5.

TRANSPORTATION

INTRODUCTION
Transportation in logistics refers to movement of materials and finished product from its point
of origin to end users. Transportation is one of the most visible element of logistics and essential
function supply chain management. It plays a critical role in integrating, activities of suppliers,
manufacturer, storage-keeper, distributors, retailers and final consumers. The present chapter
explains the pivotal role of transportation in logistics and supply chain management and also in
keeping the wheels of business moving.

MEANING AND FEATURES OF TRANPSORTATION

In business parlance, transportation is a key logistics function which is responsible for moving
the goods from the location where they are sourced to the location they are demanded. In
short, the transport system works like a link between various stages of supply chain and ensures
the smooth flow of inventories.
The unique features of transportation are enlisted below.
1. Creates a Physical Link: Transportation is a function which links the entire process of
production, distribution, consumption and after sales services. It creates physical link by
actually moving the goods from one stage to another in the supply chain.
2. Creates Place Utility: Place utility refers to utility created for the product by virtue of its
location. Transportation creates the place utility be delivering the products at the place
where they are needed the most.
3. Creates Time Utility: The demand for goods may peak only during a specific time period.
Transportation helps in making the products available to customers at a particular time
and thereby, creates time utility.
4. Adds Value to Product: The transportation adds value to raw materials by delivering them
to the point of processing. It creates value addition to the final products by delivering
them to the customers at the right place and right time.
5. Geographical Specialization: Certain areas process natural geographical advantage of
producing specific goods. For example, countries from Middle Eastern region have
geographical advantage owing to the vast reserve of crude oil. Because of transportation
it is possible to be produce at one location and distribute over wide market.
6. Variety of Functions: In modern business era, transportation is not just limited to
movement of goods one place to another but also involves scheduling deliveries, tracking
shipments, special packaging efficient loading and unloading and many more.
 7. Involves Considerable Cost: Transportation cost occupies major share in the total logistics
costs. The organization may own its transport system or may outsource but in either of
the cases considerable amount of expenditure in incurred.

NEED/ BENEFITS/ ADVANTAGES OF TRANSPORT

Following are the benefits or advantages of transportation in supply chain management.
1. Maintains Smooth Flow of Inventories: The transport function is responsible for actual
movement of inventories in the form of raw materials, work in progress or finished goods.
Hence, it maintains the smooth flow of inventories throughout the supply chain.
2. Helps in Meeting Customer Demand: Efficient transport system helps in delivering the
goods as per customer’s demand at the time and locations they want.
3. Expands the Market Presence: A strong and reliable transport system helps to penetrate
and expand the markets. A domestics company can of export goods and sell in different
countries. Similarly, regular supply of goods in the exiting market helps to create
awareness and adds presence of product in the market. This creates awareness and adds
to sales.
4. Competitive Advantage: An efficient transportation system helps an organization to enjoy
economies of scale in production and distribution. This in turn, results into reduced cost
of the products sold to the customers. Therefore, an organisation can have a competitive
advantage over its rivals on the basis of mass production reduced costs of the products
and widespread distribution network.
5. Enable Geographical Specialisation: As discussed earlier, the transportation enables the
organisations to produce and market goods unique to a particular geographical area, like
mangoes from Ratnagiri and oranges from Nagpur region.
6. Temporary Storage: This is a secondary function of transportation. Sometimes, transport
vehicles are used as temporary storage facilities, although they are bit expensive. The
organisations resort to this option when the warehousing capacity is limited and material
handling is time consuming.
7. Business Objectives: An efficient transport system contributes to business objectives such
as better customer service, exploring potential markets, gaining customer loyalty, to have
a strong market presence.
OBJECTIVES/ IMPORTANCE OF TRANSPORTATION IN SUPPLY CHAIN
Transportation in supply chain management has specific objectives to achieve. It is imperative to
understand them clearly before going ahead. They are as follows:
1. To provide efficient link between the various components/ members of the supply chain
and ensure smooth flow of inventories.
2. To add value to the product as it moves through each stage of supply chain.
3. To minimise the cost of distribution from the number of sources to the number of
destinations by properly planning the shipments.
4. To improve the customer service by delivering the goods at the right time and place.
5. Improving the efficiency of the of the supply chain through the maximum utilization of
transportation equipment’s and personnel.
6. Assists in minimizing logistical cost and environmental pollution.
7. Transportation services is essential to demand fulfilment in supply chain.
8. Efficient transport system enhances the competitiveness of supply chain.

