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DESPERATE TIMES - DESPERATE MEASURES

Restoring Supply Chain


- The Lifeline of Economy

Sudhir Jain
mwep07@gmail.com
DESPERATE TIMES - DESPERATE MEASURES

Part 1 : Restoring Supply Chain

- The Lifeline of Economy

CONTENTS

Preface - The Fall and the Rise of 3. A Small Step to make

Economy in the World 2020 a BIG Difference

It is an introduction of the effect of This chapter tells us that a multi-

Coronavirus on the Economy and modal national goods transport

the effort required to revive the network system is required to be

Economy. developed to revive the economy.

1. Blindsided: How Coronavirus 4. MSME - The Growth Engine of

Felled the Global Economy in the New India

100 Days This chapter helps us understand

This chapter tells us about the the importance of Micro, Small and

effect of Coronavirus on the major Medium Enterprises for Indian

Economies in the World with special Economy. Later, we will study that

mention of India. the chain of t ra n s p o r t a t i o n

activities to supply Micro, Small and

2. Economic Recession and Medium deliveries all over the

Economic Depression country can help revive the


This chapter tells us the meaning of economy of the country.
Recession and Depression in

economy, highlighting the effects of 5. Transportation in India

The Great Depression of 1930s. This chapter tells us about the

importance and problems of road,

Restoring Supply Chain - The Lifeline of Economy 2 Sudhir Jain


railway, airway, and waterway 8. D e v e l o p i n g multi-modal

transport in India. Later we will national goods transport

study that a proper multi-modal network system in the country

goods transport network system without the investment of

can create wonder in the public money.

development of the nation. This chapter tells us that

developing multi-modal transport

6. Transport Management system in the entire country is a

This chapter tells us the logistics of very easy task and can be

Transport Management. Later we developed in any country in a very

will study that the development of little time without the investment of

Transport Depots at the Transport public money, which can become

Nodal Points can develop the multi- the basis for the development of

modal transport system to deliver Micro, Small & Medium Enterprises

supplies everywhere in the country. in the country. This in turn can

revive the falling economy.


7. National Capital Region (NCR)

and Delhi city 9. Conclusion


This chapter helps us understand This system analyses the effect of

that NCR-Delhi is a vast area, Multi-modal National Goods

densely populated with uneven Transport Network System on the

development. Later we will study Inter-state Transport Agencies, E-

that the door-to-door delivery and commerce traders, MSMEs,

pickup system at cheap and fast economy, society, employment and

rate in the city can bring Balanced environment.

Regional Growth in the city.

Epilogue - A New Beginning

Restoring Supply Chain - The Lifeline of Economy 3 Sudhir Jain


PREFACE
The Fall and the Rise of Economy in the World 2020

We are living in a

extraordinary time.

The Fall of Economy 1. The Year 2020 has brought a

Pandemic in the form of COVID-


1. A defination in the Wikipedia states 19 Coronavirus disease, which is
that the economic collapse is any of highly contagious and is spreading
a broad range of bad economic globally at a very fast rate.
conditions, ranging from a severe, 2. There are no specific antiviral
prolonged depression with high medications approved for COVID-
bankruptcy rates and high 19, but development efforts are
unemployment (such as the Great underway, including testing of
Depression of the 1930s), to a existing medications.
breakdown in normal commerce 3. All the countries in the world had
caused by hyperinflation (such as in declared Medical Emergency and
Weimar Germany in the 1920s), or trying Social Distancing to avoid the
even an economically caused sharp spread of the disease.
rise in the death rate and perhaps 4. However, the virus has reached the
even a decline in population (such stage of community spread in large
as in countries of the former USSR parts of the world. This means that
in the 1990s). the virus is spreading within
2. O f t e n economic collapse is communities, and some community
accompanied by social chaos, civil members don't know where or how
unrest and a breakdown of law and they were infected.
order. 5. The coronavirus outbreak has been
----------------------------------------- blamed for several instances of

Restoring Supply Chain - The Lifeline of Economy 4 Sudhir Jain


supply shortages, stemming from points, the largest one-day drop

globally increased usage of since the financial crisis of

equipment to fight the outbreaks, 2007–08. All three indexes ended

and disruption to factory and the week down more than 10%.

logistic operations. Several Stocks plunged again based on

localities also witnessed panic coronavirus fears, the largest fall

buying that led to shelves being being on 16 March 2020. Many

cleared of grocery essentials such consider an economic recession to

as food, toilet paper, and bottled be likely.

water, inducing supply shortages. 8. In January and February 2020,

6. The viral outbreak has been seen to during the height of the epidemic in

pose a major destabilizing threat to Wuhan, about 5 million people in

the global economy. One estimate China lost their jobs.

from an expert at Washington 9. Nearly 17 million Americans lost

University in St. Louis gave a their jobs and applied for

$300+ billion impact on the world's government aid.

supply chain that could last up to 10. The lockdown in India has left tens

two years. Global stock markets fell of millions of Indian migrant

on 24 February due to a significant workers (who are paid through

rise in the number of COVID-19 daily wages) unemployed.

cases outside mainland China. 11. Nearly 900,000 workers lost their

7. On 27 February, due to mounting jobs in Spain since it went into

worries about the coronavirus lockdown in mid-March 2020.

outbreak, various U.S. stock 12. During the second half of March, 4

indexes including the NASDAQ- million French workers applied for

100, the S&P 500 Index, and the temporary unemployment benefits

Dow Jones Industrial Average and 1 million British workers

posted their sharpest falls since applied for a universal credit

2008, with the Dow falling 1,191 scheme.

----------------------------------------
Restoring Supply Chain - The Lifeline of Economy 5 Sudhir Jain
Reviving the Economy development of the country and

plays a significant role in promoting

1. The fight against coronavirus national and global integration.

shows that how fragile our world 6. An efficient transport helps in

economy is. Today reviving the increasing productivity and

economy needs Out of the Box enhances competitiveness of the

Thinking. economy. Efficient transport is

2. The economy can be stabilized if the indispensable to the economic

Micro, Small and Medium development of nation.

Enterprises (MSME) become the 7. There are various modes of

bases for Large Enterprises. But the t ra n s p o r t that include road

problem is that MSMEs are transport, rail transport, water

scattered in the whole country and transport, and air transport.

are engaged in diverse activities. 8. Different types of transport

3. The idea is to reorganize Supply network can be developed and

Chain system so that Small, Micro integrated into a large multi-modal

Medium size Supplies (Raw Material transport system. The entire

and Finished Goods) can be process can be build and operated

delivered everywhere in the by the MSMEs, whereby each unit is

country at fast and cheap manner. working independently yet helping

4. The process will help to connect one the other to manage a large volume

MSME with the other and develop a of deliveries in all the directions.

chain of activities which will employ 9. Though the implementation of the

skilled and unskilled labour to idea seems diverse and difficult,

perform various activities. the process of developing the

5. Transport plays an important role in Multi-Modal National Goods

today’s modern world. It helps in Transport Network System is

removing the distance barrier. An very easy and can be developed

efficient transport system is by the Central Government of a

essential for sustainable economic country in a very little time

Restoring Supply Chain - The Lifeline of Economy 6 Sudhir Jain


without the investment of at fast and cheap rate everywhere

public money. in the country and beyond.

10. The Chapter 8 of this presentation 12. Any country of the World can

explains the process in detail in develop these Transport Network

context of developing two types of System in their country in a very

Goods Transport Network System in little time without spending public

India - money.

1. T h e Interstate Goods -----------------------------------------

Transport Network System Reviving the Economy by

on the National Highways to developing Transport Network

exchange interstate deliveries & System is the First Part of the

2. The City Goods Transport Series.

Network System in Delhi-

NCR to develop door-to-door It is possible that the Coronavirus

delivery and pickup facility in the Pandemic may cause Economic

city. The City Goods Transport Depression in the whole world

Network System can be because of the falling Stock Market,

developed in any other city of the Huge National Deficit due to

country though the size of the Medical Emergency and boosting

operation will differ from city to funds to revive e c o n o m y,

city. widespread Currency Fluctuations,

11. The Railway, Airway and Waterway and failing Banks.

Goods Transport Network System In that condition, a Land and

can also be developed to transport Financial Reform in the whole world

Interstate and foreign supplies. can create a socio-economic order

Thereafter the diverse Network which can sustain by itself. The

Systems can be integrated with the Second Part of the Presentation

Road to develop multi-modal deals with the idea of -

national goods transport network Social Harmony and


system to deliver all types of goods Economic Freedom.
Restoring Supply Chain - The Lifeline of Economy 7 Sudhir Jain
DESPERATE TIMES - DESPERATE MEASURES

Part 1 : Restoring Supply Chain - The Lifeline of Economy

Chapter 1 -
Blindsided: How Coronavirus Felled
the Global Economy in 100 Days.

A singular event has economists outbreak was traced to a novel

asking the same questions as strain of coronavirus, which was

everyone else: how far is there to given the interim name 2019-nCoV

fall – and can we ever get back? by the World Health Organization

(WHO), later renamed SARS-CoV-2

1. Coronaviruses are a group of by the International Committee on

related viruses that cause diseases Taxonomy of Viruses.

in mammals and birds. In humans, 3. As of 11 April 2020, there have

coronaviruses cause respiratory been at least 102,669 confirmed

tract infections that can range from deaths and more than 1,696,139

mild to lethal. Mild illnesses include confirmed cases in the coronavirus

some cases of the common cold pneumonia pandemic.

(which has other possible causes, 4. The global economy is in a state of

predominantly rhinoviruses), while paralysis, there has been a massive

more lethal varieties can cause expansion in the size of the state,

SARS, MERS, and COVID-19. and questions are being asked

2. In December 2019, a pneumonia about whether global capitalism will

outbreak was reported in Wuhan, ever be the same again.

China. On 31 December 2019, the 5. Alistair Darling was the UK’s

Restoring Supply Chain - The Lifeline of Economy 8 Sudhir Jain


chancellor of the exchequer during bad or worse” than in 2008.

the 2008 financial crisis and he 7. There are fears of a new debt crisis

knows how easy it is for in Africa and for the future of the

governments to be overtaken by European Union, where the initial

events. “It was happening in China response of member states has

and we didn’t do much about it. been to close borders and for each

People thought this would be the to look after their own citizens. An

last thing that would come and get already underperforming Italy is

us.” seeking help from EU partners as it

6. Yet it did, and the scary health struggles to cope with the rising

numbers have been joined by some cost of its lockdown.

scary economic numbers. The 8. Across the English Channel in

collapse has been instantaneous, Britain, there were four big

swifter than during the Great spending announcements within

Depression. As late as mid March, three weeks in an attempt to shield

around 200,000 Americans were businesses and consumers from an

filing jobless claims each week. In unprecedented drop in activity.

the last week of March that figure 9. The UK went into the crisis with a

shot up to more than 3 million and chancellor of the exchequer, Rishi

the following week it doubled to Sunak, who had been in office for a

6.87 million. A further 6.6 million month, and a new Bank of England

filed claims the week after that – governor, Andrew Bailey, who took

taking the total to more than 16 up his post in the middle of March

million in three weeks. with the markets in chaos, official

7. But it is not just America. More than interest rates at their lowest ever –

80 emerging market economies are just 0.1% – and Threadneedle

now seeking help from the Street down to a skeleton staff.

International Monetary Fund, 10. Central banks and finance

which is warning of a recession “as ministries have been battle-

Restoring Supply Chain - The Lifeline of Economy 9 Sudhir Jain


hardened by 2008, when the global of oil at a time when planes are

banking system came within a few sitting idly at airports and there are

hours of going under. The solution no cars on the streets.

back then was relatively simple: 14. “We need leaders to come together

bail out the banks, unblock the and say international cooperation

financial system, get lending matters to deal with what is both a

going again, reflate the global medical and economic

economy. problem,” Brown said. But outside

11. In 2020 the dual nature of the of central banks, nobody is really

crisis – a global pandemic listening.

together with an economic 15. Against this backdrop, the

collapse – makes things far more stimulus plans conjured up by

complicated. governments – and there are plenty

12. Gordon Brown, who took the lead of them – are expensive

during the 2008 financial crisis, put palliatives, not cures. The UK

it this way: “The more you government broke new ground by

intervene to deal with the medical subsidising the wages of workers to

emergency the more you put the prevent them being made

economy at risk.” redundant, by providing support for

13. Brown’s task was also made easier the self-employed and by agreeing

because in 2008 the world’s biggest to underwrite loans to businesses

economies agreed a co-ordinated threatened with collapse.

response to the crisis. In 2020, very 16. But for many it will still not be

little of the spirit of 2008 remains. enough, and with little hard

Trump’s “America first” approach is evidence to go on and no real

now the template for strongman inkling of how long the lockdown

leaders around the globe. There is a will be in place, thinktanks such as

row between Saudi Arabia and the Institute for Fiscal Studies can

Russia which has resulted in a glut only hazard a guess at how much it

Restoring Supply Chain - The Lifeline of Economy 10 Sudhir Jain


In 100 days, the Covid-19 Pandemic

has Paralysed the Global Economy

will cost. wartime: 100% of gross domestic

17. A budget deficit of £200bn – product, perhaps higher, depending

around 10% of national output – in on the length of the lockdown.

the current financial year, even with 18. Donald Trump has pushed a $2.2tn

a relatively short shutdown, is the stimulus package through

IFS’s estimate. Debt is set to soar to Congress. Germany has abandoned

levels normally only seen in its hardline opposition to running

Restoring Supply Chain - The Lifeline of Economy 11 Sudhir Jain


budget deficits. Central banks have numbers are mindboggling, but in a

turned the electronic money- way the pictures of Times Square in

printing presses back on. Yet labour New York City and St Mark’s Square

market experts such as Danny in Venice tell the story better:

Blanchflower, a former Bank of normal life has ceased. It is like

England interest-rate setter, still something out of a science fiction

predict that almost a third of movie.

Americans will end up jobless, 21. The sense of unreality is

worse even than in the early 1930s. heightened by the speed at which

19. Governments say they are waging the crisis has unfolded.

war against Covid-19 but the 22. Wa l l Street had become

metaphor is not quite right. In conditioned to take every drop in

wartime, economies work flat out to share prices as a reason to pile into

provide the military hardware the market, safe in the knowledge

needed for victory. This time shops, that the Federal Reserve would ride

restaurants, gyms, hotels, bars, to the rescue if things started to

coffee shops have all closed their look rough. El-Erian said the

doors because people have been markets would regret “buying on

instructed to stay at home. Big the dip” this time and was proved

sporting events – Wimbledon, the 100% right. Shares have had their

Masters, the Olympics – have been biggest quarterly falls since the

called off. Forecasts of the looming financial crisis of 2008.

drop in output have just got bigger 23. As the 100th day of Covid-19

and bigger. approaches, concerted action by

20. JP Morgan says Chinese GDP might central banks has quietened

have contracted by 40% in the first markets down a little and attention

three months of 2020. Morgan is now shifting to two questions:

Stanley pencils in a 30% drop in US how big will the economic

output in the second quarter. The damage be; and how long will

Restoring Supply Chain - The Lifeline of Economy 12 Sudhir Jain


countries continue to be locked mood of consumers remains

down? cautious. Forecasters have started

23. A screen at a South Korean bank to talk about a steep downturn

shows a now-familiar downward followed by a slow – and perhaps

trend. Early on, some economists uneven – recovery.

had dared to hope for a V-shaped 27. This looks much more plausible.

rebound worldwide. Governments are going to be wary

24. In the early stages of the market of the virus coming back.

panic – from late February to early Consumers and businesses are

March – the assumption was that going to take time to get over the

the pain would be intense but shock. It will take some time before

relatively short. Activity would many people feel safe to travel

plunge but then rebound just as abroad. There may be deeper

quickly. This, though, presupposed changes too: more working from

that the lockdowns would be only home, a further blow to high-street

temporary and that no real retailers. As yet little attention has

permanent damage would be done. been paid to how all the extra

25. Now the chances of a V-shaped government spending will be paid

recession look less likely. Even from for.

the small amounts of data available 28. Aware of the mounting costs,

it is obvious economies are in the governments are desperate to get

middle of a collapse unprecedented their countries back to work. This

in modern times. especially applies in the US, where

26. What is unclear now is how fast the need to avoid a second Great

they will recover. China is coming Depression obsesses US politicians,

out of lockdown, and some especially those – like Trump –

European countries such as Austria imminently up for re-election. But

are planning to do the same, but even in the US, it is clear it will take

restrictions remain in place and the time for life to return to normal.

Restoring Supply Chain - The Lifeline of Economy 13 Sudhir Jain


29. As Dr Anthony Fauci, the director

of the National Institute of Allergy

and Infectious Diseases, puts it:

“You’ve got to be realistic, and

you’ve got to understand that you

don’t make the timeline, the

virus makes the timeline.”


