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Definitions
According to Burkart and Medlik :
"Transportation can be defined as the means to reach the destination and
also the means of movement at the destination”.
Transportation plays a crucial role in providing the time and place utility to
any product because it impacts the level of customer service provided by the
firm; it also influences the other elements of physical distribution and
marketing such as inventory control, warehousing, channel management, etc.
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Significance of Logistics
The movement of goods and people from one location to other is known as
transportation. There are many reasons such as hospitality, employment, etc.,
because of which these migrations take place. As the life will be very difficult in the
absence of transportation, the main focus should be on the significance of
transportation. The significance of transportation can be seen thru:
Availability of Raw Materials
Availability of Product to the Customer
Advancement of Quality
Large-Scale Production
Movement Consolidation
Damage reduction
Improved speed of delivery
Decreasing Costs
Manage Emergencies and Natural Disasters
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Significance of Logistics
Logistics plays a key role in the economy.
Logistics is the one of the major expenditure for business.
One of the fundamental ways that logistics add value is by creating utility.
From an economic standpoint utility represents the value or usefulness that
an item or service has in fulfilling a want or need.
There are four types of utility:
Form utility,
Possession utility,
Time utility,
Place utility.
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Significance of Logistics
Form utility:
obtained by transforming customer needs into products or services.
Form utility can be defines as a process that increases the value of a product to the
consumer by making changes and altering its physical appearance.
The method involves taking a product and making it ready to meet the needs of the
end consumer for consumption.
Form utility is generally part of the production or operation process but it can be
happened with right logistics activities.
Possession utility:
Customer is able to take actual possession.
Try to make much easier for the consumer to process or own the product.
it is not possible without getting the items need for consumption or production to
the right place at the right time and in the right condition at the right cost.
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Significance of Logistics
Time utility:
Time utility is the value added by having an item when it’s needed.
having all the materials and parts that are needed for manufacturing.
availability of a good or service at the time when customers need or want it.
services such as same-day delivery and 24/7 availability.
achieve through proper inventory, strategic location of goods/services
&transportation.
Place utility:
good or service more easily available to potential customers location.
Place utility has a lot to do with distribution channels and the physical locations at
which goods or services are sold.
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Features of Railways
Globally Heavy industries are traditionally linked with rail transport systems
Containerization has improved the flexibility of transportation by linking it with road & Sea.
Indian Railways is one of the largest railways under single management.
IR, functioning as Ministry of Railways, is headed by the Minister for Railways.
Its one of the world’s largest employers.
The railways play a leading role in carrying passengers and cargo across India’s vast territory.
Reliable mode of transport -as it is the most reliable and the safest mode of transport.
Specific and pre-decided routes and halts.
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Features of Railways
Indian Railways (IR) is one of the world’s largest rail networks with 67,956 Route Kilometres of
route lengths as on 31.03.2020.
It carries crores of passengers and million tonnes of freight a day .
Indian Railways carried 22.15 million passengers and 3.32 million tonnes of freight each day
during 2019-20.
Commodities: Cement, coal, fertilisers, food grains, iron ore, and steel, which constitute over 75%
of the total rail freight volume. (coal alone50%)
PPP models for rail connectivity projects have been garnering significant interest:
Mundra Port rail connectivity, Dhamra Port rail connectivity, Kutch Rail Company, and Pipavav Port rail
connectivity projects have been undertaken under these participative models.
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Constraints of Railways
Most of its major corridors have capacity constraint
and need enhancement plans.
Establishing a network of railways as a transport
system is not enough.
The maintenance is also important which involves
higher costs.
It cannot provide door-to-door service, the additional
cost is incurred in loading and unloading.
Inadequate Investment.
Competition with Road Transport
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Current Happenings
APM Terminals Pipavav, in association with Pipavav Rail Corporation Ltd (PRCL), will offer double
stack rail service - the first service by PRCL - to Jodhpur via Sanand on a hub & spoke model.
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Current Happenings
Maersk India records 43% growth in rail movement of containerised exports cargo in 2021
Train Name From To
Goa Express Mormugoa JNPT
Retail Express 1 Dadri Mundra
Retail Express 2 Jodhpur Pipavav
Chemical Express Ankleshwar JNPT
Automotive Express 1 Gurugram Pipavav
Automotive Express 2 Waluj JNPT
Garden city Express Bengaluru JNPT
Malia Express Malia Mundra
Maersk Cross
Country
Durgapur JNPT
Industrial Express Vizag Jajpur
Solar Express Mundra Jodhpur
Rice Express Bikkavolu Vizag
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Current Happenings
Maersk pioneers first block train from Vietnam
to Europe for Decathlon
The Indian intermodal logistics service
provider and rail-linked Inland Container
Depots (ICD) operator, GatewayRail, has
become the first rail operator in India to join
TradeLens, the blockchain-underpinned digital
logistics platform.
