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GHANSHYAMDAS SARAF GIRLS’ COLLEGE PROJECT ON INFRASTRUCTURE DEVELOPMENT

PRESENTED TO PROF. VIPIN SABOO

BYTYBMS – GROUP NO.3 SHIVANGI PUROHIT (46) MARIUM BHALLA (05) KALPANA JHA (21) SIDDHI KARMAVAT (27) POONAM UPADHYAY (67) SONAL PAWADE (43)

INTRODUCTION

Imagine not being able to communicate with the other elements of your supply stream, not being able to find out what the status is.? Not knowing if or for how long they would have power, it was impossible for anyone to make any reliable delivery commitments. Logistics is the management of the flow of goods, information and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves moving equipment, materials and supplies to where they will be used. Infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, power grids, telecommunications, and so forth. Viewed functionally, infrastructure facilitates the production of goods and services; for example, roads enable the transport of raw materials to a factory, and also for the distribution of finished products to markets. In Keynesian economics, the word infrastructure was exclusively used to describe public assets that facilitate production, but not private assets of the same purpose. In post-Keynesian times, however, the word has grown in popularity. It has been applied with increasing generality to suggest the internal framework discernible in any technology system or business organization.

\Infrastructure in the logistics sector (like all sectors) has surfaced as a critical component and a key

and development of modern 3PLs has made modern and well developed warehousing and cold chain infrastructure indispensable. distribution centers. Thus. the education system. the system of government and law enforcement. let us now take each segment of the infrastructure and study its benefits and impacts on logistics. Logistics Infrastructure covers facilities like large warehouses. understanding the Infrastructure Development and its impact on Logistics is important. the emerging large food processing sector. whereas "soft" infrastructure refers to all the institutions which are required to maintain the economic. So.bottleneck requiring significant investment and buildout. free trade warehousing zones. as well as emergency services. a thrust for manufacturing through proposed development of Special Economic Zones. "Hard" infrastructure refers to the large physical networks necessessary for the functioning of a modern industrial nation. Logistics Cost consists of almost 70% of the total cost of a unit produced. . Basically infrastructure is divided into two parts. health. etc. The rapid evolution of organized retail in India. Hard Infrastructure and Soft Infrastructure. the health care system. cultural and social standards of a country. logistics parks. such as the financial system.

manage and monitor the systems. plants or vehicles that are an essential part of the system. or used for the transmission of electro-magnetic waves.Types of Hard Infrastructure: The following list is limited to capital assets that serve the function of conveyance or channeling of people. vehicles. and which take the form either of a network or of a critical node used by vehicles. fluids. energy or information. Also included are fleets of vehicles operating according to schedules such as public transit busses and garbage collection. Infrastructure systems include both the fixed assets and the control systems and software required to operate. as well as basic energy or communications facilities that are not usually part of a physical network (oil refineries. radio and TV broadcasting facilities). as well as any accessory buildings. Transportation infrastructure .

Therefore. In order to choose the optimal means. Its complexity can take effect only through highly quality management.goods can arrive at their destination in many ways. The Role of Transportation in logistics The role that transportation plays in logistics system is more complex than carrying goods for the proprietors. In addition. It brings efficacy. goods could be sent to the right place at right time in order to satisfy customers’ demands. By means of wellhandled transport system. rail transport and pipeline transport. and also it builds a bridge between producers and consumers. A distinction is drawn among road transport. costs and transport volume. By road. The existence of cost-effective and competitive transport modes assists in the restructuring of the trade an industry. inland waterway and ocean shipping and air transport. air or water . transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness. rail. an understanding of the strengths and weaknesses of the individual means of transport is essential. .“Transportation is the industry that connects other industries”. The choice of the right means of transport depends on many factors – including flexibility. Transportation infrastructure is the most critical means that facilitates the movements of people and products.

door to door delivery time.In choosing a transportation mode. (3) ability to handle various products. (1) speed . Road Transport Infrastructure . (4) number of geographic points served. shippers consider five criteria. (5) cost per tone-mile. Types of Transportation Infrastructure 1. (2) meeting schedules on time.