31. Supply chains have also been
--------------------------------------
put under stress with the lockdown
Economic Impact of
restrictions in place and lack of
Coronavirus Pandemic clarity in streamlining what is an

in India "essential" and what isn't. Those in

informal sectors or daily wage

30. The Prime Minister Shri groups are the most at risk. A large

Narendra Modi had called for number of farmers around the

Lockout in India. The Indian country who grow perishables are

economy is expected to lose over Rs also facing uncertainty.

32,000 crore (US$4.5 billion) 32. In the third week of March,

everyday during the 21 day Amazon and Walmart-owned

lockdown following the coronavirus Flipkart announced that it would

outbreak in India. Up to 53% of stop sale of non-essential items in

businesses in the country will be India so that it could focus on

affected due to COVID-19. Various essential deliveries. Other fast-

businesses such as hotels and moving consumer goods

airlines are cutting salaries and companies in the country have

laying off employees. The live significantly reduced operations

events industry has seen an and are focusing on essentials.

estimated loss of Rs 3,000 crore Major companies in India such as

(US$420 million). Larsen and Toubro, Bharat Forge,

U l t r a Te c h Cement, Grasim

Restoring Supply Chain - The Lifeline of Economy 14 Sudhir Jain


Industries, Aditya Birla Group, Tata Bank approved $1 bn in support to

Motors and Thermax have India to tackle the coronavirus

temporarily suspended or pandemic. On 3 April the central

significantly reduced operations. government released more funds to

iPhone producing companies in the states for tackling the

India have also suspended a coronavirus totalling to Rs 28,379

majority of operations. Young crore (US$4.0 billion).

startups have been impacted as

funding has fallen. Stock markets in Supply chains and logistics


India posted their worst loses in

history on 23 March 2020. 34. Following the lockdown certain


33. The Government of India has essential supply chains broke
announced a variety of measures to down. Britannia Industries,
tackle the situation, from food supporting the lockdown, urged the
security and extra funds for government to ensure inter-state
healthcare, to sector related movement of the raw material for
incentives and tax deadline the food processing industry was
extensions. On 27 March the not hampered. The Managing
Reserve Bank of India also Director of Britannia stated that "if
announced a number of measures even one link in the supply chain is
which would make available Rs broken, the country could run out of
374,000 crore (US$52 billion) to stocks of packaged food in the next
the country's financial system. On 7-10 days." Although inter-state
29 March the government allowed travel has been banned, it doesn't
the movement of all essential as apply to essentials, and in places
well as non-essential goods during like Maharashtra the state police is
the lockdown. On 1 April, World yet to streamline the process,

Restoring Supply Chain - The Lifeline of Economy 15 Sudhir Jain


causing a disruption to supply the whole purpose of social

chains. Vidya Krishnan writes in distancing was defeated.

The Atlantic that due to the 36. Soon after a central government

lockdown even movement of directive in late March, state

medical goods were affected. governments set up 21,000 camps

6. On 29 March the government to house over 660,000 migrants

allowed the movement of all and stop the exodus. Delhi

essential as well as non-essential government is providing free food

goods across the country during the to 400,000 people every day. Over

lockdown. The milk and newspaper 500 hunger relief centres have been

supply chains are also allowed to set by the Delhi government.

function.

Lockdown extension
Migrant workers and

labour force 37. On 8 April 2020, the managing

director of Bajaj Auto, Rajiv Bajaj,

35. Due to the lockdown, there wrote in an opinion piece in the

suddenly was no work for many Economic Times that the "lockdown

daily workers (the urban poor and makes India weak rather than

migrant labourers). At the same stronger in combating the

time the lockdown restrictions put a epidemic," and that the current

stop on the movement of buses and "arbitrary" lockdown was totally

trains. Large numbers of migrant unsustainable and a "recalibration"

workers ended up walking back to is needed. Rajiv Bajaj writes that

there villages, some journeys "India may have to sell itself out of

hundreds of kilometers long. the coronavirus crisis"

Commentators commented on how

Restoring Supply Chain - The Lifeline of Economy 16 Sudhir Jain


Chapter 2 -
Economic Recession and Depression

Recession

1. In economics, a recession is a

business cycle contraction when

there is a general decline in

economic activity. Recessions


2. Governments usually respond to
generally occur when there is a
recessions by adopting
widespread drop in spending (an
expansionary macroeconomic
adverse demand shock). This may
policies, such as increasing money
be triggered by various events,
supply or increasing government
such as a financial crisis, an
spending and decreasing taxation.
external trade shock, an adverse
3. A recession has many attributes
supply shock, a pandemic or the
that can occur simultaneously and
bursting of an economic bubble. In
includes declines in component
the United States, it is defined as "a
measures of economic activity
significant decline in economic
(GDP) such as consumption,
activity spread across the market,
investment, government spending,
lasting more than a few months,
and net export activity. These
normally visible in real GDP, real
summary measures reflect
income, employment, industrial
underlying drivers such as
production, and wholesale-retail
employment levels and skills,
sales". In the United Kingdom, it is
household savings rates, corporate
defined as a negative economic
investment decisions, interest
growth for two c o n s e c u t i ve
rates, demographics, and
quarters.

Restoring Supply Chain - The Lifeline of Economy 17 Sudhir Jain


government policies.

4. Economist Richard C. Koo wrote

that under ideal conditions, a

country's economy should have the

household sector as net savers and

the corporate sector as net

borrowers, with the government

budget nearly balanced and net


Economic Depression
exports near zero. When these

relationships become imbalanced,


1. In economics, a depression is a
recession can develop within the
sustained, long-term downturn in
country or create pressure for
economic activity in one or more
recession in another country. Policy
economies.
responses are often designed to
2. It is a more severe economic
drive the economy back towards
downturn than a recession, which is
this ideal state of balance.
a slowdown in economic activity
5. A severe (GDP down by 10%) or
over the course of a normal
prolonged (three or four years)
business cycle.
recession is referred to as an
3. Depressions are characterized by
economic depression, although
their length, by abnormally large
some argue that their causes and
increases in unemployment, falls in
cures can be different. As an
the availability of credit (often due
informal shorthand, economists
to some form of banking or financial
sometimes refer to different
crisis), shrinking output as buyers
recession shapes, such as V-
dry up and suppliers cut back on
shaped, U-shaped, L-shaped and
production and investment, more
W-shaped recessions.
bankruptcies including sovereign

Restoring Supply Chain - The Lifeline of Economy 18 Sudhir Jain


debt defaults, significantly reduced 6. The Great Depression of the 1930s

amounts of trade and commerce affected most national economies

(especially international trade), as in the world. This depression is

well as highly volatile relative generally considered to have begun

currency value fluctuations (often with the Wall Street Crash of 1929,

due to currency devaluations). and the crisis quickly spread to

Price deflation, financial crises, other national economies. Between

stock market crash, and bank 1929 and 1933, the gross national

failures are also common elements product of the United States

of a depression that do not normally decreased by 33% while the rate of

occur during a recession. unemployment increased to 25%

4. G e n e r a l l y, periods labeled (with industrial unemployment

depressions are marked by a alone rising to approximately 35%

substantial and sustained shortfall – U.S. employment was still over

of the ability to purchase goods 25% agricultural).

relative to the amount that could be 7. A long-term effect of the Great

produced using current resources Depression was the departure of

and technology (potential output). every major currency from the gold

5. Another proposed definition of standard, although the initial

depression includes two general impetus for this was World War II.

rules: 8. The Wall Street Crash had a major

1. a decline in real GDP exceeding impact on the U.S. and world

10%, or economy, and it has been the

2. a recession lasting 2 or more source of intense academic

years. historical, economic, and political

debate from its aftermath until the

present day. Some people believed

that abuses by utility holding

Restoring Supply Chain - The Lifeline of Economy 19 Sudhir Jain


companies contributed to the Wall 11. However, the psychological

Street Crash of 1929 and the effects of the crash reverberated

Depression that followed. Many across the nation as businesses

people blamed the crash on became aware of the difficulties in

commercial banks that were too securing capital market

eager to put deposits at risk on the investments for new projects and

stock market. expansions. Business uncertainty

9. In 1930, 1,352 banks held more naturally affects job security for

than $853 million in deposits; in employees, and as the American

1931, one year later, 2,294 banks worker (the consumer) faced

went down with nearly $1.7 billion uncertainty with regards to income,

in deposits. Many businesses failed n a t u ra l l y the propensity to

(28,285 failures and a daily rate of consume declined. The decline in

133 in 1931). stock prices caused bankruptcies &

10. The crash instigated widespread severe macroeconomic difficulties,

and long-lasting consequences for including contraction of credit,

the United States. Historians still business closures, firing of

debate whether the 1929 crash workers, bank failures, decline of

sparked the Great Depression or if it the money supply, and other

merely coincided with the bursting economically depressing events.

of a loose credit-inspired economic 12. The resultant rise of mass

bubble. Only 16% of American unemployment is seen as a result of

households were invested in the the crash, although the crash is by

stock market within the United no means the sole event that

States during the period leading up contributed to the depression. The

to this depression, suggesting that Wall Street Crash is usually seen as

the crash carried somewhat less of having the greatest impact on the

a weight in causing it. events that followed and therefore

Restoring Supply Chain - The Lifeline of Economy 20 Sudhir Jain


is widely regarded as signaling the 14. It is too early to debate about the

downward economic slide that effect of coronavirus on the World

initiated the Great Depression. True Economy. But we can no longer

or not, the consequences were dire ignore the fear that the World is

fo r al mo s t everyb o d y. Mo s t heading toward Global Recession

academic experts agree on one and Global Depression.

aspect of the crash: It wiped out 15. The effect of Global catastrophe

billions of dollars of wealth in one can be minimised by Thinking Out

d a y, and this immediately of the Box Solution.

depressed consumer buying. 16. I will discuss about the solution in

13. The failure set off a worldwide context with India. The solution is

run on US gold deposits (i.e. the easy and can be implemented in

dollar), and forced the Federal any country of the world.

Reserve to raise interest rates into

the slump. Some 4,000 banks and

other lenders ultimately failed.

Restoring Supply Chain - The Lifeline of Economy 21 Sudhir Jain


Chapter 3 -
A Small Step to make a BIG Difference
Out of the Box Thinking

1. The Year 2020 has brought a 4. Unfortunately, the present system

Pandemic in the form of COVID- of transporting goods is carried out

19 Coronavirus disease, which is by set of numerous unorganized

highly contagious and is spreading work sector which presently cannot

globally at a very fast rate. work due to lockout and hence is

2. Our Prime Minister, Shri Narendra unable to restore the supply chain.

Modi called for LOCKOUT in the 5. The labourers had left their work

entire country to isolate the place in cities and returned to their

infected people. home town and villages due to

3. In the process, the supply chain has lockout and may not return

been broken and it is becoming immediately even if the

difficult to transport goods from government decide to lift the

farm to each household in the lockout.

country. This will result into acute 6. So the supply chain will remain

shortage of essential commodities effected and will take a long time to

if the supply chain is not restored operate to its full extent.

immediately.

Restoring Supply Chain - The Lifeline of Economy 22 Sudhir Jain


7. However, a new organized supply India would require a new set of

chain system can be developed to Goods Transport Network System,

manage transportation of micro, which can be divided into-

small and medium scale deliveries

to boost the trade by Micro, Small, 1. Interstate Goods Transport

Medium Enterprises (MSME). Network System (IGTNS) - A

8. The MSME are scattered all over the series of Transport Depots along

country, engaged in different types the National Highway at the

of activities and have diverse Transport Nodal Points, will develop

transportation need. the Interstate Goods Transport

9. The Goods Transport Network Network System to deliver all types

System developed by the Central of goods at cheap and fast rate in

Government can arrange pickup the entire country.

from each and every enterprises

anywhere in the country and deliver 2. City Goods Transport Network

to any enterprises or the household System (CGTNS) - The Interstate

to complete the deliveries. Goods Transport System will bring

the cargo to a city but will not

10. Fortunately, the Solution is deliver it in the city. The City Goods

Easy and can be Developed in Transport Network System will

Very Little Time in the Entire arrange the pick up and delivery of

Country - Without Investment the products in the city.

of Public Money.

Restoring Supply Chain - The Lifeline of Economy 23 Sudhir Jain


In this presentation, we will Let us study the example, where

study Delhi-NCR Goods Transport by Mahesh, a trader in Agra utilized the

Network System to understand the services of Network System developed

pickup and delivery system in Delhi by the Central Government to

city. transport goods to Rakesh, another

It should be noted that it does trader in Chandigarh. Agra is situated

not replace the exiting system but along NH-19 and Chandigarh is

builds an alternative way to provide situated along the NH-44. NH-19 and

fast and cheap transport facility of NH-44 meets at Delhi.

all types of goods in the country. Mahesh placed an order to

arrange a pickup for the delivery of a

packet to Rakesh. The Agra City

Network System picked the delivery

and deliver it to the Interstate Delivery

System in Agra. The packet passed

from Agra, to Delhi and finally to

Chandigarh. Thereafter the

Chandigarh City Network System

delivered the packet to Rakesh to

complete the transaction.

Restoring Supply Chain - The Lifeline of Economy 24 Sudhir Jain


Chapter 4 -
MSME The Growth Engine of New India

Introduction Importance of MSMEs

for Indian Economy


1. Worldwide, MSMEs have been

accepted as the engine of economic 5. Employment: It is the second


growth and for promoting equitable largest employment generating
development. sector after agriculture. It provides
2. They constitute over 90% of total employment to around 120 million
enterprises in most of the persons in India.
economies and are credited with 6. Contribution to GDP: With around
generating the highest rates of 36.1 million units throughout the
employment growth. geographical expanse of the
3. With low investment requirements, country, MSMEs contribute around
operational flexibility and the 6.11% of the manufacturing GDP
capacity to develop appropriate and 24.63% of the GDP from
indigenous technology, SMEs have service activities.
the power to propel India to new 7. MSME ministry has set a target to
heights. up its contribution to GDP to 50%
4. Hence, it seems like there is a silent by 2025 as India becomes a $5
revolution happening in India trillion economy.
powered by MSMEs.

Restoring Supply Chain - The Lifeline of Economy 25 Sudhir Jain


8. Exports: It contributes around MSME redefined
45% of the overall exports from

India. 14. The Micro, Small and Medium


9. I n c l u s i v e growth: MSMEs Enterprises Development
promote inclusive growth by (Amendment) Bill, 2018 proposes
providing employment to reclassify all MSMEs, whether
opportunities in rural areas they are manufacturing or service-
especially to people belonging to providing enterprises, on the basis
weaker sections of the society. of their annual turnover -
10. For example: Khadi and Village Micro (less than 5 crore),
industries require low per capita Small (5 - 75 crore),
investment and employs a large Medium (75 - 250 crore).
number of women in rural areas.

11. Financial inclusion: Small Factors which led


industries and retail businesses in
to growth of MSMEs
tier-II and tier-III cities create

opportunities for people to use


15. Campaigns like Skill India, Startup
banking services and products.
India, Digital India and Make in
12. Promote innovation: It provides
India aim to provide MSME players
opportunity for budding
with a level playing field and a
entrepreneurs to build creative
definitive push towards enhanced
products boosting business
productivity.
competition and fuels growth.
16. Digitization: Increasing internet
13. Thus, Indian MSME sector is the
penetration, customer’s
backbone of the national economic
familiarization with digital
structure and acts as a bulwark for
payments fuelled by B2C
Indian e c o n o m y, providing
ecommerce players facilitate MSME
resilience to ward off global
sector growth.
economic shocks and adversities.

Restoring Supply Chain - The Lifeline of Economy 26 Sudhir Jain


17. Tie-ups with new-age non-banking International Experiences
finance (FinTech) companies

allowed access to timely collateral 19. According to World Bank, formal


free finance to MSMEs. SMEs contribute up to 60% of total
18. Changing employment employment and up to 40% of
patterns: Younger generation national income (GDP) in emerging
shifting from agriculture towards economies.
entrepreneurial activities creating 20. 600 million jobs will be needed in
job prospects for others. the next 15 years to absorb the

growing global workforce, mainly in

Asia and Sub-Saharan Africa. In

emerging markets, most formal

jobs are generated by SMEs, which

also create 4 out of 5 new positions.

21. However, access to credit remains

a major problem to the MSME

sector globally.

Restoring Supply Chain - The Lifeline of Economy 27 Sudhir Jain


Chapter 5 -
Transportation in India

Meaning of Transportation: 4. Transportation is the foundation

stone of economic infrastructure. It

1. It has been aptly remarked by Dr. helps in the development of trade,

Marshall, “Most effective economic commerce and industry.

fact of our times is not the 5. Tra n s p o r t a t i o n removes the

development of manufacturing hindrance of place and facilitates

industries but that of the transport the movement of goods from

services.” producers to consumers. It also

2. It is clear that the property of a helps in removing regional

country does not depend on the inequalities.

d e ve l o p m e n t of agriculture, 6. If agriculture and industries are

industry and mines alone but also supposed to be the body of the

on the development of means of country, transportation may be said

transport. to be the nerves and veins of the

3. Transport system of a country economy. However, following

refers to the different means which points highlights its significance:

carry men and material from one

place to the other.

