A Summer Internship Project Report on

A COMPARISON OF FEASIBILITIES OF MEANS OF

TRANSPORTATION

Submitted in partial fulfillment of the requirement for the degree of

Master of Business Administration

(Affiliated to Savitribai Phule Pune University)

By
Shrirang Ashok Khare

Roll No. - 2051712150

Under the guidance of

Prof Sopan Kamble

A study conducted for

Safexpress Pvt Ltd

At

Akemi Business School

2017-2019
 Acknowledgement

It is wellknown that no job or work is complete without acknowledging the

help,guidance, support and encouragement of everyone because of which the job could
be completed.

Firstly,I would like to thank Mr Vineet Kanaujia, Vice President Marketing for giving
me the opportunity to work at Safexpress Pvt Ltd as a Supply Chain Management
Intern for a period of three months. I also would like to thank Mr Sachin Gawde,
Location Head, Safexpress Logistic Park, Pune and his entire team who have provided
all support,help and encouragement to me in this entire period.

I would like to express my gratitude to Prof Sopan Kamble, guide for this project and
Dr. Vilas Kulkarni, Director, Akemi Business School for their guidance without
which, difficulty level for the project would have increased many times.

Lastly I would like to thank all my colleagues who were with me in this Summer
Internship and my MBA studies for their support.

Col S A Khare
Akemi Business School

Date - 14 Jul 2018

Place - Akemi Business School

i
 DECLARATION

I, Mr. S.A Khare Student of Akemi Business school, Pune hereby declare that this

project report titled ―A Comparision of Feasibilities of means of Transportation‖ is a

bonafide record of work done by me during the course of summer internship project

work of MBA programme and all contents and facts are prepared and presentable by

me without any bias.

I also declare that it has not previously formed the basis for the award to me for

any degree associateship, fellowship or similar title of any institute.

S A Khare

Akemi Business School

ii
 Executive Summary

Rail and roads dominate the transport system in India, carrying about 95 per cent of the
total freight traffic in the country. Unfortunately, the rail-road mix in freight movement
has developed rather sub-optimally over the years, as railways consistently lost out to
roads, unable to install capacity or respond to market needs. The divide between the two
modes became even more pronounced as roads expanded rapidly on the back of focused
policy and investments, particularly during the last decade or so.

For passenger traffic as well, rail and roads continue to be the dominant modes in India.
The traffic carried by air and water transport is negligible, though on certain routes, the
former carries considerable volumes which continue to increase rapidly. Over time,
roads have emerged as the predominant mode for passenger transport.

This study aims to identify the facilities and services offered by both the modes of
transport. Moreover the preference of passengers over these two modes, the reasons
behind that are also to be studied. As far as distance is concerned, those who travel for
long distance may choose trains and those who travel short distance may choose buses.
In spite, some passengers may stick on to the trains and some may stick on to the buses.

Secondary data in the form of studies, journals, weeklys, articles, data/maps & other
information available on internet such as Wikipidia has been used for this Project

Both Road and Rail means have to improve many aspects so that their full potential can
be utilized.

iii
 Index / Table of Contents

SN Contents Pg No

1 Introduction / Project Outline 1-32

2 Industry / Company overview 33-35

3 Objectives 36-37

4 Literature Review / Theoretical background 38-43

5 Research Methodology 44-48

6 Data Analysis , Results and Interpretation 49-58

7 Conclusion 59-61

8 Learnings &Contribution/ Recommendation 62-65

9 References / Bibliography 66-67

iv
 List of Tables

1. Indian road network by types of roads

2. Zones of Indian Railway

v
 List of Figuers

1. Modes of land transport

2. Modes of water transport

3. Means of air transport

4. Indian road network by types of roads (Pi chart)

5. Indian map showing national highways

6. Indian Railway zonal map

vi
Chapter 1: Introduction / Project Outline
 CHAPTER 1 – INTRODUCTION / PROJECT OUTLINE

1.1 Introduction

The economic growth of a country mainly depends on the infrastructure facilities

available. Transportation is one of the important infrastructures of any country.
Transport facility is an important aspect of infrastructure facilitating mobility of
goods and people from one place to another place. Transport may be defined as a
service of facility which creates utilities, time or place, through the physical
transfer of goods and persons from one place to another. It is the vital factor in the
advancement of civilization and economic development. It is the life-blood of
commerce. Availability of sufficient transport facility is an inevitable one in
today‘s growing needs of the people as well as business. Railways and roadways
are the dominant means of transport carrying more than 95% of total traffic
generated in the country. Although other modes such as coastal shipping and
inland water transport would play a greater role, the railways and roads would
continue to dominate the transport landscape in the foreseeable future. Transport is
a means to specific ends. It is ultimately to improve people‘s lives and livelihoods
of people. The essential feature of transport development should be: to reduce the
time and energy spent on - and thus the cost of - travel and the transport of good.

2
and thereby to improve people‘s access to resources, people, goods, opportunities,
markets and services – including the provision of information - they value.

The Railways in India provide the principal mode of transportation for freight and
passengers. It brings together people from the farthest corner of the country and
makes possible the conduct of business, sightseeing, pilgrimage and education. The
Indian railways have been a greater integrating force during the last hundred and
fifty years. Of late, Indian railways operating a vast network of 65,000 route kms.
It has bound the economic life of the country and helped in accelerating the
development of industry and agriculture.

The performance of the Railway network acts as the parameter of the health and
economy of any nation. Therefore, J.M.Williams says, ―The Railways play a part
in the national economy comparable to the functions of the circulatory system in
the human body.‖

Roads are the vital lifelines of the economy making possible trade and commerce.
Roads are the most preferred modes of transportation and considered as one of the
cost effective modes of transportation. Roads are easily accessible to each
individual. Roads facilitate movement of both men and materials anywhere within
country. It helps in socio-economic development as well as brings national
integration. It provides linkages to other modes of transportation like railways,
airways, and shipping and the like. An efficient and well-established network of
roads is desired for promoting trade and commerce in any country and also fulfils
the needs of a sound transportation system for sustained economic development.
Road transport is contributing 3.69% to GDP whereas all transportation modes are
contributing a total of 5.5% to GDP. Really, ―roads are veins and arteries of a
country through whose channels every improvement circulates.‖

3
In this concept the railways and roadways have remained as efficient and
frequently used mode of transports. They are ideally suited for short and long
distance travel. Both the transports are providing some amenities and facilities to
the passengers. A certain degree of competition exists between rail and road
transport. India is a large country with a high level of urbanization. Transport
linkages play an important role in the development of the country. Rail and Road
are the dominant modes of transport and are well co-ordinated. The railways
provide wagon services for bulk movement of commodities and passenger traffic
while road transport also provides long distance services for commodities and
passenger movement with safety and economy in the shortest duration. The road
transport network in the country contributes substantially to the development of a
strong industrial base as well as for the development of the whole economy.

1.2 Transport

Transport (British English) or transportation (American English) is the movement

of people and goods from one place to another. The term is derived from the Latin
Trans ("across") and portare ("to carry").

From the beginning of history, human sensitivity has revealed an urge for mobility
leading to a measure of Society's progress. The history of this mobility or transport
is the history of civilization. For any country to develop with right momentum
modern and efficient Transport as a basic infrastructure is a must. It has been seen
throughout the history of any nation that a proper, extensive and efficient Rail and
Road Transport has played a major role. ‗Transporters' perform one of the most
important activities, at every stage of advanced civilization. Where rail and roads
are considered as veins and arteries of a nation, passenger and goods transported
are likened to blood in circulation. Passenger Road Transport Service (PRTS) is an

4
essential connected to the economic development. Transport is the essential
convenience with which people not just connect but progress. Throughout history,
people's progress has been sustained on the convenience, speed and safety of the
modes of transport. Rail and Road transport occupies a primary place in to-day's
world as it provides a reach unparalleled by any other contemporary mode of
transport.

