Page 187 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes 9. ................................ Transport takes material from the departure area and delivers them to
customers
10. The faster the transportation service, the .......................... the time interval during which
inventory is in transit and is unavailable.

8.3 Modes of Transportation

Transportation deals with the movement of men and materials from one place to another.
Transport has a very important role to play in general development of the country and especially
in its economic development. It is an integrated part of the functioning of any society. In a vast
developing country like India, the goal of industrial development can only be achieved through
an efficient transportation system of wide and varied nature. Through efficient transportation
system, the life of the people can be enriched besides a number of distinct services, e.g. roads and
road transport, railways, port, inland water transport, airways, pipe lines, ropeways and
conveyors.
Transportation contributes to the economic, industrial, social and cultural development. In
the production stage, transportation is required for carrying raw materials like seeds, manure,
coal, steel, etc. Similarly in the distribution stage transportation helps at production centres,
viz. from farms and factories to the marketing centres for distribution to the retailers and the
consumers. In the absence of adequate transportation facilities, it may retard the process of
socioeconomic development of the country. The adequacy of transportation system of a country
indicates its economic and social development. Transportation infrastructure consists of the
rights-of-way, vehicles, and carrier organizations that offer transportation services on a for-
hire or internal basis. The nature of the infrastructure also determines a variety of economic
and legal characteristics for each mode or multimodal system. A mode identifies the basic
transportation method or form.
The five basic transportation modes are rail, road, water, air and intermodal. The relative
importance of each mode can be measured in terms of system mileage, traffic volume, revenue,
and the nature of traffic composition. Each mode is discussed with respect to these measures.

8.3.1 Road Transport

Most of the logistical operations of corporate enterprises largely depend on this mode of transport.
It is mainly due to its moderate contribution in between two extremes of airways and seaways
as far as speed and cost are concerned. It ensures flexibility in service for better customer
responsiveness. The reliability and economy of this mode is gradually increasing due to
continuous improvement in the quality of motor vehicles and the condition of roads. These
factors facilitate in the achievement of logistical objectives like lower transit time, lower total
logistical costs, and improved customer service.
Road transportation has an average operational flexibility as vehicles can serve several purposes
but are rarely able to move outside roads. Road transport systems have high maintenance costs,
both for the vehicles and infrastructures. They are mainly linked to industries where rapid
movements of freight in small batches are required. Road Transport is an essential element in
the infrastructure of all facets of economic activity. Farmers’ produce, dairy products, etc. find a
ready market in the urban and semi-urban area due to the availability of network of rural roads
in the backward areas. It has increased movement as well as productivity and opened up the
market at national and international level. Network of rural roads helped in making available
basic amenities like medical facilities and primary education in rural villages.

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