Restoring Supply Chain - The Lifeline of Economy 28 Sudhir Jain


A. Economic Benefits: 3. Reduction in Scarcity:

It helps in solving the problem of

1. Better Production in both scarcity of goods and factors in

Agriculture and Industrial different regions of the country.

Sectors:

Transport system has helped in the 4. Growth in Foreign Trade:

growth in industrial and agricultural It helps in promoting foreign trade

production. It has been of the country. A country’s exports /

transporting raw materials and imports cannot develop without

labour to the places of production good parts, shipping and cargo

and by carrying the products facilities. Thus, Transportation

produced by these sectors to system makes a network for

different parts of the country and transactions among different

other countries of the world. regions as well as with other

countries.

2. Reduction in Cost

of Production: 5. Specialization of Labour and

The transportation network Mobilization of Resources:

reduces the cost of manufactured By efficient and effective

goods and lowers the price in the transportation system, the benefits

markets. of specialization of labour and

Restoring Supply Chain - The Lifeline of Economy 29 Sudhir Jain


B. Social Benefits:

1. More Employment

Opportunities:

Tr a n s p o r t helps to create

employment opportunities and

proper mobilization can be thus, it provides employment

achieved. Thus, an economic through helping mobility of

system makes the best use of workers. About 18 lakhs people are

resources through good transport employed in Indian railways. In the

system. same way, lakhs of people are

employed in roadways, shipping

6. Promotion of Tourism: and air transport.

An ideal transportation promotes

tourism system or services all over 2. Education Expansion:

the country. Developed means of transport

helps in the expansion of education

7. Expands the Market: even in remote areas of the

Markets for both industrial and country. It provides mobility to

agricultural produce expand both teachers, students and teaching

on the domestic and international aids. Means of transport are the

front with the expansion of source of advertisement also. In

transport network. For example, this way, they also help in

through the expansion of road, rail expanding education.

and water transport, it got good

success making links between 3. Social and Cultural Spirit:

different parts of the country and Means of transport brings together

with other countries of the world. persons living at different corners

of the country. They exchange their

Restoring Supply Chain - The Lifeline of Economy 30 Sudhir Jain


views. They have the common

problems, because of their living

together. Consequently social and

cultural unity emerges. Thus,

developed means of transportation

are also responsible for

international brotherhood.

4. Higher Standard of Living:

Tr a n s p o r t a t i o n has reduced Road Transport:


distance. As a result, we enjoy the

position to use various varieties of 1. Next to railways, road transport


things produced in different corners plays a pivot role in the country’s
of the world. These standard transport system. Besides the fact-
commodities increase our standard that social and economic progress
living which depends upon goods of the country depends on the
and services, we consume. development of road, there is also a

significant link of bringing about


5. Relationship between Villages the sentimental integration of the
and Cities: common masses.
Means of transport has reduced 2. In the words of Benthan “roads are
distance between villages and the veins and arteries of a country
cities. Men and materials move through whose channels every
from villages to cities and from improvement takes circulation.”
cities to villages. Villagers can now Infact, roads reaches the door
avail of the employment steps.
opportunities available in cities.

Villages, in close contact of cities

develop faster.

Restoring Supply Chain - The Lifeline of Economy 31 Sudhir Jain


Classification of Roads: Advantages of

Road Transport:
Roads in India have been

classified into following: 1. Extension of Agriculture is

1. National Highways: Possible:

These refer to the main roads which There are many areas in the

connect the state, capitals, ports country lacking efficient means of

and big cities. Constructions and transport. But these are fit for

maintenance of these roads are the growing all types of crops including

responsibility of Centre Govt. cash crops. According to “Indian

2. State Highways: Road and Transport Development

These are the main roads of the Institute”, by extending roads to

state. These connect the capital the rural areas, it is possible to

and the cities of the state. increase cultivable area by 25


3. District Roads: percent.
These roads connect district man-

dies and production areas. These 2. P r o d u c t i o n of Perishable

are maintained by District Boards. Goods:


4. Village Roads: According to Road Re− organisation
These roads connect the villages Committee’s Report, road-system
with district roads. encourages the sale of such
5. Border Roads: perishable goods as vegetable,
These roads are constructed with fruits, milk, butter, etc. in the wide
the help of Border Road markets where from the farmer
Organisation. This organisation has returns with the knowledge of
constructed 18,500 kms long fertilisers, implements and
border roads. improved methods of agricultural

production.

Restoring Supply Chain - The Lifeline of Economy 32 Sudhir Jain


3. Advantage of Industries: 7. Saving of Time and Cost:

Industries are also benefitted from Goods in small quantity can be

the development of roads. It is transported daily through quick

through roads that raw materials means of road transport whereas,

reach the factories and finished the railway department waits till

products of the consumers. they book full-wagon load of goods.

8. Small Units:

4. Employment: As against railways, road transport

Road transport provides service is performed through small

employment to large number of units, like trucks, tempos etc. Thus

people. According to Road not much capital is needed to buy

Tr a n s p o r t Development these vehicles.

Committee, an outlay of Rs. 3,500 9. Personal Service:

crore on roads can generate Personal service is another special

employment for 170 lakh persons. feature of road transport which is

made possible because of small

5. Less Capital: units.

Roads need less capital than the 10. Multi-purpose Tendency:

railways. Countries facing shortage Roads are not built for specific

of capital have added importance of vehicles. Different types of vehicles

road development. can be pressed into service. Roads

can be used by bullock-cart,

6. Flexibility: tongas, rickshaws, cycles, motors


It is a most flexible means of etc., whereas rail-tracks are meant
transport. Motor vehicles can run only for railway trains. Similarly,
not only between two places but water and air-transport are also
also from one door to the other. meant for special type of vehicles.

Restoring Supply Chain - The Lifeline of Economy 33 Sudhir Jain


Problems of Road Transport: transport. As such, motor transport

faces lot of difficulties. The states

1. Inadequate Roads: should pursue a coordinated policy

Roads are bad and inadequate in in this matter.

India. There are 34 km long roads 5. Less Roads in Rural Areas:

per 100 sq. km area in India while in Sixty percent of villages are without

Japan 270 km and in West Germany roads in India. It adversely affects

167 km long roads per 100 sq. km our agriculture and rural economy.

area are there. Government should Government should develop roads

spend more on the development of speedily in rural areas.

roads. 6. Lack of Guest Houses:

2. Heavy Taxes: There is lack of great houses and

There is heavy tax burden on motor hotels along the roadside in India.

transport in India. Tax burden per More guest houses should be built

motor vehicle in India is Rs. 3500 along the roads sides, so that

while in America it is Rs. 860 and in people may undertake long road

Britain Rs. 470. This tax burden journeys easily.

should be lowered. 7. Inefficient Management and

3. No proper Maintenance: Services:

Roads are not maintained properly According to ‘Road Transport Re-

in India. Less than 0.1 percent of organisation Committee’, 90

the national income is spent on the percent of the operators are small

maintenance of roads in India, operators owning five vehicles or

while in Japan it is 3 percent of the less. Owing to this small number,

national income. satisfactory and efficient service is

4. Lack of Co-ordination: not being provided to the people.

There is little co-operation and 8. Rising Prices of Petrol/Diesel:

co− ordination among different Due to high prices of petroleum

states with regard to motor products and diesel operational

Restoring Supply Chain - The Lifeline of Economy 34 Sudhir Jain


costs of road transport are rising 2. The length of state highway was

and making the mode of transport around 137.9 thousand km in

more costlier. 1998-99 against 56.8 thousand km

9. U n d i s c i p l i n e d Driving and in 1970-71. The number of

Accidents: registered vehicles was 306

Most of the drivers on the roads are thousand in 1950-51, 21,374

unskilled and untrained. They also thousand in 1990-91 and 48,393

drink alcohol while driving. As such, thousand in 1997-00. Out of it,

road accidents are more frequent in number of good vehicles was 2,681

India. thousand and buses was of 559


10. Bad Conditions of Road: thousand in 1999-00 against 82
In India, roads are not well- thousand and 34 thousand
maintained as there are no timely respectively in 1950-51.
repairs. It causes discomfort and 3. Regarding revenue, it was hardly
quick depreciation of vehicles. Rs. 34.8 crore for central and Rs.

12.6 crore for states in 1950-51

Progress of Road Transport: which increased to Rs. 20952.5

crore for centre and Rs. 12980.5

1. In 1950-51, road network i.e., total crore for states during 1999-00.

length of roads was of about four 4. The road network comprises of

lakh km. Out of it, 19.8 thousand national highways, state highways,

km was national highway. During district roads, rural roads and

1990-00, total length of road special purpose roads for military

increased to 1998.2 thousand km and ports etc. National highways

and 2,526 thousand km in 1999- are the prime arterial routes

00. However, national highway was throughout the country. It caters

52 thousand km in 1999-00. the need of about 45 percent of

total road transport demand.

Restoring Supply Chain - The Lifeline of Economy 35 Sudhir Jain


Renumbered National Highway Map of India
Under the new numbering system,
North-South Highways are Even Numbered and
East-West Highways are Odd Numbered
The Number increases as we move Westwards or Southwards

National Highways of India

National Highway - The projected at 1.08%.

2. India's road network is the second-


Economic Backbone of India
largest after the United States and

one of the busiest in the world,


1. India is the second most populated
transporting 8.225 billion
country of the world after China.
passengers and over 970 million
Population of India is projected
tonnes of freight annually, as of
close to 1.37 billion in 2019.
2015.
Population growth rate for 2019 is

Restoring Supply Chain - The Lifeline of Economy 36 Sudhir Jain


3. National Highways Authority of connecting the National and State

India was set up by an act of the capitals, major ports and rail

Parliament, NHAI Act, 1988. junctions and link up with border

roads and foreign highways.

4. It has been entrusted with National

Highways Development Project, 6. The total length of National

which alongwith other minor Highway in the country at present is

projects, has vested in it 50,329 1,32,499 kms. While Highways and

kms of National Highways for Expressways constitute only about

development, maintenance and 1.7% of the length of all roads, they

management. The objective is to carry about 40% of the road traffic.

ensure that all contract awards and

procurements conform to the best 7. As per the National Highways

industry practices with regard to Authority of India, about 65% of

transparency of process, adoption freight and 80% passenger traffic is

of bid criteria to ensure healthy carried by the roads. Average

competition in award of contracts, growth of number of vehicles has

implementation of projects been around 10.16% per annum

conform to best quality over recent years.

requirements and the highway

system is maintained to ensure 8. Major improvements in the sector

best user comfort and convenience. are therefore required to support

the country's continued economic

5. National Highways are the arterial growth and to reduce poverty.

roads of the country for inter-state

movement of passengers and 9. India’s transport sector is large and

goods. They traverse the length diverse; it caters to the needs of

and width of the country 1.37 billion people. In 2019, the

Restoring Supply Chain - The Lifeline of Economy 37 Sudhir Jain


sector contributed about 5.5 States (0.65) and much greater

percent to the nation’s GDP, with than China's (0.16) or Brazil's

road transportation contributing (0.20). However, most roads in

the lion’s share. India are narrow and congested

with poor surface quality, and 33

10. Good physical connectivity in the percent of India’s villages do not

urban and rural areas is essential have access to all-weather roads.

for economic growth. Since the

early 1990s, India's growing 13. Urban Transport. India is

economy has witnessed a rise in experiencing rapid urbanization

demand for transport with the present urbanization

infrastructure and services. levels at 30% translating to a

population of roughly 340 million

11. However, the sector has not been living in urban areas. The number

able to keep pace with rising of million plus cities is presently at

demand and is proving to be a drag 42 and the urban economy

on the e c o n o m y. Major accounted for roughly 60% of the

improvements in the sector are GDP. Motorisation rates in India are

therefore required to support the in double digits as in most

country's continued economic developing economies. Only about

growth and to reduce poverty. 20 cities out of 87 cities with a

population in excess of 500,000


12. Roads. The density of India’s and state capitals have any kind of
highway network -- at 0.66 km of organized transport and only 3-4
roads per square kilometer of land cities could lay claim to a mass
– is similar to that of the United rapid transit system.

----------------------------------------

Restoring Supply Chain - The Lifeline of Economy 38 Sudhir Jain


Indian
Railway Map

Indian Railway double or multi-tracked.

2. It is one of the busiest networks in

1. All main-line rail operations in India the world, transporting 8.107

are handled by Indian Railways billion passengers and over 1.108

(IR), a state-owned organization of billion tonnes of freight annually, as

the Ministry of Railways. As of of 2017.

March 2017, the rail network 3. Indian Railways is the world's

comprises 121,407 km of track eighth largest employer, with more

over a route of 67,368 km and than 1.308 million employees as of

7,349 stations. It is the fourth- March 2018. As of March 2017, IR's

largest railway network in the world rolling stock consisted of 277,987

(after those of the United States, freight wagons, 70,937 passenger

Russia and China). Forty nine coaches and 11,452 locomotives.

percent of the routes are electrified IR owns locomotive and coach-

with 25 KV AC electric traction while production facilities at several

thirty-three percent of them are locations in India.

Restoring Supply Chain - The Lifeline of Economy 39 Sudhir Jain


Goods wagons

1. The number of goods wagons was

205,596 on 31 March 1951 and

peaked at 405,183 on 31 March

1980, after which it declined to

239,321 on 31 March 2012.

2. The number is far less than that

required for demand and Indian

Railways loses freight traffic to road

carriers. The railway carried 93

million tonnes of goods in 1950–51,

increasing to 1010 million tonnes in

2012–13. India Air Network


3. However, its share in goods traffic is

much lower than road traffic. In


Airway
1951, its share was 65%, and the

share of the road was 35%. Now the


1. Indira Gandhi International Airport
shares have been reversed, and the
serves as the major international
proportion of railways has declined
aviation hub of the Indian capital
to 30% while the share of road has
city of New Delhi as well as India.
increased to 70%.
The airport, spread over an area of
4. Since the 1990s, Indian Railways
5,106 acres (2,066 ha), is situated
has stopped single-wagon
in Palam, 15 km south-west of the
consignments and provides only
New Delhi railway station. Named
full-rake freight trains.
after former Prime Minister of India
-----------------------------------------

Restoring Supply Chain - The Lifeline of Economy 40 Sudhir Jain


Indira Gandhi, it is the busiest GMR Group. In September 2008,

airport in India in terms of the airport inaugurated a 4,430 m

passenger traffic since 2009. It is runway. With the commencement

also the busiest airport in the of operations at Terminal 3 in 2010,

country in terms of cargo traffic, it became India's and South Asia's

overtaking Mumbai during late largest aviation hub. The Terminal

2015. In the calendar year 2018, it 3 building has a capacity to handle

was the 12th busiest airport in the 34 million passengers annually and

world and 6th busiest airport in Asia is the world's 8th largest passenger

by passenger traffic handling terminal. The airport uses an

nearly 70 million passengers. It is advanced system called Airport

the world's busiest airport for Collaborative Decision Making (A-

Airbus A320 aircraft. The under CDM) to help keep takeoffs and

construction expansion program landings timely and predictable.

will increase the airport's capacity

to handle 100 million passengers 3. In 2010, IGIA was conferred the

by 2030. fourth best airport award in the

world in the 15–25 million category,

2. The airport was operated by the and Best Improved Airport in the

Indian Air Force before its Asia-Pacific Region by Airports

management was transferred to Council International. The airport

the Airports Authority of India. In was rated as the Best airport in the

May 2006, the management of the world in the 25–40 million

airport was passed over to Delhi passengers category in 2015, by

International Airport Limited Airports Council International.

(DIAL), a consortium led by the Delhi Airport was awarded The Best

Restoring Supply Chain - The Lifeline of Economy 41 Sudhir Jain


Airport in Central Asia and Best Partnership model (PPP). The

Airport Staff in Central Asia at the proposed plan is to build a two

Skytrax World Airport Awards runway airport by 2022-23 and

2015. IGI also stood first in the new then, at a future date, to extend it

rankings for 2015 Airport Service to a 7200-acre 6-runway airport.

Quality (ASQ) Awards conducted by

Airports Council International. The 6. According to the proposed plan, the

airport, along with Mumbai Airport airport will handle 5 million

was adjudged "World's Best passengers per annum (MPA)

Airport" at Airport Service Quality initially and up to 60 MPA after

Awards 2017 in the highest expansion over 30 years.

category of airports handling more

than 40 million passengers 7. The project site is 72 kilometres

annually. from Indira Gandhi International

Airport; 36 km from Bulandshahr,

4. The air cargo complex is located at 60 km from Noida & 70 km from

a distance of 1 km from T3. Faridabad & Ghaziabad, about 48

km from Greater Noida, 65 km from

5. Jewar International Airport or Gurgaon and 130 km from Agra. It

Noida Airport is a proposed airport will connect to the Yamuna

to be constructed in Jewar (56 Expressway, allowing domestic and

kilometres from Noida) in Gautam international tourists to reach

Budh Nagar district of Uttar Agra, Mathura and Vrindavan.