1.3 Functions of Transport

 Transport contributes in Growth of industries whose product requires quick

marketing. Perishable articles like fish and green vegetables are carried to
various consumers quickly even in distant markets through transport.
 Transport helps in increase in the demand for goods. Through transport
newer customers in newer places can be easily contacted and products can
be introduced to them. Today markets have become national or international
only because of transport.
 Transport creates place utility. Geographical and climatic factors force
industries to be located in particular places far away from the markets and
places where there may not be any demand for the products. Transport
bridges the gap between production and consumption centres.
 Transport creates time utility. Of late transport has started creating the time
utility also. It has been made possible by virtue of the improvements in the
speed of transport. It helps the product to be distributed in the minimum
possible time.
 Transport helps in stabilization of price. Transport exerts considerable
influence upon the stabilization of the prices of several commodities by
moving commodities from surplus to deficit areas. This equalizes the supply

5
 and demand factor sand makes the price of commodities stable as well as
equal.
 Transport ensures even flow of commodities into the hands of the consumers
throughout the period of consumption.
 Transport enables the consumers to enjoy the benefits of goods not produced
locally. This increases the standard of living, an essential factor for further
development of marketing and economy.
 Transport identifies competition, which in turn, reduces pries. Prices are also
reduced because of the facilities offered by transport for large-scale
production. Advantages of large-scale production are possible only due to
transport.
 Transport increases mobility of labour and capital. It makes people of one
place migrate to other places in search of jobs. Even capital, machineries and
equipments are imported from foreign countries through transport alone.

1.4 Means of Transport

The means of transport are classified on the basis of the way, the vehicle, the
motive power used and terminals.

6
1.4.1 LAND TRANSPORT

 Pathways: In remote villages, forest and hilly areas pathways are still an
important amongst the different modes of transport. It further be subdivided
into Head loads (is also known as human transport. It is used in the hilly
areas where even animals cannot reach) and Pack animals (is also known as
animal transport.
 Roadways: Road Transport is one of the most important modes of transport.
The history of Road Transport started from ancient civilizations. Road
Transport further subdivided into Vehicular Transport (Cars, Trucks, Buses,
Lorries, Autoricksaws, Bullock Carts, Tongas, Tumtums, and Hand Carts
etc.) and Non-vehicular Transport (Hamals, Animals)
 Tramways: Tramway is one of the cheaper, longer, quicker and safer
modes of Land Transport which is suitable in large cities. However due to
certain limitations like slowlyness, huge investment, inflexibility etc.
gradually it replaced by other means of Land Transport.

7
  Railways: Railway has been the pioneer of modern mechanical transport. It
accelerated commercial and industrial development of various countries.
Until the introduction of Motor Transport, Railway had the monopoly as the
Land Transport. In India, it is the principal means of transport. It carries over
80 per cent of goods traffic and over 70 percent of passenger traffic. It
provides for more than 60000 kilometres of railways all over the country.

1.4.2WATER TRANSPORT

Water transport is the cheapest and the oldest form of transport for heavy goods
and bulk cargoes. Waterways are the natural gifts, hence it does not required large
amount of capital expenditure for the construction, except canal transport. The cost
of running is also very less. Water transport may be classified as under:

 River Transport: River Transport is suitable for small boats and steamers.
It was highly developed in the pre-railway days. But with the development
of railways, river transport was neglected and decayed gradually.

8
  Canal Transport: Canals are the artificial waterways constructed for the
purpose of navigation and irrigation.
 Coastal Shipping: Coastal shipping is a cheaper, speedy, flexible and
economical form of transport for the movement of bulky and heavy cargoes.
Usually coastal shipping trade is reserved for the national shipping.
 Overseas Shipping: On the basis of their working, overseas shipping may
be divided into The Liner (those ships which follow defined routes with
fixed places and fixed timetable), The Tramps (those ships which have no
set routes or fixed time table) and The Oil Tanker (special sea carriers of
crude oil in very large quantity).The Liners may again be subdivided into
Passenger Liners and the Cargo Liners.

1.4.3 AIR TRANSPORT

Air transport is the gift of twentieth century to the world. The first flight in the air
was made in 1903.only for twelve seconds. Successfully it was used as a means of
transport after the First World War (1914-1918). The first air service was started in
1919 between London and Paris. Since then it has made notable progress and
provide tough competition to Railways.

9
1.5 Transportation in India

A well–knit and coordinated system of transport plays an important role in the

sustained economic growth of a country. The transport system in India comprises a
number of distinct modes and services, notably railways, roads, road transport,
ports, inland water transport, coastal shipping, airports, and airlines. Railways and
roads are the dominant means of transport carrying more than 95% of total traffic
generated in the country.

Transport in India consists of transport by land, water and air. Public transport
remains the primary mode of transport for most Indian citizens, and India's public
transport systems are among the most heavily used in the world.

Motor vehicle population in India is low as per international standards, with only
24.85 million cars on the nation's roads as of 2013. In total, about 21 per cent
households have two wheelers whereas only 4.7 per cent of households in India

10
have cars/jeeps/vans as per the 2011 Census. Despite this, the number of deaths
caused by traffic is amongst the highest in the world and increasing.

India's rail network is the 4th longest and the most heavily used system in the
world, transporting 8.225 billion passengers and over 970 million tonnes of freight
annually, as of 2015. The railways transport about 18 million citizens daily.

In 2015–16, Government of India, declared 106 National Waterways (NW) under

Inland Waterways Authority of India to reduce the cost of transportation and lower
the carbon footprint by moving the traffic from surface roads and railroads to
waterways.

Despite ongoing improvements in the transport sector, several aspects of

transportation are still riddled with problems due to outdated infrastructure and
lack of investment in less economically active parts of the country. The demand for
transport infrastructure and services has been rising by around 10% a year with the
current infrastructure being unable to meet these growing demands

Challenges in Transport System

 India‘s roads are congested and of poor quality. Lane capacity is low - most
national highways are two lanes or less. A quarter of all India's highways are
congested. Many roads are of poor quality and road maintenance remains
under-funded - only around one-third of maintenance needs are met.
 Rural areas have poor access. Roads are significant for the development of
the rural areas - home to almost 70 percent of India's population. Although
the rural road network is extensive, some 33 percent of India‘s villages do
not have access to all-weather roads and remain cut off during the monsoon
season.
11
  The railways are facing severe capacity constraints. All the country‘s high-
density rail corridors face severe capacity constraints. Also, freight
transportation costs by rail are much higher than in most countries as freight
tariffs in India have been kept high to subsidize passenger traffic. Cars
 Urban centres are severely congested. In metropolitan centres, roads are
often severely congested during the rush hours.
 Ports are congested and inefficient. Port traffic has more than doubled
during the 1990s, touching 650 million tons in 2006-07. This is expected to
grow further to about 900 million tons by 2011-12. India's ports need to
significantly ramp up their capacity and efficiency to meet this surging
demand.

Key Government Strategies

India‘s Eleventh Five Year Plan identifies various deficits in transport sector which
include inadequate roads/highways, old technology, saturated routes and slow
speed on railways, inadequate berths and rail/road connectivity at ports and
inadequate runways, aircraft handling capacity, parking space and terminal
building at airports. Government seeks to mobilize resources for this purpose and
to gradually shift the role of government from that of a producer to an enabler. In
recent years, the Government has made substantial efforts to tackle the sector‘s
shortcomings and to reform its transport institutions. These include:

 Increasing public funding for transportation in its Five Year Plans.

 Launching the ambitious National Highway Development Program which
has seven phases and is expected to be completed by 2018. It includes
improved connectivity between Delhi, Mumbai, Chennai and Kolkata,
popularly called the Golden Quadrilateral, in the first phase, North- South

12
 and East- West corridors in phase two, four laning of more than 12,000 km
in phase three, two laning of 20,000km and six laning of 6,500 km
respectively in phase four and five, development of 1,000km of expressway
in phase six and other important highway projects in phase seven. Total
expected investment is INR 2.2 trillion.
 Accelerated Road Development Program for the North East Region to
provide road connectivity to all State capitals and district headquarters in the
region.
 Operationalising the National Highway Authority of India (NHAI) to act as
an infrastructure procurer and not just provider.
 Improving rural access by launching the Pradhan Mantri Gram Sadak
Yojana (Prime Minister‘s Rural Roads Program).
 Reducing the congestion on rail corridors along the highly trafficked Golden
Quadrilateral and improving port connectivity by launching the National
Rail Vikas Yojana (National Railway Development Program)
 The development of two Dedicated Freight Corridors from Mumbai to Delhi
and Ludhiana to Dankuni.
 Upgrading infrastructure and connectivity in the country's twelve major
ports by initiating the National Maritime Development Program (NMDP).
 Privatization and expansion of the Mumbai and New Delhi Airports and
development of new international airports at Hyderabad and Bangalore.
 Enhancing sector capacity and improving efficiencies through clear policy
directive for greater private sector participation. Large parts of the NHDP
and NMDP are to be executed through public private partnerships (PPP).

