A RESEARCH REPORT

ON

“Modes of transportation and their

difficulties”

Submitted in partial fulfillment of the requirements of the M.B.A Degree

Course of IIBM University

Submitted By:

Mahantesh.p
(REGD.NO: 08/44)
 Under the Guidance and Supervision
Of

Mr. Girish

GUIDE’S CERTIFICATE

This is to certify that the Research Report entitled “Modes of transportation

and their difficulties”
Done by mahantesh.p bearing Registration No.08/44 is a bonfide work done
carried under my guidance during the academic year 2009 in a partial
fulfillment of the requirement for the award of MBA degree by IIBM
University. To the best of my knowledge this report has not formed the basis
for the award of any other degree.

Place: HUBLI
Date:

Mr.ROHITH.K
DIRECTOR

2
 Declaration

I hereby declare that this report titled “Modes of transportation and their
difficulties, is a record of independent work carried out by me, towards the
partial fulfillment of requirements for MBA course of IIBM University. This
has not been submitted in part or full towards any other degree.

PLACE: HUBLI

DATE:

Mahantesh.p

3
 ACKNOWLEDGEMENT

I am thankful to Mr.ROHITH Director of Institute of Management studies

Hubli, who has guided me to do this project by giving valuable suggestions
and advice. Finally, I express my sincere gratitude to all my friends and well
wishers who helped me to do this project.

Mahantesh.p

4
 PREFACE

The research provides an opportunity to a student to demonstrate application

of his/her knowledge, skill and competencies required during the technical
session. Research also helps the student to devote his/her skill to analyze the
problem to suggest alternative solutions, to evaluate them and to provide
feasible recommendations on the provided data.

The research is on the topic of “Modes of transportation and their

difficulties”

Although I have tried my level best to prepare this report an error free report
every effort has been made to offer the most authenticate position with
accuracy.

5
 EXAMANER’S CERTIFICATION

The project report

Of

Mr. Mahantesh.p

“Modes of transportation and their difficulties”

Is approved and is acceptable in quality and form

Internal examiner External examiner

6
 INDEX

No. CHAPTER 1 Page No.

Executive Summary …………………….

Introduction and faction of transportation………………………

Modes of transportation……………………………
Logistics industry status in India……… ………
Objectives … ……………………………………………..
Needs for the study…………………………
Methodology
A)Size of sampling …
B) Sampling design…………………................................
C) Sampling techniques …………………………………………..
Geographical of study……………..……………
Analysis data………………………………………...
Limitation ………………………………………………….
CHAPTER 2
An overview of study………………………………..
CHAPTER 3
Conclusion…………………………
CHAPTER 4
Finding and suggestions ………………………….
Bibliography………………………………………

Questionnaires …………………………………………

Chapter:-1

Executive summery

7
The report is based on the data collected from the undertaken survey in hubli
transportation area & railway dept of logistic service. The survey asks the
respondent about their opinion about Modes of Transportation and their
Difficulties.

A project title is “Modes of Transportation & its Difficulties” the research was
carried out within hubli. The data collected approach adopted was
experimental research. The instrument used for data collection was
Questioner.

The targeted to persons working in the Logistic Service in organization. The

chart & graph were used to translate the data into meaningful to get most out
of the collected data.

The design of the study is organized as methods used, Hypothesis, Data

Analysis, Overview of the study, Opinion of the study, & Findings,
Suggestions & conclusion.

INTRODUCTION

Transportation is the systems and modes of conveyance of people and goods

from place to place. It can be considered the major infrastructural element of
an area. The different elements of the transportation system ideally need to be

8
planned through an integrated and comprehensive process [which] that
includes land use planning. The coordinated planning of transportation
facilities requires an understanding of the characteristics of the modes of
conveyance and the patterns and densities of the area [which] that they are
intended to serve. The purpose of transportation planning is to provide faster,
safer, [more] efficient and more pleasant travel, as limited by the [financial]
ability [of the area] to [pay for it.] finance the cost of transportation. [As
transportation] Because transportation systems are expensive to construct
and maintain, great care and foresight [are needed in developing plans for
them.] are necessary when developing plans for its construction. Modern
transportation planning emphasizes the total transportation system rather than
isolated facilities. It considers all modes of transport which are economical in
an area, as well as all types of improvements, including traffic engineering
improvements. The island is faced with an increasing demand for the
development of new transportation facilities and systems. Over the past [two]
three decades, [numerous] a number of major transportation projects have
been completed, while many others are in the planning stage. Much of the
current construction, however, is either expansion or improvement of existing
systems of facilities. A sizable portion of the new construction [which is]
either planned or underway is but an incremental part of a long-range
program. Since the adoption of the General

TRANSPORTATION GOALS

• Provide a transportation system whereby people and goods can move

efficiently, safely, comfortably and economically.

