M.

V Act & Transport Management

Module-2
Transport Management

• NAME OF THE COURSE: Diploma in Automobile Engineering

• SEMESTER: Sixth (6th Semester)
• PREPARED BY: ROUNAK SAHA
• DESIGNATION: Lecturer in Automobile Engineering
• NAME OF THE INSTITUTION: Coochbehar Polytechnic
TERMS USED IN TRANSPORTATION

Road transport service

Road transport or road transportation is a type of transport by using roads. Transport on roads can be roughly
grouped into the transportation of goods and transportation of people. In many countries licensing requirements
and safety regulations ensure a separation of the two industries. Movement along roads may be by bike or
automobile, truck, or by animal such as horse or oxen. Standard networks of roads were adopted by Romans,
Persians, Aztec, and other early empires, and may be regarded as a feature of empires. Cargo may be transported
by trucking companies, while passengers may be transported via mass transit. Commonly defined features of
modern roads include defined lanes and signage. Various classes of road exist, from two-lane local roads with
at-grade intersections to controlled-access highways with all cross-traffic grade-separated.
 Transport vehicle
A vehicle is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles
(motorcycles, cars, trucks, buses), railed vehicles (trains, trams), watercraft (ships, boats), amphibious vehicles
(screw-propelled vehicle, hovercraft), aircraft (airplanes, helicopters) and spacecraft. 
Land vehicles are classified broadly by what is used to apply steering and drive forces against the ground:
wheeled, tracked, railed or skied. ISO 3833-1977 is the standard, also internationally used in legislation, for
road vehicles types, terms and definitions.
Public service vehicle
 
Public service vehicle means a vehicle used to assist members of the public or law enforcement officers with disabled
vehicles or to remove debris from a roadway, or a vehicle used to construct, maintain, inspect or repair utility
infrastructure, including, but not limited to, electricity, water, sewer, cable, telephone, gas and natural gas infrastructure.

Goods vehicle
It means any motor vehicle constructed or adopted to use upon the road solely for carriage of the goods. Such
vehicle can be used on contract or under hire purchase agreement. It can be categorized on the basis of gross
vehicle weight as Heavy goods vehicle, medium goods vehicle and light goods vehicle.
Public place
A public place is generally an indoor or outdoor area, whether privately or publicly owned, to which the public
have access by right or by invitation, expressed or implied, whether by payment of money or not, but not a place
when used exclusively by one or more individuals for a private gathering or other personal purpose. 
Depot
It is the place where buses are kept and maintained, i.e. washing, cleaning, oil change, minor servicing,
replacement of all major and minor units and assemblies etc. is done.
Route
 
Route comes from an Old French word, rute, “road,” “way,” or “path” and the Latin rupta, “broken way” or “beaten way.” A route
can be a highway, like Route 66, or all the places you pass through on the way somewhere, like using a map to find the shortest
route. In simple, a route is a way for travel or movement, the path from point A to point B.

Trip 
It means the journey between two terminals i.e., from start of travel to the final destination for carrying
passengers or goods on hire or reward.
Time table
The schedule or detailed plan of arrival and Departure of buses to be operated by the depot is known as time
table.
Vehicle schedule
Vehicle scheduling is the process of assigning vehicles to a set of predetermined trips with fixed starting and
ending times, while minimizing capital and operating costs.
Fare
 
It is defined as the sum of money charged for a distance travelled by a service. Fare structure is known as the method of computing the
fare for a distance travelled by a service.
 
Most of the undertakings have a uniform fare per distance travelled for their mofussil services. Only a few have two scales of fare, i.e.,
flat & telescopic fare.

• Flat fare:
• The lower rate applying to journeys beyond a certain distance. Journeys in hill areas are inversely charged
higher fares than in planes. Some states have different rates for different types of routes generally based on
nature of road surfaces. Most states charge higher rates for express services, limited stops & deluxe services.
Many undertakings charges a minimum fare irrespective of distance travelled.