13
1.6 Road Transport in India

India has the second largest road network in the world, spanning a total of 4.87
million kilometres (kms). Roads in India transport over 60 per cent of all goods
and 85 per cent of total passenger traffic. The roads and bridge infrastructure
industry is expected to be worth US$ 19.2 billion by FY17.

The National Highways account for 1.9 per cent of the total road network in India
and are expected to reach 100,000 kms by the end of the 2017 from 97,135 kms in
FY15. The Government of India has formulated a seven-phase programme,
‗National Highway Development Project (NHDP)‘, vested with National
Highways Authority of India (NHAI), for the development of National Highways
in the country.

The private sector has emerged as a key player in the development of road
infrastructure in India. Increased industrial activities, along with increasing number
of two and four wheelers have supported the growth in the road transport
infrastructure projects. The government‘s policy to increase private sector
participation has proved to be a boon for the infrastructure industry with a large
number of private players entering the business through the public-private
partnership (PPP) model.
14
A good road network is a critical infrastructure requirement for rapid growth. It
provides connectivity to remote areas; provides accessibility to markets, schools,
and hospitals; and opens up backward regions to trade and investment. Roads also
play an important role in inter-modal transport tdevelopment, establishing links
with airports, railway stations, and ports. Road transport is vital to India's
economy. It enables the country's transportation sector to contribute 4.7 percent
towards India‘s gross domestic product, in comparison to railways that contributed
1 percent, in 2009–2010. India's road network carries over 65 percent of its freight
and about 85 percent of passenger traffic

India has a road network of over 5,472,144 kilometres (3,400,233 mi) as on 31

March 2015, the second largest road network in the world. At 1.66 km of roads per
square kilometre of land, the quantitative density of India's road network is higher
than that of Japan (0.91) and the United States (0.67), and far higher than that of
China (0.46), Brazil (0.18) or Russia (0.08).

Adjusted for its large population, India has less than 3.8 kilometres of roads per
1000 people, including all its paved and unpaved roads. In terms of quality, all
season, 4 or more lane highways, India has less than 0.07 kilometres of highways
per 1000 people, as of 2010. These are some of the lowest road and highway
densities in the world. For context, United States has 21 kilometres of roads per
1000 people, while France about 15 kilometres per 1000 people – predominantly
paved and high quality in both cases.

India in its past did not allocate enough resources to build or maintain its road
network. This has changed since 1995, with major efforts currently underway to
modernize the country's road infrastructure.

15
As of May 2017, India had completed and placed in use over 28,900 kilometres of
recently built 4 or 6-lane highways connecting many of its major manufacturing
centres, commercial and cultural centres. According to the World Fact book, as of
2015, India had about 96,000 kilometres of national highways and expressways,
plus another 147,800 kilometres of state highways. Private builders and highway
operators are also implementing major projects - for example, the Yamuna
Expressway between Delhi and Agra was completed ahead of schedule and within
budget.

According to 2009 estimates by Goldman Sachs, India will need to invest US$1.7
trillion on infrastructure projects before 2020 to meet its economic needs, a part of
which would be in upgrading India's road network. The Government of India is
attempting to promote foreign investment in road projects. Foreign participation in
Indian road network construction has attracted 45 international contractors and 40
design/engineering consultants, with Malaysia, South Korea, United Kingdom and
United States being the largest players.

1.7 Indian Road Statistics

The National Highways are the backbone of the road infrastructure and the major
roads in India. They carry most of India's freight and passenger traffic. State
highways and major district roads constitute the secondary and interconnecting
roads in India.

Current Status

 In FY17, India had the 2nd largest road network in the world spanning over a
total of 5.21 millionkms. Over 64.5 percent of all goods in the country are

16
 transported through roads, while, 90 percent of the total passenger traffic
uses road network to commute
 The Government of India plans to increase the length of National Highways
from 103,933 km to200,000 km.
 As of February 2017, national highways of 6604 km in length were
constructed, against a target of 15,000 km. The following table shows the
total length of India's road network by type of road as on 31 March 2017

Share
Road Length of
Authority responsible
classification (km) network
length

National Ministry of Road Transport and

97,991 1.79 %
Highways Highways

State Public Works Department of

167,109 3.05 %
Highways State/Union Territory

Other PWD Public Works Department of

1,101,178 20.12 %
roads State/Union Territory

Rural roads Panchayats, JRY and PMGSY 3,337,255 61 %

Local governments and

Urban roads 467,106 8.54 %
municipalities

Various State/Union territory

Project roads government departments, and 301,505 5.50 %
SAIL, NMDC and BRO

Total 5,472,144 100 %

17
18
1.8 Types of Roads

1.8.1 Expressways

Expressways are the highest class of roads in the Indian road network. They are six
or eight-lane controlled-access highways. Currently, approximately 1,455.4 km of
expressways are operational in India. The National Highways Development Project
by Government of India aims to expand the highway network and plans to add an
additional 18,637 km (11,580 mi) of expressways by the year 2022. India has one
of lowest density of expressways in the world

Expressways make up approximately 1,208 km (751 mi) of India's road network,

as of 2013. These high-speed roads are four-lane or six-lane, predominantly access
controlled. The 165 kilometre Yamuna Expressway, India's longest six-laned
controlled-access opened on 9 August 2012.

19
The government has drawn up a target to lay 18,637 kilometre network of brand
new expressways by 2022. Most of the existing expressways in India are toll roads.

1.8.2National Highways

The national highways network of India is a network of highways that is managed

and maintained by agencies of the Government of India. These highways measured
over 165,000 km (103,000 mi) as of December 2016, including over 1,000 km
(620 mi) of limited-access expressways (motorways). Out of 1,65,000 km of
national highways 26,200 plus km are at least 4 laned with the remaining 50,000
km 2 laned. Indian government led by PM Modi has declared to double the
highway length from 96,000 to 2,00,000 km in its 5-year term and has already
increased the length from 96,000 to 1,65,000. As of Jun 2017, 23 km per day has
been achieved which is unprecedented in Indian History.

In India, Express Highways, commonly known as Expressways, are controlled-

access highways, mostly 6-lane or above, where entrance and exit is controlled by
the use of slip roads (ramps. The at-grade national highways do not have shoulder
lanes. The speed on national highway is mostly unregulated and is mostly slowed
by heavy trucks in middle lanes. The National Highways Authority of India
(NHAI) is the nodal agency responsible for building, upgrading and maintaining
most of the national highways network. It operates under the Ministry of Road
Transport and Highways. While national highways constitute 1.8% of Indian roads,
they carry 40% of the traffic. The majority of existing national highways are two-
lane roads (one lane in each direction. Some sections of the network are toll roads.
Over 30,000 km (19,000 mi) of new highways are planned or under construction as
part of the NHDP, as of 2012.

20
1.8.3 State Highways

State highways in India are numbered highways that are laid and maintained by the
state governments. These are not related to National Highways and are not
maintained by the National Highways Authority of India or the central government
in any way. The state highways are usually roads that link important cities, towns

21
and district headquarters within the state and connect them with National
Highways or highways of neighbouring states. State Governments have the
authority and responsibility to build road networks and state highways.
Independent of the NHDP program, state governments have been implementing a
number of state highway projects since 2000. The State Highways provide linkages
with the National Highways, district headquarters, important towns, tourist centres
and minor ports and carry the traffic along major centres within the state. Their
total length is about 137,712 km

1.8.4Major District Roads

These are important roads within a district connecting areas of production with
markets and connecting them with the State Highways & National Highways. It
also connects Taluka headquarters and rural areas to District headquarters within
the state.

India has been adding paved single lane rural roads under its PMGSY initiative
launched in 2000. The rural roads in India forms a substantial portion of the Indian
road network. These roads are in poor shape, affecting the rural population's
quality of life and Indian farmers' ability to transfer produce to market post-
harvest. Over 30 percent of Indian farmers' harvests spoil post-harvest because of
the poor infrastructure. For the development of these rural roads, Pradhan Mantri
Gram Sadak Yojana (or "Prime Minister Rural Roads Scheme"), was launched in
December 2000 by the Indian government to provide connectivity to unconnected
rural habitations. The scheme envisions that these roads will be constructed and
maintained by the village panchayats. In other parts of India, the Pradhan Mantri
Gram Sadak Yojana and a sister program named Bharat Nirman (or Build India)
have privatized the rural road construction projects and deployed contractors. The

22
effort has aimed to build all-season, single lane, paved asphalted roads that connect
India's rural and remote areas.