9
• Make available a variety of modes of transportation [which] that best meets
the needs of the County

TRANSPORT FUNCTIONALITY
Transportation is one .of the most visible elements of logistics operations. As
consumers, we are accustomed to seeing trucks and trains moving product or
parked at a distribution facility. While this experience provides a good visual
understanding of transportation elements, it does not allow the necessary depth
of knowledge to understand transportation's role in logistics operations. This
section establishes that foundation by reviewing functionality provided by
transportation and the underlying principles of transport operation.

Transport Functionality

Transportation functionality provides two major functions

1. Product movement
2. Product storage.

Product Movement the next stag

Whether the product is in the form of materials, components, assemblies,
work-in- process, or finished goods, transportation is necessary to move it to e
of the manufacturing process or physically closer to the ultimate customer. A

10
primary transportation function is product movement up and down the value
chain. Transportation utilizes temporal, financial, and environmental
resources, it is important that items be moved only when it truly enhances
product value. The major objective of transportation is to move product from
an origin location to a prescribed destination while minimizing temporal,
financial, and environmental resource costs. Loss and damage expenses must
also be minimized. At the same time, the movement must take place in a
manner that meets customer demands regarding delivery performance and
shipment information availability
Product Storage
A less common transportation function is temporary storage. Vehicles make
rather expensive storage facilities. However, if the 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 exceed the per A
second method to achieve temporary product storage is diversion. This occurs
when an original shipment destination is changed while the delivery is in
transit. Traditionally, the telephone was used to direct diversion strategies.
Today, satellite communication between enterprise headquarters and vehicles
more efficiently handles the information. In summary, although product
storage in transportation vehicles can be costly, it may be justified from a
total-cost or performance perspective when loading or unloading costs,
capacity constraints, or the ability to extend lead times are considered

11
 MODES OF TRANSPORT

The exporter can send the shipment of goods using anyone of the following
modes of transport as specified in the export contract. The exporter can send
the shipment of goods using anyone of the following modes of transport as
specified in the export contract.

12
 A) AIR TRANSPORT

The least utilized and most costly (about 50 cents per ton-mile) freight
mode is air shipment. The first large all-cargo air carrier was Flying
Tiger. Other large airlines earn most of their revenue from passenger
service. Airfreight is confined to high-value items, emergency shipments,
and perishable products (such as cut flowers). One advantage of air
shipment is that pilots tend to land gently. This is a benefit to business
marketers who ship computers, electronic equipment, and other sensitive
devices that might be damaged by’ truck or rail shipment. The air
transport of the goods involves sending shipment of goods through one of
the international airlines. The exporter need not directly approach the
airline for booking of the cargo. The C&F agents who generally negotiate
with the airlines lower freight fates as they provide bulk cargo to them do
this job in a cost effective manner. Some of the C&F agents act as
consolidators for the airlines. In practice, the airlines are known to offer
huge amounts of discount to the C&F agents for booking of the cargo.
Such discounts may not be available to an individual exporter, as the total
cargo offered may not have the substantial load. While selecting the
airline, the exporter should be guided by the considerations of cost and
timely delivery of the goods. It should, however, be ensured that the
cargo shall be carried in the manner as specified in the export order. The
export order may provide for direct shipment or transshipment. Direct
shipment means that the same airline should carry the cargo from port of
loading to the port of discharge. Transshipment of the goods permits
change of plane on the way to the destination of the cargo. In this case,
the loading and unloading takes place at least twice. The exporter may
find transshipment attractive, as the cost of transportation is generally
lower as compared to direct shipment. Against this cost advantage of
transshipment over direct shipment, the exporter runs the risk of delay in
transportation of goods and possible damage to the goods during

13
 loading/unloading at the intermediate ports. The decision should be based
mainly on the terms as given in the export contract. Transshipment
should not be preferred unless the buyer permits it. The reason since in
case there is a delay in shipment or damage to the goods, the importer
may not accept the goods or even if he accepts, may raise a claim against
the exporter for compensation for the damaged goods. This would spoil
the reputation of the exporter, which would adversely affect the growth of
his business. Various international conventions have laid down basic
rules for the air freighting of the goods. The first international convention
was concluded in 1929 at Warsaw, known as 1929 Warsaw Convention.
This convention relating to international air carriage was amended by the
1955 Hague Protocol and further supplemented by the 1961 Guadalajara
Convention and the Montreal Additional Protocol of 1975.

GOALS
• Provide transportation terminals and related facilities for the safe, efficient
and comfortable movement of people and goods.