Pradesh. The airport is to be -----------------------------------------

developed on a Public Private

Restoring Supply Chain - The Lifeline of Economy 42 Sudhir Jain


India Major Sea Route

Sea Ports in India & JNPT (Navi Mumbai) handles 70%


of maritime trade in India.
3. Shipping Corporation of India, a
1. In India about 96% of the foreign
government-owned company has a
trade by quantity and 70% by value
fleet of 79 ships of 2,750,000 GT
takes place through the ports.
(4.8 million DWT) and also
manages 53 research, survey and
2. The total 200 major and non-major
support vessels of 120,000 GT
ports are present in the following
(060,000 DWT) on behalf of various
States:- Maharashtra (53); Gujarat
government departments and
(40); Tamil Nadu (15); Karnataka
other organisations.
(10) and others (82). Mumbai Port

Restoring Supply Chain - The Lifeline of Economy 43 Sudhir Jain


4. India has an extensive network of 3. The west coast canal between
inland waterways in the form of kollam and kottapuram covering a
rivers, canals, backwaters and distance of 168 km.
creeks. The total navigable length 4. The Champakara canal covering a
is 14,500 kilometres, out of which distance of 14 km.
about 5,200 km of river and 485 km 5. The Vdyogmandal canal covering a
of canals can be used by distance of 22 km.
mechanised crafts.
5. Freight transport by waterways is Major Navigable River and Canals
highly underutilised in India
compared to other large countries. The Brahmaputra and the Ganga
The total cargo moved by inland are important navigable rivers. The
waterways is just 0.15% of the total lower reaches of the Godavari, the
inland traffic in India, compared to Krishna, and the Mahanadi, the
the corresponding figures of 20% Narmada and the Tapi and their
for Germany and 32% for canals are also navigable.
Bangladesh.
The major navigable canals include

National Waterways the Buckingham canal in Andhra


Pradesh and Tamilnadu, the

Government of India has declared Cumbarjua canal in Goa, the Left

the following inland waterways as Bank Main Canal of Durgapur

national waterways Barrage in DVC and west coast


canals in Kerela.

1. T h e Ganga River between


Allahabad and Haldia covering a
distance of 1620 km.
2. The Brahmputra river between
Sadiya and Dhubri (891 km)

Restoring Supply Chain - The Lifeline of Economy 44 Sudhir Jain


Chapter 6 -
Transportation Management

Logistic chains round the world

Objectives 1.1 What means Logistics?


1. Why does logistics exist?
2. What does logistics consist of? 1. Logistics is a term that many people
3. What has to be taken into have heard of but few can define. It
consideration in transport? is a word that is most often
4. Which modes of transport are used? associated with the military, where
5. How does combined transport it has come to stand for all of the
work? activities associated with the
6. W h i c h advantages and wartime deployment and ongoing
disadvantages are there? support of a nations´s armed
7. Which technologies exist? forces. In fact, the importance of
8. Which aspects do I have to take into logistics to the ultimate success of a
consideration if I work in the military campaign has been well
logistics sector? recognized and documented. For
9. Many questions have to be clarified more than thousands of years war
in order to be able to work referred to logistical functions and
efficiently and accurately/free from their relationships with strategy
error. and tactics.

Restoring Supply Chain - The Lifeline of Economy 45 Sudhir Jain


2. At its heart, logistics deals with returns. All product-oriented
satisfying the customer. Everyone businesses have logistics as a cost
of us is in the economic system on of doing business. Some may think
the one hand customer and on the it only applies to large businesses,
other hand a supplier. Even an but companies of any size can
employee is a supplier for its benefit from logistics
c o m p a n y. It delivers its improvements.
achievement. And if I liked to buy 7. The good news is that any
something, I am evenly customer. improvement in logistics you make
This implies that management results in savings in your cost of
must first understand what those doing business. Best of all, these
requirements are before a logistics savings drop right to your bottom
strategy can be developed and line as profits.
implemented to meet them.
3. Products are not usually any longer 8. Some examples of how logistics can
manufactured today, where they help your company include:
are needed. Therefore they must be A. Cost savings,
transported to the customers. B. Reduced inventory,
4. Products are today manufactured, C. Improved efficiency,
where it is most inexpensive. D. Improved delivery time.
5. Logistic processes can be seen by E. This improves customer
different sides. You can see logistics satisfaction.
as materials management. It is also 9. Any business which involves a
possible, to see logistics as a physical product requires logistics
physical distribution. Also both of one sort or another to carry on
aspects together are possible. their business. Whether it's
6. Logistics includes all the processes operating a small warehouse or
required to go from raw materials to stockroom to store, pick and pack
end customer delivery. They your customer orders or arrange
include purchasing, inventory delivery of your products to
management, warehousing, customers, even the smallest
shipping and even customer businesses require logistics.

Restoring Supply Chain - The Lifeline of Economy 46 Sudhir Jain


Fig.6: Logistics is the base of business in the world

Freight Movement resources needed for work,


production and consumption are
1. Freight movement uses local, positioned in the right places, at the
regional, national and international right times, in the quantity
systems and is increasingly required, at the right price and to
intermodal and multimodal. the right customer in the world

2. Indirectly, it is concerned with the 4. Main topics in the domain of


organization and management of markets and logistics include the
the supply chain and of logistics following: The trade sphere there
services as they dictate the shows a shift from national to global
quantity and quality of freight markets. This brings about a
transport demanded and the nature growth of congestion along trade
of the commercial relationships corridors and at ports, airports and
between shippers and transport border crossings. It also poses
service providers. challenges in terms of
infrastructure capacity and
3. Freight Transport is an integral part harmonization of trade and
of logistical systems. Logistics is regulatory policies.
the process which ensures that the

Restoring Supply Chain - The Lifeline of Economy 47 Sudhir Jain


5. The economic environment shows a Future
shift from a manufacturing to a
service economy. There is a decline 1. The business logistics regime
in manufacturing employment but shows a shift from push to pull
increase in manufacturing output. systems.

6. This is accompanied by an increase 2. Logistics is in-creasingly less


of small shipments of light, high- manufacture-to-supply and
value goods, and the emergence of inventory based. Rather it is
e-commerce and e-business. manufacture-to-order &
replenishment based.
7. As a consequence, there are
increased needs for packaging, air 3. This brings about lower inventory
freight and door-to-door truck levels and smaller order quantities.
services that is customer oriented.

4. The transport system thus faces


8. The economic development is increasing demand for flexible,
becoming more dependent on high- timely, reliable and visible door-to-
quality, multimodal trans-port door services.
services. They need to be reliable
and predictable. 5. The search for cost effectiveness

Restoring Supply Chain - The Lifeline of Economy 48 Sudhir Jain


leads to the growth of third party 2. Logistics
logistics providers and currently Transportation Networks
even fourth party logistics
providers.
Objectives
1. What is a logistic Transport -
6. A third party logistics provider is an
Network? Is it really necessary?
external supplier that performs all
2. What do I have to consider when
or part of a company´s logistics
planning a network?
functions.

2.1 Type of Logistics


7. A fourth party logistics provider is a
firm that assembles and manages
Networks

the resources, capabilities, and


technology of its own organization 1. In general, services must be

with those of complementary produced in such a way that they

service providers to deliver a correspond to the demand for

c o m p r e h e n s i ve supply chain moving cargo at the lowest possible

solution. The supply chain means cost.

the p hy s i c a l , fi n a n c i a l , and
information networks that involve 2. It is also possible, to connect the

the movement of materials, funds different means of transport. It is

and related information through called Intermodal Transport

the full logistics process. Chain.

8. It is from the acquisition of raw 3. lntermodal transport uses regular

materials to delivery of finished and scheduled production systems.

products to the end user.


4. Since large-scale transport modes

9. The supply chain includes all are used, it is necessary to

vendors, service providers, consolidate intermodal loading

customers, and intermediaries. units at certain terminals.

Restoring Supply Chain - The Lifeline of Economy 49 Sudhir Jain


5. Te r m i n a l and infrastructure 7. In all, the assets provided by
capacity is limited, particularly for intermodal transport operators
the major modes, and therefore include not just transport resources
access to infrastructure and but also a range of contracts for use
terminal slots has to be planned in by mostly third-party infrastructure
the logistics systems. and equipment, according to
schedules agreed in advance.
6. To guarantee the requisite access,
it is necessary to make 8. These schedules will be such that
arrangements well before the operators can be sure of maximum
service is to be performed and this efficiency, a high degree of use of
often involves long-term their own assets and adequate
agreements. standards of service for their
clients.

Restoring Supply Chain - The Lifeline of Economy 50 Sudhir Jain


Chapter 7 -
National Capital Region (NCR)
and Delhi City

Balanced development is a National Capital Region


prerequisite for sustainable economic
(NCR)
growth and shared prosperity. This

must encompass strengthening


1. The National Capital Region (NCR)
linkages between urban centres and
is a central planning region
rural areas and between more
centered upon the National Capital
developed and less developed regions,
Territory in India. It encompasses
and equitable distribution of
the entire NCT of Delhi and several
necessities of life and creation of
districts surrounding it from the
productive remunerative
states of Haryana, Uttar Pradesh
employment. Efficient infrastructure
and Rajasthan. The NCR and the
and services can facilitate
associated National Capital Region
complementary rural-urban
Planning Board were created in
development with diversification and
1985 to plan the development of
commercialisation of rural economies.
the region and to evolve
These objectives can be achieved
harmonized policies for the control
through investments both by the
of land-uses and development of
public and private sector, improved
infrastructure in the region.
governance, especially at the local

level, and through the creation of more 2. The NCR is a rural-urban region,
and better jobs for men and women in with a population of over
the workforce. 46,069,000 and an urbanization

level of 62.6%. As well as the cities

and towns the NCR contains

ecologically sensitive areas like the

Restoring Supply Chain - The Lifeline of Economy 51 Sudhir Jain


National Capital Region (NCR)

Haryana Uttar Pradesh

Rajasthan

Fig 3 - National Capital Region (NCR)

Aravalli ridge, forests, wildlife and Dadri, Mahendragarh, Jhajjar,

bird sanctuaries. The Delhi Gurugram, Faridabad, Palwal, Nuh.

Extended Urban Agglomeration, a Uttar Pradesh - Shamli,

part of the NCR, had an estimated Muzaffarnagar, Baghpat, Meerut,

GDP of $370 billion (measured in Ghaziabad, Hapur, Bulandshahr,

terms of GDP PPP) in 2015–16. Gautam Budh Nagar.

Rajasthan - Alwar, Bharatpur

3. Today, the area of National Capital covering a total area of 50,566 sq

Region (NCR) has expanded to km. There are now a total of 24

include the districts of - districts in the NCR (outside Delhi

Haryana - Karnal, Jind, Panipat, NCT).

Sonipat, Rohtak, Bhiwani, Chakhi

Restoring Supply Chain - The Lifeline of Economy 52 Sudhir Jain


Delhi City

4. Prominent cities of NCR include DELHI


Delhi, Ghaziabad, Faridabad,

Gurugram, Noida, Meerut, 1. Delhi officially the National Capital

Bulandshahr, Karnal, Alwar and Territory of Delhi (NCT), is a city

Panipat. and a union territory of India

5. On 9 January 2018 the government containing New Delhi, the capital of

of Uttar Pradesh formally proposed India. It is bordered by the state of

the extension of the NCR to cover Haryana on three sides and by Uttar

the districts Aligarh, Bijnor, Hathras Pradesh to the east.

and Mathura. It is also pushing to

have the district of Agra included in 2. The NCT covers an area of 1,484

the NCR. Punjab is also forcing to square kilometres. According to the

have Patiala, and Mohali included in 2011 census, Delhi's city proper

the NCR. Outskirts of Rajasthan like population was over 11 million, the

Bhadra are also included in the second-highest in India after

Future Extension plans. Mumbai, while the whole NCT's

----------------------------------------- population was about 16.8 million.

Restoring Supply Chain - The Lifeline of Economy 53 Sudhir Jain


3. D e l h i ' s urban area is now 5. According to the World Health

considered to extend beyond the Organization (WHO) Delhi was the

NCT boundaries, and include the most polluted city in the world in

neighbouring satellite cities of 2014. In 2016 WHO downgraded

Ghaziabad, Faridabad, Gurgaon Delhi to eleventh-worst in the

and Noida in an area now called u r b an ai r q u al i ty d at ab as e.

National Capital Region (NCR) and According to one estimate, air

had an estimated 2016 population pollution causes the death of about

of over 26 million people, making it 10,500 people in Delhi every year.

the world's second-largest urban

area according to the United Transport


Nations.
Air
1. Indira Gandhi International Airport,
4. As of 2016, recent estimates of the
situated to the south-west of Delhi,
metro economy of its urban area
is the main gateway for the city's
have ranked Delhi either the most
domestic and international civilian
or second-most productive metro
air traffic. In 2015–16, the airport
area of India. Delhi is the second-
handled more than 48 million
wealthiest city in India after
passengers, making it the busiest
Mumbai and is home to 18
airport in India and South Asia.
billionaires & 23,000 millionaires.

Delhi ranks fifth among the Indian


2. Terminal 3, which cost Rs 96.8
states and union territories in
billion (US$1.4 billion) to construct
human development index. Delhi
between 2007 and 2010, handles
has the second-highest GDP per
an additional 37 million passengers
capita in India.
annually.

Restoring Supply Chain - The Lifeline of Economy 54 Sudhir Jain


3. In 2010, IGIA was conferred the 4th (Uttrakhand), NH-34 (Madhya

best airport award in the world in Pradesh), NH-19 (Kolkata), NH-48

the 15–25 million category, by (Mumbai and Chennai), and NH-9

Airports Council International. (Punjab).

4. The airport was rated as the Best 2. Delhi's rapid rate of economic

airport in the world in the 25–40 development and population

million passengers category in growth has resulted in an

2015, by Airports Council increasing demand for transport,

International. creating excessive pressure on the

city's transport infrastructure. To

5. Delhi Airport was awarded The Best meet the transport demand, the

Airport in Central Asia and Best State and Union government

Airport Staff in Central Asia at the constructed a mass rapid transit

Skytrax World Airport Awards system, including the Delhi Metro.

2015.

3. Personal vehicles especially cars

6. The Taj International Airport also form a major chunk of vehicles

project in Jewar has been approved plying on Delhi roads. As of 2007,

by the Uttar Pradesh government. private vehicles account for 30% of

the total demand for transport.

Road Delhi has the highest number of

1. Delhi has the highest road density registered cars compared to any

of 2103 km/100 sq km in India. It is other metropolitan city in India.

connected to other parts of India by

six National Highways: NH-44 4. Taxis, auto rickshaws, and cycle

(Jammu & Kashmir), NH-9 rickshaws also ply on Delhi roads in

large numbers. As of 2008, the

Restoring Supply Chain - The Lifeline of Economy 55 Sudhir Jain


number of vehicles in the (DMRC), serves many parts of Delhi

metropolitan region, Delhi NCR, and the neighbouring cities

was 11.2 million. In 2008, there Ghaziabad, Faridabad, Gurgaon

were 85 cars in Delhi for every and Noida.

1,000 of its residents. In 2017, the

number of vehicles in Delhi city 4. The network consists of eleven lines

alone crossed the ten million mark with a total length of 311 kilometres

with the transport department of (193 miles) with 214 stations,

Delhi Government putting the total which are a mix of underground, at-

number of registered vehicles at grade and elevated stations. It

10,567,712 until 25 May of the carries millions of passengers every

year. day.

5. Delhi Metro is the world's tenth-

Railway largest metro system in terms of

1. Delhi is a major junction in the length. Delhi Metro was India's

Indian railway network and is the second modern public

headquarters of the Northern transportation system, which has

Railway. revolutionised travel by providing a

fast, reliable, safe, and comfortable

2. The main railway stations are New means of transport.

Delhi, Old Delhi, Hazrat 6. All stations have escalators, lifts,

Nizamuddin, Anand Vihar, Delhi and tactile tiles to guide the visually

Sarai Rohilla and Delhi Cantt. impaired from station entrances to

trains.

3. The Delhi Metro, a mass rapid 7. In addition to the Delhi Metro, a

transit system built and operated suburban railway, the Delhi

by Delhi Metro Rail Corporation Suburban Railway exists.

Restoring Supply Chain - The Lifeline of Economy 56 Sudhir Jain


Chapter 8 -
Developing Multi-Modal
National Goods Transport Network System
Without the Investment of Public Money?

Fig 7 - Multi-modal National


Goods Transport Network System

Multimodal transport (also known as of Lok Sabha and Rajya Sabha.

combined transport) is the Thereafter the Government can

transportation of goods under a single acquire the land required to develop

contract, but performed with different Warehouses near the Transport

modes of transport, such as by road, Junctions.

rail, air and sea. Let us develop the National Goods

The Multi-modal National Goods Transport Network System on Road.