1.9 SWOT Analysis of Indian Road Network

Strengths

 India has a large road network of over making it the second largest road
network in the world.
 At 0.66 km of highway per square kilometre of land the density of India‘s
highway network is higher than that of the United States (0.65) and far
higher than that of China's (0.16) or Brazil's (0.20)
 State Highways and Major District Roads constitute the secondary system of
road infrastructure of India.
 By acting as the link between the rural and urban areas, the State Highways
and Major District Roads contribute significantly to the development of the
rural economy and industrial growth of the country.
 It is estimated that the secondary system carries about 40 per cent of the total
road traffic and comprises about 20% of the total road length.

Weakness

 Majority of the network consisted of paved roads

 the funds set aside for the maintenance and expansion of the road network
have been insufficient
 National Highways represent only 2% of the total network length, they
handle about 40% of the total road traffic.
 Approximately a quarter of all India's highways are congested, in some cases
reducing truck and bus speeds to 30-40 km/h (19-25 mph).

23
  Road maintenance remains under-funded, and some 40 percent of villages in
India lack access to all-weather roads.
 Due to decades of bureaucratic and procedural difficulties, the road network
has suffered long delays.

Opportunities

 To modernize the country's road infrastructure and India plans to spend

approximately $70 Billion USD over the next three years
 India will need to spend $1.7 Trillion USD on infrastructure projects over
the next decade to boost economic growth
 to accomplish this, the Government of India is attempting to promote foreign
investment in road projects by offering financial incentives such as toll
rights to developers
 In general, roads in India are primarily bitumen-based macadamized roads
but because bitumen is obtained mostly from imported crude oil, and due to
other factors, concrete-based roads will prove to be more cost-effective in
future.
 The main roads in India are under huge pressure and in great need of
modernization in order to handle the increased requirements of the Indian
economy.
Threats

 Almost 80% of passenger traffic and about 65% of freight movement is

handled by this vast network
 National Highways represent only 2% of the total network length, they
handle about 40% of the total road traffic.

24
  India's cities are extremely congested — the average bus speed is 6–10 km/h
in many large cities
 Number of vehicles has been growing at an average pace of 10.16% per
annum over the last five years.

1.10Rail transport in India

Railways are ideally suited for long distance travel and movement of bulk
commodities. Regarded better than road transport in terms of energy efficiency,
land use, environment impact and safety it is always in forefront during national
emergency. All main-line rail operations in India are handled by Indian Railways,
a state-owned organization of the Ministry of Railways. As on 31 March 2016, the
rail network traverses the length and breadth of the country, comprising 119,630
km of track over a route of 66,687 km and 7,216 stations. It is the fourth largest
railway network in the world (after USA, Russia and China). IR is the world's
largest commercial or utility employer, with more than 1.4 million employees. As
to rolling stock, IR owns over 200,000 (freight) wagons, 50,000 coaches and 8,000
locomotives.

25
The urban rail transit systems across the country are operated independently of
Indian railways. As of September 2016, India has around 324 km of operational
urban rail transit lines. The urban transit systems comprise of metro, monorail and
tram.

1.11 Indian Railway Tracks

The total track length of network is 119,640 km (74,340 mi) while the total route
length of the network is 66,687 km (41,437 mi). Track sections are rated for speeds
ranging from 80 to 220 km/h (50 to 137 mph), though trains don't really clock
speeds of 200 km/h. Maximum speed attained by passenger trains is 177 km/h-180
km/h (110 mph).

Indian gauge 1,676 mm (5 ft 6 in) (a broad gauge) is the predominant gauge used
by IR with 108,500 km (67,400 mi) of track length (94% of entire track length of
all the gauges) and 59,400 km (36,900 mi) of route-kilometer (91% of entire route-
kilometer of all the gauges). It is the widest gauge in passenger use in the world.
The first railway line in India from Mumbai (Bori Bunder) to Thane in 1853 was
built in broad gauge.

Urban rail transit lines which serve the urban areas are in 1,435 mm (4 ft 8 1⁄2 in)
standard gauge (except suburban rail which is in Indian gauge). These encompass
metro and trams. As of 2016, lines in operation are Kolkata (Calcutta) tram system,
Delhi Metro, Rapid MetroRail Gurgaon, the Bangalore Metro and the Mumbai
Metro. These lines are not operated by IR.

26
On decreasing routes, the 1,000 mm (3 ft 3 3⁄8 in) meter gauge and 762 mm (2 ft 6
in) and 610 mm (2 ft) narrow gauges are present. The meter gauge has about 5,000
km (3,100 mi) of track length (4% of entire track length of all the gauges) while
narrow gauges have 1,500 km (930 mi) route-kilometer (2% of entire route-
kilometer of all the gauges), as of 31 March 2016.

1.12 Railway Services

1.12.1 PASSENGER SERVICES

Indian Railways operates 8,702 passenger trains and transports 17 million daily
across twenty-nine states and seven union territories. The passenger division is the
most preferred form of long distance transport in most of the country. A standard
passenger train consists of eighteen coaches, but some popular trains can have up
to 24 coaches. Coaches are designed to accommodate anywhere from 18 to 72
passengers, but may actually accommodate many more during the holiday seasons
and on busy routes.

1.12.2 PRODUCTION SERVICE:

The Indian Railways manufactures a lot of its rolling stock and heavy engineering
components. As with most developing economies, the main reason is import
substitution of expensive technology related products. Production Units, the
manufacturing plants of the Indian Railways, are managed directly by the ministry.

1.12.3 SUBURBAN RAILSERVICES

Many cities have their own dedicated suburban networks to cater to commuters.
Currently, suburban networks operate in Mumbai (Bombay), Chennai (Madras),
Kolkata (Calcutta), Delhi, Hyderabad and Pune. Hyderabad and Pune do not have

27
dedicated suburban tracks but share the tracks with long distance trains. New
Delhi, Kolkata, and Chennai have their own metro networks, namely the New
Delhi Metro, the Metro, and the Chennai MRTS- Mass Rapid Transport System,
with dedicated tracks mostly lay on a flyover as in other local EMU suburban
service in Mumbai and Kolkata.

Suburban trains that handle commuter traffic are mostly electric multiple units.
They usually have nine coaches or sometimes twelve to handle rush hour traffic.
One unit of an EMU train consists of one power car and two general coaches.

Thus, a nine coach EMU is made up of three units having one power car at each
end and one at the middle. The rakes in Mumbai run on direct current, while those
elsewhere use alternating current. A standard coach is designed to accommodate
96 seated passengers, but the actual number of passengers are much more during
rush hour. The Kolkata metro has the administrative status of a zonal railway,
though it does not come under the seventeen railway zones.

1.12.4 FREIGHT SERVICES

Indian Railway carries a huge variety of goods ranging from mineral ores,
fertilizers and petrochemicals, agricultural produce, iron & steel, multimodal
traffic and others. Ports and major urban areas have their own dedicated freight
lines and yards. Many important freight stops have dedicated platforms and
independent lines. Indian Railways makes 70% of its revenues and most of its
profits from the freight sector, and uses these profits to cross-subsidise the loss-
making passenger sector. Since the 1990s, Indian Railways has switched from
small consignments to larger container movement which has helped speed up its
operations. Most of its freight earnings come from such rakes carrying bulk goods
28
such as coal, cement, food grains and iron ore. Indian Railways also transports
vehicles over long distances. Recently Indian Railways introduced the special
'Container Rajdhani' or CONRAJ, for high priority freight.

1.13 Rail Network in India

Indian Railways operate on long distances between cities as well as suburban rail
systems on a multi-gauge network. It uses four gauges, the 1,676 mm broad gauge,
the 1,435 mm standard gauge, the 1,000 mm meter gauge and the two narrow
gauges: 762 mm and 610 mm. Railways in India covers 29 states, 3 union
territories and also supplies limited international services.