14
Advantages of Air Transport
The transportation of goods by air offers many advantages to the exporter.
Some of them are as follows:
1. The movement of the goods is very fast.
2. The warehousing costs are reduced to the minimum.
3. It is suitable for the transportation of the perishable goods.
4. The risks associated with deterioration and obsolescence of the goods are
reduced.
5 The insurance premium in the case of air transport is lower as compared to
the sea transport in view of the reduced level of risks.
6. The losses due to rough handling, breakage and pilferage are also reduced
to the minimum.

Disadvantages
Price will be too high
Non-direct points
It will carry for only perishable goods
Necessary

15
B) RAIL TRANSPORT
Rail carry the greatest amount of freight (see Exhibit), typically because of the
volumes of forest products, grain, chemicals, metals, and bulk materials that
are handled over great distances.
'Truck traffic includes for-hire and private carriers, also mail and express.
.Water traffic includes both domestic and foreign traffic moving through U.S.
rivers, canals, and the Great Lakes, but excludes domestic coastal and
intercostals movements. Source: From Transportation in America, December
1991 Supplement, p. 10. ENO Foundation for Transportation Rail shipments
can accommodate a wide range of types and sizes of goods--dry, liquid,
frozen, controlled atmosphere, and awkwardly shaped-in carload (CL)
shipments of up to 30,000 pounds or in less than carload quantities (LCL). At
an average rate of just a few cents per ton-mile, rail is an inexpensive transport
mode. However, rail shipments have limited accessibility. Goods must be
moved to and from railroad terminus points, unless shippers or receivers have
spur lines into their plants or warehouses. Railroads primarily are used to
transport low-value, high-density, large-volume shipments over long
distances. As an indication of the large scale of a rail shipment, manufactured
goods shipments by rail average 36 tons, whereas forestry, mining, and mining
products average 62 tons per shipment. Sensitive equipment may be damaged
by the impact of rail cars being shunted in train assembly, so other modes are
preferable for such shipments

. Advantages
• Low cost, high volume (Products: Heavy industry, minerals,
chemicals, Agriculture ducts Autos, etc.)

• Improving flexibility

16
 Disadvantages:
• The railway requires a large investment of capital. The cost of
construction, maintenance and overhead expenses are very high as
compared to other modes of transport. Moreover, the investments are
specific and immobile. In case the traffic is not sufficient, the
investments may mean wastage of huge resources

• Another disadvantage of railway transport is its inflexibility. It routes

and timings cannot be adjusted to individual requirements.

• Rail transport cannot provide door to door service as it is tied to a

particular track. Intermediate loading or unloading involves greater
cost, more wear and tear and wastage of time. The time cost of
terminal operations are a great disadvantage of rail transport

• Railway transport is unsuitable and uneconomical for short distances

and small traffic of goods.

• It involves much time and labour in booking and taking delivery of

goods through railways as compared to motor transport.

• Because of huge capital requirements and traffic, railways cannot be

operated economically in rural areas. Thus, large rural areas have no
railway even today. This causes much inconvenience to the people
living in rural areas.

17
Difficulties of rail transportation

• Heavy-duty bridge structures needed

Railroad-type grade, ballast, rails & cross-ties

• On-street lines often take two traffic lanes

• Heavy-duty & costly structures
• Massive support columns

• • Need additional right of way

Street stations – Take away two to three traffic lanes
Large & costly structures
Open Passenger Platforms
Stations can block traffic lanes

• • Long construction time

• • Major traffic disruptions

• Dedicated right right-of-way

• • Environment damage – Noise, visual & drainage impacts

• Service not attractive to most people

Only carless people and limited others will ride system

18
C) PIPE LINE TRANSPORT

Pipelines are limited to transporting gases, liquids, and slurries (suspensions of

solid particles in a liquid), operate at a low speed (about 10 miles per hour),
and have limited accessibility. Their third rank in ton-miles carried is mainly
due to the huge volume of liquid petroleum products they carry.

CHARACTERISTICS OF PIPE LINE TRANSPORT

 Not suitable for general commodity transportation, restricted for

movement of liquid petroleum products
 Limited accessibility
 In addition require another accessible mode of transport
 Speed is quite low
 Longer transit time
 High Fixed cost (i.e. investment in line , terminals and pumping
stations) low Variable cost

Types of Pipelines
The following are the main types of pipelines:1

1. Natural Gas Transmission and Storage. These lines are mostly interstate,
transporting natural gas over 310,000 miles of pipelines from sources to
communities, operated by more than 700 operators. More than 400 natural gas
storage facilities are in the United States.