• Telescopic fare:
• Fares of city undertakings (city services of other undertakings) are generally on telescopic stage. Rate/ Km
decreases as the distance increases. Some undertakings charge formed fares on few stops. No undertaking is
charging different fares at peak hours till now.
COMPARISON OF MODES OF TRANSPORT
 
There are several modes of transportation. Based on some desirable criterion, the different modes are
compared below.
Criterion Road Rail Water Air
Relative Speed Moderate Moderate Slow Very High
Reliability Good Good Limited Very Good
Cost per Medium Low/ Medium Low/ Very Low High
Tone/km

Flexibility High Low Low Medium

    Limited and Restricted network  
  Extensive network fixed infrastructure Limited network
Other Consideration s

Short and medium distance,     Emergency phase;

e.g. Large consignments. Large quantities; Less Expensive goods;
Europe/ Middle urgent;
East.

  Relatively fast; No Economical; Large Economical; Large Fast; Reliable; Limited

  transshipment; Direct loading capacity; Range loading capacity; No losses; Direct; Easy
Advantages delivery; Flexible. and Speed (in restriction on trucking and
Most countries) loading capacity; tracking.
cheap
SELECTION OF TRANSPORTATION MODE
• Cost
• Speed
• Dependability
• Reliability
• Load Flexibility
• Safety
• Accessibility
• Frequency
• Capacity
• Capability
• Transit Time
BASIC ELEMENTS IN TRANSPORT MANAGEMENT:

• Market potential:
It includes: Type of goods/passengers, Period of use, Probable competition. 
The passenger-km (or passenger-mile) is a common measure expressing the realized passenger transport
demand as it compares a transported quantity of passengers with a distance over which it gets carried. The ton-
km (or ton-mile) is a common measure expressing the realized freight transport demand. Although both the
passenger-km and ton-km are most commonly used to measure realized demand, the measure can equally apply
for transport supply.
Selection of vehicle:
 Selection of a vehicle for transportation of goods is based on following factors 
• Distance to be covered.
• Time taken for movements.
• Power unit e.g. petrol and diesel engine.
• Pay load unit of vehicle forms the body of the vehicle. It is constructed on the chassis of the vehicle. The
length of the chassis is specified by the M.V. Act. The selection of length of chassis mainly depends upon the
load to be carried and road conditions.
• Working condition of vehicle.
• Type of goods to be carried.
• Road condition.
ORGANIZATION SETUP :

(I) Government, (II) Semi-government, (III) Private

• Government: 
SBSTC
• The South Bengal State Transport Corporation (SBSTC) follows a 3-tier system of management viz. Depot,
Division and Corporate. The entire operational network of the Corporation is carried out from its two
Divisional headquarters – one at Durgapur and other at Belghoria. At Corporate level, the Deputy Managing
Director, Chief Accounts Officers and HODs of other discipline assist the Managing Director. At Divisional
level, the office is headed by Divisional Managers of the respective Division who is assisted by Works
Manager/Works In-charge on technical site, Traffic Manager for traffic and operation, Administrative &
Personnel Officer and other officers for general administration, Dy. Chief Accounts Officer for accounts
matter. The Divisional Managers are directly reporting to the Managing Director. At the depot level, the
Depot Manager/Depot In-charge is assisted by senior foremen, foreman or assistant foreman (depending upon
the size of the Depot) for repair and maintenance work, Assistant Manager - Administration and Account, for
general administration, accounts and disciplinary matters, Assistant Traffic Manager/Traffic Superintendent in
the matter of traffic and operation. The Depot Manager/Depot In-charge directly reports to Divisional
Manager.
CTC:
The organizational chart of The Calcutta Tramways Company (1978) Limited is given below:
LEGAL COMPLIANCE:

• Registration certificate
• Tax certificates
• Insurance certificate
• PUC certificate
• Permits etc
POLICIES OF TRANSPORT ORGANIZATION:

Policies towards passenger:

• Luxury service
• Concession pass for students and senior citizen
• Express service on special route
• Night service on special route
• Vehicles for special private tours/yatras/functions/educational tours on public demand
• Providing passenger amenities etc.
Policies toward employees:

• Bonus for employees: Bonus is compensation for the work that the employee has performed in addition to the
employee's regular salary or wages for motivational purpose.
• Overtime allowances: Overtime allowance is admissible for work done in excess tor one hour of the
prescribed hours of work on any working day and includes work done on Sundays or any other holidays.
• Health Insurance: To provide the health Insurance to the employee and his family to maintain healthy
working atmosphere.
• Free travel packages: The state transport undertakings like WBTC provides such packages to their employees
and their family for specific period per year.
• Employee training: Transport organizations provide training to employees to upgrade their skills as per need
LAYOUT OF ORGANIZATION/ DEPOT:
 
Selection of Site for Depot:
• The size of a bus depot: Size of buds depot is usually stated In terms of the number of buses that it can accommodate.
• Location of bus depot: Site should be near to the bus station (to reduce dead km).
• Availability of land: Approximate area required for a depot for 100 full-sized buses will be 2 hectares or 20,000 square
meters, including buildings.
• Environmental considerations: The activities of a bus depot and workshop can have a significant Impact on the
environment. Pollution from exhaust fumes, excessive noise from the vehicles themselves and from other workshop
activities.
• Movement of traffic: The main potential problems are traffic jamming caused by buses entering and leaving the depot.
• Volume of operations.
• Site should not be much away from city town or village.
• Availability of water, electricity, telephone, post office etc.
• It should be free from fare of flood water logging.
• The location should be away from tank bed.
• High tension lines should not pass over the site.
Infrastructural Facilities for Depot:
Following infrastructural facilities are to be provided in a depot:
• Internal parking and External parking for regularly in- service buses stored in the interior of the garage, with less used or
older service vehicles, and vehicles awaiting disposal are stored externally.
• Fueling point.
• Fuel storage tanks.
• Engineering section - Smaller depot garages may contain the minimum engineering facilities, limited to light servicing
facilities.
• Inspection pits.
• Bus washing bay.
• Brake test lane.
• Staff canteen/ rest room.
• Several bus depots are supplemented by a central works facility.
• Garages may also contain recovery vehicles to recover break-down vehicles.
• Over head tank for adequate water supply.
• Adequate electricity facility.
• Central store
SCHEDULING:
Basic factors in bus, crew (staff) and maintenance scheduling
• Bus Scheduling:
It is a trip or trips assigned to be performed by a bus during a day. Bus schedule fixes the conditions of the
vehicle operation on a route throughout the day. Since the passenger low flow expresses the transport demand
on the line for the entire day, bus schedule give a picture of the movement of vehicles on the route. The cardinal
aim of a bus schedule is to satisfy the demand for transport combined with efficient use of vehicle resources.
The basic factors that are to be considered in bus scheduling are - traffic demand, Calculate time, Vehicle
utilization, Requirement of buses.
• Crew Scheduling: 
It is the duty assigned to a driver or conductor in a day. Crew schedule is the plan of daily duties of conductors
and drivers.
The order of priority in scheduling is,
Traffic demand,
Bus, and Crew.
Factors to be considered in Crew Scheduling:
• Hours of works: Section 13 of the Motor Transport Workers Act lay down that no adult motor transport
worker shall be required or allowed to work or more than eight hours in any day and for 48 hours in any
week.
• Daily and weekly interval for rest: The hours of daily works should be fixed in such way that no transport
worker is allowed and required to work more than 5 hours at a stretch before he has a rest interval for at least
½ hour.
• Spared over: The hours of work of a motor transport worker should not spared over more than 12 hours in any
day
• Spells of duty: The hour of work of motor transport worker should not be split into more than two spells on
any day.
• Handling and taking overtime: It includes - the time spent in subsidiary works, periods of mere attendance at
terminals of less than fifteen minutes.
Maintenance Scheduling:
 
For maintenance scheduling following factors should be considered:
• Space available.
• Time required for servicing of bus.
• Man Power available - Number of persons required for particular jobs.
• Other facilities, major equipment's, parking area available in workshop.
• For STU buses trip schedule should be taken into account.