The Indian Railways is divided into 17 zones, which are further divided into a total
of 68 divisions. Each zone is administered by a General Manager (GM) and the
divisions are under the control of Divisional Railway Managers (DRM). The
Indian Railways is the world's fourth largest commercial employer with over 1.4
million employees. The Locomotives or Engines in India comprise of electric and
diesel ones. Steam engines aren used only in heritage trains. Engines are classified
by their track gauge, power, model number and the work they are suitable for.
Freight trains earn about 70% of the railway revenue. There are several passenger
train services and are mostly classified by their average speed. A faster train has
fewer stops than a slower one.

29
Sl. Year of Route
Name CODE Headquarters
No Est KMs

1 Central Rly CR 1951 3905 Mumbai

2 East Central Rly ECR 2001 3628 Hajipur

3 East Coast Rly ECoR 2001 2572 Bhubaneswar

4 Eastern Rly ER 1952 2414 Kolkata

5 North Central Rly NCR 2003 3151 Allahabad

6 North Eastern Rly NER 1952 3667 Gorakhpur

7 North Westrn Rly NWR 2002 5459 Jaipur

8 Northeast Frontier Rly NFR 1958 3907 Guwahati

9 Northern Rly NR 1952 6968 Delhi

10 South Central Rly SCR 1966 5803 Secunderabad

11 South East Central Rly SECR 2003 2447 Bilaspur

12 South Eastern Rly SER 1955 2631 Kolkata

13 South Western Rly SWR 2003 3177 Hubli

14 Southern Rly SR 1951 5098 Chennai

15 West Central Rly WCR 2003 2965 Jabalpur

16 Western Rly WR 1951 6182 Mumbai

17 Kolkata Metro Rly KNR 2009 Kolkata

30
31
1.14 SWOT analysis of Indian Rail

Strengths

 Availability of abundant low cost land near country stations provides

possibility for development
 Less damage of goods compared to other modes of transport
 Better connectivity across the length and breadth of India
 More carrying capacity of goods
 Largest commercial employer with almost 1.5 million staff
 It transports over six billion passengers and almost 750 million tons of
freight annually
 Approx 120,000 km of tracks and nearly 8000 stations
Weaknesses

 Passenger sector is loss making

 Accidents and delays cause a dent to the image
 Facilities not comparable to international standards still
Opportunities

 It can capture large chunk of container traffic by introducing block container

trains operating at passenger speeds
 It‘s 70% of revenue and most of its profits comes from freight .

Threats

 Increase in allowable gross weight of road vehicles

 Possible introduction of double road trailers
 High accident rates

32
Chapter 2: Industry / Company Overview

33
 CHAPTER 2 - INDUSTRY / COMPANY OVERVIEW
Market Leader In Supply Chain & Logistics

Safexpress began its journey in 1997 with a mission of delivering logistics

excellence to its customers and ensuring their success. Today, the firm has firmly
entrenched itself as the 'Knowledge Leader' and 'Market Leader' of supply chain &
logistics industry in India.

Safexpress offers 3PL and Consulting ,value-added logistics services for 9

different business verticals ranging from Apparel & Lifestyle, E-commerce,
Healthcare, Hi-Tech, Publishing to Automotive, Engineering & Electrical
Hardware, FMCG & Consumer Electronics and Institutional.

Safexpress offers cutting-edge logistics solutions to its customers, enabling them to

focus on their core competencies. The firm adds maximum value to businesses at
every level, right from providing world-class warehousing support to ensuring
time-definite deliveries of goods anywhere in India.
The company has corporate office at following address
Safexpress Pvt Ltd,
NH 8, Mahipalpur Extension, New Delhi - 110 037, India.

Vision

"To revolutionize the Supply Chain & Logistics industry in India and consequently
contribute to the growth of our economy by way of our unsurpassable expertise in
providing Value-added Supply Chain & Logistics services, we will enhance our
'Knowledge Leadership' and 'Market Leadership'".
Mission

"We shall adopt and internalize a work culture which demonstrates a 'We Can We
Will' attitude to reflect in our daily responsibilities so as to far exceed our
objectives, consistently striving towards market dominance. We will create
historical landmarks forming a strong edifice for the future overcoming all

34
 obstacles proactively, as our personal responsibility and commitments are to create
delight for the customer with impeccable personalized services".

Logistics Parks

Safexpress, as the 'Market Leader' has been driving the warehousing revolution in
India as it expects that this would be the major area of focus for the industry for
many years to come. Through its pioneering initiatives, the company has totally
redefined the way supply chain functions in the country. Safexpress has developed
35 state of the art warehouses with space of over 14 million square feet across the
country and it delivers more than 80 million packages every year.

Reach

The company deliver to each and nearly every pin code in India through it‘s robust
network of 391 delivery gateways, 622 scheduled destinations and it‘s unique
Safextension network. Process improvement and route optimization is a continuous
process that helps us to strengthen our hub and spoke model. Beyond our well
designed hub and spoke network we have unique, direct, long distance routes to
facilitate fastest delivery across India.
 Destinations, spread across all states & union territories of India
 Over 6132 GPS- enabled, all weather-proof, containerized vehicles, fully equipped
to cater to a wide range of cargo loads, which ranges from 1 ton for pick-up and
delivery to 15 tons for transhipment. The GPS ensure real-time monitoring,
tracking and analytics
 More than 1100 routes, linked through 48 hubs & mega hubs
 Delivering more that 80 million packages a year
 Traversing over 6,00,000 kms a day
 Warehousing space of over 12 million square feet
 Operating 24 hours a day, 365 days a year

35
Chapter 3: Objectives

36
3.1 Objective of the Study
The objectives of the study are:

 To have an understanding of the Indian Railways and Indian Roadways.

 To analyze the comparative advantages and disadvantageous of Rail and
Road Transport.
 To summarize the findings and to offer suitable suggestions for improving
the services offered by both Rail and Road transports.

3.2Statement of the Problem

Transport refers to the activity that facilitates physical movement of goods as well
as individuals from one place to another. Passenger mobility is heavily relying on
rail and road. India‘s passenger transport for short and medium distances is
essentially bus oriented. There is an intense competition between railways and
roadways. Due to lack of accommodation in trains, roadways have taken over
movement of the major share of goods and passengers. At present India‘s transport
system performance is poor when compared to international standards.

This study aims to identify the facilities and services offered by both the modes of
transport. Moreover the preference of passengers and goods transport over these
two modes, the reasons behind that are also to be studied. As far as distance is
concerned, those who travel for long distance may choose trains and those who
travel short distance may choose buses.

3.3Limitations of the Study

 The validity and reliability of the data may not accurate as it is obtained
from secondary source, web sites, and books.
 Time at the disposal for the research was limited.
 Limited resource are available on public domain for this subject.

37
Chapter 4: Literature Overview /
Theoretical background

38
CHAPTER 4:
LITERATURE OVERVIEW / THEORETICAL BACKGROUND
A literature review is a body of text that aims to review the critical points of
current knowledge including substantive findings as well as theoretical and
methodological contributions to a particular topic. Here several studies
regarding comparison between rail and road transport, satisfaction and
dissatisfaction, present condition, passenger‘s expectations in road transport as
well as railways have been conducted. The results of those studies are as
follows:
Dr.D.T.Shinde, Dr.G.h.Barharte and Dr.N.Y.RajeShirke, (2011) in their article,
―Urban Public Transport – A Study on Service Quality‖ have studied the
service quality of Urban Public Transport with reference to Navi Mumbai City.
Their survey revealed that thereis an absence of good quality service in public
bus transport andwhich results in traffic congestion. They have suggested that
frequency of public transport buses should be increased, seats should be
designed for the comfort of the passengers, proper bus routes should be
designed, and the Public Transport System should be commuter- oriented.

Shah Hakim Zain, (2011) in his article, ― Keeping pace with Innovation,‖ he
has suggested that monorail system is said to be ideal for urban congested
corridors like Mumbai, due to its manoeuvrability and nimbleness to navigate
tight turns and narrow corridors. It essentially covers routes that have little or
no scope for road widening. Once it starts its operations, it will be cheaper and
more efficient than other modes of transportation. The Mumbai monorail the
first in India, is testimony to the administration‘s efforts to plan and provide the
best for its citizens.