Transport Network System in a Later the network will be connected

country can be developed by Central with Railway, Airway, Waterway to

Government. They will have to pass develop the multi-modal national

the Transport Bill with in the Houses goods transport network system.

Restoring Supply Chain - The Lifeline of Economy 57 Sudhir Jain


The Central Government will 1. The road infrastructure is ready so

have to develop two set of the Government does not need

Goods Transport Network investment to built roads.

System on roads in India, 2. The Government will provide ample

which can be divided into - space along the Transport Routes to

1. Interstate Goods Transport construct Warehouses which can be

Network System (IGTNS) and developed using BOT model.

2. (Intra) City Goods Transport 3. BOT (Build-Operate-Tansfer)

Network System (CGTNS) finds extensive application in

infrastructure projects and in

They will require : - public–private partnership (PPP).


1. Transport Depots, so that goods In the BOT framework a third party,
can be collected and delivered to
for example, public administration,
the right channels.
delegates to a private sector entity
2. Transport carriers, so that
to design and build infrastructure
goods can be moved and
transported in the right direction and to operate and maintain these

. facilities for a certain period. During


The Central Government will build this period the private party has the
Interstate Goods Transport Network responsibility to raise the finance
System to deliver goods everywhere
for the project and is entitled to
in the country, but the City Goods
retain all revenues generated by
Transport Network System will be
the project and is the owner of the
developed by the City Administrator.
Both type of Networks can be build regarded facilities. The facility will

in a very short period of time be then transferred to the public


without the Investment of Public administration at the end of the
Money. concession agreement, without any

remuneration of the private entity

involved.

Restoring Supply Chain - The Lifeline of Economy 58 Sudhir Jain


4. The Transport Depots will manage 1. Interstate Goods
the pickup and delivery of the goods
Transport Network System
in all direction. They will decide the
(IGTNS)
number and type of carrier required

to do the job.
1. India has 132,499 Km of National

Highways. There are about 228


This way Central, State and the City
National Highways (NH) in India.
Government will not require public
2. The Interstate Goods Transport
money to develop the Transport
Network System will provide
Depots and to manage the delivery
transport logistics between the
system in the country. The Centre
State and will not focus on the
and the State Government will
transportation within the cities and
receive revenue in the form of GST.
towns of the State.
Trade will increase and the
3. To begin with, two types of transport
Government will receive more GST.
systems will be developed on

Interstate Goods Tr a n s p o r t
Let us study each one of them in
Network System to transport cargo
detail.
from one end to the other. They are

1. Conventional Liner

Service and

2. Shuttle Service

Restoring Supply Chain - The Lifeline of Economy 59 Sudhir Jain


Anantnag
Domel
Jammu
Pathankot
Jalandhar
Ludhiana

Kurukshetra
Panipat
Sonipat
Ambala
Srinagar Delhi

Catchment Area Catchment Area

Terminal Terminal

Transport - Services Transport - Services

Fig. 8: Conventional Liner Service Fig. 9: NH-44 - Conventional Liner


Service Between Srinagar and Delhi

Conventional Liner Service Sonipat, Delhi, Fa r i d a b a d ,


Mathura, Agra, Gwalior, Jhansi,
1. Conventional liner services that Sagar, Lakhnadon, Seoni, Nagpur,
include additional stops (Fig. 8). Adilabad, Nizamabad, Kamareddy,
2. These stops are concentrated in the Hyderabad, Kurnool, Anantapur,
vicinity of the two end points. Each Bengaluru, Salem, Namakkal,
extra stop in a service attracts Karur, Dindigul Madurai, Tirunelveli
additional cargo from another and Kanyakumari. NH-44 covers
g e o g ra p h i c a l area and thus the North-South Corridor of NHDP
increases revenue. and it is officially listed as running
3. The purpose of the additional stop over 3,745 km (2,327 mi) from
may be to achieve sufficient loads Srinagar to Kanyakumari. It is the
or enable a viable increase in longest national highway in India.
frequency of service. 5. Delhi is a major Transport Hub on
4. Let us study an example of NH-44 NH-44 route. The Conventional
(GT Road, earlier known as NH-1). Liner Service Between Srinagar and
The highway starts from Srinagar. Delhi will provide transportation
The highway connects several cities services in Srinagar, Anantnag,
and town such as Srinagar, Domel, Jammu, Pathankot,
Anantnag, Domel, Jammu, Jalandhar, Ludhiana, Ambala,
Pathankot, Jalandhar, Ludhiana, Kurukshetra, Panipat, Sonipat, and
Ambala, Kurukshetra, Panipat, Delhi. (Fig 9)

Restoring Supply Chain - The Lifeline of Economy 60 Sudhir Jain


Srinagar Delhi Nagpur Bengaluru Kanyakumari

Catchment Area
Fig. 10: NH-44 - Long Distance Cargo can be
Terminal

Transport - Services divided into Shuttle Service of Shorter Routes

Shuttle Service 3. Such as, NH-44 (GT Road) is a long


distance road of 3,745 km from
1. Shuttle services i.e. liner services Srinagar to Kanyakumari. It is
between two points without difficult to transport the load from
intermediate stops. Srinagar to Kanyakumari.
2. Shuttles are extremely efficient and Therefore, the entire route can be
therefore produce services at the divided into 4 smaller distance
lowest cost. routes which will provide Shuttle
3. A shuttle has constant capacity and service -
needs to attract cargo solely from 1. Between Srinagar and Delhi
those regions near to its two end 2. Between Delhi and Nagpur,
points. 3. Between Nagpur and Bengaluru,
4. Therefore, shuttle production and
requires high transport demand 4. B e t w e e n Bengaluru and
spread over the whole year. Kanyakumari
(Fig. 10) 4. The dotted arrows in the picture
show how shuttles are needed to
Shuttle Network link the different destinations.
5. The operator has greater flexibility

1. In the shuttle network, shuttle over routing and asset deployment.

services mutually connect network 6. Networks may include regional

terminals that offer further distribution systems, (such as, City

connections to other terminals in Goods Transport Network System)

the network. which enable transport units to

2. For movements over longer penetrate more deeply into

distances, the operator has to regions.

combine a sequence of shuttles.

Restoring Supply Chain - The Lifeline of Economy 61 Sudhir Jain


Fig 12 - Transport Hub

2. City Goods Transport This system requires : -


1. The City Online Booking Portal
Network System (CGTNS)
- To Take Pickup Orders from the
Traders in the city.
1. The Interstate Goods Transport
2. Regional Terminals in the City,
Network System will deliver the
to collect and to distribute all
goods to the City but not within the
deliveries in the region, and they
City.
can be named as -
2. The City Goods Transport Network 1. North Regional Terminal,
System will transport the goods 2. South Regional Terminal,
within the city. 3. East Regional Terminal,
4. West Regional Terminal.
3. Transport Depots, to provide
The Government of a city can built
door-to-door delivery and pickup
the City Goods Transport Network
service in their locality.
System to deliver goods
4. Transport carriers, so that goods
everywhere in the city, in very can be moved and transported in
little time without the the right direction. The pickup &
Investment of Public Money. delivery services will be managed
by the Regional Terminals and the
Local Transport Depots. So the
number and type of terminals
required for pickup and delivery will
be decided by the Transport Depot
Owners.

Restoring Supply Chain - The Lifeline of Economy 62 Sudhir Jain


4. In addition, CGTNS may provide
Cash on Delivery and Seven
Days Return Policy System
whereby the consignee will pay the
cost of goods and the delivery
charges and can claim refund by

The City Online returning the purchased item


within 7 days of purchase.
Booking Portal
5. The City Online Booking Portal may
develop e-commerce portal to lure
1. A Nodal Transport Office will be
the clients to make purchases
developed in the city to take all
through the site.
pickup orders and to pass the order
6. They may tie up with other e-
received from a trader to the local
commerce site like Amazon or
transport depot office near that
Flipkart to take the pickup and
trader. The depot will arrange the
delivery services through the
pickup and load them into the city
National Goods Transport Network
transport network service to be
System. This arrangement is
delivered to other part of the city or
beneficial to the e-commerce site,
to the office of interstate goods
as it reduces the cost of operation
transport network system
and provide wide coverage of the
developed along the NH for further
market, connecting them to the
delivery to the people living at
villages and remote area of the
various cities of the country.
country.
2. The trader will have to register
7. The City Government will invite the
themselves on the site of the City
tenders to develop Online Booking
Goods Transport Network System
Po r t a l on Build, Operate,
(CGTNS) to place online request for
Transfer model. This way the City
a pickup.
Government need not have to
3. A trader can place both Paid
spend money on building and
Orders where the trader will bear
managing the online portal service.
the cost of transportation. Or To-
Pay Orders, where the consignee
will bear the cost of transportation.

Restoring Supply Chain - The Lifeline of Economy 63 Sudhir Jain


The function of the City the supply from this city is

Nodal Office managing delivered in the other city of the


country.
Online Booking Portal
5. To transfer the payments of Cash on
Delivery orders, to the Nodal Office
1. To take Pickup orders from the
of the City of Origin from where the
people in the city. - The Pickup
supplies had been received.
orders are meant to deliver within
6. To transfer the payments to the
the city and to the other cities in the
traders (consigner) on completing
country.
the Cash on Delivery orders if the
2. To collect payments from the
consigner belong to the city.
consigner for Paid Orders from the
7. To provide automate tracking
Regional Terminals of the city.
system to provide real time
3. To collect Cash on Delivery
updation and tracking of the
payments received on Deliveries
consignment.
from the Regional Terminals of the
8. To take pickup orders for the supply
city. - The Supplies are received
within the country and to the other
from the traders within the city and
countries (Export).
from the other cities in the country.
9. To pay the Regional Terminals for
4. To collect the payments of Cash on
the services of pickup and delivery
Delivery orders, from the Nodal
of the products - within the city or
Office of the City of Destination, if
any other city in the country.

Restoring Supply Chain - The Lifeline of Economy 64 Sudhir Jain


Consigner (Seller) Placed Pickup Order
on Cash on Delivery

Nodal Office Nodal Office


Local (City of Origin) (City of Destination)
Transport
Depot
Regional Intermediate
Terminal Transfer Agents
(Point of Origin)
Local
Regional Terminal
Transport
(Point of Destination)
Depot
Order (Consigner)
Transport - Services
Consignee
Payment (Consignee) (Buyer)
Figure 13

The Transport Flow from the 2. to the Nodal Office of the City of

Point of Origin to the Point Origin from where the consignment


is required to be picked up.
of Destination (Figure 13)

4. The Demand Order will be send -


1. A buyer or a seller can be from
1. to the Regional Terminal of the
anywhere in the country and
city, if the payment is required to be
anyone can send a pickup and
collected from the city.
delivery order.
2. to the Nodal Office of the city
from where the payment is
2. The Nodal Office on receiving the
required to be collected.
order will place two orders -
1. Pick up Order
5. Let us study an example, in which
2. Demand Order
the Nodal Office of a city received a
pick-up order for Cash on Delivery
3. The Pickup Order will be send -
from a trader in the city (consigner)
1. to the Regional Terminal of the
to a trader in another city
city, if the consignment is required
(consignee).
to be picked up from the city.

Restoring Supply Chain - The Lifeline of Economy 65 Sudhir Jain


6. The Nodal Office will pay the entire along the city.
cost of operation to the Regional And the Transfer Agents at the
Terminal for arranging the pickup City of Destination -
and the further delivery of the 3. the Interstate Transport Hub in
product, as per the planned that city and
schedule. 4. the Regional Terminal who finally
delivered the consignment and
7. The Regional Terminal will deduct collected the amount from the
the pickup charges which include consignee.
the profit on arranging pickup and 5. And Intermediate Transfer
further delivery of the packet, the Agents in between the Point of
payment to local Transport Depot origin and the City of Destination.
which had arranged the pickup, and
the carrier charges of further 10. The Regional Terminal of the Point
delivery to the Transfer Agents. of Destination deposited the
p ay m e n t r e c e i ve d from the
8. The Regional Terminal will pay the consignee to the Nodal Office of
remaining amount to the Transfer that city.
Agent who will further deliver the
consignment, such as - 11. The Nodal Office of the City of
1. another Regional Terminal, if the Destination will pay the Nodal
supply is in the city; or Office of the City of Origin after
2. Interstate Transport Hub along deducting its charges.
the city, if the supply is in some
other city in the country. 12. The Nodal Office of the City of
Origin transfer the payments after
9. There can be many Transfer Agents deducting its charges to the
from the Point of Origin to the Point consigner on completing the Cash
of Destination, such as, on Delivery order. The amount will
Transfer Agents starting from be transferred after 7 days of
the Point of Origin- completing the order to ensure
1. the Regional Terminal and customer satisfaction of the
2. the Interstate Transport Hub purchase.

Restoring Supply Chain - The Lifeline of Economy 66 Sudhir Jain


provide space to develop Transport
Depot.
4. The successful bidder will construct
the warehouse and will arrange
pick-up and delivery services of all
kinds of goods within its catchment
area.
The Regional Terminals and
5. The Regional Terminal will clarify
the Transport Depots
the area in which a Transport Depot
in the Locality
will manage the service to avoid
unnecessary competition among
1. The City Government will provide
the Transport Depots.
sufficient space for development of
6. However, there can be more than
Regional Terminal, preferably
one Depot in an area so as to
near the Highway through which
develop healthy competition of
Transport Carriers will be passing
providing services at the
by.
competitive prices.
2. The City Government will invite
7. The Regional Terminal will have to
tenders for the development of
install computerized system & bar
Regional Terminals on build,
codes to issue bills and to maintain
operate and transfer basis. This
the online accounts of each and
way the City Government will not
every packet.
have to spend money in the
8. The Regional Terminal will have to
construction and operation of the
install machines to scan the packets
delivery services.
so that the transported goods
3. The Regional Terminal of an area
would not be hazardous and illegal.
will ask tenders for parties
9. The Regional Terminal will have to
interested in developing
store the photos of the scanned
Transport Depot to provide door-
packet for future verification of the
to-door delivery and pickup service
contents, and it can also be used to
in a locality. In that case, the City
match the content in case of return
Government will not have to
from a customer.

Restoring Supply Chain - The Lifeline of Economy 67 Sudhir Jain


Intra-City Goods
Transport Network System

1. Network consist of liner services


and interconnection points, where
the loading units are transferred
between liner services. different links with all the inherent
advantages, if demand fluctuates
2. By linking liner services together to over time.
form a network, volumes can be
attracted from a larger number of 7. Finally, networks provide greater

regions. flexibility over routing and timing.

3. Higher volumes enable operators to 8. All these aspects add up to better

offer reasonable service frequency rates of use and therefore to lower

to and from areas with only modest costs per unit.

transport demand.
9. Of course, customers also benefit

4. By consolidating cargo from from the better geographical

different regions at a single or just a coverage offered by networks.

few points on the network,


o p e ra t o r s can optimize the 10. The further intermodal transport

deployment of their transport can penetrate, the rnore customers

assets. can rely on this solution for serving


their customers and giving

5. They can decide on the frequency of accessibility to their suppliers

service and on transport capacity


for each of the links. 11. Let us study Hub & Spoke
Network System to provide door-

6. In most network systems, the to-door delivery and pickup service

Operator also has the freedom to in the city.

exchange transport assets between

Restoring Supply Chain - The Lifeline of Economy 68 Sudhir Jain


Local Transport Depots (1-6) Inter-State
Transport Hub
providing Door to Door -
Delivery and Pick up Service 1. Regional
6. Terminal
2.
in the City
Catchment Area

Terminal 3. 5.
4.
Transport - Services

Fig. 13: Hub-and-Spoke Network (Door to Door Service)

Hub-and-Spoke Network Interstate Transport Hub and the

Figure 13 intracity supplies are delivered to


the other Regional Terminals of the

1. The hub-and-spoke system is the city.

best known network system. The


spokes in the network are liner The National Capital Region (NCR)

services between Local Transport passes through six National

Depots, Regional Terminal and the Highways which will develop the

Interstate Transport Hub. biggest intracity goods transport

2. A h u b -a n d - s p o ke system is network system in India.

designed to combine small flows Thereafter linking Goods Transport

arriving and departing in different Network System in Delhi-NCR by

directions. (Fig. 13). Roads with Railway, Airway and

3. Such as, the group of Transport Waterway will develop into Multi-

Depots servicing in their respective modal National Goods Transport

area in a locality to provide door-to- Network System which can provide

door delivery and pickup service total transport solution of

and e xc h a n g i n g goods with delivering variety of products at

Regional Terminal is a hub-and- cheap and fast way in the entire

spoke system (Fig 13). country.

4. The Regional Terminal segregate The Multi-modal Goods Transport

the supplies. The interstate Network System in Delhi-NCR can

deliveries are transferred to be build in very little time without


investing the Public Money.

