TRANSPORT

The Scenario

9.1.1 Transport sector bears a close and complex relationship with all other sectors of the economy. While it tends to act as the prime mover of the development process, it must also respond to the development process, if the latter has to be smooth. Socio-economic planning engenders structural shifts in the economy, widely influencing the pattern of movement of people and goods and therefore, the nature and the quantum of demand for transportation. Transport planning has, thus, to be integrated with overall development plans.

9.1.2 Creation of transport infrastructure requires time. It is necessary to anticipate the demand on the transport system ahead of socioeconomic changes. In view of the long gestation involved , transport planning has to be seen in perspective longer than the Five Year Plan periods. Often, the capacities created during one Plan period are the results of the investments made in earlier Plans. Two issues, therefore, stand out: first, the need to preferably complete all the ongoing works to derive the maximum benefits from the earlier investments and secondly,to make investments keeping in view the longer time-frame perspective.

9.1.3 Transport infrastructure has expanded considerably in terms of network and services over the last four decades as indicated in Table 9.1.

9.1.4 Railways have extended their route length from 53,596 kms in 1950-51 to 62,597 kms in 1989-90. Freight, in tonne kms, carried by the Railways has increased five-fold over the last 40 years. Passengers originating have grown by three times during the same period. The aggregate length of roads has increased from 0.4 million kms in 1950-51 to 2.10 million kms in 1989-90. Forty-six per cent of the villages in the country are now connected by all-weather roads. Traffic handled by the major ports has increased nearly seven-fold in the last four decades. The number of passenger buses has gone up by nearly eleven fold and goods vehicle fleet by 20 fold. Domestic air traffic has increased ten-fold in the last 30 years.

9.1.5 It would be seen from Annexure 9.1 that the percentage share of investment in the transport sector to the total plan outlay grew rapidly in the first three Plans, followed by relative stagnation and even decline up to Sixth Plan. Paucity of resources resulted in inadequate investments which, in turn, resulted in the inability of the transport sector not to keep pace with the requirements of the economy. Substantial gaps developed between demand and supply. Practically every other sector of the economy, particularly those dependent on infrastructure suffered. Inadequate investment manifested itself in the form of non-replacement of overaged stock, slowing down of modernisation and inadequate attention to maintenance in practically every sub- sector of the transport sector.

9.1.6 Inter-modal investments also showed considerable disparities over the Plan periods. The two principal means of transport, namely rail and roads, particularly suffered from the failing share of investments from the Third Plan onwards. The Seventh Plan attempted to reverse this situation by enhanced outlays. There has been some improvement in investment in the railway sub sector. This enabled the Railways in the replacement of rolling stock, electrification, modernisation and technological upgradation.

9.1.7 Productivity levels have improved in almost all the sub- sectors during the Seventh Plan as seen from Table 9.2.

9.1.8 Railways witnessed substantial technological upgradation in the form of induction of new generation diesel locomotives with the latest traction technology. A multi-modal system in the form of container transport has emerged as an important feature of the transport scenario. Six of our major ports are equipped to handle container traffic. To conserve energy, the Railways have accelerated the programme for phasing out steam locomotives on the one hand and stepping up electrification of the

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P : Provisionally estimated

routes, on the other, State Road Transport Undertakings have recorded improvements in terms of fuel efficiency and productivity.

9.1.9 Improvements in the performance of the transport sector, though substantial, give no room for complacency. Railway capacity has reached a plateau and substantial additional traffic output is feasible only through creation of additional capacity. The road infrastructure suffers from poor maintenance. There is an urgent need to accelerate road connections to villages, improve inter city and intra city transport and

* Includes international traffic also

take steps to reduce serious regional imbalances in accessibility.

9.1.10 The process of technological upgradation has been very uneven. While the automotive sector in India has undergone a major transformation through induction of fuel efficient, environmentally clean vehicles, this has, however, been by and large limited to the personalised modes of transport. Its impact is yet to be felt in the public transport system, especially in the road transport industry where the state of the art technology has not been applied to improve the bus body or the chassis.

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         Table - 9.2 Selected Productivity Parameters of the Transport System
        
                                          
Sector 1984-85 1989-90 1990-91
Railways NTKMs perwagon day(BG) 1150 1420 1410 Wagon turnround time(BG)(days) 12.8 11.3 11.5 Ports Average turn round of Ships(days) 11.9 8.9 8.1 Road Transport (State Road Transport Undertakings) Fleet Utilisation(%) 84 89 89 Vehicle Productivity per bus day (Kms.) 218 257 259

9.1.11 There is considerable scope for further improvement of productivity levels in almost all modes of transport, essentially, on the basis of modernisation and upgradation and improvement in the output levels of manpower and equipment.