PARTICIPANTS IN TRANSPORT SYSTEM

The participants of a typical transport system can be categorized as follows.
1. Consignor (Shipper): Consignor is the sender of goods or consignment or someone who
wants to ship goods.
2. Consignee (Destination Party/ Receiver): The receiver of the goods is termed as
consignee. A consignee can be an agent receiving the goods with the intention of selling
or the final buyer.
3. Carriers and Agent: Carriers include truck contractors, private and public transport
service providers, airlines, shipping companies who are engaged in performing and
providing transportation service to customers at a cost. Agents like brokers and freight
forwarders and transport agents who provide intermediary services to customers and
carriers at cost are also members of transport system.
4. Government: The government plays a major role in providing basic infrastructure to the
nation like roads, railway, tracks, port, container yards, etc. The government also
undertakes transportation of essential and lifesaving goods in the interest of public.
5. Internet: Internet has become almost indispensable in transport management. Right
from finding suitable transport carriers to tracking the shipments on real time basis,
internet plays a vital role.
6. Public: Public plays a vital role by indirectly creating transportation demand by purchasing
goods. The public is more concerned with availability of transport facility at convenient
place, at lesser cost.
TYPES OF CARRIERS IN TRANSPORTATION SYSTEM
A ‘carriers’ is a business organisation or a person who is legally entitled to transport goods. On
the basis of ownership and operating authority, carriers are classified as under.
1. Common Carriers: A common carrier is business organisation or a person that provides
the transport service by charging a fixed amount. The word ‘common’ here means that
the transport services provided by these carriers are commonly available to a anyone who
is willing to pay the charges. Example: Railway, public taxi services.
2. Contract Carriers: A contract carrier provides for hire truck transport service no to the
general public but only to selected customers between certain terminals based on
contracts.
3. private Carriers: A private carrier is type of enterprise which invests in having its own
fleet of vehicles and uses it for the transport of its own goods. Therefore, it does not make
a general offer to carry goods of other parties as contract or common carriers do.
4. Exempt Carriers: It is a type of transport agency Specialisation in services like taxi services
or commodities (such as agriculture product) and are exempted from certain regulators.
PRINCIPALES OF TRANSPORTATION
The following are two main underlying principle of transportation.
1. ECONOMY OF SCALE
As per the principle of economies of scale, transportation cost per unit of weight
decreases when the size of the shipment increases. It is common knowledge that lager
the capacity of the transport vehicle, more are the goods that can be transported at a
time. This will decrease the cost per unit of transport. If smaller is the carrying capacity of
the transport vehicle then to transport a large amount of goods, more trips will have to
be made which will increase the cost per unit of transport. E.G., rail or water transport is
less expensive for bulk transport than smaller capacity vehicles like motor or air.

2. ECONOMY OF DISTANCE
This principle states the transportation cost per unit of distance decreases as distance
increases. For example, a shipment of 1,000 kg to 500 kms will cost less than 2 shipments
of the same weight of 250 kms. Transportation economy of distance is also referred to as
‘Tapering principle’ since rate or charges tapper (decrease) with distance. The rational of
economies of distance similar to that for economies of scale. Longer distance allow the
fixed expenses to be spread over more miles, resulting in lower overall per mile charge
TRANSPORT FUNCTIONALITY
Following are the two major functionalities of transportation.
1. PRODUCT MOVEMENT:
All forms products i.e. raw materials, components, parts, assemblies work in progress of
finished goods require transportation for value addition purpose. Transportation moves
raw materials to manufacturing process finished product closer to distribution centres or
to ultimate consumers.

