over a (ilometre through waterways! 85
2008%09 2009%10 2010%11
10071
10&7(
10&82 107('
()87
&)&2 &)!7
9)''
11)7' 11)7!
berthin' Detention Time A&era'e Turnaround Time
A&era'e )utput per ship berth days

&ource: ")
th
+ive 3ear 4lan,

in turnaround time in 2011-12. "he
feature such as si5e of parcel! cargo type! and
"here is an improvement of average output per ship berth day from 9,745
associated inefficiency at
round time of ships is delayed. "he .re%berthing

"he other important trends seen in this sector is ,etting up of port based ,+-s!
and Landlord Port
investment condition and strong growth potential!
encourages both the investor! i.e. .rivate and Foreign. "he private player aggressively
Further! to attract private investments! the
6 model (port authority provide all
model (port authority acts as a regulator and landlord
"he major ports such as 78."!
is also very low as compared to
, ,riraman of Walchand 2irachand .rofessor of "ransport
It is 5 to 10per cent
cost accounts for :; per cent of the total cost of
is diesel. &s per the study! one litre of diesel
85 tonnes through
2011%12
109!7
&)&&
11)1&
A&era'e Turnaround Time
railways and24tonnes through roadways. 2ence there is an opportunity to convert these
comparisons into monetary savings.
Affordable:
"here was a2012report! by a
under the 8ational "ransport .olicy #evelopment 0ommittee (8"
0ommission. It highlighted the
through waterways would cost <s.
0.50 and <s. 0.96 respectively.
&s per 8".#0! one horsepower can move = tonnes by waterways!
and 0.15 tonnes by roadways.
waterways is <s 0.53 as against <s
Safe and Environment Friendly
&ccording to the 8ational 0ouncil of &pplied +conomic <esearch
avoidance of accidents as a result of cargo movement on national waterways saved <s
36crore in 2004-05. While i
congestions amount to <s
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
under 8"#.0states that! the
truc( emits.
"he Indian 8etwor( on 0limate 0hange &ssessment (I800&) estimates that in
transport sector emitted 142
transportation modes!
&t present! no study has been conducted in the country to estimate the emission level of
IW"! although it is negligible. 'etween
increase si* fold! estimates I800&

Source: Indian Network on Cliate Change !ssessent, "##$
tonnes through roadways. 2ence there is an opportunity to convert these
comparisons into monetary savings.
by a subgroup of the Wor(ing >roup on .orts and ,hipping
under the 8ational "ransport .olicy #evelopment 0ommittee (8".#0) of the .lanning
0ommission. It highlighted the issue that! for moving a tonne of cargo over a (ilometr
through waterways would cost <s. 0.37! while via railways and roadways it would be <s.
respectively.
horsepower can move = tonnes by waterways! 0.5 tonnes by
tonnes by roadways. 2ence the operating cost per tonne (ilometre in
as against <s 1.32in railways and <s 2.75 in roadways.
and Environment Friendly:
8ational 0ouncil of &pplied +conomic <esearch (80&+<s
avoidance of accidents as a result of cargo movement on national waterways saved <s
While in the road sector! yearly losses due to accidents and
amount to <s 150,000 crore. /"hese losses will come down considerably
growth of inland water transport (IW")!6 says , , )ishra! member of Inland
Waterways &uthority of India (IW&I).
sector! fuel consumption is also less! which means low levels of carbon
by a sub group of the Wor(ing >roup on .orts and ,hipping
states that! the waterways vessel emits less than 50per cent of carbon a
"he Indian 8etwor( on 0limate 0hange &ssessment (I800&) estimates that in
142 million tonnes of greenhouse gases. ,hare of different
&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&.
Source: Indian Network on Cliate Change !ssessent, "##$
87*
7*
'*
1*
<oad
&viation
<ailways
8avigation
tonnes through roadways. 2ence there is an opportunity to convert these
of the Wor(ing >roup on .orts and ,hipping
.#0) of the .lanning
issue that! for moving a tonne of cargo over a (ilometre
! while via railways and roadways it would be <s.
tonnes by railways
operating cost per tonne (ilometre in
in roadways.
80&+<s)report! the
avoidance of accidents as a result of cargo movement on national waterways saved <s
due to accidents and
crore. /"hese losses will come down considerably
growth of inland water transport (IW")!6 says , , )ishra! member of Inland
sector! fuel consumption is also less! which means low levels of carbon
>roup on .orts and ,hipping
per cent of carbon a
"he Indian 8etwor( on 0limate 0hange &ssessment (I800&) estimates that in 2007 the
,hare of different
&t present! no study has been conducted in the country to estimate the emission level of
emissions from the roadways will


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 $.%
times and three&wheelers consume '.( times more energy in terms of per passenger km.
The transport sector of )ndia is facing several challenges which can be taken as opportunities to
overcome from them and make )ndia leader of this sector in the group of developing countries. The
challenges are,
Congested and inefficient ports,
*evere capacity constraints facing by +ailways,
Airport infrastructure is strained,
,interland connectivity by different modes of transport
+oads are congested and poor in -uality
.rom the below given table we can see that government of )ndia heavily in all major transportation
modes.
Ministry /Department wise 12
th
Five Year Plan Outlays for Transport Sectors
*ource/ 0$
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
Ministry GS Outlay !"#
2inistry of +oad Transport 5
,ighways
0''(#6 #'73'
2inistry of Civil Aviation 0#673 0#$0%
2inistry of +ailways 06'$$0 $$%888
2inistry of *hipping #6#8 $0668
Poor -uality of designs and site investigations
9and ac-uisition
Tariff :pricing policy
2ulti modal connectivity
transportation modes. )t reduces total journey time, reduce congestions.
.ocus on high&growth potential of )ndia;s waterways segment remains largely untapped and
underutili<ed
)n my opinion at present time, we have to shift the passeng
airways, because they have the vacant capacity and railways have the e!tra passengers. *o it
balance the traffic and win
we can see the losses every year railways ma


Poor -uality of designs and site investigations
2ulti modal connectivity& it;s very important, as it work as back bone
transportation modes. )t reduces total journey time, reduce congestions.
growth potential of )ndia;s waterways segment remains largely untapped and
)n my opinion at present time, we have to shift the 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 for both transportation modes. .rom the below given table
we can see the losses every year railways made.
Source: 12
th
Five Year Plan Report
it;s very important, as it work as back bone for the all major
transportation modes. )t reduces total journey time, reduce congestions.
growth potential of )ndia;s waterways segment remains largely untapped and
er traffic from railways to
airways, because they have the vacant capacity and railways have the e!tra passengers. *o it
win for both transportation modes. .rom the below given table
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'