Restoring Supply Chain - The Lifeline of Economy 69 Sudhir Jain


1. NCR (NH-44)

NH
-44

GH
AZI
6. NCR

ABA
N
(NH-9) H-9 2. NCR

D
(NH-9)
NH-9

NH-19
5. NCR
3. NCR
(NH-48)
(NH-34)

8
Interstate NH
-4

Transport Hub
4. NCR
(NH-19)

Fig 14 : The Eastern-Western Peripheral Expressway (EWP Road)

Developing 3. NH-34 - From Lakhnadon (Madhya

Delhi Integrated Pradesh)

Multi-Modal Transport 4. NH-19 - (Old name NH-2)

Network System From Kolkata (West Bengal) &

NH-44 - From Kanyakumari

There are at least 6 National Highways (NH-44 and NH-19 meets at Agra)
which meets at Delhi. The Eastern- 5. NH-48 - (Old Name NH-8)
Western Peripheral Road (EWP road) From Mumbai (Maharastra) &
developed all around the Delhi-NCR
Chennai (Tamil Nadu)
region, intersects with National
6. NH-9 - (Old Name NH-10)
Highway. Their names are :-
From Malout (Punjab)
1. NH- 44 - (GT Road - old name
7. There are some other National
NH-1) From Jammu & Kashmir
Highways, Interstate Highways
2. NH-9 - (Old Name NH- 24) -
and Expressway that cross EWP
From Askot (Uttrakhand)

Restoring Supply Chain - The Lifeline of Economy 70 Sudhir Jain


road, such as Loni Road, Yamuna Manesar-Palwal Expressway is

Expressway, Sohna Road, Badli 135.6 km long - 6 lane road.

Road, Bahadurgarh Road, Bawana 12. The Interstate Goods Transport

Road etc. Network System (IGTNS) will

8. Some more Transport Hubs may be construct 6 major Transport Hubs

constructed along these Roads along the EWP road - each one near

near EWP road. However, they are the National Highway so that the

not studied in this presentation. carriers of IGTNS can exchange the

9. The carriers of Interstate Goods goods. They can be named as -

Transport Network System will not 1. NCR (NH-44)

enter the area of Government of 2. NCR (NH-9 Uttrakhand)

National Capital Territory of 3. NCR (NH-34)

Delhi (GNCTD) and will terminate 4. NCR (NH-19)

their route along Eastern- 5. NCR (NH-48)

Western Peripheral 6. NCR (NH-9 Punjab)

Expressway (EWP road).

10. The Eastern Peripheral Let us study the function of

Expressway also called as Kundli- Transport Hub - NCR (NH-44) to

Ghaziabad-Palwal Expressway is understand the effect of the

135 km long - 6 lane road (3 lanes transport system in India and in

in each direction). Delhi-NCR.

11. The We s t e r n Peripheral

Expressway also called as Kundli-

Restoring Supply Chain - The Lifeline of Economy 71 Sudhir Jain


NH-44
(Srinagar)

1 . NCR (NH-44)

6 . NCR (NH-9
Punjab)
2 . NCR (NH-9
North Uttrakhand)
Delhi

5 . NCR
Interstate 3 . NCR (NH-34)
(NH-48)
Transport HUB
Regional
Terminal

Transport - Service 4 . NCR (NH-19)

Fig 16 : Transport Flow to and from NCR (NH-44)

The Transport Hub 3. Two types of transport systems are

NCR (NH-44) used to exchange deliveries from

Srinagar to Delhi-NCR. They are -

1. NH-44 (Jammu & Kashmir) -


4. The Conventional Liner Service
The National Highway 44 (GT road)
bringing goods from various cities
starts at Srinagar and ends at
along the National Highway-44
Kanyakumari. It is 3,749 kms long.
between Srinagar and Delhi-NCR

(Fig 9) and
2. Delhi-NCR is a junction at NH-44,

and NCR (NH-44) is a Transport


5. The Shuttle Service to transport
Hub build along the EWP road. The
cargo between Srinagar and Delhi-
carriers from Srinagar ends their
NCR without stopping enroute.
journey and exchange goods at the
(Fig 10)
NCR (NH-44).

Restoring Supply Chain - The Lifeline of Economy 72 Sudhir Jain


6. The interstate delivery system at

NH-44 from Srinagar will bring all 9. The NCR (NH-44) will segregate all

types of deliveries meant for other the received goods from the

cities of the country and also those different channels.

required to be delivered at different

parts of Delhi-NCR. The NCR (NH- 10. The cargo which are meant for

44) will collect all these deliveries. delivery to the cities along the NH-

44 toward Srinagar will be loaded in

7. The NCR (NH-44) will also be the carriers of Interstate Goods

receiving cargo from the North Transport Network.

Delhi Regional Terminal build close

to the NH-44 route in the city. The 11. The supplies meant for other cities

cargo will be meant to be in the country will be segregated

transported in the different parts of into different sections so as to

the country. transport them to the appropriate

Transport Hub build around the

8. The NCR (NH-44) will also be EWP road.

receiving supplies from other

Transport Hubs around the EWP 12. Likewise, the cargo meant to be

road, such as - NCR (NH-9 transported in the different region

Uttrakhand), NCR (NH-34), NCR of the Delhi-NCR further away from

(NH-19), NCR (NH-48), NCR (NH-9 the NH-44 will also be transported

Punjab). The supplies from these to the appropriate Transport Hub

Transport Hubs will be meant to be build around the EWP road.

transported along the NH-44 route Such as -

(Srinagar) or to be delivered in the

NCR-Delhi around the localities

build close to the NH-44.

Restoring Supply Chain - The Lifeline of Economy 73 Sudhir Jain


13. NCR (NH-9 Uttrakhand) - Agra, Firozabad, Etawah, Babarpur

It will receive goods meant to be Ajitmal, A u ra i ya , A k b a r p u r,

transported in North-East Delhi, Kanpur, Fatehpur, Prayagraj,

Ghaziabad, Hapur, Moradabad, Varanasi, Mughalsarai (Uttar

Rampur (Uttar Pradesh), Pradesh), Mohania, Sasaram,

Rudrapur, Kichha, Sitarganj , Dehri On Sone, Aurangabad

Khatima, Tanakpur, Pithoragarh, (Bihar), Barhi, Barkatha,

Ogla, Asko (Uttarakhand). Bagodar, Isri, Gobindpur, Dhanbad

(Jharkhand), Asansol, Durgapur,


14. NCR (NH-34 Madhya Pradesh) - Burdwan, Dankuni Kolkata (West
It will receive goods meant to be Bengal)
transported in East Delhi, Noida,

Greater Noida, Gangotri Dham, 16. NCR (NH-48 Mumbai and

Bhatwari, Uttarkashi, Dharasu, Chennai) -

NearTerhi, Ampata, Rishikesh, It will receive goods meant to be

Haridwar (Uttarakhand), transported in South West Delhi,

Najibabad, Bijnore, Meerut, Hapur, Gurugram, Sohna, Manesar, Alwar,

B u l a n d s h a h r, Aligarh, Etah, Rewari, Jaipur, Ajmer, Rajsamand,

Ka n n a u j , Ka n p u r, H a m i r p u r, Udaipur, Himatnagar, Ahmedabad,

Mahoba (Uttar Pradesh), Nadiad, Anand, Va d o d a ra ,

Chattarpur, Hirapur, Damoh, Bharuch, Surat, Navsari, Valsad,

Jabalpur, Lakhnadon (Madhya Palghar, Mumbai, Thane, Pune,

Pradesh) S a t a ra , Ko l h a p u r, Belagavi,

Dharwad-Hubli, Haveri,

15. NCR (NH-19 Kolkata) - Davanagere, Chitradurga,


It will receive goods meant to be Tumakuru, Bangalore, Kolar,
transported in South Delhi, Chittoor, Vellore, Ranipettai,
Faridabad, Ballabhgarh, Palwal, Kanchipuram, Chennai.

Restoring Supply Chain - The Lifeline of Economy 74 Sudhir Jain


1 . NCR (NH-44)

NH-44 Modinagar
Kekra
Narela d}
EASTERN an
6 . NCR (NH-9 PERIPHERAL a kh
r 2 . NCR (NH-9
Punjab) EXPY t ta
U
- 9( Uttrakhand)
NH Hapur
WESTERN DELHI Ghaziabad
PERIPHERAL
Interstate EXPY

Transport HUB Noida


Greater
Noida
Shuttle Services From 5 . NCR Gurugram
Dadri
(NH-48) NH-48
NCR (NH-44) NH-34 3 . NCR
(NH-34)
NCR (NH-9 Uttrakhand) Faridabad

NCR (NH-34) Yamuna


Expy
NCR (NH-19) NH-19 Palwal Jewar

NCR (NH-48)
NCR (NH-9 Punjab)
4 . NCR (NH-19)

Fig 15 : Shuttle Service Between Interstate Transport Hubs

constructed, such that each

17. NCR (NH-9 Punjab) - Transport Hub will have to deliver

It will receive goods meant to be and pick up from the two or three

t ra n s p o r t e d in We s t Delhi, other Transport Hub in the

Bahadurgarh, Rohtak, Maham, clockwise direction. This way each

Hansi, Hisar, Fatehabad, Sirsa Transport Hub will be sharing the

(Haryana), Malout (Punjab) cost of delivery and pickup with the

other two Transport Hubs and each


18. There are 6 Transport Hubs around Transport Hub will have to serve in
the EWP road. Each of the half of the route to complete all
Transport Hub have deliveries for deliveries.
the other. So the Shuttle Service

between Transport Hub will be

Restoring Supply Chain - The Lifeline of Economy 75 Sudhir Jain


NH-44
(Srinagar)

1 . NCR (NH-44)

6 . NCR (NH-9
Punjab)
2 . NCR (NH-9
North Uttrakhand)
Delhi

5 . NCR
Interstate 3 . NCR (NH-34)
(NH-48)
Transport HUB
Regional
Terminal

Transport - Service 4 . NCR (NH-19)

Fig 16 : Transport Flow to and from NCR (NH-44)

Transport Flow at 3. NCR (NH-34) will serve to -

1. NCR (NH-19)
NCR (NH-44) (Figure 16)
2. NCR (NH-48) and

3. NCR (NH-9 Punjab)


1. NCR (NH-44) will develop two

Shuttle Services to deliver and


4. NCR (NH-19) will serve to -
pickup cargo from -
1. NCR (NH-48) and
1. NCR (NH-9 Uttrakhand),
2. NCR (NH-9 Punjab)
2. NCR (NH-34 MP), and

3. NCR (NH-19 Kolkata)


5. NCR (NH-48) will serve to -

1. NCR (NH-9 Punjab) and


2. NCR (NH-9 Uttrakhand)
2. NCR (NH-44)
will serve to -

1. NCR (NH-34),
6. NCR (NH-9 Punjab)
2. NCR (NH-19) and
will serve to -
3. NCR (NH-48)
1. NCR (NH-44) and

2. NCR (NH-9 Uttrakhand)

-----------------------------------------

Restoring Supply Chain - The Lifeline of Economy 76 Sudhir Jain


NH-44
(Srinagar)
NH-9 Enlarged Picture
(Malaut - Punjab)
of Interstate Supply Chain

1. NCR (NH-44)
NH-9
(Askot -
Uttrakhand)
6. NCR (NH-9 North
Punjab) Delhi North-East
Delhi 2. NCR (NH-9
West
Delhi Uttrakhand)
DELHI
South-West East
Delhi Delhi
Enlarged Picture 5. NCR 3. NCR (NH-34 )
of door-to-door South
(NH-48)
Delhi
Delivery & Pickup

NH-48 NH-34
Interstate (Mumbai & Chennai) (Laknadon -
Transport HUB Madhya Pradesh)
4. NCR (NH-19)
Regional
Terminal

Transport - Service NH-19


(Kolkatta)

Fig 17 : Transport Flow Between 5 Interstate Transport Hubs


and 5 Regional Terminals in Delhi-NCR

The Transport Flow Between will collect and drop deliveries to

5 Interstate Transport Hubs NCR (NH-44). (Figure 16 & 17)

and 5 Regional Terminals in


2. NCR (NH-9 Uttrakhand) will
Delhi-NCR (Figure 17)
deliver and pickup supplies from

1. NCR (NH-34)
1. NCR (NH-44) will deliver and
2. NCR (NH-19) and
pickup supplies from
3. NCR (NH-48).
1. NCR (NH-9 Uttrakhand)
While,
2. NCR (NH-34) and
4. Ashot-Uttrakhand (NH-9)
3. NCR (NH-19).
5. NCR (NH-9 Punjab),
While,
6. NCR (NH-44) and
4. Srinagar (NH-44)
7. North-East Delhi Regional
5. NCR (NH-48),
Terminal will collect and drop
6. NCR (NH-9 Punjab) and
deliveries to NCR (NH-9
7. North Delhi Regional Terminal
Uttrakhand). Fig 17

Restoring Supply Chain - The Lifeline of Economy 77 Sudhir Jain


3. NCR (NH-34) will deliver and 5. NCR (NH-48) will deliver and

pickup supplies from pickup supplies from

1. NCR (NH-19) 1. NCR (NH-9 Punjab) and

2. NCR (NH-48) and 2. NCR (NH-44).

3. NCR (NH-9 Punjab) While,

While, 3. Mumbai and Chennai (NH-48)

4. Lakhnadon M.P. (NH-34) 4. NCR (9 Uttrakhand),

5. NCR (NH-44) 5. NCR (NH-34),

6. NCR (NH-9 Uttrakhand) and 6. NCR (NH-19) and

7. East Delhi Regional Terminal 7. South West Delhi Regional

will collect and drop deliveries to Terminal will collect and drop

NCR (NH-34). deliveries to NCR (NH-48).

4. NCR (NH-19) will deliver and 6. NCR (NH-9 Punjab) will deliver

pickup supplies from and pickup supplies from

1. NCR (NH-48) and 1. NCR (NH-44) and

2. NCR (NH-9 Punjab). 2. NCR (NH-9 Uttrakhand).

While, While,

3. Kolkata (NH-19) and 3. Malout - Punjab (NH-9)

Kanyakumari (NH-44) 4. NCR (NH-34),

4. NCR (NH-44), 5. NCR (NH-19),

5. NCR (NH-9 Uttrakhand) and 6. NCR (NH-48) and

6. NCR (NH-34) and 7. West Delhi Regional Terminal

7. South Delhi Regional Terminal will collect and drop deliveries to

will collect and drop deliveries to NCR (NH-9 Punjab).

NCR (NH-19).

Restoring Supply Chain - The Lifeline of Economy 78 Sudhir Jain


7. North Delhi Regional Terminal 9. East Delhi RT will deliver and

(RT) will deliver and pickup pickup supplies from

supplies from 1. NCR (NH-34),

1. NCR (NH-44), 2. South Delhi RT

2. North-East Delhi RT 3. South-West Delhi RT &

3. East Delhi RT & 4. West Delhi RT

4. South Delhi RT While,

While, 5. North Delhi RT,

5. South-West Delhi RT, 6. North-East RT and

6. West Delhi RT and 7. Transport Depot in tie-up with

7. Transport Depot in tie-up with East Delhi RT

North Delhi RT will collect and drop deliveries to

will collect and drop deliveries to East Delhi RT.

North Delhi RT.

10. South Delhi RT will deliver and

8. North-East Delhi RT will deliver pickup supplies from

and pickup supplies from 1. NCR (NH-19),

1. NCR (NH-9 Uttrakhand), 2. South-West RT &

2. East Delhi RT, 3. West Delhi RT

3. South Delhi RT & While,

4. South-West Delhi RT 4. North Delhi RT,

While, 5. North-East Delhi RT,

5. West Delhi RT, 6. East Delhi RT and

6. North Delhi RT and 7. Transport Depot in tie-up with

7. Transport Depot in tie-up with South Delhi RT

North-East Delhi RT will collect and drop deliveries to

will collect and drop deliveries to South Delhi RT.

North-East Delhi RT.

Restoring Supply Chain - The Lifeline of Economy 79 Sudhir Jain


11. South-West Delhi RT will

deliver and pickup supplies from

1. NCR (NH-48),

2. West RT &

3. North Delhi RT

While,

4. North-East Delhi RT,

5. East Delhi RT, Container Truck


6. South Delhi RT and

7. Transport Depot in tie-up with

South-West Delhi RT 13. There can be more Interstate


will collect and drop deliveries to Transport Hub along the EWP road
South-West Delhi RT. and more Regional Terminals in

Delhi-NCR than we have studied in


12. West Delhi RT will deliver and
this presentation. The point to
pickup supplies from
remember is that each Transport
1. NCR (NH-9 Punjab),
Hub / Regional Terminal will be
2. North RT,
serving in clockwise direction and
3. North-East Delhi RT &
will receive service from anti-
4. East Delhi RT
clockwise direction.
While,
14. This completes the supply chain in
5. South Delhi RT,
Delhi-NCR- within the city and to
6. South-West Delhi RT and
any other city of the country. Now
7. Transport Depot in tie-up with
let us study the effect of Gateway
West Delhi RT
Network between Road, Railway
will collect and drop deliveries to
and Airway.
West Delhi RT.