2. Hazardous Liquid Pipelines and Tanks. These pipelines predominately

consist of interstate pipelines transporting crude oil to refineries and refined
petroleum products (e.g., fuels) to marketing terminals and airports; they carry
diesel fuel, gasoline, jet fuel, anhydrous ammonia, and carbon dioxide to

19
product terminals and airports. Nationwide, there are about 160,000 miles of
these pipelines in operation, operated by more than 200 operators

3. Natural Gas Distribution. These are typically local distribution company

pipelines, mostly intrastate, that transport natural gas from transmission
pipelines to residential, commercial, and industrial customers. Included in this
segment of the industry are the local distribution companies, i.e., natural gas
utilities. More than 1,300 operators operated approximately 1.9 million miles
of natural gas distribution pipelines nationwide

4. Liquefied Natural Gas (LNG) Processing and Storage Facilities. More than
104 facilities nationwide either directly receive LNG from tank ship or truck
or receive

D) ROAD/TRUCK TRANSPORT

The exporters from India can send their export shipments by road to
Bangladesh, Nepal, Pakistan and Myanmar. Shipment to Bangladesh are sent
b) road to Beanpole (border) where the customs formalities are completed and
cargo is handed over to Bangladesh Customs. Similar land customs stations
have been set up for export of goods to Nepal, Pakistan and Myanmar.
The most popular mode of transportation is truck. Its importance in shipment
of selected industrial products can be seen in the fact that more than 80 percent
of the weight of all machinery, fabricated metal products, and rubber and
plastic products shipped in the United States, and more than 90 percent of the
otal weight of leather and leather products, moves by truck. Truck transport is
the most available and accessible of the modes because motor vehicles are not
restricted by terminal-to-terminal operation but can provide service from the
shipper's loading point to the receiver's dock. Highway transport is used

20
mostly for short hauls of high-value manufactured goods, because trucks have
higher operating costs and less capacity than trains.

GOALS

 • Provide a system of [thoroughfares and streets] roadways for the

safe, efficient and comfortable movement of people and goods
[between and within the various sections of the County].
 • Provide an integrated State and County transportation system so
that new major routes will complement and encourage proposed land
[uses.] policies Transportation

Advantages:

 The capital cost of vehicles is relatively small. This produces several key
characteristics of road transport. Low vehicle costs make it comparatively
easy for new users to gain entry, which helps ensure that the trucking
industry, for example, is highly competitive. Low capital costs also ensure
that innovations and new technologies can diffuse quickly through the
industry.

 Another advantage of road transport is the high relative speed of vehicles,

the major constraint being government-imposed speed limits.
 One of its most important attributes is the flexibility of route choice, once
a network of roads is provided. Road transport has the unique opportunity
of providing door to door service for both passengers and frei

21
CHARACTERISTICS OF ROAD/TRUCK TRANSPORT

• Unit of loading as well as transport is a vehicle, which is self,

propelled.
• Automobile moves on metal led roads, contraction of which is cheap,
easy, and quick.
• Automobile are user friendly in design and can be made to order
• Automobile mainly depend primarily on oil for its fuel and earth has
limited storage of same
• Automobile is considered as main source of environmental pollution.
• Provides Door-2-Door service

DIFFICULTIES OF ROAD TRANSPORTATION

• Traffic congestion and parking difficulties. Congestion is one of the

most prevalent transport problems in large urban agglomerations. It is
particularly linked with motorization and the diffusion of the
automobile, which has increased the demand for transport
infrastructures. However, the supply of infrastructures has often not
been able to keep up with the growth of mobility’s.
• Public transport inadequacy. Many public transit systems, or parts of
them, are either over or under used. During peak hours, crowdedness
creates discomfort for users as the system copes with a temporary
surge in demand. Low rider ship makes many services financially
unsustainable, particularly in suburban areas. .

22
• Difficulties for pedestrians. These difficulties are either the outcome
of intense traffic, where the mobility of pedestrians and vehicles is
impaired, but also because of a blatant lack of consideration for
pedestrians in the physical design of facilities.
• Loss of public space. The majority of roads are publicly owned and
free of access. Increased traffic has adverse impacts on public activities
which once crowded the streets such as markets, agoras, parades and
processions, games, and community interactions. .
• Environmental impacts and energy consumption. Pollution,
including noise, generated by circulation has become a serious
impediment to the quality of life and even the health of urban
populations. Further, energy consumption by urban transportation has
dramatically increased and so the dependency on petroleum.
• Accidents and safety. Growing traffic in urban areas is linked with a
growing number of accidents and fatalities, especially in developing
countries. Accidents account for a significant share of recurring delays.
As traffic increases, people feel less safe to use the streets.
• Land consumption. The territorial imprint of transportation is
significant, particularly for the automobile. Between 30 and 60% of a
metropolitan area may be devoted to transportation, an outcome of the
over-reliance on some forms of urban transportation. Yet, this land
consumption also underlines the strategic importance of transportation
in the economic and social welfare of cities.
• Freight distribution. Globalization and the materialization of the
economy have resulted in growing quantities of freight moving within
cities. As freight traffic commonly shares infrastructures with the
circulation of passengers, the mobility of freight in urban areas has
become increasingly problematic. City logistics strategies can be
established to mitigate the variety of challenges faced by urban freight
distribution.