Transportation uses time, financial and environmental resources. In recent years,

attempts have been made to reduce in transit inventory with the help of information
technology. It is now possible inventory and arrival status r shipment by providing exact
location and arrival time. Supply chain strategies like just in time, quick response
practice have helped to reduce manufacturing and distribution inventory and cost
substantially because of development in transport.

Transportation is not free and involves financial burden/ expenses. Expenses like
vehicles operating and maintenance cost, general and administration cost, salary to driver
and other labour cost increase transportation cost. In addition, expenses arising out of
product damage or loss also involves financial expenses which requires special attention.

Like financial resources, transport sector is one of the largest consumer of energy i.e.,
fuel oil. Transportation sector is equally responsible for creating environmental problems
like air pollution and noise pollution.

Considering the importance of transportation, in smooth running of business, it is

expected that goods should be moved from one place to another within minimum time,
at reduce financial cost, minimum use of fuel and oil, damage to natural environment,
prevent product loss and damage and maximum consumer satisfaction.

2. PRODUCT STORAGE
Transportation is a better alternative to store goods temporarily when storage space in
warehouse is full or limited and storing goods in vehicles is more economical than
loading and unloading cargo.

Product storage is another important function of transportation. Vehicles make rather

expensive storage facilities. However, if in transit product requires storage but will be
moved again shortly (e.g., in a few days), the cost of unloading and reloading the product
in a warehouse may be significantly high. Sometimes, the shipment destination is changed
while the goods are in transit. In such cases, transport vehicles can serve as temporary
storage spaces.
 Transport vehicles can be used for product storage at the origin of the shipment, during
the transit or even at the destination. They are comparatively expensive storage facilities.
A vehicle which is used for storage is not otherwise available for transport, which involves
additional Cost.

FACTORS AFFECTING TRANSPORT DECISION

A firm is required to answer a basic question i.e. whether to own its own transport system or
outsource the transportation function to logistics service providers. Considering the investment,
operating and maintenance cost of having personal transport system, now, majority of the
companies prefer to outsource transport function.

Before taking any decision on selection of transport system, it is necessary. to consider factors
like cost, distance, time, product characteristics, etc. the following factors needs to be considered
before selecting the most suitable means of transport as per company needs.

1. Nature of the Product: The nature of the product is the important factor which
determines the mode of the transport should be selected. product possesses unique
requirements pertaining to material handling packaging and delivery time. An
organisation needs to take these requirements into consideration while selecting the
transport service.
2. Distribution Pattern: The distribution pattern refers to pattern of movements of the
goods. An organisation needs to select the transport service depending upon distribution
pattern namely mass, selective or exclusive distribution. Also number and type of
intermediaries in the distribution network influence the transport decision.
3. Transit Time: Transit time refers to the normal time taken by a transport service provider
to travel between two locations under normal circumstances. If the transport service
provider is reliable and efficient the transit time can be optimised. Therefore, an
organisation needs to select the transport provider who will optimise the transit time.
4. Routes and Infrastructure: Many times the choice of mode of transport depends upon
the routes and infrastructure available. Some areas may have less developed routes
owing to hill regions, uncertain climate and other geographical constraints. On the other
hand, some areas may have a well-developed transport infrastructure such as terminals,
loading and unloading facilities, communication, etc. An organisation has to take these
factors into consideration while selecting the transport service.
5. Reliability of the Carrier: The reliability and the efficiency of the carrier is one of the most
important factors determining transport decision. The reliability of the carrier can be
established based on the factors such as its consistency in providing the service, track
records, other customer reviews, extra packaging and handling services provides, etc.
 6. Carrier Related Costs: The carrier related costs are the main considerations while
selecting the transport provider. A part of the cost could be fixed, for example, insurance
of the vehicles, salary of the drivers, etc. A variable part of the cost may include fuel cost,
general supplies, etc. If the transport service is outsourced, the organisation may be
charged as per the number of trips, distance covered, quantity of goods or a combination
of all.