India has one of the largest road networks in the world (over 2. Road transport comprises of freight and passenger traffic.9 million km at present). today. changing policies with regards to tax structure are likely to give a competitive edge to the organized sector. India’s road infrastructure is not properly developed. proper road infrastructure is the need of the day to carry out logistical activities in an organized manner. Thus. The industry is highly fragmented and largely unorganized. It accounts for over 60% of goods traffic and over 80% of passenger traffic. The growth rate in road traffic has been 10 percent since 1951 and would have gone higher had there been a larger and penetrative road network. Roads play a dominant role in India’s domestic transportation sector. STRENGTHS  High flexibility in terms of transport jobs and changed plans  Fewer idles and waiting periods  Relatively low transport times for short and medium distances WEAKNESS  Limited transport volume  Traffic jams  Legal restrictions  Weather effects  Restrictions on transport of hazardous goods  Ecological aspects 2. However. The unorganized sector accounts for nearly 80% of the market share. Unfortunately. Rail Transport Infrastructure . The road freight industry is highly fragmented and largely unorganized.

But still.Rail transport is suited for bulk shipping (several wagonloads) of many types of goods (coal. Sundays. Governments must encouraging private participation. is being transported via trucks as road infrastructure is quite well developed. monopolized by local governments. the intermodal capabilities are limited and a majority of the gross tonnage. Railway infrastructure. which could ideally be transported by rail. Only 65% of the railway tracks are operative due to poor investment and maintenance.Railways have become a cheap mode of transportation.holidays) WEAKNESS  Schedule and rail-network Inflexibility  Inadequate for short-distant transports or with frequent cargo changes  High fixed cost due to expensive equipments . STRENGTHS  Higher speeds and economical solution for longer distances  Environmentally friendly  No road traffic  No driving bans (e. is relatively underdeveloped in the region. especially in railways. raw materials) over distances of 300 km and more .g. to attract more foreign investments in order to improve overall transport infrastructure.. Consequently.

Only 10 per cent of Indian flag-vessels have been built in Indian shipyards. Per tonne-kilometre.3. archaic labor laws and low productivity owing to aging machines. The Indian shipyards condition is not proper. The high cost of production can be attributed to poor development of indigenous ancillary industries. This could help take up repairs and building large vessels . must be stressed. It creates favorable conditions for services and development of new markets. waterway transport is considered to be a mode of transport which can contribute to sustainable mobility and help improve the sustainability of the transport system. According to a recent report in Hindu Business Line. the shipping infrastructure is not in a healthy state. waterway transport is extremely energy efficient and is regarded as one of the most environmentally-friendly modes of transport. one each on east and west coasts. Marine Transport Infrastructure Waterway transport is suited for large cargo shipments covering longer distances Together with rail and road transport. Waterway transport increases market access and competition. increases market access for international good transport. The need for the creation of dry-docks.

Some of the shipping majors have established systems to take responsibility of total logistics requirements of their clients. traditional ship owning is getting commoditized.India should take advantage of its extensive river systems and long coastline to develop inland waterways and coastal shipping. In this era of integrated logistics and multimodal transportation. STRENGHTS Economic Environmentally friendly Availability of specialized ships WEAKNESS Limited waterway network High handling and transshipment costs Dependency on weather (water level) . A logistics and transportation service provider not only has to build a large fleet of physical assets but also build up assets such as IT infrastructure and expertise over business processes much more sophisticated and extensive than applicable in any single sub-segment.

low-bulk items (technical instruments. In many remote. The airport infrastructure of India is quite good. air transport is the quickest and sometimes the only mode of transport available. cold storage. jewellery). Products are perishables (fresh fish. high-value. cut flowers). The objective must be to reduce dwell time of exports from the present level of 4 days to 12 hours and of imports for the present level of 4 weeks to 24 hours to bring us in line with internationally achieved norms. It costs higher than rail and truck but ideal when speed is needed and distant markets have to be reached. The infrastructure is user-friendly and provides a boost to international trade and tourisms. But special attention needs to be given to the speedy handling of cargo and reducing its dwell time. Air Transport Infrastructure Air transport is still the costliest transport mode due to its efficiency and timely deliveries. north and north-east. hilly and inaccessible areas of the country. Cargo clearance must be on 24-hour basis. automatic storage and retrieval systems. . Infrastructures relating to cargo handling like satellite freight cities with multi-modal transport.4. This is especially true of sensitive regions on the borders with our neighbors in the west. cargo terminals.