23
D) SEA TRANSPORT

The prime advantage of water transport is its capability to move very large
shipments. Water offers lowest-cost transport, but at a slow speed and
restricted access. Deep-water shipments are primarily intercontinental,
whereas domestic shipments move along the coasts and through the Great
Lakes, canals, and navigable rivers such as the Mississippi, Ohio, and
Missouri rivers and the St. Lawrence Seaway. Water carriers primarily move
low-value, high-density cargoes such as cement, chemicals, grain, mined
items, and basic bulk commodities. Sea transport involves carriage of goods
by ship to the port of discharge. The contract of carriage of goods by sea refers
to the contract between the shipper and the shipping line (referred to as the
carrier) for transportation of goods against payment of remuneration (i.e.
freight) to the carrier. The shipper may be the seller (exporter) of goods or
freight forwarder or any other person sending shipment on behalf of the
exporter. One who sends the shipment is called the consignor / shipper and the
person to whom the goods are shipped is called the consignee. The consignee
may be the buyer, a clearing agent, or any other person acting for the importer.
It may so happen that the buyer may be importing goods on behalf of a
customer in his country and in such a case may request the exporter to consign
the goods to the customer directly. In this case, the consignee would be
different from the buyer who placed the export order. The carrier
may be the owner of the ship or a chartered. The latter is an agent who books
the cargo on behalf of the shipping line. The legal carrier of the goods is the
party contracting with the shipper to carry the goods; the carrier may be the
actual carrier or may arrange for shipment by another carrier. In the latter case,
he is usually responsible for the acts and omission of the other carrier. The

24
shipper may pay the amount of freight or the consignee of the goods may pay
it. With the development of combined or multi-modal transport systems, many
of the freight forwarders now contract as carriers even though they may not be
personally involved in sea transport.

CHARACTERISTICS OF SEA TRANSPORT

 Comparatively slow, depends on Tide
 Inflexible
 Reduces Door-2-Door capability
 Highly fuel-efficient system-Consumption of HSD is only 5.6 liters
for 100Kms.
 Depends on availability of infrastructure, incase of Canals

FORMS OF SHIPPING
The forms of shipping represent the organization of shipping services. There
are three basic forms of shipping as explained below:
1. Liner Shipping
2. Tramp shipping
3. Conference Shipping
.Liner Shipping
In case of Liner Shipping, a regular shipping line carries the merchandise.
These shipping lines provide the shipping service by calling regularly at
specified ports irrespective of quantity of cargo available. Such ships usually
carry general cargo i.e. an accumulation of small loads belonging to many
shippers. Each shipper pays the freight in accordance with the tariff based on
volume, weight or the value of the cargo. The Liner Shipping companies
provide commitment of regular service on specified sea routes at specified
freight rates. Thus, such liner services are very useful for small exporters.

25
. Tramp Shipping
Tramps are those ships, which are usually used for transportation of
homogenous cargo, which is moved in bulk quantities. The examples of such
cargoes are grain, coal, are, phosphates, timber, sugar, wheat etc. Such ships
operate on single (specific voyage) or consecutive voyages (i.e. one voyage
after another is taken up to transport the cargo). Such ships work on
inducement~ basis and ply indiscriminately between the ports of the world
depending upon the laws of demand and supply in the market. The rates in the
tramp market are determined purely by the free inter play of the forces of
demand and supply. The shipment of goods through tramps is known as tramp
shipping. The shipping lines operating as tramps can operate on any route for
which the freight cargo is available. Thus, such shipping lines are not
committed to any discipline in terms of service schedule and the freight rates.
The market for shipping services for the carriage of bulk commodities is also
referred to as the charter market and the shipping service is known as
chartering.

. Conference Shipping
A conference is an association of two or more liner shipping companies
operating in a well-defined trade, plying on a fixed route or routes within
certain geographical limits. The groups of liners in the conference operate
based on common freight rates and tariffs as well as conditions of carriage.
The shipping services provided by a conference are known as Conference

26
Shipping. This form of shipping is for a particular trade only and represents
specialization of the shipping companies to handle a particular type of cargo.

