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LSCM4 02 Transportation
LSCM4 02 Transportation
LSCM4 02 Transportation
TRANSPORTATION
Understanding the role of
Transportation in Logistics
Identifying different modes of
Transportation in Logistics
Identifying the application areas of
each of these Modes
2
The word TRANSPORT got derived from the
Latin word TRANS(across) and PORTARE (to
carry)
Transportation is physical movement of goods &
people from source location(s) to destination
location(s).
It is one of the critical elements of the supply
TRANSPORTATIO chain logistics along with inventory and
warehousing.
N IN LOGISTICS Transportation contributes significantly to the
overall cost of Logistics & in turn to the Supply
Chain.
It is a major economic activity which provides
direct and indirect employment to millions of
people
3
Transportation accounts for approx 6.4% of
India’s GDP in 2021
4
Modes of transportation
NE 6 Lucknow–Kanpur Expressway 62
NE 7 Bangalore–Chennai Expressway 258
Total 1,533
ROAD TRANSPORTATION VEHICLES
Industry segments in trucking have evolved into certain standards based on load. These
are:
Truckload (TL),
Less than Truckload (LTL), and
Specialty carriers.
The industry is very fragmented
TL carriers transport trailer-load shipments bound for a single destination, and routes tend
to be irregular with few terminals (used mainly for maintenance).
There are several sub-categories including dry-van, flatbed, temperature-controlled,
tanker, regional and expedited.
Operations vary depending on length of haul, which falls into three service categories:
long-haul (more than 1,500 km), medium-haul (1000-1,500 km) and short-haul (less than
1000 km).
LONG HAUL TRUCKS – SPECIALITY
CARRIERS
MULTI AXLE TRUCKS – HEAVY
ENGINEERING LOADS
SEMI TRAILER & TRUCKS
TRUCK TYPES: LONG HAUL – MULTI AXEL
Applications: : Parcel & Logistics, Auto carriers
Power: : 160hp @ 2400 rpm . Torque: : 550 Nm @ 1500 - 1700 rpm
Clutch: : 15" facing dia clutch with superior lining material & booster
Tyre: 10.00 x 20 - 16 PR Nylon ply - radial ply optional
Max speed: 79 Kmph. Gradeability: 18.54%
GVW: 25000 kgs . Wheelbase: 6200 mm
Loading span: 32 ft
CONSTRUCTION & MINING CARRIERS
Railroads basically concentrate on the container traffic and are becoming more
responsive of the customer needs, emphasizing bulk industries and heavy
manufacturing. They have expanded their intermodal operations through alliances
and motor carrier ownership. Railroads are even concentrating on development of
special equipment. There are unit trains which are entire train carrying the same
commodity, which are bulk products such as coal or grain. Unit trains are faster, less
expensive to operate and quick as it can bypass rail yards and go direct to the
product’s destination.
There are also various different types, such as articulated cars for extended Rail
chassis, double-stack railcars, have 2 levels of containers, thereby doubling the
capacity of each car. It also reduces chances of damage because of their design.
These technologies have are being applied by railroads to reduce weight, increase
carrying capacity, and facilitate interchange.
INDIAN RAILWAYS & STEEL INDUSTRY
Over saturated routes in India (over 120% capacity utilisation in some sections
of Golden quadrilateral & its diagonal).
Last mile connectivity is dependent on Road.
No Guaranteed transit time for freight trains
High cost of Infrastructure. Completely State Owned and hence policies are
not commerce driven
Slow. A freight train for a Journey of 2000 Kms at present takes 6 to 8 days
Common track for freight and Passenger trains. Goods Trains get lower
priority while waiting for available rail routes.
Blockades, Strikes, Civil unrest and saturated network is a constant hindrance
to the movement of freight trains
AIR TRANSPORTATION
commons.wikimedia.org
APPLICATIONS
POSTAL SERVICE
COURIER SERVICE
Picture Source:
http://en.wikipedia.org/wiki/
WATER TRANSPORTATION
Inland water – while eco-friendly and one of the cheapest forms of transport has not been
well developed in India
Most European countries have well connected inland waterways and use it effectively for
bulk cargo movements.
Ocean is the preferred mode for international shipments
Shipping fleets across the globe comprises of tankers, dry bulk carriers , container ships
and special vessels.
Oceanic transportation includes import and export of crude and bulky commodities like
iron ore, cement, crude oil, coal, chemicals like sulphur, crude petroleum, and selected
agricultural products etc.