Preventive Maintenance Schedule for a Single Bus: 

Preventive maintenance is performed on the basis of distance travelled or time period. 
Daily:
• Water level in radiator.
• Oil level in engine.
• Tyre pressure.
• Electrical system.
• Braking system.
• Fuel level in the fuel tank.
Weekly:
Clean the vehicle.
Lubrication of the vehicle.
Tighten the nut and bolts.
Battery electrolyte level.
Clean Air filters.
Brake and clutch setting.

Monthly:
• Engine oil change.
• Wheel alignment.
• Change fuel filters.
• Engine tune up.
• Greasing of wheel bearing
Vehicle scheduling:
• It is a trip or trips assigned to be performed by a bus during a day.
• Vehicle schedule fixes the conditions of the vehicle operation on a route throughout the day.
• Since the passenger flow expresses the transport demand on the line for the entire day, bus schedule give a
picture of the movement of vehicles on the route. The important aim of a bus schedule is to satisfy the
demand for transport combined with efficient use of vehicle resources.
 
Trip:
• It means the journey between two terminals i.e. from start of travel to the final destination for carrying
passengers or goods on hire or reward.
• It consists of assessment of running time and standing time required during a single trip, considering the
distance to be covered.
• Maintenance time i.e., routine daily checks such as greasing, washing, cleaning, toping up diesel etc. should
also considered in this
FREIGHT CALCULATION:
Freight rates are simply the price at which a certain cargo is delivered from one point to another. Traditionally
that where the simplicity ends, as the calculations involved in producing these prices can depend on the mode of
transport (road freight, air freight or sea freight), the nature and form of the cargo (loose cargo, containerized
cargo etc.) the weight or volume of the cargo, and the distance to the delivery destination.
• Calculation of the freight rates for road transportation
• The sample calculation is given below:

• To calculate, certain parameters have to know, i.e., distance, pay load, turn-around time, availability of return
load, toll tax, route management charges (Police/RTO etc), road condition.

• For example - let’s take a source & destination distance- 100 kms-well built road, plain road (no hilly area),
no toll tax, no RTO/Police, availability of routine trucks, our cargo is- full cargo load- 22 tons
Calculation can be:

• Considering mileage of 3.5–3.75 km/litre, diesel required is 57 litres (to & fro) Costing Rs. 3705 (Rs. 65 per
litre), loading and unloading to be done in 8 hrs (totality), travel time 5 Hrs (total 13 hrs considering 1 day for
calculation), driver expenses - Rs. 600 (food + salary), tyre, oil & lube oil cost- Rs. 800, transporter
commission- Rs. 300.
 
• Cumulatively, on & average- for the trip – 3705 + 600 + 800 + 300 = Rs. 5405 or say Rs. 245 per ton. With
increment in pay load, freight per ton will be reduced.
Procedure for Freight Calculation for Hiring Truck:
 
The freight charges are calculated after considering all the expenses incurred with the transportation of goods.
Mostly operating charges and fixed charges are taken into account while calculating the freight.
Operating charges:
Diesel Cost
Trip and garage expenses.
Contract charges.
Tyre wear cost can be calculated per kilometer.
Road toll tax.
Fixed charges:
Tax per trip.
Insurance.
Administrative charges.
Wages of drivers and cleaners.
Depredation per trip.
Additional charges:

• Stationary charges.
Total Operating Cost = [Operating Charges + Fixed Charges + Additional Charges)
Contact approved truck suppliers for the availability of truck and rate. Record their names and rates in register.
Choose the truck supplier whose services are prompt and rates are economical.
RECORD KEEPING
 
