“The process of moving an item from point A to point B.” “Safe, efficient, reliable, and sustainable movement of persons and goods over time and space”

1) Place Utility. 2) Industrial Development. 3) Employment Opportunities. 4) High Standard of Living. 5) Distribution of Perishable Goods. 6)Emergency Transportation

Functions of Transportation Product Movement Product Storage

It is a temporary storage in stationary vehicle. Product storage is expensive in transport vehicle. In some situations Product is done such as: When the cost of unloading and reloading the product in the Warehouse is more expensive. When storage space is limited. At other times, temporary storage is used due to diversion. This occurs when an original delivery destination is changed while the inventory is in transit.

Principles of Transportation Economy of Scale Economy of Distance

1.Road Transport. 2. Rail Transport. 3. Water Transport. 4. Air Transport. 5. Pipeline Transport. 6. Ropeway Transport.

* Advantages; 1. Door to Door Service. 2. Economical over short distances. 3. Flexibility. 4.Limited Capital Expenditure. * Disadvantages; 1. Irregular and Unreliable. 2. Unsuitable for Long Distances 3. No Uniformity in Rates. 4. Limited Speed. 5. Affected by Weather.

* Advantages; 1. High Speed. 2. Suitable for Long Distances. 3. Bulky Goods. 4. Protection. 5. Large Carrying Capacity. * Disadvantages; 1. Huge Capital Expenditure. 2. High Overheads. 3. No Door to Door Service. 4. No Competition. 5. Inflexible Mode.

* Advantages; 1. Flexible. 2. Quick service. 3. Natural Highways. 4. Protection. 5. High Speed. * Disadvantages; 1. High Cost of Construction and Maintenance. 2. Costliest. 3. Limited Carrying Capacity. 4. International Restrictions. 5. Unsuitable for Bulky Goods.

* Advantages; 1. Cheapest Mode of Transport. 2. Large Carrying Capacity. 3. Safety. 4. Protection to Goods. 5. Flexibility. * Disadvantages; 1. Slow. 2. Huge Capital Expenditure. 3. High Cost of Maintenance. 4. No Door to Door Service. 5. Special Packing.

 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 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.

ModeFixed CostsVariable Costs Rail High- Equipments, Terminals, Tracks,etc Low Road Low-Highway provided by government Medium-Fuel, Maintenance, etc Water Medium-Ships and EquipmentLow-As capacity is huge Pipeline Highest-Right of the way, construction, Equipment for control station and Pumping capacity Lowest-Insignificant labour costs Air Low-Aircraft and cargo handling systems High- Fuel, labour, Maintenance

Product Related FactorsMarket Related Factors Density Whether the Product is transported Domestically or Internationally, Seasonality of Product Movement Stow ability Location of Markets, which determines the distance goods must be transported Ease or Difficulty of Handling Nature & extent of government regulation LiabilityBalance or imbalance of Freight Traffic in to and out of a Market

 Transportation and logistics systems have interdependent relationships that logistics management needs transportation to perform its activities and meanwhile, a successful logistics system could help to improve traffic environment and transportation development.  Since transportation contributes the highest cost among the related elements in logistics systems, the improvement of transport efficiency could change the overall performance of a logistics system.

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