TRANSPORTATION INFRASTRUCTURE

Transportation Infrastructure refers to all those fixed installations and facilities which enable the
transportation service to operate. Transportation structure may include wide variety of factors
ranging from physical infrastructure to the government regulations. For instance, in road
transportation - roads, terminals and facilities for loading and unloading etc. can be termed as an
essential infrastructure. The importance of strong transportation infrastructure can be
summarised in following points
1. Every country/economy need reliable infrastructure to connect supply chains and
efficiently move goods and services across borders.
2. A strong infrastructure enables to cover wider area of markets and tap new business
opportunities. Economies of scale in production, distribution and consumption of goods
can be achieved by efficient means of transport.
3. The strong infrastructure saves transportation time and costs.
4. Indirect impact is related to economic multiplier effect wherein price of goods/services
drop and variety increases.
5. It also ensures reliable delivery of goods at destination point without
much loss or damage.
6. It also increases productivity as larger and more diverse sources of
inputs (raw materials, parts, energy and labour) and broader, diverse
markets for outputs are accessible.
7. Quicker movement of goods reduces inventory and improves storage
Space management in warehouse.
MODES OF TRANSPORTATION

Road, Rail, Airways, Water, Pipelines, Ropeways and Package Carriers are the major modes of
transportation. A detailed explanation of each mode is given below.

MODES OF TRANSPORATION

Air Water Intermodal Package Carriers

Surface/Land

Inland overseas
Road Rail Pipeline Ropeway

1. Road Transport
Road Transportation involves network of roads which are used for movement of people
and goods. The road transportation is known for providing the 'last mile connectivity',
that means reaching up to the door steps of the customers.

As per the data provided by Ministry of Road Transportation, India has network of over
58,97,671 kilometres (36,64,643 mi) of roads as of 31 March, 2017. Today, we have a vast
expanse of national and state highways Connecting the major cities. Also, we have a dense
network of district and rural roads. Along with well-developed highways the rural and
non-motorised roads have also connected some of the very remote areas of our country.

Road transport in India suffer from some limitations. Firstly, the main roads in India are
under huge pressure due to ever increasing traffic and in need of modernisation. The
maintenance, expansion and widening of many existing roads is needed to increase their
traffic carrying capacities. The low lane capacity and widespread congestions lead to the
low transportation speed on highways and also within cities.
Advantages of Road/ Motor Transport

Road transportation has following advantages.

(i) Flexible: Motor carriers or trucks have greater flexibility because they
can move on all types of roads. Motor transport requires less fixed
investments and operate on public highways.
(ii) Door-to-Door Service: Road transport provides door-to-door service for all the
freight deliveries.
(iii) Faster Mode: Road transport provides a faster and less costly means of
transporting goods over short distances.
(iv) Saves Packaging Cost: Lesser packaging is needed to transport the goods by roads
than sending by rails or airways. Therefore, it saves considerable packaging cost.
(v) Road transport is suitable for short distance, remote and hilly areas and speedy
delivery of goods within and between inter-city movement.
(vi) Motor transport is favoured by manufacturing companies, distributors for short
distance and high value product.