TYPES OF SHIPS
There are primarily four types of ships as explained below:
Single deck vessels
The twin deck vessels
Shelter deck vessels
Miscellaneous category ships

COST STRUCTURE VARIES BY MODE

TRANSPORT COST CHARACTERISTICS FOR EACH MODE

Rail
 High Fixed cost, Low variable cost
 High Volume result in lower per unit(variable)cost
Road/Truck
 Lower fixed cost(don’t need to maintain roads)
 High unit cost than rail due to lower capacity per truck
 Terminal expenses and line haul expenses
Sea Transport
 High terminal (port) costs and high equipment costs(both fixed)
 Very low unit costs
Air Transport
 Substantial fixed cost
 Variable cost depend highly on distance traveled

27
 Pipeline transport
 Highest proportion of fixed cost of any mode due to pipeline
ownership andMaintenance and extremely low variable cost.

Logistics Industry-current status in India

India is being touted as the land of opportunity for logistics service providers
all over the world.

Indian’s logistics industry is fast coming into its own, poised to touch $125
billion in 2010.From $90 billion at present

28
Environment Scan

India
Logistics in India

Despite its favorable location between Asia and Europe and a population of
more than 1 billion people, India has hardly been able to position itself on the
economic market. It has only been in recent years that the country has been
able to increasingly flex its economic muscle. But, India has much catching-up
to do in logistics terms before it can reach the same level as the world’s
leading industrial nations.

29
Geographic challenges in India
for India is bordered on the north by the Himalaya Mountains. For this reason,
creating road and rail connections from this direction is a major undertaking.
In the south, though, the Indian peninsula is well suited for sea harbors. India
is indeed the country with the world’s second-largest population. But the
population is unequally distributed, creating major challenge logistics service
providers.

Core countries for trade

The most important export countries for Indian products are the United States,
the United Arab Emirates, China, Singapore and Great Britain. The biggest
import trading partners are China, the United States, Switzerland, the United
Arab Emirates and Belgium .

Indian infrastructure

A vital step in India’s further development is expanding the road and rail
networks, and modernizing harbors and airports. In the process of
globalization , which is expanding India’s position in world trade, transport
volume has climbed rapidly in recent years. The expansion of the logistics
infrastructure has been unable to keep up with this pace. For this reason,
transport capacities have already reached their limits. The transshipping times
for ships in Indian harbors are three to four times longer than the average time
in the West. Logistics costs are also very high in international comparison

30
because of the poor infrastructure. For this reason, India will have difficulties
positioning itself as a global logistics hub in years ahead.
Road transport is especially important for India’s transport system. After all,
Transport hubs in India

India has one of the world’s largest road networks, with a total length of 3.3
million kilometers. But much of this network does not meet Western
standards. For instance, a truck takes five to six days to cover the 2,061-
kilometer-long route between Bangalore and Delhi. The government is indeed
trying to introduce counter-measures and shift freight transports from the
roads to the rails. But, first, the rail infrastructure must be expanded and the
connections to
harbors and airports improved. Many sub-areas of the 63,000-kilometer-long
rail network still use the technology of 1947, the year that British colonialists
left. Only about onequarter of the routes are electrified. One other challenge is
the four gauge
widths used in the rail network .

Logistics requirements and service areas

Road transports are characterized by small forwarders who frequently use

antiquated technology. In addition, the splintered political structure requires an
excellent understanding of local conditions .
As national highways in India are built and road transports are increasingly
liberalized, the productivity of road shipping will rise in years ahead. The
network business with LTL in India has excellent potential. The Indian road
transport market is forecast to rise to $40 billion by 2012 - it is currently $28
billion.

31
The CEP market on the subcontinent is growing rapidly. In the last five years,
revenue has experienced double-digit growth, climbing to about $650 million.
Its share of the entire logistics market totals only about 3 percent. International
service providers are working to set up or acquire domestic networks in India
.
Logistics service providers have been focusing more extensively on traditional
storage functions and distribution. But the number of high-bay warehouses
that meet European standards is extremely small. Typical added-value services
that meet Western standards also are hardly offered. For this reason, the
contract logistics market in India has a share of only about 6 percent of the
entire logistics market .

Logistics centers in India

In terms of logistics, India remains a developing country in many areas. For

instance, it has hardly any multimodal logistics centers. Despite its good
geographic position, India has also been unable to evolve into a hub for
international freight transports, like Dubai.
In regional terms, India lags behind logistics centers like Singapore, Thailand
and Hong Kong. Currently, India is moving forward with a plan to turn the
country’s 12 main harbors into integrated freight hubs. Many of these harbors
do not have the rail and road connections needed to handle the transport

32
volume of ships. Containers frequently sit for weeks in the harbor before they
can be transported .

Important logistics service providers

The largest Indian logistics service providers are Shipping Corporation of

India, Container Corporation of India, Great Eastern Shipping, Reliance
Ports / Terminals, Essar Shipping, Transport Corporation of India, Reliance
Logistics,
Blue Dart Express, Varun Shipping Company and BLR India. International
service providers are Schenker, DHL, Arvato, Kühne & Nagel and TNT .