India—as an air cargo hub India has a great potential for becoming a possible cargo hub for SAARC and ASEAN countries and its strategic location as a transit destination connecting the easternwestern global corridors. frequency and security  Little capital tie-up  Low risk of theft and damage  Cost-efficient transport of light parts Weakness  High transport costs for bulk goods  Relatively low transport capacity  Need for development of a network  Ground time is approx. computerization and automation. Strengths  High speeds.mechanized transportation of cargo. etc. 73 percent of  Total transport time  Ecological aspects . must be set up on top priority basis. The Government has chalked out various policies and plans for development of the air cargo infrastructure thereby providing opportunities to the various entities involved in the value chain. The Civil Aviation ministry has identified Nagpur as India’s national cargo hub and has promised an aviation policy for providing significant concessions for air freighter operations out of Nagpur. There are also plans of creating a national grid for cargo hubs at various airports in India with cold storage and warehousing facilities.. Civil aviation ministry proposal to set up dedicated cargo airports and Government’s plan to allow cargo airports within 150 kms radius of existing airports through automatic routes are major steps taken to the cause of developing India as a cargo hub.

safe and most efficient way of moving petroleum products and gases and. In India pipelines are extensively used for transporting crude and petroleum products. As is true for any other infrastructure developments. Pipeline Transport Infrastructure Generally liquids like oils. Strengths  Economic  Safe  Environmentally safe Weakness  Weaknesses  Small pipeline network  High fixed costs . To facilitate this movement.5. The pipeline transportation is the most practical. More than 5000km of pipeline exists in India for crude and petroleum products. In addition to the products above slurries. petroleum products are transported in a pipeline. the pipeline infrastructure in India requires strengthening. crude. vapors and solids in powder form are also transported in pipelines. gases. pipeline projects do pose wide array of environmental challenges. is the preferred mode all over the world. hence.

Ropeway Infrastructure still needs to be developed fully in India. Belt/Rope Transport Infrastructure It is used for transporting materials in hilly and otherwise inaccessible area. But due to lack of proper development of this mode of transport. It is mainly used in coal mines for transporting coal in bulk. Strengths  Transports bulk materials over short distance  Lower capital costs  Ideal for Hilly areas Weakness  Limited scope of operations  Slowest mode of transport . Ropeways cause minimum ecological imbalance. Fruits produced in hilly area are brought to low land for further transportation to consumption centers. Ropeways connect point of supply & demand by shortest route. This mode is good when gradients are steep as road or rail would take a very long route to negotiate the gradient.6. there have been cases of extreme losses in Coal mines.

a. Piggyback (Roadway + Railway) b. to take advantage of the inherent economy of each mode.7. Fishyback (Waterway + Railway) c. Inter-Modal Transport Infrastructure This method uses two or more carriers of different modes in the through movement of a shipment. Birdyback (Airway + Roadway) Benefits of Proper Transportation Infrastructure Availability of different modes of transport: The existence in various options in transportation .