Disadvantages of Road Transport

(i) Depends on Good Infrastructure: Without strong and well-developed

infrastructure, road transportation is ineffective. It depends upon quality of roads
and their proper and regular maintenance.
(ii) Unreliable in Changing Weather Conditions: The climatic changes such as rain,
floods can adversely impact the road transportation.
(iii) Prone to Accidents and Breakdowns: The chances of accidents and breakdowns
on the roads are more as compared to other modes of transportation. These are
unforeseen circumstances and hence can never be predicted.
(iv) Not Suitable for Long Distances: Road transport is not suitable when goods are to
be shipped across longer distances or internationally.
(v) Suitability: Road transport is not suitable for heavy and large sized cargo.
 2. Rail Transport
Indian railways is a state-owned railway company headquartered in New Delhi, India. It is
owned and operated by the Government of India through the Ministry of Railways. As of
March 2017, the rail network comprises 1,21,407 km (75,439 mi) of track over a route of
67,368 km (41,861 mi) and 7,349 stations. It is the fourth-largest railway network in the
world (after the United States, Russia and China).

Indian railways carries the entire gamut of goods, ranging from-parcel traffic and small
consignments, agricultural products, raw materials like iron and petroleum and finished
goods like automobiles.

Indian railway is labour intensive and therefore, it is a major employment generator

supporting the growth of the economy. Recently, Indian railways has undertaken an
ambitious project of 'Diamond Quadrilateral Scheme', which is aimed at easier movement
of goods and reduce the lead times for business. This project is aimed at creating high
speed rail net which would connect four metro cities in India i.e. Delhi, Mumbai in Kolkata
India and Chennai.

Most rail container traffic in India is handled by CONCOR (the Container Corporation of
India) which until recently was the only such organisation. CONCOR is a public-sector
concern, but it maintains its own fleet of wagons and other assets that are separate from
Indian railways, although the traffic moves on Indian railway's tracks.

Benefits/Merits / Advantages of Rail Transport

(i) Dependable: Railway transport is the most dependable mode of transport as it is

the least affected by weather conditions compared to other modes of transport.
(ii) Better Organised: The rail transport is better Organised. It has fixed routes and
schedules. The service is certain, uniform and regular.
(iii) High Speed Over Long Distances: Railway transport is more speedy over long
distances. Thus, it is preferred for long distance transport.
(iv) Suitable for Bulky and Heavy Goods: The railway network is ideal for long
distance, energy efficient and economic mode of conveyance and transport.
(v) Cheaper Transport: It is a cheaper mode of transport as compared to airways and
waterways. The railway has the potential to carry freight in large volumes,
therefore, the per unit transportation cost of freight is reduced.
(vi) Safety: Railway is the safe and secure form of transport. The chances of accidents
and breakdowns of railways are less.
(vii) Larger Capacity: The carrying capacity of the railways is large. Moreover, its
capacity can be increased by adding more wagons.
(viii) Suitable for Variety of Items: Railways specialise in transporting variety of items
ranging from small parcels to heavy construction materials. Therefore, it is a
versatile mode of transportation.
Disadvantages of Rail Transport

(i) Requires Huge Investments: The railway requires huge capital investment. The
cost of construction, maintenance and overhead expenses are very high as
compared to other modes of transport.
(ii) Inflexible: Railway transport is inflexible. Its routes and timings are fixed and
cannot be customised.
(iii) Not Suitable for Door-to-Door Services: Railway transport lacks the advantage of
door-to-door service. This is because; it is tied to predicated routes and fixed
terminals.
(iv) Non-Suitable for Short Distances: Railway transport is unsuitable and
uneconomical for short distances and small transport of goods.
(v) Because of monopoly, Indian railways lack efficiency and operating costs are high.

3. Air Transport
Air transport is one of the fastest mode of passenger and cargo transport which connects
domestic and international boundaries. Air transport has connected the various parts of
the world and continues to play a major role in domestic and global business.

The demand for air cargo transportation has increased significantly over the last few
decades as the product life cycle has shortened and demand for rapid delivery has
increased. Changing business models such as just in-time manufacturing and global
outsourcing model have led to the rapid growth of air cargo logistics business.

Air cargo logistic in India face few key challenges. Automation and mechanisation are not
widely used in the Indian airports to the extent that it is available and should be used.
Although attempts have been made in recent years to move forward in these crucial areas
but still require more sincere efforts to make air travel viable means of transport.