Indian Road Network

 India has the second highest largest road network-3.3 million km.

 US has the largest road network with 6.4 million km & China-1.8
Million km .National highway 2% of total road length. .But carry
40% of goods traffic of India.

Indian Rail Logistics

 The Indian Railways boasts of being the world’s 2nd largest rail
network spread over 81,511 km and covering 6896 stations

 The freight segment accounts for roughly two thirds of railway’s

revenues.

India’s Sea Logistics

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  India now has the largest merchant shipping fleet among the
developing countries.

 .India ranks 17thin the world in shipping tonnage

 Indian share of maritime transport services is 1% of world market

 The container traffic has registered an impressive growth of 15 per

cent over the last five years.

Indian Ports

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35
India’s Aviation Logistics Sector

 •Aviation holds a small share of India’ s freight market

 •Air Freight is very expensive in India in comparison to road and

 rail..

 India accounts for meager 3% of the global air cargo market

 As per an expert estimate, Indian air cargo industry is going to be

double by the year 2010.

 Cargo-garments, machinery, components, pharmaceuticals, dyes,

chemicals and perishables [fruit, vegetables, flowers, fish and meat].

 Major International cargo airports-Mumbai, Chennai, Bangalore,

Trichy, Hyderabad, Delhi, Coimbatore, Cochin.

 .Major domestic cargo airports –Ahmedabad, Goa, Lucknow,

Visakhapatnam,Madurai in addition to the above.

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OBJECTIVES

 To understanding logistic services and system toward the

transportation of the goods.

 To know the modes of transportation procedure and benefits of

transportation

 To know the current status of Indian logistics services

 To know complete details of transportation.

 To understand which transportation is better for demotic market

Needs for the study

 The study helps me to understand best transportation in logistic

service.

 It makes me to know the transportation and logistics service.

 It helps to know the difficulties faced by while transporting the goods

 It helps to know which service is good road rail.

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  It help me to understand which mode of service is good in logistic in a
region.

Methodology

The methodology adopted for the present study is the outline a under.

The research as started with using for this study is descriptive research
forces on providing to accurate description of the variables in the
problem model. It better describes marketing problems, situation or
markets, such as the current status studies for modes of transportation
and their difficulties

Study has taken customers opinion about the transportation and their
difficulties

Primary data

These are the data have been collected for the first time through
survey, observation; the researchers records experimentation for the
first time to their knowledge .As the data collection methods
1. Surveys
2. Observation

Questionnaire is measurement technique for the required information. Which

is having set of questions is used to seek details of the research objectives.
The researcher has been surveyed using questionnaire for data
collection modes of transportation and their difficulties how is the service

38
facilities , competitors & other requirements. Questionnaire includes close –
ended questions and open –ended question.

Secondary data

Secondary data are those which have already been collected by someone else
& which have been used and published or kept for public .in this research,
primary data has strength and essential which has been adopted and also
secondary data.

Sources
1. Board
2. Magazines
3. Websites
4. Pamphlet
5. Advertisement

A] SIZE OF THE SAMPLE

Sample size of Hubli and logistics has been taken into consideration .sample
size is taken on the bases of study. Sampling selected because it is one of the
largest city in the Karnataka. Where we find more information in logistic
services and railway service in twin city

AREA SAMPLE SIZE

HUBLI CITY 15
DHARWAD O5
TOTAL 2o

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Total size of sample of 20 is obtained in the survey.
b] SAMPLING DESINE [TOOLS]

To know the response I have used the questionnaire method in sample survey.
If one wishes to find what people think or know, the logical procedure is to
ask them. This has leads study to use the questionnaire technique for
collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were
asked to answer the questions in the questionnaire. The questionnaires were
structured non-disguised questionnaire because the questions, which the
questionnaire contained, were arranged in a specific order besides every
question asked was logical for the study; no question can be termed as
irrelevant.

The questionnaire, were non-disguised because of the questionnaire were

constructed so that the objective is clear to the respondent. The respondents
were aware of the objective. They knew why they asked to fill the
questionnaire.

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C] SAMPLE TECHNIQE

The methodology adopted for the present study is the outline as under.
The research as started with using for this study is
descriptive research forces on providing to accurate description of the
variables in the problem model. It better describes marketing problems,
situation or markets, such as the transportation studies for which
service is better in logistic

Study has taken to customer’s opinion about the modes of

transportation and their difficulties and which transportation is better
for giving the service

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 Data collection
Primary data
These are the data have been collected for the first time through
study, observation; the researchers records experimentation for the
first time to their knowledge .As the data collection methods.