Price reduction: An improved transportation and logistical network has the ability to reduce the regional price variability.(different modes to choose from) can improve the economic activity and can result in system-optimum pricing worldwide. Bad weather can cause shortfalls and high prices in one region while other region experience surpluses. safety and price sensitivity of the product that needs to be transported. vulnerable in temperature or light condition-differences. This additional cost can be minimized if the transportation and logistical infrastructure improves enough to cover the forecasted demand. sea. Especially in cases where the products are perishable (fruits and vegetables). rail. The same applies to the product that are time-sensitive in general (electronics that loose their value continuously) and all the products that sell in very competitive markets and their lack of existence in the market that experiences shortfall becomes a lost sale. A better transportation and logistical infrastructure means greater labor demand and better wages. and pipelines) can be chosen depending on the time. air. and fragile in any bad weather can be troublesome. and obviously rise in the retail prices of the products shipped and handled. Transportation and logistics services cost. . The following figure shows the post harvest losses in some of the Asian countries because of the bad coordination and infrastructure. instead of a backorder(which still incorporates an additional cost). A transportation option or a combination of them (road. A low “wedge” between the prices paid by consumers and prices received by producers means a combination of the lower price for the consumers and a higher profit for the producers.

. it makes it easier for the exporters to spread geographically in a larger scale. Increases Variety of the Product: Another advantage of the improved transportation networks is that they increase the available variety of the product.40 35 30 25 20 15 10 5 0 2008 2009 Veitnam Philippianes Thailand China India Increases Competitive Advantage: Higher value commodities and more sophisticated manufacturers are very sensitive and their quality and value depends linearly on the shipping and handling techniques. a low quality transportation and logistical infrastructure that provides poor service with a high cost will lead to the loss of the competitive advantage that the product would have if it were to be consumed at the place where it was produced. Additionally. The number of markets accessible increases and economies of scale in shipping are being created. At the same time. It is noticeable that transport costs restrict a large number of products to become available in remote regions with low demand. Thus there is better response to business cycle fluctuations in those markets. Often it is unaffordable and inefficient to supply products in Less-than-truck-load size for example.

In the era of globalization. mobility should not be obstructed by high levels of insecurities in transportation. Communication . a well integrated transportation infrastructure can result in environmental benefits and reduce externalities. less casualties and damages for people and products. Environmental Benefits: Last but not least.Safety: Well integrated transportation infrastructure can assure better safety in transportation. COMMUNICATION INFRASTRUCTURE The Communication Infrastructure provides an expansion of choices available to individuals.

the Postal service infrastructure has grown include Speed Posts. just-in-time parcels. Types of Communication Infrastructure 1. Logistics Posts is a brand new service from India Post great for sending parcels and large consignments across the nation and around the world. from order preparation to order fulfillment. Logistics Post manages the entire distribution side of the logistics infrastructure from collection to distribution. and Logistics Posts. Media Posts. Developing communication infrastructure has become crucial to access information (and knowledge) and resources for enhancing the quality of logistical operations. leading to improvement in the service level efficiency. Logistics Post has no weight limit. It is essential for the information flow. Telecommunications Infrastructure . Direct Posts. Instant Money Order Services. an important aspect of Logistics. Business Posts. In the olden days. While Parcel Post offers weight up to 35 kg. Today. from storage to carriage.Infrastructure has become a vital organ of the ‘knowledge society’ in which people live. Logistics Post is an ideal service for sending large consignments including multi-parcels. Logistics Post offers not only physical logistics services but also provides comprehensive supply chain management services. Postal Service Infrastructure Postal Service is one of the oldest means of communication. International Money Transfer. 2. the royal horses were used to convey the messages from one place to another. E-Payments. bulk-break consignments and goods of any weight.

mobile. Due to telecommunication infrastructure. This has necessitated the growth of India telecom infrastructure. cable TV services. e-mail. The once monopolistic market is today. Moreover. and other forms of Information Technology (IT). Nowadays. Internet conference etc. Benefits of Communication Infrastructure in logistics Flow of Information: Proper communication infrastructure helps in dealing with the flow of information within an . The highly competitive environment has ensured low pricing of goods and services. The telecom industry is one of the prime contributors to India's GDP. The basic telecommunication infrastructure is quite well developed in India. a vast majority of the population has access to telephone services.Telecommunications are systems used in transmitting messages over a distance through electrical or electromagnetic medium. logistic and supply chain management has become easier and faster by many folds. ECommerce. the enhancement of India telecom infrastructure has also widened the scope of the telecom sector to other allied ventures like mobile services. highly competitive. Internet. It can be done via telephone.