Restoring Supply Chain - The Lifeline of Economy 80 Sudhir Jain


Gateway Network Interconnecting
Railway and Roadway
1. A gateway may be considered a
special type of hub-and-spoke 1. Railways are a safe land transport
system. system when compared to other
forms of transport.
2. The gateway is a natural entry and 2. Freight trains are very efficient,
exit point for a region, and with economy of scale and high
therefore well suited to energy efficiency. However, their
consolidating passing traffic flows. use can be reduced by lack of
Gateway terminals are often flexibility, if there is need of
located at the periphery of a transshipment at both ends of the
network (Fig. 18). trip due to lack of tracks to the
points of pick-up and delivery.
3. A gateway can be : 3. Road transport, is more flexible and
1. Between different transport less capital-intensive and can be
modes. operated in lower traffic levels.
For example seaports are gateways 4. Container trains have become
that enable sea operators to access popular for bulk haulage.
hinterland services by barge, rail or Containers can easily be
road. transshipped to other modes, such
2. Between different operators. as ships and trucks, using cranes.
The gateway is the pivot via which This has succeeded the boxcar
cargo is handed over between (wagon-load), where the cargo had
operators that are partners in to be loaded and unloaded into the
providing a door-to-door service. train manually.
3. Between different networks 5. The intermodal containerization of
of the same operator, for cargo has revolutionized the supply
instance between national and chain logistics industry, reducing
international networks. ship costs significantly.

Restoring Supply Chain - The Lifeline of Economy 81 Sudhir Jain


North-South Rail Route
Between Jammu
and Kanyakumari

1. Each of the Rail Route is crossing


with many other Road and Rail
Routes and can exchange supplies
with other road and rail terminals at
the Junction to manage mass
distribution of wide range of
products.
2. Such as, North-South Railway
Route passing along NH-44 from

Fig 21 : Indian Railway Jammu to Kanyakumari meets the


following National Highway on
6. Given India's size (almost 3,000 which Freight Rail Junctions can be
kilometres (1,900 mi) from North to developed-
South and East to West), rail 1. Jammu - NH-144 A
transport is often a cheaper option 2. Pathankot - NH-54
for all cargo over medium and long 3. Jalandhar - NH-3
distances, especially if the cost of 4. Ludhiana - NH-5
inter-modal transfers can be 5. Rajpura - NH-7
reduced. 6. Ambala - NH-344 and
7. Bulk handling represents a key - NH-152
advantage for rail transport. Low or 7. Karnal - NH-709A
even zero transshipment costs 8. Panipat - NH-709
combined with energy efficiency 9. Sonipat - NH-334B
and low inventory costs allow trains 10. New Delhi - NH-9,
to handle bulk much cheaper than - NH-19 and - NH-48
by road. Typical bulk cargo includes 11. Palwal - NH-919
coal, ore, grains and liquids. 12. Agra - NH-21
13. Dholpur - NH-23

Restoring Supply Chain - The Lifeline of Economy 82 Sudhir Jain


27. Krishnagiri - NH-77
28. Dharmapuri - NH-844
29. Salem - NH-79 and
-NH-544
30. Karur - NH-81
31. Dindigul - NH-83 and
-NH-183
32. Madurai - NH-85
33. Thirumangalam- NH-744
34. Tirunelveli - NH-138
35. Nagarcoil - NH-944
36. Kanyakumari - NH-66

Fig 21 : North-South
3. The North-South Railway route
Rail Route along NH-44
from Jammu to Kanyakumari along
14. Gwalior - NH-719 NH-44 passes through 45 National
15. Jhansi - NH-27 and Highways.
- NH-39 4. Each National Highway further
14. Sagar - NH-146 crosses many other National
15. Narasinghpur - NH-547 Highways. Such as, the 926 km
16. Lakhnadon - NH-34 long East-West National
17. Seoni - NH-347 Highway-65 runs along the states
18. Nagpur - NH-53 of Maharashtra, Ka r n a t a k a ,
19. Nirmal - NH-61 Telangana and Andhra Pradesh.
20. Nizamabad - NH-63 Major cities on this route are
21. Hyderabad - NH-65, Mumbai, Pune, S o l a p u r,
- NH-163, and - NH-765 Hyderabad, Suryapet, Kodad,
22. Kurnool - NH-40 Vijayawada and Machilipatnam.
23. Gooty - NH-67 The NH-65 meets NH-44 at
24. Anantpur - NH-42 Hyderabad city.
25. Bengaluru - NH-48, 5. The East-West Rail route passing
NH-209, NH-75, and - NH-275 along NH-65, crosses the path of
26. Hosur - NH-648

Restoring Supply Chain - The Lifeline of Economy 83 Sudhir Jain


supplies of different routes.
8. Several cities and towns are build
along each National Highway so
each junction brings supplies from
dozens of cities in either direction,
produce a huge quantity of
Nashik distribution challenge which can be
Mumbai Pune
Visakhapatnam effectively managed by the Road-
Solarpur

Vijayawada Rail Network System.


8. A cargo from Ludhiana to
Vijayawada can be transported
using National Goods Transport
Network System. The cargo will be
Fig 21 : The East-West Rail Route picked from the trader in Ludhiana
(Pune to Vijayawada) along NH-65 and then will travel to Delhi to
crosses the North-South Rail Route Hyderabad and delivered to the
(Jammu to Kanyakumari)
consignee in Vijayawada.
along NH-44 at Hyderabad
9. A single route from Ludhiana to
Vijayawada is not required to
other National Highways, such as -
deliver the product.
1. NH-3, NH-4, NH-8, NH-17 and
10. Mumbai, Pune, Hyderabad and
NH-222 in Mumbai
Vijayawada are connected with
1. NH-48 in Pune
Airport. Mumbai and Vijayawada
2. NH-13 and NH-211 in Solapur
also has Seaport. The cargo in the
3. NH-218 in Humnabad,
above example can be delivered
4. NH-44 and NH-163 in Hyderabad
from Ludhiana via Vijayawada to a
5. NH-365B in Suryapet
consignee in Singapore by air or by
6. NH-167 in Kodad
sea. Therefore, the National Goods
7. NH-16 in Vijayawada
Transport Network System can
8. NH-165 in Pamarru
connect with the other countries
9. NH-216 in Machilipatnam
network system to deliver goods
7. The Rail Junction can be developed
anywhere in the world.
at the meeting point of two National
Highways so as to exchange the

Restoring Supply Chain - The Lifeline of Economy 84 Sudhir Jain


NCR
ICD-Kundli (NH-44)
(NH-44)

NH
-44
ICD-Loni (NH-9
NCR Uttrakhand)
(NH-9) NH-9
NCR
(NH-9)
NH-9

ICD-Delhi
(Tuglakabad)

NCR

NH-19
(NH-34)
NCR ICD-Gurugram
(NH-48) (NH-48) ICD-Dadri
(NH-34 and
Interstate 8
Yamuna Expy)
-4
NH
Transport Hub

NCR
Inland Container
(NH-19) ICD-Palwal
Depot (ICD) - Railway (NH-19 and NH-44)

Fig 21 : Connecting Indian Railway with National Highway

Multimodal Transport 3. Inland Container Depot (ICD) are

System in Delhi-NCR build along the Railway Junctions to


manage the cargo.
(Connecting Railway
and Roadway)
4. Delhi-NCR is a major Transport
Junction and Eastern-Western
1. Railway has constructed tracks
Peripheral road (EWP road) is the
along the National Highway to meet
terminal point of Interstate Goods
transport needs of the country.
Transport Network System.

2. The Freight Train will develop


5. Delhi is also Transport Junction of
simple straight route starting from
Railway, and receive deliveries
one end of the National Highway to
from all over the country along the
the other end and will exchange
six major routes, which runs
supplies at the Junction of another
parallel to the six National Highway.
National Highway.

Restoring Supply Chain - The Lifeline of Economy 85 Sudhir Jain


6. Already, Inland Container Depot 1. North-South Railway Route
(ICD) - well connected with Railway passing along NH-44 from Jammu
Network are available along the to Bengaluru.
EWP road, (Figure 21) such as, 2. E a s t - We s t Railway Route
1. ICD-Kundli (NH-44 J&K), passing along NH-19 and NH-48
2. ICD-Loni, (NH-9 Uttrakhand), from Kolkatta to Delhi and further
3. ICD-Dadri (NH-34 M.P.), to Mumbai and Chennai.
4. ICD-Palwal (NH-19 Kolkata and 3. North-West Railway Route
NH-44 Bengaluru), passing along NH-9 from
5. ICD-Gurugram (NH-48 Mumbai Uttrakhand to Punjab.
and Chennai), 4. Central-North Railway Route
6. ICD-Tuglakabad (Delhi) passing along NH-34 from
(NH-19 Kolkata and NH-44) Lakhnadon (Madhya Pradesh) to
Delhi to ICD-Palwal.
7. The Freight Train can transport bulk
cargo at long distance. The routes 10. The Freight Train passing by the
of Freight Train would not terminate Delhi-NCR will stop at ICD along the
at Inland Container Depot (ICD) EWP road to exchange supplies with
near EWP road as is in the case of Interstate Transport Hub.
Road Transport bringing interstate
supplies. 11. The Freight Railway will go around
the Delhi Suburban Ring Railway to
8. The Freight Train will stop at the exchange supplies of Delhi-NCR
ICD near the EWP road to exchange with Regional Terminals in Delhi.
supplies and then will continue its
journey further beyond Delhi city. 12. There are 3 Rail ICD in Delhi-NCR.
1. ICD-Tuglakabad is in Delhi. This
9. The routes of the Freight Train is a Gateway Terminal to link
passing by the Delhi-NCR region Regional Terminals in the city with
will be long straight route. Railway.
They can be - 2. ICD-Gurugram is in South-West
part of NCR along NH-48 near EWP

Restoring Supply Chain - The Lifeline of Economy 86 Sudhir Jain


road and also near the Indira 16. ICD-Palwal (constructed along
Gandhi Airport. This is the Gateway NH-19 Ko l k a t a and NH-44
Te r m i n a l to link Interstate Bengaluru Route) - will serve to the
Transport Hub, the Regional Freight Train from -
Terminals in the city with Railway 1. Kolkata (NH-19),
and Airway. 2. Mumbai (NH-48);
3. ICD-Loni is in North-Eastern Part 3. Bengaluru (NH-44),
of NCR in between NH-44 (J&K) and 4. Jammu (NH-44); and
NH-9 (Uttrakhand) near EWP road. 5. Madhya Pradesh (NH-34)

13. Each of the Freight Rail is bringing 17. A Shuttle service between ICD-
cargo for transportation in the Palwal and ICD-Kundli, stopping at
other route. ICD-Tuglakabad will be employed.
(Fig 25)
14. Two of the ICDs located close to
EWP road at Delhi-NCR can become 18. The Shuttle service at ICD-Kundli,
the Exchange Hub of Interstate can bring cargo to ICD-Palwal from-
supplies of the Freight Train 1. Uttrakhand (NH-9), and
Network System, namely - 2. Punjab (NH-9)
1. ICD-Kundli (NH-44 Jammu), to be transported in the direction of
2. ICD-Palwal (NH-19 Kolkata and 3. Kolkatta (NH-19),
NH-44 Bengaluru) 4. Mumbai (NH-48) and
5. Madhya Pradesh (NH-34)
15. ICD-Kundli (constructed along
NH-44 Jammu Route) - will serve to 19. The Shuttle service at ICD-Palwal,
the Freight Train from - can bring cargo to ICD-Kundli from-
1. Jammu (NH-44), 1. Kolkatta (NH-19),
2. Bengaluru (NH-44); 2. Mumbai (NH-48) and
3. Punjab (NH-9), 3. Madhya Pradesh (NH-34)
4. Uttrakhand (NH-9) to be transported in the direction of
4. Uttrakhand (NH-9) and
5. Punjab (NH-9)

Restoring Supply Chain - The Lifeline of Economy 87 Sudhir Jain


JAMMU (NH-44)

NCR (NH-44)
Jammu NCR (NH-9)
Uttrakhand

ICD-Kundli

NCR (NH-9)

Sh
Punjab

utt
ICD-Delhi

le
(Tuglakabad)

Se
rvi
NCR (NH-48)

ce
Mumbai
Interstate NCR (NH-34)
ICD-Palwal Madhya Pradesh
Transport Hub

Inland Container NCR (NH-19)


Depot (ICD) - Railway Kolkatta and
Bengaluru KOLKATA (NH-19)
BENGALURU (NH-44)

Fig 25 : Shuttle Service between ICD-Palwal and ICD-Kundli


and Transport Flow Between Road and Rail in Delhi-NCR

20. The route of Freight Train 22. While I C D - Pa l wa l will be


Jammu-Bengaluru and exchanging cargo with
Bengaluru-Jammu 4. NCR (NH-34 Madhya Pradesh)
are crossing at ICD-Kundli, ICD- 5. NCR (NH-19 Kolkata)
Delhi and at ICD-Palwal, just like 6. NCR (NH-48 Mumbai)
the Shuttle Service.
23. The Shuttle service at ICD-Delhi
21. In addition, ICD-Kundli and ICD- (Tuglakabad) -
Palwal will be exchanging cargo 1. will bring freight meant for Delhi
with the interstate Transport Hub. city from all the rail routes passing
Such as, ICD-Kundli will exchange Delhi
supplies with - 2. will receive cargo from the
1. NCR (NH-9 Punjab) Regional Terminals in Delhi for
2. NCR (NH-44 Jammu) further distribution in the country.
3. NCR (NH-9 Uttrakhand) 24. This completes the Transport Flow
between Road and Railway around
Delhi-NCR.

Restoring Supply Chain - The Lifeline of Economy 88 Sudhir Jain


Multimodal Transport
System in Delhi-NCR
(Connecting Airway with
Railway and Roadway)
Fig 23 : Cargo Plane

Interconnecting Airway, 1. Indira Gandhi International Airport

Railway and Roadway serves as the major international


aviation hub of the Indian capital

1. Air transport is the fastest means of city of New Delhi as well as India.

movement from one place to the


other. It has reduced distances by 2. It is also the busiest airport in the

minimising the travel time. country in terms of cargo traffic,

2. It is very essential for a vast overtaking Mumbai during late

country like India, where distances 2015.

are large and the terrain and


climatic conditions are diverse. 3. Jewar Airport is being planned to

3. The authority manages 125 offset the load of Indira Gandhi

airports. International Airport.

4. Cargo is transported by air in


specialized cargo aircraft and in the 4. Two of the Inland Container Depot

luggage compartments of (ICD) - well connected with Air, Rail

passenger aircraft. Air freight is and Road are available along the

typically the fastest mode for long- EWP road, such as,

distance freight transport, but it is 1. ICD-Gurugram


2. ICD-Dadri
also the most expensive.
5. In 2015, 108 trillion tonne-
5. ICD-Gurugram is located along
kilometers were transported
Kolkata-Mumbai Freight Rail Route
worldwide (anticipated to grow by
and also along NH-48 near EWP
3.4% per year until 2050): 70% by
road. It is closer to Indira Gandhi
sea, 18% by road, 9% by rail, 2%
International Airport and can
by inland waterways and less than
0.25% by air.