39
Dr.N.Bharathi ,(2010) in his study, ―Passenger Attitude and Satisfaction in
Railways (Special reference to Coimbatore Region,‖ has evaluated the
passengers‘ attitude towards the present conditions of services provided by the
Indian Railways and has identified the factors that influence the liking of the
railway mode of the transport. His findings show that IR have to pay more
attention towards passengers comfort inside the train , cleanliness of waiting
halls, platforms, compartments, adequate security arrangement , concession to
various sections of the society, excellent lay-out of platforms for restaurant,
tea-stalls and cool- bars. He has concluded that the Railways have to transform
themselves to market- responsive entities in order to remain in the business.

Dinesh Mohan (2008), in his article, ―Mythologies Metro Rail System and
future Urban Transport‖ has traced the history of urban transport systems,
success and failures around the world and the lessons there of. He has also
described the attributes of surface public transport systems like bus, light, rail,
and tram and grade separated system for metro rail, sky bus, monorail and light
rail and their suitability for 21st century sites. Finally he has commented on
urban forms and other issues that affect accessibility and mobility in modern
urban areas.

C. Jaganathan (2006) in his Dissertation, ―Commuters of Railways– An attitude

study with special reference to Tirunelveli -Nagercoil Section‖ has focused his
attention on the choice factors of season ticket, various concessions extended
by the Railways and factors affecting the attitudes of the commuters. He has
concluded that more number of compartments may be added, frequency of
trains may be increased, convenient working hours in season ticket counters

40
can be made, separate compartments for the students may be introduced and
trees may be planted in the platforms for shadow.

Nalin Shinghal (2005) in his article titled, ―Road-Road Competition in Freight

Transportation – price and service issues‖ has compared road and rail freight
services from the cost, price and generalized cost perspectives. Analysis shows
that on transport cost basis rail is cheaper for distances greater than 550 and
750 km respectively for heavy and light cargo. When quality of service
parameters such as transit time, service frequency, reliability are taken into
account using generalized costs, the break even shifts dramatically in favour of
roads. On examining the pricing policies of the two sectors he has found that
the road transport sector is highly fragmented and competitive. On the other
hand, rail services follow a uniform pricing regime without any directional or
seasonal variations. He has contended that from an economic policy
perspective, there is a need to arrest the trend of shift of long distance freight
from road to rail. He has realized that if this is to be achieved, emphasis needs
to be placed on market based pricing as well as improved service quality for
rail services in terms of service frequencies and transit time reliability.

Ratan Kumar Singh , (2003)in his study, ― Road Transport and Economic
Development‖ has evaluated the critical role played by road transport as a basic
infrastructure in economic development and has analysed the correlation
between the development of road transport and that of other vital sectors of the
economy in relation to Bihar State. He has pointed out that the condition of
road is notsatisfactory that most of the roads are un-surfaced and that the
development of roads in the State has not been well-planned and coordinated

41
with the economic development. He has steps to be taken to improve the
working and performance of the Bihar State Road Transport Corporation.

Dr.R.S.Agarwal (2002) in his article, ―Physical, financial and Operational

efficiency analysis of State transport units: a case study‖ has shown the result
of the study conducted regarding the performance of the STUs. He has
suggested that vehicle utilization should be raised by searching new beneficial
routes with services like punctuality, good seating facilities, providing good
condition buses and providing training and refresher programmes in order to
improve the good behaviour of crew. He has suggested that STUs should ensure
the public from accident-free travelling.

Shri Arora S.K.(2002) in his study, ― Economics of Management in Road

Transport Industry‖ has focused on the problems of management in the road
transport industry in general and has suggested various techniques for the
evaluation of STUs. Besides he has made a comparative performance
evaluation of privately managed Road Transport Industry vis-à-vis state
managed Industry in Punjab State and has concluded that both the public sector
undertakings- Punjab Roadways and PEPSU Road Transport Corporation are
operating much beyond their equilibrium levels and any further sanctioning of
rates to them will only increase loss esrather than yield profits.

Dr.J.S. Mathur, (2000) in his article ―What is wrong with Indian Road
Transport System?‖ shares views regarding the future of road transport, rate of
accidents and some important issues of road transport system. Maintenance cost
in India is high than construction cost due to poor structure, raw materials used,
heavy monsoon and floods. In India total vehicle population is hardly 1% o f the
42
world vehicle population whereas road accidents are 6% of the total accidents
of the world. Frequent digging by water and sewage people and cable
replacement by electricity department cause damage to roads. Because of
corruption, the allotted funds are not being used for the development of roads,
duplicity of taxes in case of inter-state transport is also an important issue.
Keeping in view the importance of Road Transport, its contribution to the
national exchequer, its indispensability to trade and industry and its vital role in
linking the countryside with the urban areas, the government should do a lot
more than it is doing now.

43
Chapter 5: Research Methodology

44
 Chapter 5: Research Methodology

5.1 Research approach

Kothari (2004) defines research methodology as a way of finding a solution for

research problems or it can be described as a science that deals with how research
is carried out scientifically. He points out that research methodology is important
for researchers in order for them to do research in a way that highlights and gives
essential training in collecting material and arranging and putting it together for
carrying out research. He also adds that there are two basic approaches to research:
qualitative research and quantitative research. For this research qualitative research
is applied. The definition and description of qualitative research is explained in
detail as follows.

'Qualitative research is the collection, analysis and interpretation of data that

cannot be meaningfully quantified, that is, summarized in the form of number'
(Diggines & Wiid, 2009, p.85). Qualitative research basically depends on the
gathering of qualitative data (Johnson & Christensen, 2012). Qualitative research is
concerned with qualitative observable fact, or in other words a phenomenon that
contains quality or kind. In qualitative research the research questions are carried
out in a flexible manner allowing one to get in touch with the people concerned to
a degree that is essential to grasp what is being carried out within the field.

5.2 Research Philosophy

 Looking for meaning
 Using flexible research methods enabling contact
 Providing qualitative findings

45
5.3 Research design

According to Mariampoliski (2001), qualitative research methods offer the

required and complementary viewpoint on human behavior. 'When used properly,
qualitative inquiry can address numerous strategic information needs, such as
creative ideation for new product development, conception and evaluation of
marketing or communications tactics and insights into the culturally-based
preferences of various racial and linguistic minorities' (Mariampoliski, 2001, p.8).
The techniques used in qualitative research include focus groups, in depth
interviews and predictive techniques. The structure of qualitative research is less
than that of the quantitative research. Qualitative research is preferable when
investigating or examining, attitude, perception, motivation and understanding.

As already mentioned above, to carry out this research we decided that qualitative
research is the best applicable method for the study. The reason of using qualitative
research is due to the nature of the research that is based on gathering, and
analyzing of qualitative data. In other words, the study is made by investigating
and interpreting already published public domain data and analyzing the findings
in relation to the literature review in context to the research questions.

5.4 Data collection

One of the most significant steps in writing a report is the collection of data or
information. Because the report depends on the quality of the data collected, the
report will be good if the data collected is good. When collecting data in research it
is important to take into account, what type of data is to be collected and what
method of data collection is to be implemented. Data collected plays an important
role in determining the research problem. The following sections give a detail
description about the types of data and methods of data collection from theoretical

46
point of view and further addresses the data used and the methods of data
collection implemented for the research.

5.4.1 Types of Data

There are two types of data:

 Primary data: Data that is gathered by a researcher for the first time for a
particular ongoing research project. Primary data is that collected through
firsthand experience. Primary data can be gathered by applying either of the
two basic research methods, qualitative or quantitative.
 Secondary data: Data that has been formerly gathered by other researchers
for other reasons. Secondary data results from reading what others have
experimented with and observed. In addition to these.Secondary data is
simpler and has lower cost to develop and to use than primary data which
might mean interviewing large groups and distributing questionnaires.

For this research we used secondary data.

5.4.2 Methods of Data Collection

Philips and Stawarski (2008) illustrate that there are different ways of collecting
qualitative data among these, the most commonly used ones are three: Interviews,
focus groups and observations. Kothari (2004) state that for selecting the
appropriate method for data collection, a researcher should keep in mind the
following key factors:

 Nature, scope and object of enquiry: This is the most important factor
that influences or affects making a choice on the particular method to be
implemented. This factor also plays an important role in making the

47
 decisions on what type of data to be used, primary data or secondary
data.
 Availability of funds: Availability of funds plays a big role for selecting
the appropriate data collection method. When there is limitation of funds
the researcher has to select a cheaper method for collection of data even
though it might be less efficient and effective method compared to other
costly methods.
 Time factor: It is important for a researcher to keep in mind the
availability of sufficient time before making a decision on what type of
method is to be used for the data collection.
 Precision required: Being precise is another key factor to be taken into
account by researchers when selecting the method of collection of data.