An industrial infrastructure differs from one industry to another . at the right place at the right time for the right people and all this customer demand driven. consisting of the right Information Element. storage. designed to facilitate reporting and analysis.organizational unit between any numbers of organizations that in turn create a value forming network. Managing and Controlling: It helps in managing and controlling the information handling processes optimally with respect to time (flow time and capacity). Supports Data Warehousing: A Data Warehouse is a repository of organization’s electronically stored data.e. distribution and presentation in the organization. hence enhancing logistical operations. Information Storage: Proper Communications Infrastructure helps in storing the information systematically and reduces externalities. INDUSTRIAL INFRASTRUCTURE Industrial Infrastructure is the infrastructure which supports the industry and its manufacturing requirements. in the right format. to deliver the right information product. Helps in achieving the goals of Information Logistics: It helps in achieving the goal of Information Logistics i. A proper Communication Infrastructure is connected to such Data warehouses from where information can be directly sent to any unit of the organization.

It includes the equipments. especially where .industry. manufacturing needs to move to the next level. Industrial Parks An industrial park is an area zoned and planned for the purpose of industrial development. It helps in carrying out proper manufacturing. In short. Industrial parks are usually located close to transport facilities. Types of Industrial Infrastructure 1. processing of raw materials. To remain competitive in the next decade. It is the inside made-up of an industry. and develop new business areas as the old ones mature and become obsolete. 2. It is necessary because companies are facing the fact that productivity improvements and lower product and process costs are not enough. including road and rail. machineries and technologies used for manufacturing and its strategic placement for proper channeling of raw materials. work-in-progress and finished goods. Industrial parks are usually located outside the main residential area of a city and normally provided with good transportation access. increase their customer base. It is essential for proper inbound logistics. It depends on which sector a particular industry belongs to. Manufacturing Infrastructure It is the basic infrastructure which supports the manufacturing activities of an organization. they must provide better value for their customers.

accusing the government of forcibly snatching fertile land from them. Kerala. Uttar Pradesh & West Bengal in India. Free Zones (FZ). SEZ's are located in the states of Andhra Pradesh. Gujarat. But this process of planning and development is under question.. storage tanks. Haryana. Industrial Estates (IE). airports. typically an international business or a multinational corporation (MNC). Usually the goal of a structure is to increase foreign direct investment by foreign investors. railroads. computer server farms). from the farming community. Some warehouses are massive structures that simultaneously support the unloading of numerous in-bound trucks and railroad cars containing . Tamil Nadu. including Free Trade Zones (FTZ). and ports. Export Processing Zones (EPZ).more than one transport modes coincide: highways. Orissa. Also some reputed companies like Bajaj and others have commented against this policy and have suggested using barren and wasteland for setting up of SEZs. Karnataka. Rajasthan. as the states in which the SEZs have been approved are facing intense protests. Urban Enterprise Zones and others. at heavily discounted prices as against the prevailing prices in the commercial real estate industry. 3. WAREHOUSING INFRASTRUCTURE The warehouse is the most common type of storage though other forms do exist (e.g. All these SEZs are in various parts of the country in the private/joint sectors or by the State Government. Maharashtra. The category 'SEZ' covers a broad range of more specific zone types. These are fully functional. Special Economic Zones A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. Free Ports. Chandigarh.

Warehouses usually adopt latest technologies to avoid losses. Heavy and bulky goods can be loaded and unloaded by using modern machines. Benefits of Warehousing Infrastructure in logistics Protection and Preservation of goods: Warehouse provides necessary facilities to the businessmen for storing their goods when they are not required for sale. are produced during a particular season but are consumed throughout the year.suppliers’ products while at the same time loading multiple trucks for shipment to customers. Regular flow of goods: Many commodities like rice. Easy handling: Modern warehouses are generally fitted with mechanical appliances to handle the goods. It helps to provide seasonal raw material without any break. . deterioration in quality. Warehousing ensures regular supply of such seasonal commodities throughout the year. spoilage etc. rail or waterways to facilitate movement of goods. Continuity in production: Warehouse enables the manufacturers to carry on production continuously without bothering about the storage of raw materials. Convenient location: Warehouses are generally located at convenient places near road. It provides protection to the stocks ensures their safety and prevents wastage. Convenient location reduces the cost of transportation. It minimizes losses breakage. wheat etc. which reduces cost of handling such goods. for production of finished goods. as far as possible.

