Road content

India has the second largest road network in the world, spanning a total of 4.87 million kilometres
(kms). Roads in India transport over 60 per cent of all goods and 85 per cent of total passenger traffic.
The roads and bridge infrastructure industry is expected to be worth US$ 19.2 billion by FY17.
The National Highways account for 1.9 per cent of the total road network in India and are expected to
reach 100,000 kms by the end of the 2017 from 97,135 kms in FY15. The Government of India has
formulated a seven-phase programme, National Highway Development Project (NHDP), vested
with National Highways Authority of India (NHAI), for the development of National Highways in the
country.
The private sector has emerged as a key player in the development of road infrastructure in India.
Increased industrial activities, along with increasing number of two and four wheelers have supported
the growth in the road transport infrastructure projects. The governments policy to increase private
sector participation has proved to be a boon for the infrastructure industry with a large number of
private players entering the business through the public-private partnership (PPP) model.
With the Government permitting 100 per cent foreign direct investment (FDI) in the road sector,
several foreign companies have formed partnerships with Indian players to capitalise on the sector's
growth.
The NHAI has invited bids for the preparation of detailed project reports for 44 freight corridors,
inter-corridors and feeder routes to reduce the cost and time of the freight movement across the
country, under the Ministry of Roads Logistic Efficiency Enhancement Programme (LEEP).
Three memorandum of understanding (MOUs) were signed between National Green Highways
Mission (NGHM) and ITC Ltd, Yes Bank Ltd and Teri for setting up a Centre for Innovations in
Green Pathways in order to enhance research and innovations in the field.

Current Status
InFY17,Indiahadthe2ndlargestroadnetworkintheworld,spanningoveratotalof5.21millionkms.Over64.5
percentofallgoodsinthecountryaretransportedthroughroads,while,90percentofthetotalpassengertrafficu
sesroadnetworktocommute
DuringFY17-
18,GovernmentofIndiaallocatedUS$10.13billionfordevelopmentofnationalhighwaysacrossthecountry
AsonOctober2016,304projectswererecommendedfordevelopmentbythePublicPrivatePartnershipAp
praisalCommittee(PPPAC)
InvestmentofUS$31billionisexpectedinPPPby2020fornationalhighways
TheGovernmentofIndiaplanstoincreasethelengthofNationalHighwaysfrom103,933kmsto200,000km
s.
AsofFebruary2017,nationalhighwaysof6604kmsinlengthwereconstructed,againstatargetof15,000km
s,undervariousroadtransportandhighwayprojects
Road Vs. Rail Transport Their Contribution To Indian Economy

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

Contribution to GDP
The freight industry has been growing at the rate of 8.5% per annum. The logistics sector has a major
role to play in increasing Indias GDP, by contributing 6.5% in 2012-13, which has grown from 6% in
2001-02. This is due to the increase in road transportation to 4.9% from 3.9% within the same
duration. On the contrary, railways show the reduction in their GDP share from 1.2% in 2001-02 to
0.9% in 2012-13.

Due to the large number of privately-held road transport companies, there is a fierce competition
between them, which has led to the reduction in shipping costs. While railways being operated by
government, minimal rise and fall in prices have been noticed.

Freight Movement Traffic

Today, railways and roadways are considered the most crucial modes of transportation. The rails
being the major medium initially, road transportation has dominated the industry over the past few
years. While the railway traffic share in 1950-51 was tremendous 80%, roadways managed to take
over 65% in 2011-12. Even though Indian Railways transports nearly one billion tons of goods every
year, which is a considerably a high number, railway system achieved growth of only 1% in 2015-16
as compared to 4-4.5% in the past recent years.

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

Reflection of Freight Traffic

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

There is an assumption of 15% increase in railway transportation within the next 15 years, which has
been focused to reduce environmental pollution and encourage green transportation. This will impel
logistics industry to take up the rails and waters as more eco-friendly transportation modes.

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

What are the comparative advantages and disadvantages of carrying goods by rail and road?