Surveys
Observation

Questionnaire is measurement technique for the required

information. Which is having set of questions is used to seek
details of the research objectives.
The researcher has been surveyed using questionnaire for data
collection for transportation we can come to know the flexibility ,
competitors & other requirements. Questionnaire includes close –
ended questions and open –ended question.

Secondary data
Secondary data are those which have already been collected by
someone else & which have been used and published or kept for
public .in this research, primary data has strength and essential
which has been adopted and also secondary data.
Sources
1. Magazines
2. Websites
3. Pamphlet

42
GEOGROPHICALE STUDY

The study was conducted in a transportation area of hubli and

railway station and logistic services it is survey on modes of
transportation and their difficulties an opinion by organization
associates whomsoever having knowledge about modes of
transportation they have given all information about modes of
transportation and geographical area of study in hubli itself

Data analysis
 Data analysis by using the software excel
 Data analysis by various group and methods

• 1) Did you aware about transportation

Did you aware about transportation

80
70
60
50
40 Series1
30
20
10
0
YES NO

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2) Which transportation is better for demotic market?

Which transportation is better for

Series1, domestic market
Pipelineway
, 5, 6%
Series1,
Waterway,
10, 11% Road way
Series1,
Railway
Series1, Road way,
Airway, 15, 40, 44% Airway
17% Waterway
Series1, Pipelineway
Railway, 20,
22%

3) Is the logistic is needed for public service

Is the logistic needed for public service

NO, 30,
30%

YES
NO

YES, 70,
70%

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4) Is there any competition between road transport & rail transport

Is ther any competetor between road

&rail transportaton

Rail, 45,
41% Road
Road, 65, Rail
59%

LIMITATION

45
  The survey was conducted transportation area of hubli

 Limited expression and interaction

 Lack of contextual understanding

 The survey need to be complete in given period only

CHAPTER-2

46
 Overview of the study

The main thing in the study report is the proper identification of the city and
then setting of the study objectives. As we have clearly maintained in the
objectives that we need to find out the transportation and logistic service of in
hubli to find out these things we need to go for the collection of the data that
determine required results about the logistics .So with the help of data
elements we were able find out the reasons for the transportation
After finding out the data needs the next task is to go for
identifying the data sources .these are the sources, which are capable of
providing us with the relevant data depending customer satisfaction.
In the research decision was made on the data collection methods. for the
primary data we went for questionnaires ,which basically helped us to find out
the which transportation is better the answer got by research . Thus through
this research we could verify the insights & to make decision for selecting
course of action.

• Researcher has got complete knowledge about modes of transportation

• Researcher came to know there are many difficulties will come
• After researching we came to know which transportation is leading

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 .

CONCLUSIONS

This project is an effort to throw some light on current situation of transpiration and logistics
industry in India .as we know logistics industry is growing industry in India it has immense
scope of development provided it gets right kind of infrastructure and strategies, .
Indian infrastructure is nothing much to write about because of its pathetic road and poor
connectivity though efforts have been made by government to improve its condition. Several
infrastructure projects are under way, which is definitely going to boost this industry. In initial
part of this project I have tried to explain modes transportation and logistics and I have talked
about various sectors of logistics industry like road, air, railway, and sea, all these four sectors
have to be equally developed to boost the growth. Then we will study about railway
transportation service..

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 CHAPTER-4

FINDINGS AND SUGGESTIONS

 They are should provide food item to the rural resident.

 They should make aware of the customers which are better

 There should not be any compulsion that customer wanted to get enjoy while drunk this
is the main drawback of all food product.

 They should make advantage for aware of the people

 If heat processing is used the vitamins are lost so maintain that quality

 Should not use Preservatives always

BIBLIOGRAPHY
1. Business India research work

2. logistics management magazine

3. government supply chain and logistics: direction for future

4. world bank report on logistics sector

5. WWW.LOGISTICS MANAGEMENT.COM

49
 Institute of management studies Hubli

Questionnaires
“ A study on modes of transportation and their difficulties”

Name………………………………
Gender………………………………..
Age…………………………………..
Qualification………………………….
Cell No………………………………

1) Did you aware about transportation?

Yes No

2) Which transportation is better for demotic market?

Road way
Railway
Air way
Water way
Pipeline

3) Which transportation do you like?

Road way
Railway
Air way
Water way

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Pipeline

4) For what purpose do you like it?

Good service Time management Flexible

5) Is the logistic is needed for public service?

Yes No
6) Is there any competition between road transport & rail transport?
Yes No

8) Transportation service is convenient for you?

Yes No

9) Do you have any opinion regarding the transportation?

………………………………………………………………
…………………………………………………………………..

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