9.1.12 The transport system carries excessive manpower in relation to requirements. In several areas like ports, road transport, ship- ping etc. the present manning scales are dis-proportionately high. While pursuing the process of upgradation of technology, it will also be necessary to take complementary steps to redeploy all the manpower available after fresh training.

9.1.13 Rapid urbanisation, especially, around larger cities has brought to the fore acute problems of urban transport. We are yet to make worthwhile efforts to evolve a financially viable entity for constructing and operating a Mass Rapid Transport (MRT) system. The enormous increase in the number of personalised vehicles has substantially increased pressure on the already fragile network of roads and resulted in congestion in most of the cities. The deteri- oriation in public transport has compounded the problems. While provision of a MRT system would be ultimately required for all the metropolitan cities, it is imperative to look for lowcost options like better engineering, expansion of public transport system etc. It is also time that effective action is initiated to find acceptable answers to the problems of funding the construction of an integrated MRT system in metropolitan cities.

Transport and Energy

9.2.1 Transport is not only a major user of energy, but different modes of transport use different forms of energy with varying degree of efficiency and intensity. Energy use planning is a critical aspect of the transport sector. A three-pronged strategy is visualised. First, due weightage has to be given to energy consumption while considering the choice amongst available alternatives. This would, inter-alia, mean preferring rail transport for long haul bulk move- ments, with road transport handling intra-region short haul movements. Adequate stress needs to be laid on coastal shipping and inland water transport, which have the lowest fuel consumption. Public transport system needs to be strengthened to obviate the use of highly energy intensive and costly personalised transport. Secondly, energy efficient transpor, modes must be promoted by phasing out the old, obsolete units, induction of fuel efficient state of the art systems, achievement of higher operational efficiency and expansion of electric traction etc. Thirdly, well considered attempts must be made to reduce transport intensity. Rationalisation of the movement of certain bulk commodities, and transportation of power to end use areas instead of movement of large quantities of coal to thermal plants over long distances can greatly help demand management of transport needs. Location of industries, power plants, refineries, etc. must take into account the transport costs to the economy. Often, the transport

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demands are influenced by factors, not necessarily conforming to patterns suggested by comparative cost considerations. Timeliness in the movement of goods, theft or pilferage enroute, door-to-door service dictate consumer preference as between roads and railways. An appropriate transport pricing policy, taxation and subsidisation structure could be instruments in channelising the consumer demand in desired directions.

Transport & Environment

9.3.1 Transport systems consume scarce resources of land and energy, and can have wide ranging impact on environment. The problem is to strike a harmonious balance between cornpeting demands. Two distinct ways of guarding against environmental pollution, while building the transport network, will have to be kept in view. One is to design standards to which transport equipment in operation must conform in order to prevent pollution and the other is to devise means to prevent pollution while constructing the transport network.

Strategy and Thrust in Eighth Plan

9.4.1 The Eighth Plan must continue the process of consolidation and further intensify the measures for achieving higher levels of productivity through technological upgradation. A major thrust will have to be accorded to better maintenance of assets and rational use of capacities created in the different sub-sectors. As part of the overall perspective for the transport sector playing a critical role, augmentation of capacities wherever required will have to be initiated. Some of the major areas are discussed in the following paragraphs.

Productivity

9.4.2 Productivity is influenced by a number of factors such as induction of new technology, mechanisation, modernisation, upgradation of manpower skills etc. Hence, productivity levels have to be measured as a function of these parameters and not just as a linear extension of past performance levels which may at best provide only a comparative picture as between two different time frames. It will be necessary to periodically update the targets of productivity to be achieved, taking into account the assets upgradation for evaluating performance. Also in order to realise the full potential of the upgraded assets, manpower training and deployment must go hand in hand with such upgradation.

Rural and Intermediate Transport

9.4.3 A state of dualism prevails in the transport system of the country. Traditional forms such as bullock- carts, animal and even manually handled carts exist in large numbers alongside a growing modern transport system. These traditional forms of transport perform a useful role and would continue to be on the scene for the foreseeable future. Improved design of animal driven carts and provision of optimal means of transportation within a limited radius would reduce the strain on animals and augment the carrying capacity of the vehicles. Reduction in drudgery and the load on the animals should receive as much priority as introduction of modern modes of transport. Innovative forms of intermediate transport have also come up in rural areas such as modified threewheeler units, mini buses and a large number of tractor units. These forms of travel need to be encouraged to improve mobility and transport efficiency in the rural areas.