Due to the nature of the research, which is based on conducting the research using
qualitative research approach, which needs to make a deep investigation the
authors depends on public domain data and statistic related to Indian road,
railways.

5.5 Problems faced

We encountered several problems in the data collection process: one of the

problems encountered was that there were a limited number of references on the
selected topic. In other words there is not enough research made on the topic which
was one of the biggest obstacles we faced during of the study.

48
Chapter 6: Data Analysis and Interpretation

49
CHAPTER 6: DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

6.1 Road vs. Rail: Choosing the Right Method of Transportation for Goods
Ground transportation is one of the most popular methods of transporting goods in
India. As we know, freight is very important to the world‘s economy, as it
transports goods from one place to another while supporting the commercial
culture we have become accustomed to.

Therefore, choosing the best method of transportation is extremely important to

ensure the needs of the company are met as well as the needs of the consumers.

There are many advantages when choosing road transportation:

 Flexibility is one of its unique features in terms of final destination and

volume of goods to be transported.
 Road transportation is available 24 hours a day and is often more affordable
than other methods of transportation.
 Shipping specialty services are not uncommon in the trucking industry
either. Whether you are shipping dry freight; frozen, fresh, or refrigerated;
heavy or oversized, there are an array of companies available to you. Check
out JBT‘s specialty freight options for more details!
The downsides to choosing road freight are the restrictions caused by traffic and
speed limits, as well as the unpredictability of weather conditions causing delays in
shipping schedules. Trucks are constantly moving on the road but from time to
time there can be some hiccups causing delays. The best solution is to plan ahead
or use a company that has track and tracing capabilities!

50
The benefits of choosing rail transportation are:

 It is much faster and more reliable as it is least affected by weather

conditions and traffic jams.
 Railway transport can carry larger volumes over greater distances, making it
more economical, and much quicker for transporting.
The downsides to choosing rail transport are its lack of flexibility and convenience,
as routes and times cannot be adjusted. Not only is the scheduling of rail
transportation inconvenient but it does not provide door-to-door services, as it is
tied to a particular track. When deciding which method of transport to use, you
need to weigh up the advantages and disadvantages of each.

6.2 Road vs. Rail: Ccomparative advantages and disadvantages of carrying

goods by rail and road?

Road transport occupies a significant place in country‘s transport system. Roads

are the most convenient way of transporting goods even if to the interior parts of
the world. Road transport may be affected by bullocks, buffaloes, horses and
mechanical power. Like road transport, railway transport also plays a significant
role because 80 percent of the goods transported in our country is effected through
railways. Both the road transport and railway transport have their respective merits
and demerits. The comparative merits and demerits of both the modes of transport
can be considered on the following considerations.

 Cost: The cost of transport of goods and passengers over a long distance is
comparatively cheap in case of railway transport. This mode of transport is
unsuited and uneconomical for short distance travel and transport of goods

51
 of small value. The cost of transportation of goods over a short distance is
less in road transport because it saves a lot on packing cost and expenses on
several handling.
 Speed: Railway transport is best suited for long distance traffic. Road
transport is quicker over short distance because goods are loaded directly to
the motor and transported to the place of destination.
 Special Services: Now-a-days a number of special services like
warehousing, loading and unloading are provided by various transport
agencies. Certain road transport organisations provide cold storage facility
whereas railways have started special services or containers services.
 Nature of Commodity: Road transport is suitable for carrying of perishable
goods which require quick delivery. Railway transport is suitable for
transportation of bulky, heavy and cheap goods over a long distance.
 Distance: Road transport is suitable for carriage of goods and people over a
short distance whereas railways are quicker and economical and are best
suited for carrying heavy goods over a long distance.
 Safety: Goods are exposed to a great deal of losses. The losses to goods on
account of transportation are comparatively lesser in road transport. Because
of this reason, road transport is preferred to railway transport system.
 Capital Investment: The capital investment of road transport is less as
compared to railway transport.
 Flexibility: Road transport is more flexible because its route and timing can
be adjusted to suit the individual requirement. It can provide door-to-door
service because it is flexible. Railway transport cannot ensure door to door
service and are made on a particular track of rails. So it is not flexible.

52
6.3 Road vs. Rail: – Their Contribution to Indian Economy

The transportation industry in India has been known for the significant contribution
in the development of Indian economy, by also supporting various other industries,
including agriculture, infrastructure, mining, etc., to grow. Out of several means of
transportation such as road, rail, water and air, road and rail have proven to be
responsible for shipping a maximum number of cargo throughout India. Here, we
will compare both the modes of surface transportation on various aspects and see
how they contribute to India‘s economy.

The freight industry has been growing at the rate of 8.5% per annum. The logistics
sector has a major role to play in increasing India‘s GDP, by contributing 6.5% in
2015-16, which has grown from 6% in 2001-02. This is due to the increase in road
transportation to 4.9% from 3.9% within the same duration. On the contrary,
railways show the reduction in their GDP share from 1.2% in 2001-02 to 0.9% in
2015-16.

Due to the large number of privately-held road transport companies, there is a

fierce competition between them, which has led to the reduction in shipping costs.
While railways are operated by government, minimal rise and fall in prices have
been noticed.

Freight Movement Traffic

Today, railways and roadways are considered the most crucial modes of
transportation. The rails being the major medium initially, road transportation has
dominated the industry over the past few years. While the railway traffic share in
1950-51 was tremendous 80%, roadways managed to take over 65% in 2015-16.
Even though Indian Railways transports nearly one billion tons of goods every

53
year, which is a considerably a high number, railway system achieved growth of
only 1% in 2015-16 as compared to 4-4.5% in the past recent years.

The major causes for the shrinkage of this percentage are expensive fares, limited
capacities and extreme competition. And, therefore, road transportation succeeded
to overtake railways in the last couple decades. Also, railways lag behind when it
comes to providing satisfactory customer service, where the construction of new
highways have opened possibilities of doorstep service, which further boosted the
demand for roadway freight movements.

Reflection of Freight Traffic

National Transport Development Policy Committee predicts that the projection of

freight movements by road vs. rail transportation would be 50:50 of 2031-32 as
compared to present scenario of 65:35 in 2017. These calculations are based the
assumptions that the growth rate is 1.2 times the growth rate of GDP.

There is an assumption of 15% increase in railway transportation within the next

15 years, which has been focused to reduce environmental pollution and encourage
green transportation. This will impel logistics industry to take up the rails and
waters as more eco-friendly transportation modes.

Although roadways are currently ruling the freight industry, truck owners will have
to adopt environmentally-friendly ways in order to sustain in the logistics market.
Otherwise, they may be pressured to shut down or invest in other ways if these
issues are not addressed. This may reflect a drastic change in the transport sector.

54
6.4 Road vs. Rail: Comparison on Feasibility
According to feasibility, the transportation of people and goods for short distances
can be speedily and easily done be highways, whereas for long distances,
transportation by railway tracks are safe, convenient and economical.

 Construction of route:
In roadways, these routes consist of suitable pavement of specified width
provided usually with shoulders on either side.

In railways, the routes consist of pair of steel rails which are laid parallel to
each other on sleepers at fixed distance apart.

 Suitability to traffic:

In roadways, routes are meant for movement of different types, of traffic

such as buses, trucks, scooters, rickshaws, cycles, pedestrians etc.

The railway routes are meant only for movement of trains.

 Width of right-of-way:
The roadway routes require more width of right-of-way.

The railway routes require less width of right-of-way.

 Starting and destinations:

In roadways, starting and destination points of traffic are not fixed.

In railways, starting and destination points of trains are always fixed.

 Right of entry:

In roadways, the right of entry is free to all vehicles because their

movements are not according to any schedule.

55
 In railways, the right of entry is not free to all railway vehicles because their
movements are always according to schedule.

 Strength of route:

The required strength of roadways is less.

The required strength of railway tracks is more.

 Elasticity:

The roadway routes do not require an elastic structure since they are not to
withstand impacts of heavy wheel loads.