Restoring Supply Chain - The Lifeline of Economy 89 Sudhir Jain


Fig 22 : India Air Network

provide multimodal transport by and along NH-34, and Yamuna


joining the services of Air, Rail and Expressway near EWP road is closer
Road Transport. to new proposed Jewar Airport and
can provide multi-modal transport
6. ICD-Dadri is located along Madhya using Air, Rail and Road.
Pradesh-Delhi Freight Rail Route

Restoring Supply Chain - The Lifeline of Economy 90 Sudhir Jain


7. The list of the cities in India which Hyderabad - Mumbai
have International Terminals are - 6. Mumbai - Panaji - Mangaluru-
Delhi, Amritsar, Jaipur, Lucknow, Kozhikode - Coimbatore - Kochi -
Varanasi, Raipur, Thiruvanthapuram - Tiruchirappalli
Kolkata, Bagdogra, Guwahati, - Chennai - Nagpur - Mumbai
Bhubaneshwar, 7. Kolkata - Agartala - Aizwal -
Mumbai, Ahmedabad, Surat, Goa, Imphal - Guwahati - Bagdogra -
Nagpur, Patna - Kolkata
Chennai, Hyderabad, Mangaluru, 8. Kolkata - Bhubaneshwar -
Bengaluru, Kozhikode, Kochi, Viskhapatnam - Chennai - Begaluru
Coimbatore, Thiruvanthapuram, - Hyderabad - Nagpur - Kolkata
Kannur, and Tiruchirappalli
9. Nagpur is the nodal point of Air
8. Air Routes can be developed to Cargo Route. It will become the Air
transport Air Cargo between the Cargo Hub to manage Air Cargo
cities having International from all over India.
Terminals, State Capitals, Sea Ports
to exchange air cargo between 10. Half of the Flights on Air Routes
India and the rest of the world. can move in clockwise and the other
Such as, the Air Route from - half in anti-clockwise direction to
1. Delhi - Chandigarh - Amritsar, manage the transport flow in both
Jammu - Srinagar - Leh - Dehradun the directions of the route.
- Delhi
2. Delhi - Jaipur - Ahmedabad - 11. The network of National Highways
Kandla - Mumbai - Nagpur - Bhopal and Rail Routes are well developed
- Delhi along the Airports. And therefore, it
3. Delhi - Lucknow - Varanasi - can develop into a multi-modal
Patna - Kolkata - Ranchi - Raipur - National Tr a n s p o r t Network
Nagpur - Gwalior - Delhi System.
4. Delhi - Nagpur - Hyderabad - ----------------------------------------
Bengaluru - Chennai - Delhi
5. Mumbai - Nagpur - Kolkata -

Restoring Supply Chain - The Lifeline of Economy 91 Sudhir Jain


Fig 22 : India Major Sea Port

Sea Port in India 5. Paradip (Bhubaneshwar)


6. Viskhapatnam,

1. In India about 96% of the foreign 7. Ennore (Chennai)

trade by quantity and 70% by value 8. Chennai,

takes place through the ports. 9. Thoothukudi (Tiruchirappalli)

2. The total 200 major and non-major 10. New Mangaluru,

ports are present in the following 11. Mormugao (Goa) and

States:- Maharashtra (53); Gujarat 12. Kandla (Gujarat)

(40); Tamil Nadu (15); Karnataka


(10) and others (82). Mumbai Port 4. In the previous section, we had

& JNPT (Navi Mumbai) handles 70% connected all of these port cities

of maritime trade in India. with Air Cargo Routes so as to

3. There are twelve major ports: develop a Multi-modal National

1. Navi Mumbai, Goods Transport Network

2. Mumbai, System to transport wide range of

3. Kochi, products everywhere in India and

4. Kolkata (including Haldia), to the rest of the World.

Restoring Supply Chain - The Lifeline of Economy 92 Sudhir Jain


CONCLUSION
Let us compare the present system of transportation
with the development of the
Multi-modal National Goods Transport Network System.

Present System Multi-modal National Goods


of Transportation Transport Network System.

1. Interstate Transport Company 1. They do not compete for


- They Compete for Business Business
Currently there are hundreds of There are hundreds of Transport
Inter-state Transport Agencies in Agencies in the network. Each
India. Each company has its own agency has its own warehouse and
warehouses and runs their own the arrangement of transportation.
fleet of transport vehicles to deliver The Transport Agencies are not
goods from one city to another city. competing with each other but are
Each of the agency has its own helping each other to collect cargo
network and is also a competitor of from MSME's (Micro, Small and
other agencies and competes Medium Enterprises) which are
among them for the customer base. scattered all over the country and
to deliver their products to their
clients, which are also spread in the
different parts of the country.

2. They do not Share 2. They Share Cost of Operation


Cost of Operation The assets deployed by one

The investment of one Interstate Transport Agency in fact decreases

Transport Company in constructing the cost of another Transport

new warehouse or buying a truck is Agency. Such as, the Interstate


Tra n s p o r t Hub developed a
not beneficial to another Interstate

Restoring Supply Chain - The Lifeline of Economy 93 Sudhir Jain


Transport Company who will have Warehouse, employed several
to make similar investment to cranes, purchased trucks and

increase his market share. containers and employed 5 dozen

The Interstate Tr a n s p o r t people to run the transportation

Companies are in pressure to activities. The Regional Terminal in

maintain their customer base association with the Interstate


Transport Hub do not have to share
inspite of high cost of operation and
the cost of infrastructure and the
cut throat competition, effecting
running cost of Interstate Transport
their bottom line (profits) and their
Hub - and yet can employ his
plans for expansion.
services.
Lower cost of operation results into
lower charges. It is estimated that
the Network is able to reduce its
cost of operation to less than half of
what is possible today and hence
can charge less for the delivery
services. This in turn results into
higher volume as MSMEs shift their
transportation business to the
Network.

3. They do not bring Business to 3. They bring Business to each


each other other
The income generated by one The Interstate Transport Hub brings
Transport Agency does not result supplies for the Regional Terminal
into increased business for his and the Regional Terminal brings
competitors. Let us take an cargo for the Interstate Transport
example of Jaipur Golden Transport Hub. Another Interstate Transport
Company. They are reputed Hub working elsewhere in the
Interstate Transport Company of country would be helping the
India. The extensive network of the Interstate Transport Hub in our city
company today covers 300 by transporting more cargo

Restoring Supply Chain - The Lifeline of Economy 94 Sudhir Jain


associates and 350 branches across towards him and hence increasing
the country. They have 1000 all- his business income. Every person
weather vehicles and extensive employed in the network is helping
network of hubs and warehouses to bring more business to all others
covering more than 3 million square in the chain.
feet, to keep the goods extremely The Transport Agencies in the
safe and secure. Operating 24×7, Network work with each other for
365 days a year, they serve a the mutual benefits so as it increase
customer base across different the customer base to generate
domains in India. However, Jaipur more income and to reduce the cost
Golden Transport Company has of operation by sharing the job of
setup his network for his business transportation.
growth and not for his competitors.

4. Limited Market 4. Unlimited Market


The network developed by the The network has full access to every
Transport Agency has limited location in every direction through
access of the market around the out the country. It can service in
route, the company provide the any city, town or village in the
service. They find difficult to cater country via road, railway, airway
in village and in remote areas. and waterway.

5. Different Interstate Transport 5. Nobody owns the Network


Company have set up different Central Government is a catalyst in
Network providing the space around
Interstate Transport Company set Transport Nodal Points to facilitate
up their Network making exchange of supplies in all
investment in warehouses near direction. But neither the
wholesale market catering to Government nor the individuals
interstate supplies across the who will be investing and will be
country. operating the system would own
the network.

Restoring Supply Chain - The Lifeline of Economy 95 Sudhir Jain


6. Interstate Transport Company 6. Checks Excessive Competition
compete for the same customer The Network does not employ new
base Transport Agency if the work is
Different Interstate Transport already managed by some other
Companies may have different Transport Agency. A new Transport
transport arrangements but they all Agency can be added in the
provide services around the Network if it is able to add business
wholesale market catering to to the Network. This way the
interstate supplies across the Network discourages unnecessary
country. Thus competing for a very competition among the Transport
small customer base. Agencies while increases the
customer base of the Network.

7. Cash on Delivery and Seven 7. Cash on Delivery and Seven


Days Return Policy System Days Return Policy System
The Interstate Transport Co cannot The Network can provide Cash on
provide Cash on Delivery and Seven Delivery and Seven Days Return
Days Return Policy System to Policy System at cheaper rates and
ensure customer satisfaction. The can improve the trade of B2B
e-commerce portal like Amazon sector.
and Flipkart employ the above The Network may tie-up with E-
system but the high cost of commerce site like Amazon and
transportation makes them Flipkart to provide door to door pick
uneconomical to deliver Business to up and delivery services. This will
Business (B2B) supplies. reduce the transportation cost of
Amazon and they can focus on
developing B2B sector.

Restoring Supply Chain - The Lifeline of Economy 96 Sudhir Jain


8. They can not create the 8. Only Central Government can
National Goods Transport develop the National Goods
Network System Transport Network System
All of the Interstate Transport 1. This system does not replace the
Companies can not develop the present system of transportation
National Goods Transport Network and it does not compete with them,
System with all the Investment, but infact provide them a cheaper
existing set of warehouses, carriers and faster delivery system than is
to transport goods and experience possible today. It helps to develop
in the transport logistics because of them further. It invites the present
the lack of properties around the Interstate Transport Companies,
Transport Nodal Points which gives MSMEs, Labour etc to be a part of it.
the advantage of exchanging goods But only the Central Government
from the different directions. can provide the land to develop
Transport Hub around the Transport
Nodal Points.
2. The existing Interstate Transport
Companies will bid for the tenders
to construct a modern warehouse
at the property provided by the
Central Government to become a
part of the National Goods
Transport Network System.
3. The Network will deliver the goods
from a city to the Interstate
Tr a n s p o r t Company so the
Company may decide to sell some
of the properties in the city to earn
windfall gain, because of high
property prices in the city.

Restoring Supply Chain - The Lifeline of Economy 97 Sudhir Jain


Economy Economy

1. Development of a City 1. Development of a City


The Interstate Transport Company The Network can undertake
are unable to cater to intracity intracity supplies. It is estimated
supplies. Most of the traders that about half of the traders will
involved in intracity supplies use employ the Network services to
their personal vehicle to deliver deliver goods to their clients.
goods.
2. Development of far away areas 2. Development of far away areas
The Interstate Transport Company The reduced cost of transportation
are unable to cater directly to the and the accessibility to faraway
villages and to remote area of the markets increase business
country due to the high cost of potential in both agriculture and
transportation and difficulty to industrial sector.
access faraway markets.
3. Cost of Production 3. Reduction in Cost of Production
Unable to reach far away markets, The transportation network
contract demand and supply and reduces the cost of manufactured
decrease the volume of trade. goods and lower the prices in the
Profits decrease and the cost of market.
operation increase. It leads to
business contraction and fails to
generate employment and various
new jobs.
4. Reduction in Scarcity 4. Reduction in Scarcity
Some of the area well connected It helps in solving the problem of
with transportation have abundant scarcity of goods and factors in
opportunities of growth but many
different regions of the country.
area are not so well connected face
scarcity of resources.

Restoring Supply Chain - The Lifeline of Economy 98 Sudhir Jain


5. Growth in Foreign Trade 5. Growth in Foreign Trade
Limited markets are developed due It helps in promoting foreign trade
to improper allocation of resources of the country.
effect the growth in foreign trade.
6. Specialization of Labour and 6. Specialization of Labour and
Mobilization of Resources Mobilization of Resources
Improper transportation increases By efficient and effective
the cost of labour and put difficulty transportation system, the benefits
in mobilization of resources of specialization of labour and
proper mobilization can be
achieved. Thus, an economic
system makes the best use of
resources through good transport
system.
7. Promotion of Tourism 7. Promotion of Tourism
Improper transportation restricts
An ideal transportation promotes
tourism services all over the
tourism system or services all over
country.
the country.
8. Expands the Market
Improper transportation restricts 8. Expands the Market

the growth of markets for both Markets for both industrial and
industrial and agricultural produce. agricultural produce expand both

on the domestic and international

front with the expansion of

transport network.
9. Increase Tax Revenue
9. Increase Tax Revenue
The trade fail to increase restricts
The trade will increase, the Indian
the growth of the Indian Economy
Economy will bloom. The Tax
reduces Tax Collection of the Centre
Collection of the Centre and the
and the State.
State will increase.
10. Limits the improvement in
10. Improves the GDP of India
the GDP of India

Restoring Supply Chain - The Lifeline of Economy 99 Sudhir Jain


Social Social

1. Rural Employment 1. Rural Employment


1. The Interstate Transport Company Those depended on farm products
do not directly serve to villages as
will be able to get better prices of
there businesses are scattered over
their products by directly selling to
a large area and their job is
faraway markets. This will mean
seasonal. The villagers are forced
that a good farming in an area may
to sell the farm products to traders
not mean fall in prices and hence
in the nearby cities. Often good
farming in an area results into fall in loss of revenue to farmers. The

prices and hence loss of revenue to farmers will be less dependent on

farmers. Unable to reach faraway the middlemen in the nearby cities

markets, the farmers are forced to for the farm prices.


sell their crops to the traders in the Better prices for the farm products
nearby cities. will generate thousands of jobs in

villages. This way, the Network

helps to generate jobs for the

labourers in their respective

villages.

2. Encourages Rural Migration to 2. Checks Rural Migration

Cities to Cities

The low income and high risk The Network bridges the gap

associated with farming forced between urban and rural growth,

many villagers to seek jobs in cities. which will check the mass migration

of rural population to the urban

areas in the search of job.

Restoring Supply Chain - The Lifeline of Economy 100 Sudhir Jain


3. Improper Employment 3. More Employment Opportunity
Opportunities The Network provides employment
Unable to generate jobs in rural in transport sector in every city and
area, many villagers end up being town of the country.
labourers in cities and engaged in The Network helps to improve the
loading and unloading of goods. working condition of existing
businesses and support the growth
of new businesses, thereby
generating employment in various
fields. This will bring balanced
growth in the country.

4. Higher Standard of Living


4. Low Standard of Living
Transportation reduces distance.
The migrants live below the poverty
As a result, we enjoy the position to
line and work for long hours to
use various varieties of things
survive.
produced in different corners of the
5. The National Goods Transport
world. These standard commodities
Network System will make many of
increase our standard living which
them jobless. However, the
depends upon goods and services,
Network will help to improve the
we consume.
living conditions in villages and will
create employment in the villages.

Restoring Supply Chain - The Lifeline of Economy 101 Sudhir Jain


Environment and Environment and
Traffic Management Traffic Management

1. The carriers of various Inter-state 1. A city is densely populated and

Transport Co enter the city to have heavy traffic flow. The carriers
of Interstate Transport do not enter
collect and deliver goods. The city is
the city to collect and deliver goods.
densely populated and witness
The supplies are delivered at the
heavy traffic flow during office
Interstate Transport Hub outside
hours. So usually city administrator
the city border. The Hub receive all
impose heavy restrictions on the
types of supplies for deliveries in all
transport movement. A carrier
the direction. Bypass road is used
requires lots of time to cross the
to supply the goods meant for
city.
interstate supplies. And city roads
2. In addition, they do not provide
are used to transport the city
door to door services of micro and supplies. The network checks the
small supplies. The vendors unnecessary entry of transport
themselves have to make their own carriers in the city, thus reducing
arrangement to deliver goods. They traffic load.
have to purchase their transport, 2. In addition, they provide door to
hire employee and are required to door service to micro and small
spend time and money to deliver vendors and helps restrict the

the supplies. This in turn increases movement of private vehicles used

the traffic flow. for suppling the deliveries.


3. This will further reduce traffic
congestion and pollution in the city.
-----------------------------------------

Restoring Supply Chain - The Lifeline of Economy 102 Sudhir Jain


EPILOGUE - A NEW BEGINNING

1. The National Goods Transport City Bus Network System


Network System can be developed
by the Central Government without 1. The Bus Depots will be constructed
the Investment of Public Money, all around the city border along the
because -
major city road. The Bus Depot will
1. Infrastructure Cost is Nil
decide the type and the frequency
2. Warehouses can be constructed
of Buses on a route.
using Build Operate Transfer model
2. The Bus Stand will be constructed
of Public-Private Partnership
after crossing the intersection so as
not to obstruct the traffic flow.
2. The Network can be developed in
Some of the bus stand will require
any country of the world in a very
Foot Over Bridge (FOB) with
little time without the investment of
escalators.
public money.
3. The Network will provide simple
-----------------------------------------
straight bus routes with the facility
3. A Multi-modal National Bus
to change Buses at the intersection
Transit Network System can also
of two roads.
be developed by the Central
4. The passenger will construct the
Government to facilitate cheap,
route and change buses at the
fast and comfortable transport
appropriate intersection to travel to
facility without the investment of
their destination.
public money.
5. The Bus Network System in Delhi
1. Infrastructure Cost is Nil
can act as a feeder service to Delhi
2. Bus Depots and Bus Stands can
Metro System.
be developed using BOT model
-----------------------------------------

It will need the development of two


types of Bus Network System.
1. The City Bus Network System and
2. The Intercity Bus Network System

Restoring Supply Chain - The Lifeline of Economy 103 Sudhir Jain


Intercity Bus 5. The Benefits of Networking are

Network System similar - No one own it and each


service provider is helping other

1. The Intercity Bus Network System service provider to reduce cost of

will provide travel facilities from operation and increasing the

one city to another in the country. passenger flow to provide fast,

2. The Buses of Intercity Bus Network cheap and comfortable journey to

System will not enter the city and the passengers from anywhere

leave the passengers outside the wanting to go to any place in the

city along the Bus Depot of the City country or to any part of the world.

Bus Network System. The Buses of -----------------------------------------

City Bus Network System will bring The Magic of Networking


the passengers into the city. is Infinite and it is just a
3. The Bus Depots of Intercity Bus BEGINNING....
Network System can be build along
the National Highway outside the
city using BOT model.

4. Bus Network System also guides us


to develop
1. Rail Network System
-------------------
to connect each and every part of
The Part 2 of this Presentation
the country
deals with the idea of
2. Air Network System and
3. Sea Network System
Social Harmony and
to connect each and every part of
Economic Freedom
the world
-------------------
Together they all will develop into a
multi-modal International
Transit System connecting
everyone in the whole world.

Restoring Supply Chain - The Lifeline of Economy 104 Sudhir Jain

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