The capability of water to carry large tonnage at low variable costs makes it in demand.
When a company desire low freight rates and the speed and the time of transport are
secondary, it has the option of selecting water as a mode of transport.
WATER TRANSPORTATION
ADVANTAGES:
Massive cargo tonnage is possible with Ships.
Water transportation delivers the lowest cost per ton of cargo for the
distance covered.
DISADVANTAGES
Some of the problems encountered with this mode are rough weather
characterized by storms, ice, high waves etc in–transit.
Slow mode of transportation. A typical inter continental cargo may take
months to reach destination.
Although rare, accidents, damage, piracy issues can become expensive.
Prone to environmental disasters of universal magnitude while carrying
polluting cargo like oil, nuclear waste etc.
Types of Ships
Containers ships
Tankers (crude oil, chemicals)
Bulk carriers
RORO (roll on-roll off)
Gas carriers
Ferries
Barges
Tugboats
Offshore supply vessels
PIPELINES
Pipeline is used for the transport of crude petroleum, refined petroleum and natural gas. Pipelines are
suitable for continuous cargo movement from point to point.
Pipelines are also used for transportation of certain types of chemicals, Pulverized dry bulk materials
such as cement and flour via hydraulic suspension system, sewage and water in cities.
A significant fixed cost is incurred while setting up the pipeline and related infrastructures.
Thus, given the nature of costs, pipelines are the best suited when relatively large and stable flows of
materials are required.
E.g.: pipeline may be best suited to transport crude petroleum from the port to the refinery.
But, to transport refined petrol to a gas station does not justify the use of a pipeline and this is better
done by a truck.
In comparison with the other modes of transport, pipelines operate on a 24 hour basis, 7 days a week.
They stop functioning due to change in the commodity to be transported, or due to maintenance.
Unlike other modes of transport, pipeline does not have any ‘empty containers’ or vehicles’ which are
to be returned to the origins.
PIPELINES
Pipelines are the safest and most efficient means of transporting crude oil and
producing fields to refineries and processing plants and of distributing petroleum
products gas to the consumer.
Pipelines between refineries and major urban centers are replacing mode of
transportation.
Petroleum transportation is of critical importance to India as most of the major
consumption centers are land-locked.
As on 1 April 2011, India had a cumulative crude oil, LPG and petroleum product
pipeline network of 19,342 km with a transportation capacity of 172 MMT.
IOCL has the largest market share, having a 10,767 km pipeline network across the
country.
BPCL (1389 km) and HPCL (2134 km) are other important players in petroleum products
pipelines segment.
PIPELINES
GAIL is the largest player (85% share) in the LPG transportation segment with 2,000 km of
pipeline network which has a capacity to transport around 4 MMTPA of LPG, while IOCL owns
the remaining pipelines.
Crude oil pipelines are operated by IOCL (66.6%), ONGC (15.3%) and OIL (18.1%). IOCL has the
largest market share in oil transportation as most of its refineries are located on land areas,
while BPCL and HPCL operate coastal refineries.
Oil India Ltd. (OIL) transports all crude oil produced in North-East India to refineries via a 1,432
km pipeline. ONGC, India’s single largest crude producer, has approximately 8000 km onshore
pipeline network while its offshore pipelines include a 4500 km pipeline network.
Currently, India has over 13,428-km long gas pipeline network, with a transmission capacity of
355 MMSCMD, in which the state-run Gas Authority of India Ltd (GAIL) owns 9,000 km of natural
gas high pressure trunk pipeline with a capacity to carry 220 million metric standard cubic
meters per day (MMSCMD) of natural gas across the country.
RGTIL and GSPL are the other two major companies operating trunk pipelines.
PIPELINES - ADVANTAGES
One big advantage of pipelines is that, once they have been constructed, they
are not labour intensive for operational purposes as much as other modes of
transport.
Their operating cost is low.
PIPELINES - DISADVANTAGES
A high fixed cost for pipelines normally results from the right of way
construction and requirements at the control stations and pumping capacity.
Another disadvantage of ‘pipeline is that they are not flexible. Once the route
of a pipeline is fixed, it is not changeable.
Again pipelines are restricted with respect to the types of commodities which
can be transported through them.
Only products in the form of gas, liquid slurry can be handled by the pipelines
MULTIMODAL TRANSPORTATION
In Multimodal transport the carrier is liable for the entire carriage, even
though transportation is performed by several different modes of transport (by
air, rail, sea and road, for example).