The railway routes require an elastic structure to withstand impact of heavy

wheel loads.

 Gradients and curves:

In roadways, the routes can be constructed with steep gradients and sharp
curves. Thus, route length in their case is less.

In railways, these routes cannot be constructed with steep gradients and flat
curves. Thus, route length in their case is more.

 Tractive resistance:

The tractive resistance of roadway routes is high (5 to 6 times the tractive

resistance in case of railway).

The tractive resistance of railway routes is low (1/5th to 1/6th the tractive
resistance in case of roadways).

 Load handling capacity:

The load handling capacity of road vehicles is less and that too at low
speeds.

56
 Load handling capacity of railway vehicles is more and that too at high
speeds.

 Requirement of turning devices:

In roadways, no special turning devices are constructed for turning vehicles

on these routes.

In railways, special turning devices in the form of points and crossings are
constructed for turning vehicles on these routes.

 Operational control devices:

In roadways, no special operational control devices in the form of signaling

and interlocking are required on these routes for safe and efficient movement
of vehicles.

In railways, special operational control devices in the form of signalling and

interlocking are required on these routes for safe and efficient movements of
trains as per schedule.

 Suitability to transportation of people and goods:

Transportation of people and light goods for short distances (upto 500 km) is
convenient and cheap by roadway routes.

Transport of people and heavy goods like raw materials, coal, ores, etc. for
long distance or manufacturing concerns is convenient and cheap by railway
routes.

 Adaptability to type and size of goods:

All types and sizes of goods cannot be handled by road vehicles.

Almost all types and sizes of goods can be handled by the trains.

57
 Suitability for hilly area:

Roadway vehicles are more suitable for hilly area.

Railway vehicles are less suitable for hilly area.

 Employment potential:

Roadways have less employment potential.

Railways have high employment potential.

 Rate of accidents:

In roadways, the rate of accidents is high.

In railways, the rate of accidents is less.

 Construction and maintenance cost:

The construction and maintenance cost of roadway vehicles is less.

In case of railway vehicles, the cost is more.

58
Chapter 7: Conclusions

59
 CHAPTER 7: CONCLUSION

Over the last few years, the Indian economy has been in a phase of unparalleled
growth of about 6 - 7% per year, making it one of the fastest growing economies in
the world. Sustaining this rate of growth will need huge investments in physical
infrastructure such as roads and railways. An efficient transportation system is
critical for sustaining economic growth and the burgeoning demand for passenger
and freight movement. Recognizing this, the Government of India (GOI) and
several state governments have launched initiatives during the past decade to
modernize and improve the transport infrastructure.

When comparing the preference of passengers on Rail and Road transport with
respect to several factors Rail transport is better than Road transport in many of the
factors. Likewise Road transport is better than Rail transport in few factors. Indian
Railways have to pay more attention towards passenger‘s negative opinion in the
areas such as punctuality, booking procedures, more number of trains in festive
seasons, regularity and frequency of services. Likewise the Roadways also have to
concentrate its attention towards maintenance of vehicles, providing comfort,
redressal of complaint sand grievances, safety driving, travel time, providing
amenities and information as well. In order to remain in business both rail and road
transport authorities should transform themselves to market responsiveness
entities.

In the competitive scenario, the strength of the transport sector especially Road and
Rail is to be constantly improved to enable a firm to provide service at cheaper
price as well as quality service. Both the modes of transport should understand the
gap between passengers‘ expectations and perceptions from time to time by
conducting surveys and the like. This understanding gap can be eliminated by

60
proper research into passenger needs and having an efficient communication
system between actual service delivery and the organisation‘s communication to
passengers. So that these two modes can build and maintain the image and seek
competitive advantages.

61
Chapter 8: Learnings
&Contribution/Recommendatio

62
 CHAPTER 8: CONTRIBUTION/RECOMMENDATIONS

Rail Transport is providing a better service with respect to various attributes and it
has to improve its service in responsiveness criteria and Road Transport has to
improve in over-all service and specifically in tangibility criteria. In responsiveness
criteria several factors need to be improved.

 Compulsory road survey of state and national highways every two months ,
reporting any damages immediately and rectifying the same within a month
 Road projects to be given only to well-known Infra companies, and be held
responsible for certain minimum life of these roads
 Every road Project to have a sacrosanct deadline, with heavy penalties for
non-performance
 Road Ministry to work with the Prime Minister's Office (PMO) to get all
relevant clearances. Roads projects should be declared as of National
Importance brooking no opposition
 Use the latest polymer and concrete technologies as appropriate depending
on terrain and weather, which may be costly initially but lower maintenance
costs and longer life
 Enforce and check overloading of trucks, which damages the roads and
reduces the life of roads
 Better access: Foot over bridges, escalators and elevators will be built at all
stations in partnership with the private sector. Uninterrupted water supply
and clean toilets at stations will be ensured through such partnerships.
Battery-operated cars will be made available for the physically challenged
and senior citizens.

63
 Improved hygiene: India‘s railway stations are notorious for poor hygiene
and Gowda wants to change that image. He has hiked allocation for
cleanliness by 40%. In 50 major stations, cleaning activities will be
outsourced and a separate housekeeping unit will be raised. The sight of
railway janitors dragging a broom with supreme disinterest will be phased
out. Cleanliness will be monitored through CCTVs and random third-party
inspections. Bio-toilets will be introduced to replace the current system of
toilets that dump waste on the tracks. He did not quantify the target on this.
 Work stations will be introduced in some trains as a pilot project. Wireless
internet access, or wi-fi, will be introduced in all A-1 stations and some
trains. He did not specify which trains.
 The online-booking system has been overhauled. allow mobile booking and
encourage bookings through the ubiquitous postal network. He is also
extending e-booking to freight services, so users can book a wagon or a train
or a seat, all online.
 Railways will allow reputed brands to sell pre-cooked meals online. This
will end IRCTC‘s monopoly on the food business in trains. User feedback
will be collected through a helpline. Clean drinking water will be supplied at
all stations through private vendors. Food courts that serve regional cuisines
will be set up at major stations. Passengers in approaching trains will be able
to place orders through email or SMS and the food will be delivered to their
seat. Mechanized laundry will be introduced to ensure better quality of
sheets in air-conditioned coaches.
 Automatic closing of doors will be introduced in both suburban as well as
long distance trains. For the safety of women, 4,000 women personnel are
being recruited for the Railway Protection Force. This is in addition to the

64
 17,000 personnel that have already been hired. Boundary walls will be built
around railway stations to improve security.
 Railways will partner with e-commerce companies to provide dedicated pick
up spots at stations. So passengers can place an order while travelling and
shopping websites can deliver the products at a station before the end of the
journey. Gowda did not elaborate on this
 Plan better roads, truck bays, parking for trucks before Toll Plazas or Octroi
Posts so that heavy vehicles like trucks, buses do no spill over the roads
blocking highways by hap hazard parkings

65
Chapter 9: References / Bibliography

66
 CHAPTER 9 : REFERENCES & BIBLIOGRAPHY
 https://en.wikipedia.org/wiki/Indian_road_network

 https://en.wikipedia.org/wiki/Transport_in_India

 Shinde, Dr.G.h.Barharte and Dr.N.Y.Raje Shirke, (2011)

 Urban Public Transport – A Study on Service Quality‖ Southern Economist,

July 1, 2011. Pp-29-30.

 Shah Hakim Zain, (2011) ― Keeping pace with Innovation,‖ The Hindu
Survey of Indian Industry2011:243-245.

 Dr.N.Bharathi ,(2010) ―Passenger Attitude and Satisfaction in Railways

(Special reference to Coimbatore Region,‖ International Journal of Research
in Commerce and Management, Vol. No .1(2010), Issue No.6 (October)
pp.121-127.

 Dinesh Mohan, ― Mythologies metro rail system and future urban transport‖,
Economic and Political Weekly, Vol.XLIII, No.4, Jan.26/2008, pp41-53.

 C.Jaganathan (2006) Commuters of Railways – An attitude study with

special reference to Tirunelveli - Nagercoil Section‖ Thesis submitted to
ManonmaniamSundaranar University. January 2002.

 S Sumathy (Aug, 2005) titled, ―History of Southern Railways‖ submitted to

Bharathidasan University, Trichy, August 2005.

67