The warehouses can economically employ security staff to avoid theft. to improve their standards of living. Useful for small businessmen: Construction of own warehouse requires heavy capital investment. Availability of finance: Loans can be easily raised from banks and other financial institutions against the security of the warehouse-keeper’s warrant. grading. which small businessmen cannot afford. Creation of employment: Warehouses create employment opportunities both for skilled and unskilled workers in every part of the country. Ownership of goods can be easily transferred to the buyer by transferring the warehouse keeper’s warrant. Reduces Risk of Loss: Goods in warehouses are well guarded and preserved. by paying a nominal amount as rent. In this situation. branding.Mechanical handling also minimizes wastage during loading and unloading. packaging and labeling can be carried on by the warehouses. Facilitates sale of goods: Various steps necessary for sale of goods such as inspection of goods by the prospective buyers. use insecticides for preservation and provide cold storage facility for perishable items. they can preserve their raw materials as well as finished products in public warehouses. It is a source of income for the people. In some cases warehouses also provide advance to the depositors of goods on keeping the goods as security. They can install fire-fighting equipment to avoid fire. The goods stored can also be insured for compensation in case of loss. Types of Warehouse .

Public Warehouse: The public warehouse is essentially space that can be leased to solve short-term distribution needs.e.. Climate-Controlled Warehouse: Warehouses handle storage of many types of products including those that need special handling conditions such as freezers for storing frozen products. 2. large purchase of products. humidity-controlled environments for . platforms that hold large amounts of product) around buildings that may be several stories tall and the length of two or more football fields. a major retail chain may have several regional warehouses supplying their stores or a wholesaler will operate a warehouse at which it receives and distributes products. For example. Retailers that operate their own private warehouses may occasionally seek additional storage space if their facilities have reached capacity or if they are making a special. retailers may order extra merchandise to prepare for in-store sales or order a large volume of a product that is offered at a low promotional price by a supplier. Automated Warehouse: With advances in computer and robotics technology many warehouses now have automated capabilities. For instance.1. The level of automation ranges from a small conveyor belt transporting products in a small area all the way up to a fully automated facility where only a few people are needed to handle storage activity for thousands of pounds/kilograms of product. Private Warehouse: This type of warehouse is owned and operated by channel suppliers and resellers and used in their own distribution activity. 4. many warehouses use machines to handle nearly all physical distribution activities such as moving product-filled pallets (i. 3. In fact.

such as produce or flowers. 5. and dirt-free facilities for handling highly sensitive computer products. the logistics industry in India is currently hampered due to poor infrastructure such as roads .delicate products. produce). In some cases.g.. such as with distribution centers handling perishable food (e. Distribution Center: There are some warehouses where product storage is considered a very temporary activity. These warehouses serve as points in the distribution system at which products are received from many suppliers and quickly shipped out to many customers. most of the product enters in the early morning and is distributed by the end of the day. Infrastructure congestion: the key challenge According to Data monitor.

resulting in pre-berthing delays and longer ship turn-around time compared to even the East Asian counterparts like China and South Korea. the twelve major ports of India handle volumes higher than their full capacity. PACKAGING Although packaging is recognized as having a significant impact on the efficiency of logistical systems and activities such as manufacturing. many .(over 70 per cent of freight transportation in India is via roads). on an average a commercial vehicle in India runs at a speed of 20 miles per hour (mph) compared to over 60 mph in the mature logistics markets of Western Europe and the USA. National Highways (NH) form only 2 per cent of the entire road network in India. distribution. putting enormous pressure on the highway infrastructure. storage and handling throughout the supply chain. communication. In addition. Also. but handle over 40 per cent of the national road freight traffic. ports and complex regulatory structures.