Advantages of Air Transport

(i) Fastest Mode of Transport: Freight can be transported over a long distance in
shorter period of time. It is the fastest mode of transport.
(ii) Enables International Shipments: The air transport enables to send the
international shipments thereby, expanding the potential markets and business
opportunities.
(iii) Useful for Special Type of Goods: Air transport is very useful for Special type of
goods such as perishable items, delicate and fragile goods.
(iv) Safety and Reliability: The use of modern technology, high maintenance of the
aircrafts and skilled staff make it one of the most safe and reliable mode of
transport.
 (v) Most suitable for carrying perishable and light goods of value over long distance.
(vi) Plays a very important role in national defence and space exploration.

Disadvantages of Air Transport

The following are the disadvantages.

(i) It is the costliest means of transport.
(ii) Because of less carrying capacity, air transport is not suitable for and bulky goods.
(iii) It is uncertain and unreliable because of weather conditions.
(iv) Requires huge investment in construction and maintenance aircrafts. Also require
trained workforce and well-developed airports
(v) Many countries have restriction over flying zones for security reasons

4. Water Transport

Water transport is the oldest and most economical mode of transport suitable for carrying
heavy and bulky cargo. It operates on a natural track and does not require huge capital
investment in the construction and maintenance of its track except in case of canals.
Waterways are important mode of transport for both passenger and cargo traffic in India.
Water transport is of two types: (a) inland waterways and (b) oceanic waterways.

INLAND WATERWAYS
Inland water transport includes the system of transport, which is navigable through rivers,
lakes, as well as canals. Many rivers in the world are used for inland water transport.

India has a fairly extensive network of inland waterways having 14,500 kms. of navigable
waterways in the form of rivers, canals, backwaters and creeks. Out of which 5,200 km of
river and 4,000 kms of canals are navigable by mechanised flat bottom vessels. Water
transport is very common in states like Assam, Kerala, Goa, Andhra Pradesh, Tamil Nadu,
etc. Some of the important inland waterways in India are
 Haldia (West Bengal) to Allahabad (UP) 1,620 kms on river Ganga.
 Dibrigarh (Assam) to Dhuburi (Assam) 891 km on river Brahmaputra. Kakinada
(Andhra Pradesh) to Pondicherry (1,086 km) on river Godavari.
OCEANIC WAYS
Ocean transport is indispensable for foreign trade. It has brought the different parts of the world
closer and has knitted together all the nation of the world into one big world market.

India has a vast coastline of approximate 7,516 km, including islands Thirteen major and 200
minor / intermediate ports provide infrastructural and support to these routes. Approximately
95 percent of India's foreign trade by volume and volume and 70 percent by value moves through
ocean routes.

Advantages of Water transport

1. It is the cheapest and oldest mode of transport.

2. Operates on natural track so does not require huge capital investment.
3. The operating cost is very low as compared to rail and road transport.
4. Suitable to carry larger quantities of heavy and bulky goods such as
iron, coal, etc.
5. The risk of accidents and breakdown is less compared to other modes
of transport.
6. Most suitable for international transport of cargo.

Disadvantages of Water Transport

1. Speed of water transport is very slow.

2. Area of operation is limited to availability of water transport facility.
3. Not suitable for short distance because it is costly and time consuming.
4. Unsuitable for perishable goods.
5. It is subject to 'perils of sea' i.e., climatic changes, sea storms can impact
6. the transport and cause delay.
7. Risk of loss or damage of goods due to loading and unloading of freight.
 5. Pipeline Transport
Pipeline transport is transportation of goods or material through pipes. pipelines are
widely used for the transport of crude and refined petroleum, fuels such as oil, natural
gas, bio-fuels, etc. Pipelines are useful for transporting water for drinking or irrigation
over long distances when it needs to move over hills or where canals are poor choices
due to considerations of evaporation, pollution, or environmental impact.

