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Road Transport

The most common mode of transport and it is used at least somewhere in almost all supply chains.

* Advantages/Benifits

1. Door to Door Service.

2. Economical over short distances.

3. Flexibility – as loading and unloding is possible at any destination.

4.Limited Capital Expenditure.

Relatively cheaper mode of transport as compared to other modes

Perishable goods can be transported at a faster speed by road carriers over a short distance

Helps people to travel and carry goods from one place to another in places which are not
connected by other means of transport like hilly areas

 Travel speed

 Use extensive road networks

 Large number of carriers working in the same areas

 Easy to monitor location of goods

* Disadvantages/Limitations

1. Irregular and Unreliable.

2. Unsuitable/uneconomical for Long Distances to transport goods – due to limited carrying


capacity

Transportation of heavy goods or goods in bulk by road involves high cost

3. No Uniformity in Rates.

4. Limited Speed.

5. Affected by Weather.

For shorter distances

 Vulnerable to congestion and traffic delays


 Dependence on fuel price

Rail Transport:

For heavy and large loads over long land journeys

* Advantages

1. High Speed.

2. Suitable for Long Distances.

3. Bulky Goods.

4. Protection.

5. Large Carrying Capacity.

Lowest overall cost per unit weight

 Railway is the safest form of transport

 Can be most effective when linked into multimodal system

* Disadvantages

1. Huge Capital Expenditure.

2. High Overheads.

3. No Door to Door Service.

4. No Competition.

5. Inflexible Mode.

Routes between fixed terminals

 They cannot stop at intermediary points

 Rail transport cannot provide door to door service

Air Transport:

Urgent, perishable goods or high value are transported by air.

* Advantages;
1. Flexible.

2. Quick service.

3. Natural Highways.

4. Protection.

5. High Speed.

Speed of delivery

* Disadvantages;

1. High Cost of Construction and Maintenance.

2. Costliest.

3. Limited Carrying Capacity.

4. International Restrictions.

5. Unsuitable for Bulky Goods.

 It is a costly transport 

Weight limits

Water Transport:

* Advantages;

1. Cheapest Mode of Transport.

2. Large Carrying Capacity.

3. Safety.
4. Protection to Goods.

5. Flexibility.

For heavy and bulky goods

 For products with long lead times

 Cheaper traffic means

* Disadvantages;

1. Slow.

2. Huge Capital Expenditure.

3. High Cost of Maintenance.

4. No Door to Door Service.

5. Special Packing

Difficulty in monitoring exact location

 Limited to appropriate ports

 Transfers to ships take time

Pipeline Transport:

 Generally liquids like oils, crude, petroleum products are transported.

 More than 6350 KM of Pipeline exits in India.

 Currently 27% of petroleum products are moved by pipelines in India.

* Advantages of Pipeline;

1. Suitable for All Weather.

2. Low energy Consumption.

3. Space Utilization.

4. Continuous.

* Disadvantages of Pipeline;
1. State of Commodity to be transported is limited.

2. Leakages.

3. High fix Costs.

Ropeway Transport:

 Ropeway Transport is used for transporting materials in hilly areas.

 In India 16% of total area is hilly, Currently in India nearly 178 Km rope ways are used for
transportation.

Advantages of Ropeway;

1. Transports Bulk Material over Short Distance.

2. Lower Capital Costs.

3. Less environmental damage.

* Disadvantages of Ropeway;

1. Limited Scope.

COST STRUCTURE FOR EACH MODULE:

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