Basic Mode of Transport

Topics: Mode of transport, Intermodal transport, Variable cost Pages: 15 (4662 words) Published: December 4, 2011
Each business has its own particular transport needs. These depend on the nature of the business and the type of products or services it buys and sells. This guide will help you decide on the most appropriate transportation for your business needs and assess the tax implications and costs to your business. It also tells you what licenses, insurance and training you or your staff will need to operate business vehicles.

Transportation is the physical thread connecting the firms geographical dispersed area. It helps in transfer of materials from suppliers to the firm and finished goods to be transferred from the firm to the market. It serves as link that facilities of the also suprts the products of production. Facilities of the firm whcich are geographically distributed and also links to to the firm . it also acts a pipe line for the flow of inventory.

Railways are primarily long-distance, large volume movers of low volume high density goods. Railways, which fall within the group of business undertakings labelled as ‘natural monopolies’ require a large investment in terminals equipment and track age to begin operation. Today’s railway industry is changing considerably in response to the economy, deregulation and the logistic approach to business. It is imperative for railways to improve service and to integrate with other modes. The Indian railways is the monopoly carrier of this mode of transportation in India. The rail network in India consists of broad gage and meter gage railway tracks with the broad gage catering to almost all of the freight traffic. Advantages of Railways

1. The major advantage that the railway offers is the efficient transportation of larger loads over long distances 2. The variable cost per ton-mile of transportation is lower for railways as compare s to other modes of transportation. 3. The availability in terms of service frequency to all categories of shippers . 4. The physical capability of transporting all types of commodities. 5. Railways also offer more reliable and safe transportation under all weather conditions as compare to other modes of transportation 6. Traditionally railways have been the most economical mode of transportation for low value high density and high volume products and hence the preferred mode for inbound logistical movements for firms. 7. the utilisation of standardise containers which can be easily transferred to and from other transportation vehicles have facilitated intermodal transportation along with railways. Utilisation of container on flatcar (COFC), Trailer on flat car and double stack railcars have help improve the performance of railways.

Disadvantages of railways
1. Railwayincur higher fixed cost due to requirement of infrastructure like railway tracks, specialized equipment’s and terminals. 2. Low accessibility, the inability to service areas where railway tracks are not present. However, this short coming can be overcome by multimodal transportation, for example, in combination with roadways. 3. Slow speed due to consolidation of rail wagon into complete train units for a particular route, and breaking out of rail wagons that have reached their destination or have to be transferred to other trains for different routes. 4. The packaging costs for railway is higher due to the impact experienced by goods during the coupling of the rail cars. 5. In India, metre gauge routes remain underutilized due to the problem of transfer of loads from broad to metre gauge routes being uneconomical

Motor carriers very much the part of any firms logistics supply chain; almost every logistics operation utilizes the motor truck, from the smallest pickup truck to largest trailercombination, in some capacity. The motor carrier industry, unlike railroad industry, consists of for-hire and private carriers. Private motor carriers transport freight that...
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