Advantage of Pipeline Transportation

(i) Pipelines are less harmful to the environment, therefore, are considered
as green mode of transportation.
(ii) The Pipeline transportation is less susceptible to theft, loss of materials during the transit.
(iii) The pipeline transport is safe, reliable and economical when it comes to transporting
liquid and gas.
(iv) The climatic and weather changes do not impact the pipelines much. The transportation
can be carried out safety.

Disadvantages of Pipeline Transportation

(i) No separate land acquisition is done for pipelines. Sometimes it is laid sidewise along
the road, which is not very convenient if it passing through dense populated areas.
Also, there is always a risk of damaging pipeline because of road repair and other
activities.
(ii) Pipeline transportation carry high risk of illegal pilferage and due to leakage. Wastage
due to leakage.
(iii) Supervision and maintenance of pipelines is a very costly and big task.
(iv) In case of chemicals and petroleum pipelines, accidental leakage can cause serious
environmental problems.
(v) Initial costs of laying pipelines are very high, particularly oil and gas pipelines which
have to be laid underground.
 6. Ropeways
A ropeway is a transport system for materials or people, used especially mines or
mountainous in areas, in which carriers are suspended from moving cables powered by
a motor. Ropeways, cable cars, can be very useful mean of transport for hilly and difficult
terrains and as last mile connectivity option in congested cities. It is one of the most
energy-efficient forms of transporting goods and people, relatively easy and quick to set
up, operate and take down again.

Advantages of Ropeways

(i) Economy: Multiple ropeway cars are propelled by a single power plant and drive mechanism.
This reduce both construction and maintenance costs. This makes the ropeway system
economical.

(ii) Accessible in Hilly Areas: Ropeways and cableways can handle large slopes, and large
difference in elevation. Ropeway travels straight up and down the fall line. This feature makes
the rope way the best mode of transport in hilly areas.

(iii) Suitable for Bulky and Heavy Materials: Ropeways are suitable to transport bulky materials
such as construction materials, coal, etc. to hilly areas or elevated project locations.

(iv)Safe and Reliable: There is no danger of collision between ropeway cars and other modes of
transportation. Therefore, ropeways are safe and reliable.

Disadvantages of Ropeways

(i) Not Suitable for Door-to-Door Delivery: Ropeways are straight line devices which means they
can travel in one direction at a time. So, they are not suitable for door-to-door delivery.

(ii) Ropeways are Not as Versatile as Ground Vehicles: Ropeways are not suitable for handling
oversized or overweight loads.

(iii) Low Speed: The ropeways work at a lesser speed as compared to other modes of transport.
 7. Intermodal Transport/ Multi Mode Transport

Intermodal transportation refers to the use of two or more modes of transport (like railway and
road) carriers to transport goods from one place to another. For transporting cargo, special
standardised containers are used for intermodal transport of cargo on trucks, freight trains and
container ships. The basic purpose of multiple mode of transportation is to have benefits of
each mode of transport and provide integrated service at the lowest possible cost. Use of
multiple modes of transportation is a result of use of standardised containers which can be
moved easily from railway wagon to onboard the ship or truck without loading and unloading
cargo.

Features of Intermodal Transportation

i) Uses at least two different modes of transport in a trip from place of origin to final destination.
The modes may be rail, road, water, air, Pipeline or ropeways.
(ii) Special standardised containers are used for intermodal transport.
(iii) It is most suitable for cargo weighing less than 25 tons or as per the container's size and load
capacity.
(iv) Most suitable for longer distance (say 300 miles)
(V) It is used for transporting intermediate value goods because high Value are sent by air cargo
and low value shipment via rail or ocean.
(vi) It is a good method when cargo needs to be sent on co in similar quantities and at the same
location.

