INTEGRATED TRANSPORT AND LOGISTICS An Intoduction B. N. Puri CEO & Director Asian Institute of Transport Development New Delhi 6th Mar, 2016

INFRASTRUCTURE Infrastructure plays a vital, often decisive role in determining: Over-all productivity and Development of country’s economy Quality of life of the citizens   The facilities that provide the society with the services necessary to conduct daily life and to engage in productive activities.

WHAT IS TRANSPORT ? An important sub-sector of infrastructure. A ​system , such as ​buses, ​trains, ​aircraft, etc. for getting from one ​place to another. Transportation is the act of moving people and goods from one place to another. Transport can be performed by various modes of transport.

MODES OF TRANSPORT Railways High capacity Heavy and bulky loads over long land hauls Low cost Greater reliability Environment friendly and safer mode of transport Roads and Road Transport Door-to-door transportation. Flexibility Ability to reach remote and difficult places Negative externalities--Pollution, Accidents. Cont…

MODES OF TRANSPORT Ports, Shipping and Inland Transport Ability to transport large amounts of bulk freights, liquids and containerized freights by ships. No obligation or transit-passing transactions between the starting and arrival points; Damage risk is high Long transit time Civil Aviation High Speed Heavy on Energy Noise pollution Others

ACCESSIBILITY AND MOBILITY Ability to reach opportunities that is beneficial, not movement itself. In remote rural contexts gaining access to services, goods and contacts will often require a lot of mobility. In many urban contexts accessibility might involve very short trip To enhance accessibility might actually require that we reduce traffic or even reduce the need to travel (or reduce mobility). Cont…

ACCESSIBILITY AND MOBILITY Efficient movement of people and goods Ability and level of ease of moving goods and services. Some examples of mobility include: Interstate highways providing designated truck lanes to increase the overall amount of goods transported. Bus Rapid Transit (BRT) systems with bus only lanes that increases the efficiency of moving people while removing automobiles from the roads.

OBJECTIVE OF TRANSPORT DEVELOPMENT Prime goal-to meet the transport demand at minimum cost. Emphasis change from time to time Augment supply of transport Co-ordination and greater efficiency. Environmental concerns, quality of transport services, safety of operation and energy conservation.

SIGNIFICANCE OF TRANSPORT Provision of necessary services for movement of goods and people. Enlarging the market, improving the productivity of other sectors. Acting as a necessary stimulus for development of backward areas. Integrating remote and less developed areas with more developed regions. These are important considerations which must be taken into account while formulating transport strategy.

INTEGRATED TRANSPORT Various modes of transport differ significantly from one another in terms of capital intensity as well as technical and operations capabilities. Creation of system in which each mode of transport plays its part on the basis of its comparative advantage Linking modes of transport with commodities, length of haul etc, Multi-modal transport.

TRANSPORT AND LOGISTICS Transportation is an essential and a major sub-function of logistics. The backbone of entire supply chain is the transportation management that makes it possible to achieve the well-known seven ‘R’s – “the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost”.

LOGISTICS What is Logistics? The word logistics is of French origin. It was originally a military term i.e. art of transport, supply and quartering of troops. Definition Logistics as ‘that part of the supply chain management that plans, implements, and controls the effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements’. The broad agreement is that logistics deals with the careful management in time and space of the movement of components and resources with respect to a larger business agenda.

OBJECTIVES OF LOGISTICS SYSTEM The six operational objectives of a logistics system have been described as (a) rapid response based on anticipated need, and supported by flexible and robust technology and transport systems. (b) minimum variance to ensure certainty of delivery in time and space; (c) minimised inventory to reduce storage costs; (d) movement consolidation to reduce transport costs; (e) product quality; and (f) support for life-cycle activities such as returns, repairs and disposal. Cont…

OBJECTIVES OF LOGISTICS SYSTEM Logistics differs from transport insofar as the former is an elemental part of the production process, while the latter is ‘merely’ a matter of the distribution of raw material or finished product. In short, effective logistics can make a ‘better’ product, whether measured by quality or cost. Meanwhile, effective transport can only ensure that said raw material or product is actually made available at a desired location.

COST COMPONENTS OF LOGISTICS Logistics costs can be broadly classified into the categories of Transportation costs, Inventory carrying costs (comprising of Inventories, Handling, Warehousing and Packaging) and Other costs which comprise primarily of administrative costs

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