often called logistical packaging. There have been few efforts to present an adequate definition of packaging logistics. through the improvement of both packaging and logistics related activities. . This one-sided way of approaching the packaging logistical issues is dominating in literature and the logistics discipline. THE TOTAL PHYSICAL DISTRIBUTION FUNCTION IS LIKELY TO BE ADVERSELY AFFECTED. ANYONE OF THE FUNCTIONS.packaging dependent costs in the logistical system are frequently overlooked by packaging designers The concept of packaging logistics focuses on the synergies achieved by integrating the systems of packaging and logistics with the potential of increased supply chain efficiency and effectiveness. One way to achieve this is to concentrate on packaging development that benefits packaging related activities in the logistical system. IT CAN EVEN BRING ABOUT MAJOR CHANGES IN OTHER FUNCTIONS. WITH THE BREAKDOWN IN OR THE INEFFECIENCY OF. and these have been fragmented and vague in available literature.

investing just $10 out of $100 into an inventory management system and other infrastructure could allow relief organizations to deliver goods and services on time to those in need compared to spending the entire $100 on goods. Unless we invest in and plan for people.HERE IS AN EXAMPLE In the case of Haiti EARTHQUAKE. donors earmark funds solely for supplies rather than infrastructure and logistics. debris blocked roads with no available equipment to clear them. . Unless this changes. The main port and airport were not operational for the first 48 hours. This is the conundrum that’s plaguing relief workers and frustrating and confusing those donating money for recovery. disaster after disaster. Investing only in supplies is similar to having most of the pieces of a car. equipment. making it impossible for aid to enter the country. There is a smarter way of doing this. We end up with pieces and no operational whole. Even after aid was on land. For example. Innocently. but having neither the tools nor people needed for assembly. there was chaos prioritizing which planes should land. the infrastructure was completely destroyed. we will continue to see a breakdown between when supplies arrive and when they reach people in need. Once the airport’s runway was operational. and infrastructure. This is the same for humanitarian logistics. the best-intentioned response will continue to be late and ineffective.

building better roads to serve the population as well as resort areas. Government can develop approaches to collaboratively improve infrastructure to be sustainable in the long term — for example. NGOs also need to work with neutral parties to develop measures that consider the efficiency gains in the long run from smart overhead or the trade-off between dollars spent and the benefit achieved.This allowance for “smart overhead” will require a fundamental shift in thinking for donors. organizations and others. .

These trends are rapidly and continually changing supply chain functions and demands. At the same time there is a growing need to improve decisionmaking processes surrounding investments in transport infrastructure. However. Rail networks are coming under increasing pressure to accommodate more freight on key routes at a time when passenger volume is also increasing. air. Further. with focus being given to system-wide priorities rather than priorities being determined on a modal basis only.CONCLUSION In a highly competitive. supply chain driven world. Much of the European air freight fleets will require new investment in order to comply with new noise regulations. The transport sector. increasingly just in time. rail. especially road transport. barriers to the flow of goods across over the road and rails can be just as important as those we focus on through our plants and distribution centers. is under increasing pressure to reduce its impact on the environment. These changes necessitate flexibility. particularly in major urban centres and on motorways. The rapid growth of e-commerce demands fast response deliveries. financing transportation infrastructure is increasingly challenging for governments as private sector carriers and shippers demand improved facilities to move goods on shorter and just-in-time delivery schedules. Existing road. Parts of the European road network are reaching capacity constraints. there is a need to increase investment in new ITS . businesses seek to sustain sophisticated short-cycle and bespoke manufacturing processes to meet customer requirements directly. The internationalization of transport activities requires coordinate government action if efficient logistics systems are to be achieved. the cost of which will need to be reflected in the cost of infrastructure provision. and port infrastructures are coming under considerable pressure. Increasingly.

.technologies. develop standardized systems and hence improve inter-operating efficiencies across all infrastructures.