Investment Pattern and Tariff Structure

9.4.4 Inter modal transport investment priorities too need a review. Transport units should progressively be encouraged to become self- financing and viable. It will be appropriate, to the extent feasible, to reframe the pricing and tariff structure to achieve this objective. It is a well known fact that at present the tariff structure of most undertakings do not reflect the true cost of operations. In order to remedy this, the principles of Long Run Marginal Cost (LRMC) pricing for public enterprises is recommended. The main benefit of this pricing principle is that it reflects the current social cost of delivering the services using the most efficient plant available. It also links investment planning to costs and enables the enterprise to become financially viable. It must, however, be recognised that transport undertakings also have to serve socioeconomic objectives and hence an element of subsidisation is inevitable. Cross subsidisation, too, is advisable to a limited extent, so that it does not become burdensome. In general, subsidies should be retained only on specific social or societal considerations and need to be explicit.

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Induction of Private Investment

9.4.5 In view of the severe constraint of budgetary funds, innovative steps will have to be taken to induce the private sector to participate in road construction and upgradation, especially the express ways and selected highways where a fair rate of return can be ensured to the investor, by way of tolls etc.

9.4.6 State participation in the transport sector will continue to be predominant, as it is necessary to provide affordable public utilities to the community and also to ensure transport facilities in inaccessible areas. However, the continuously increasing transport network and high cost entailed in its construction and maintenance calls for active cooperation and coordination between the public and the private sector, wherever feasible and desirable. Supplementary private carriers to augment passenger road transport, operation of air taxi services, construction and operation of toll roads, participation in selected port and shipping activities are a few emerging examples.

Rationalised Use of Capacities Created in Railways, Roads and Inland Water and Coastal Water Transport

9.4.7 In the years to come, road and rail transport will continue to remain the dominant modes of transport. The railways will have to overcome their capacity problems and increasingly concentrate on long and medium distance bulk movement, leaving traffic over comparatively shorter distances to the road transport. The projected increase in rail traffic in the Eighth Plan period would be on a few identified corridors which are likely to reach saturation levels. Action to create requisite capacity has to be initiated. Alternative routes are preferable where they help in reducing the overall distance/transport effort.

9.4.8 With the increasing diversification of the economy and accelerated efforts towards balanced regional development, the inter modal transport requirements of a region will be studied as an integral part of the development of the region. A beginning has already been made in the North Eastern Region and in the Andaman Nicobar Islands. In view of the prevailing high costs of energy, the utilisation of certain modes of transport like inland water transport, coastal shipping, pipelines and ropeways would be encouraged wherever economically feasible. Government policies will have to be reoriented to facilitiate the development of these modes on a sound commercial basis.

9.4.9 Energy, technological development and environment measures are three factors which will have a significant role in determining the shape of the transport system in the forseeable future. The emphasis will be on modernisation and on building an energy efficient transport system.

9.4.10 The road network will need to be expanded and upgraded and maintenance ensured to promote smoother running and saving on fuel. Railways will need to induct higher horse power energy efficient locomotives, improve rail track and extend electrification. Ports will witness a sea change in cargo handling techniques with the advent of containerisation. The average size of ships will need to conform to the modern port handling systems. Road transport will need to redesign its bus and truck chassis to ensure energy efficiency and comfortable ride. In aviation, the emphasis will be on acquisition of more energy efficient aircraft and improved navigation and communication systems, along with commensurate airport ground facilities.

9.4.11 In the preceding paragraphs, we have taken an overall view of the transport sector as a whole. The status in respect of each of the sub-sectors in the transport sector, in terms of performance profile, emerging issues and the strategies visualised for their development in the next five years are detailed in the succeeding sections.

Railways

Introduction

9.5.1 Indian Railways occupy a unique position in the socioeconomic map of the country. Energy efficient, economical in land use and with a high degree of operating efficiency, the railways are considered a vehicle of growth contributing to rapid industrial and infrastructural development of the country.

9.5.2 The Indian Railway system is the second largest system in the world under a single management. It is a multi-gauge system oper-

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ating on three gauges - the Broad (BG), the Metre (MG) and the Narrow (NG). At the end of March, 1990, the route length of the rail network comprised 62597 route kms. including 14227 route kms. of either double or multiple tracks. About 56 per cent of the total route kilometres is on the broad gauge, accounting for 90.50 per cent of the freight tonne kms. and about 83.00 per cent of the total passenger kilometres. Metre gauge, covering about 38% of the total route kms. carries 9.43 per cent of freight tonne kms. and 16.42 per cent of the passenger kilometres. The narrow gauge comprising 6.54 per cent has an insignificant share in the total traffic. Electric traction at the end of Seventh Plan, constituted about 15% of the total route kms. and accounted for 42% of the total gross tonne kilometres of freight traffic on BG and about 35% of the total passenger kms. Railways have a fleet consisting of 8590 locomotives, 37,953 coaches and 3,49,560 wagons spread over 7076 railway stations. The rolling stock fleet is serviced and running repairs are undertaken in 225 loco sheds and 401 carriage and wagon sick lines and central repair depots situated all over the network. Periodical overhaul of rolling stock is undertaken in 49 workshops.