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

I. Cost:

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The cost of transport of goods and passengers over a long distance is comparatively cheap in case of
railway transport. This mode of transport is unsuited and uneconomical for short distance travel and
transport of goods of small value. The cost of transportation of goods over a short distance is less in
road transport because it saves a lot on packing cost and expenses on several handling.

II. Speed:

Railway transport are best suited for long distance traffic. Road transport is quicker over short
distance because goods are loaded directly to the motor and transported to the place of destination.

III. Special Services:

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Now-a-days a number of special services like warehousing, loading and unloading are provided by
various transport agencies. Certain road transport organisations provide cold storage facility whereas
railways have started special services or containers services.

IV. Nature of Commodity:

Road transport is suitable for carrying of perishable goods which require quick delivery. Railway
transport is suitable for transportation of bulky, heavy and cheap goods over a long distance.

V. Distance:

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Road transport is suitable for carriage of goods and people over a short distance whereas railways are
quicker and economical and are best suited for carrying heavy goods over a long distance.

VI. Safety:

Goods are exposed to a great deal of losses. The losses to goods on account of transportation is
comparatively lesser in road transport. Because of this reason, road transport is preferred to railway
transport system.

VII. Capital Investment:

The capital investment of road transport is less as compared to railway transport.

VIII. Flexibility:

Road transport is more flexible because its route and timing can be adjusted to suit the individual
requirement. It can provide door-to-door service because it is flexible. Railway transport cannot
ensure door to door service and are made on a particular track of rails. So it is not flexible.

ROAD VS. RAIL: CHOOSING THE RIGHT METHOD OF TRANSPORTATION FOR YOUR
GOODS

Ground transportation is one of the most popular methods of transporting goods in North America. As
we know, freight is very important to the worlds economy, as it transports goods from one place to
another while supporting the commercial culture we have become accustomed to.
Therefore, choosing the best method of transportation is extremely important to ensure the needs of
the company are met as well as the needs of the consumers.

There are many advantages when choosing road transportation:

Flexibility is one of its unique features in terms of final destination and volume of goods to be
transported.
Road transportation is available 24 hours a day and is often more affordable than other
methods of transportation.
Shipping specialty services are not uncommon in the trucking industry either. Whether you are
shipping dry freight; frozen, fresh, or refrigerated; heavy or oversized, there are an array of
companies available to you. Check out JBTs specialty freight options for more details!

The downsides to choosing road freight are the restrictions caused by traffic and speed limits, as well
as the unpredictability of weather conditions causing delays in shipping schedules. Trucks are
constantly moving on the road but from time to time there can be some hiccups causing delays. The
best solution is to plan ahead or use a company that has track and tracing capabilities!

The benefits of choosing rail transportation are:

 It is much faster and more reliable as it is least affected by weather conditions and traffic
jams.
Railway transport can carry larger volumes over greater distances, making it more
economical, and much quicker for transporting.

The downsides to choosing rail transport are its lack of flexibility and convenience, as routes and
times cannot be adjusted. Not only is the scheduling of rail transportation inconvenient but it does not
provide door-to-door services, as it is tied to a particular track.
When deciding which method of transport to use, you need to weigh up the advantages and
disadvantages of each.

SWOT Analaysis IR

SWOT Analysis

1. Availability of abundant low cost land near country stations provides possibility for development
2. Less damage of goods compared to other modes of transport
3. Better connectivity across the length and breadth of India

4. More carrying capacity of goods

5. Largest commercial employer with almost 1.5 million staff

6. It transports over six billion passengers and almost 750 million tons of freight annually
Strengths 7. Approx 120,000 km of tracks and nearly 8000 stations

1. Passenger sector is loss making

2. Accidents and delays cause a dent to the image
Weaknesses 3. Facilities not comparable to international standards still

1.It can capture large chunk of container traffic by introducing block container trains operating at passenger speeds
2.Its 70% of revenue and most of its profits comes from freight sector and there is a tremendous growth in emerging companies
Opportunities 3.Operating ratio has been decreasing drastically in last 10 years

1.Increase in allowable gross weight of road vehicles

2.Possible introduction of double road trailers
Threats 3.High accident rates