The carrier does not have to possess all the means of transport, and in
practice usually does not; the carriage is often performed by sub-carriers
(referred to in legal language as "actual carriers").
The carrier responsible for the entire carriage is referred to as a multimodal
transport operator, or MTO.
Forms of Multimodal Transport Operations
Land-Sea-Land
An example of this form of the transport is as follows: An empty container is
picked up from the line’s container yard in Singapore and trucked to
shipper’s factory in Johore (Malaysia) for stuffing; thereafter the FCL is
trucked to Singapore and transported by ocean vessel to New York.
Truck from vessel to rail-head New York Rail from New York to rail-head
ChicagoTruck from Chicago rail-head to consignee’s warehouse.
FORMS OF MULTIMODAL TRANSPORT
OPERATIONS
MULTIMODAL
FORMS OF MULTIMODAL TRANSPORT
OPERATIONS
Road/Air/Road
A combination of air carriage with truck transport is a frequent method of multimodal service.
Undoubtedly, pickup and delivery services by road transport are usually incidental to air
transport.
But apart from this, road transport is now being increasingly used for trucking air freight over
long distances, sometimes across national boundaries, to connect with the main bases of
airlines operating long haul services such as trans-Pacific, trans-Atlantic and inter-continental.
Several airlines are building up a number of trucking hubs to act as focal points for road-based
feeder operations.
Many airlines provide road service to cities which they either find uneconomical to service by
air, or to which they do not enjoy landing rights.
This road transportation is often effected with their own vehicles, and to and from their own
facilities, but on occasion they do also use highway common carriers.
FORMS OF MULTIMODAL TRANSPORT
OPERATIONS
Sea/Air/Sea
This combines the economy of sea transport and the speed of air transport and is becoming
increasingly popular in several international trade routes like the Far East Europe route.
The economics of this combination mode favour high value items like electronics, electrical
goods, computers and photographic equipment as well as goods with high seasonal demand such
as fashion wear and toys.
This multimodal operation is particularly applicable where the route to be covered combines
large distances via land and water, and where transit time is important.
Rail/road/inland waterways/sea
This combination mode is in common use when goods have to be moved by sea from one
country to another and one or more inland modes of transport such as rail, road or inland
waterways, have to be used for moving the goods from an inland centre to the seaport in the
country of origin or from the seaport to an inland centre in the country of destination.
FORMS OF MULTIMODAL TRANSPORT
OPERATIONS
Mini-bridge
This involves the movement of containers, under a through bill of lading issued by an ocean carrier, by a vessel from a
port in one country to a port in another country and then by rail to a second port city in the second country,
terminating at the rail carrier's terminal in the second port city.
The mini-bridge offers the consignor a through container rate inclusive of rail freight up to the final port city in the
country of destination.
The railways are paid a flat rate per container by the ocean carrier for the rail transit.
This system is in operation on certain routes covering the trade between the United States and the Far East, United
States / Europe, United States / Australia, etc.
Land bridge
This system concerns itself with shipment of containers overland as a part of a sea-land or a sea-land-sea route. In this
case also, the railways are paid a flat rate by the ocean carrier who issues the through bill of lading.
This system is in operation for the movement of containers on certain important international routes such as:
Between Europe or the Middle East and the Far East via the Trans-Siberian land bridge; and
between Europe and the Far East via the Atlantic and Pacific coasts of the U.S.A., continental U.S.A. being used as a land bridge.
FORMS OF MULTIMODAL TRANSPORT
OPERATIONS
Ro-Ro (Roll-on/Roll-off)
This mode combines different means of transportation (sea and
road), and is used most often with new automobiles, which are
shipped by sea and them simply driven off the vessel to the
importer’s warehouse.
Heavy and over-dimensional cargo is also suitable for Ro-Ro
transport.
L.A.S.H. (Lighter Aboard Ship)
LASH transport is the combination of deep sea and inland
waterway transportation.
An example is the route from Germany to the Mississippi Ports where
the barges sail down the Rhine, Elbe or Weser in Germany, are loaded
onto LASH container vessels in Rotterdam, Hamburg or Bremen; are
then carried across the Atlantic, only to be unloaded at a Mississippi
delta port to sail upstream in the U.S.
It must be noted that LASH vessels are expensive, and furthermore
it is necessary to check on the availability of the special handling
facilities necessary in the ports of destination.
Speed 2 3 4 1
Investment 1 2 3 4
Freight Cost 4 3 1 5
Reliability 2 3 4 5
Frequency 2 3 4 5
Capability 4 3 2 5
SUMMARY