Transportation

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

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

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

Participants in Transportation Public Government Shipper (sender) Carrier Consignee .

Decision Factors The three main factors:  Cost  Speed  Consistency .

Modes of Transportation  Land Transport  Road  Rail  Pipeline  Ropeway  Air Transport  Water Transport  Intermodal Transport .

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

frequent shipments • Disadvantages – Speed – Capacity – Range – Dangerous .Road • Advantages – Lower costs – Accessibility/Flexible – Fast – Small.

 It is also suitable for emergency items to be delivered for some specific requirements. .Air  Mostly for high value & low volume goods from distant supplier.  Used for small volumes.  It is the costliest.

Air • Premium transportation • Advantages – – – – Speed delivery Reliable Limited losses Range • Disadvantages – – – – Price Non-direct points Add-on charges Necessary? .

Rail  The most economical and safe mode. It is good for long distance transport. floods. fog. Rail  It is suitable for carrying heavy goods in large quantities over long distances. etc.  Its operation is less affected by adverse weathers conditions like rain. .

Rail • Advantages – – – – – Lowest overall cost per unit weight Consistent time schedule Large loading capacity Speed Weather Rail • Disadvantages – Inflexibility – Potential damage of goods – Ineffective with small shipments .

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

i. barges. Coastal Shipping ii.  Ocean Transport It refers to movement of goods and passengers with the help of ships through sea or ocean waterways. launches. Overseas Shipping . It plays an important role in the development of international trade.Water There are mainly two types of water transport Inland water transport It uses boats. streamers etc to carry goods and passengers on river and canal route.

Water • Advantages – – – – Large volumes Cheap No restriction on loading capacity Long distances • Disadvantages – – – – Slower than air travel Transshipment at port Not flexible Limited access .

Some constraints to water transport  Ships have to wait long for berthing  Manual handling and poor labour productivity  Old type of equipment  Night navigation unavailable  Poor availability of railway wagons and road trucks  Insufficient warehousing  Tardy procedure .

Measures of different Modes Table Modes Road Criteria Relative Speed Reliability Moderate Good Moderate Good Slow Limited Very High Very Good Rail Sea Air Cost per ton/km Flexibility Medium High Low/Medium Low Low/Very low Low High Medium .

.Pipeline  Transport of homogeneous materials  The transportation of goods through a pipe.  Liquids and gases are sent.

Pipeline • Advantages – Lower transportation costs than other modes • Disadvantages – Higher initial costs – Unable to transport a variety of materials .

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

Ropeway • Advantages – – – – – No grade restrictions Ideal for severe weather conditions (no guideway heating needed) Lower life cycle costs High level of safety (no collision possibility) Simpler control system • Disadvantages – – – – – Distance Speed Alignment (Curvature) Expansion Operation .

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

Benefits of Intermodal Transportation  Cost  Environmental  Flexibility  Security .

Intermodal Transport In Future • Faster • • • Better Smarter More Profitable .

stacked.Containerization  Containerization is an important element of the logistics revolution that changed freight handling on ships. transported efficiently over long distances. rail and semi-trailer trucks—without being opened. and can be loaded and unloaded.  Containers are built to standardized dimensions. and transferred from one mode of transport to another—container ships. railways and trucks in the 20th century. 40 ft 20ft .

Transportation Cost Elements  Transport Mode  Inventory Costs  Transit Capital  Obsolescence  Packaging  Insurance  Breakages  Pilferage  Deterioration  Transport Costs .

40% .50% Management 11% Transportation 29.40% Ordering 5.Cost Ratio Cost Ratio Movement 7.00% Inventory 17.8% Packaging 11.90% Warehousing 17.

The transport pattern of traditional business Fig. The transport pattern of e-commerce .Transportation Patterns Fig.

price.Summary  Each mode of transportation has its own strengths and weaknesses  The effectiveness of each mode depends on several factors including distance. and timeliness  Services exist to help choose the best modes of transportation .

Cont. .Conclusion  The key concepts in todays world economy derive their existence because of the physical and electronic linkages developed by the technology  It constitutes the basic linkage between the supply and demand centres  Peaks and troughs in the demand of transportation.….

Conclusion  Public nature of transport infrastructure  Relationship between the nature of the individual commodities and the modes of transportation preferred by the commodity  Modes of transportation used for bulk freight traffic  Over years inland freight traffic has been shifting from rail to road .

Thank You .

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.