Advantages/Benefits of Intermodal Freight Transported

(i) Selection of Best Transport Option: The intermodal transport offers a variety of transportation
options for the shipper. The shippers can explore and evaluate variety of alternatives available.
The shipper can investigate all the options and balance the cost with the time required to deliver
goods at minimum cost.
(ii) Reduce/Saves Cost: Use of intermodal transportation of freight is very common in both
domestic and international shipping because it minimises the amount of handling cargo during
the transit and reduces handling cost.
(iii) Reduced Cargo Handling: In the intermodal transport system, the cargo is packed in
standardised containers. These containers are then transported through various modes. As the
cargo is not packed and unpacked at very stage, it saves cargo handling time.
(iv) Trace and Tracking Facility: With the use of latest technologies, tracking shipments using
satellite systems has become much easier. Total transit time and delays can be estimated. The
shipment can be tracked at each and every stage of transport.
(v) Safe and Secure Method: Intermodal transportation provides safety and security to cargo
because it eliminates the handling of the freight during transportation.
(vi) Intermodal transport is Eco-friendly. For example, railways can carry more freight to longer
distance by using lesser fuel. This fuel efficiency creates less pollution.
(vii) Less Customs Formalities: In most of the cases, shipper has to make only one contract of
shipments. Therefore, the whole of obtaining lengthy process government clearances and
custom formalities is shortened. This can save a lot of time.
(vii) It is flexible mode of transportation which allows to overcome limitation of one mode by the
superiority of other mode.

TYPES OF INTERMODAL TRANSPORTATION SERVICES

The following section explains different intermodal services.

(i) COFC/TOFC: Container on a flat car (COFC) and trailer on a flat car (TOFC) is a combination of
a container and flat car i.e., a flat railroad car without sides or a roof and used for carrying
containers by rail and trucks. Here, a trailer or container is placed on a railroad flat car for some
portion of the transportation and pulled by the truck for the remaining distance. TOFC concept
facilitates direct transfer of freight between rail and motor transport.

(ii)Piggyback: It means a ride on someone's back and or shoulders. It is a specialised form of

intermodal transportation and refers to the transportation of goods where one transportation
unit is carried on the back of something else. For example, in rail transport, the practice
of carrying trailers or semi-trailers in a train atop of flat car (i.e., wagon) is referred as 'piggy
backing'.

(il)Fishyback: It is a combination of road and water transport and refers to the movement of truck
trailers of freight containers by barge or ship.

(iv)Trainship: This type of intermodal transportation combines water and rail transport. Here,
goods are shifted from water to rail transport or from rail to water transport.

(v) Air Truck/Birdy Truck: Here, air and road transportation modes are involved and the good are
transported from air to truck transport and vice versa.

(vi) Land Bridge: This is a type of intermodal transportation of cargo from a port or an inland
point of origin in the consignor's country to an inland point or a port of final destination in the
consignee's country using a combination of sea and land, air and land or air, land and sea
transport. For example, exporting mangoes to UK, from Ratnagiri to Mumbai by road and
Mumbai to London by plane or by cargo vessel.
There are three processes of land bridges as under.

(a) Mini bridge (Mini land bridge): It refers to shipment from a country's port to another
countries port with overland journey in the first country. In our earlier example, Ratnagiri to
Mumbai is over land journey and Mumbai to London by air.

(b)Micro bridge (Micro land bridge): Shipment from a country's port to another country's inland
destination and vice-versa. In our earlier example, the reverse route i.e., London to Mumbai by
air and Mumbai to Ratnagiri by truck.

(iii)Land bridge: Shipment from one country to another country and passes overland in a third
country. For example, transport between Mumbai and New York Port. It passes though many
countries.

8. Package Carriers

These are transportation companies that carry small packages, parcels and use air, rail and trucks
to transport goods. Such companies also provide value added services like trace and track order
status facility, intimating customers about their parcels, etc. This facility is used for sending
parcels, high value documents as single shipment. The service is provided by postal systems,
private courier companies (like FedEx, UPS) and less than truckload shipping carriers.

VIREN SIR COMPILATION 2022