Importance of Record Keeping in Transport Management:
 

Documents Used in Transportation:

 
• Document used in transportation:
• Log book
• Trip operational sheet (TOS)
• Vehicle ledger
• Truck history card
• Monthly Operational Performance Statement (MOPS}
• Goods consignment note
• Trip sheet
Trip Operational sheet:

Trip Operation sheet gives detailed information about a trip like loading (dispatching) and unloading
(destination) points, distance between stations, number of days taken for journey, Number of idle days, Fuel
consumption, lubrication consumption, Repairs and spares, miscellaneous accessories, Fines and expenses
incurred In journey. Commissions and general expenses and Government and municipal charges etc.

Truck History Card:

The performance of truck is evaluated from the truck history card. This card gives detailed information about
the mileage, tax paid, number of repairs etc. Thus, the truck history card helps in deciding whether scrap the
truck or not.
Log Book:
• Each vehicle has a log book which contains the details about the running time for a trip and allied factors.
The driver of motor vehicle fills or updates log book regularly. The data like the station, date, start time, stop
time, idle time due to rest, maintenance, fueling, loading and unloading of goods etc. and total distance
covered, are written in the log book by the driver. At the end of trip, the driver produces the log book along
with other' documents.
• Function of Log Book: The log book gives the clear picture about a trip. It gives information regarding
running time, idle time, rest time, distance covered etc. The log book records play an important role in
deciding the routes, scheduling time-table and economy of goods transport
Applications of Vehicle Logbook:
Complete the following
1. Date of journey start and end.
2. Opening odometer reading at start of journey.
3. Closing odometer reading at end of journey.
4. Business kilometers travelled will automatically be calculated.
5. Reason for journey e.g. visit client, do banking etc.
Each logbook you keep must contain the following Information:

• When the logbook period begins and ends.

• The car's odometer readings at the start and end of the logbook period.
• The total number of kilometers the car travelled during the logbook period.
• The number of kilometers travelled for work activities based on journeys recorded in the logbook - if you
made two or more journeys in a row on the same day, you can record them as a single journey.
• The business use percentage for the logbook period. If you established your business use percentage using a
logbook from an earlier year, you must keep that logbook and maintain odometer records in the following
years. Each logbook you keep is valid for five years, provided the business use does not change.
 
Vehicle Ledger:

Vehicle ledger Is a 'collection of an entire group of similar accounts in double-entry book-keeping'. It is also
called as 'book of final entry'. A ledger record classifies and summarizes financial information from journals (the
'books of first entry') as debits and credits, and shows their current balances. In manual accounting systems, a
ledger is usually a loose leaf binder with a separate page for each ledger account. In computerized systems, it
consists of interlinked digital files, but follows the same accounting principles as the manual system.

Operations: New Vehicles 

When the Vehicle Is Delivered:
• Create the vehicle record and enter all the necessary details, including the vehicle purchase credentials.
• Update the purchase tab of the vehicle stock record with the following fields:
• Supplier
• Purchase Date
• Invoice Number
• Payment Due
• Purchase Amount
• Delivery Charge
• VAT/ GST
When the Vehicle is sold:
• Invoice the vehicle through the vehicle sales, sales ordering/invoice routine,
• At the month end, work out the cost of the vehicles sold and post a journal for this cost from the balance sheet
across to the Profit and loss, Cost of Sales.
• The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss Is
Increased. The vehicle in the vehicle sales will have a status of sold, and the entire sale information is posted
automatically to the Sale tab of the vehicle record.
Operations: Used Vehicles
Non Part Exchange Purchases:
• Create the vehicle record and enter all the necessary details, including the vehicle purchase information.
• Update the purchase tab of the vehicle stock record with the following fields:
• Supplier
• Purchase Amount
• Q Finance Balance (if there is one)
Part Exchange Purchases:
• Part exchanges should be created from the vehicle sales order and not purchased manually.
• They are not purchased into stock, from the accounts point of view, until the sale vehicle has been invoiced.
The credit account will be the "Default Vehicle Purchase".
• If the part exchange is left with the person to sell, prior to the new vehicle deal being invoiced, then it is
sensible to treat the part exchange as though it were a simple purchase and post a purchase payment to 'Z970'
and add a deposit for the net part- exchange to the sales order, to 'Z970'.
When the Vehicle Is Sold:
• Invoice the vehicle through the vehicle sales, sales ordering/ invoice routine.
• At the month end, work out the cost of the vehicles sold and post a Journal for this cost from the balance
sheet across to the Profit and Loss, Cost of Sales.
The result is, the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is
increased. The vehicle in the vehicle sales will have a status of sold, and all the sale information is posted
automatically to the Sale tab on the vehicle.
 At the Month End:

Agreeing the Net Sales on the Profit and Loss:

• Run the "Vehicle Sales and Cost of Sales" for the month we are closing off.
• Use the "Nominal Review" to compare stock numbers.
 
Posting the Cost of Sale Journal - New Vehicles
 
• Using the "Vehicle Sales and Cost of Sales" for the month we are closing off, journal the total cost of new
vehicles sold from the balance sheet center for the stock of new vehicles to the profit and loss center for the
cost of sales of new vehicles.
Posting the Cost of Sale Journal - Used Vehicles
• Using the "Vehicle Sales and Cost of Sales" (or the month we are closing off, journal the total cost of used
vehicles sold from the balance sheet center for the stock of used vehicles to the profit and loss center for the
cost of sales of used vehicles.

Reconciling the Stock Figure on the Balance Sheet 

• Opening Stock + Purchases - Cost of Safes = Closing Stock
• Run the "Vehicle Valuation at a Date" for the end of fast month.
• Run the "Vehicle Purchases" for the current month.
• Run the "Vehicle Sales and Cost of Sales" for the current month.
• Run the "Vehicle Valuation at a Date" for the end of the current month.
Goods Consignment Note:

• Consignment note is 'the additional document issued by Goods Transport Agency in addition to the invoice
which is a mandatory requirement'. It is issued against the receipt of goods for the purpose of transport of
goods by road in a goods carriage, and must be numbered serially
• Goods transport agency is not required to issue consignment note in respect of services wholly exempted
from service tax.

Contents of Consignment Note:

• The name of the consignor and consignee.
• Registration number of the goods carriage in which the goods are transported.
• Details of goods transported.
• Details of the place of origin and destination.
• Name of the person liable for paying service tax, whether consignor, consignee or the goods transport agency.
Monthly Operational Sheet:

• Objectives: The objective of this procedure is to provide guidance for the establishment of advanced vehicle
evaluation fleets, the collection of operating data from these fleets and the analysis of this data to provide
evaluation of fleet operation.
• Purpose: The purpose of this procedure Is to Identify acceptable and repeatable methods for the
Implementation of advanced vehicle test fleets and the collection and analysis of such data for proper action.
• Documentation: Documentation addressed by this procedure shall be consistent, easy to understand, easy to
read and readily reproducible. This documentation shall contain enough information to "stand alone"; i.e., it
must, be self-contained to the extent that, all individuals qualified to review it, could be reasonably expected
to reach a common conclusion, without the need to review additional documentation
QUESTIONS:
1. Describe transport vehicle, public service vehicle, goods vehicle & depot.
2. Describe fare. Describe different types of fare.
3. Comparison the mode of transport.
4. Describe the selection of transport mode.
5. Write down the basic elements of transport system.
6. What are the policies of transport organization.
7. Describe layout of organization or depot.
8. What is scheduling? Describe types of scheduling.
9. What is freight calculation? Explain the procedure.
10.What is Record keeping? Describe any two types of it.
11.What is log book. Explain the procedure.