TRANSPORT

The Scenario

9.1 Transport sector beers 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 developments, if the latter have to progress in a smooth manner. Socio-economic planning engenders structural shifts in the economy, widely influenc- ing the pattern of movement of people and goods, and therefore, the nature and quantum of demand for transportation. Transport planning has, thus, to be integrated with overall development plans.

9.2 Creation of transport infrastructure requires time. It is neces- sary to anticipate demand on transport system ahead of socio-economic charges. In view of the long gestation involved, transport planning has to be seen in perspective larger 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 near to preferably complete all ongoing works to derive maximum benefits from the earlier investments and secondly, making investments keeping in view the larger time-frame perspective.

9.3 Transport infrastructure has expanded considerably in terms of network and services over the last four decades as indicated in the table below:

                                                     
                                               Table - 9.1
        
                                   Transport infrastructure and output
        
                                                    
Sl.No. Item Units 1950-51 1960-61 1970-71 1980-81 1984-85 1989-90
. 1 RAILWAYS 1.1 Route Length Kms. 53596 56247 59790 61240 61850 62597 1.2 Electrified Route Kms. 388 748 3706 5345 6325 9648 Length Kms. 1.3 Throughout 1.3.1 Orig. Freight M.Tonnes 93.0 156.2 196.5 220 264.8 334.2 Traffic 1.3.2 Net Tonne(Kms.) B.Tkms. 44.12 87.68 127.36 158.47 182.16 236.3 1.3.3 Passengers Millions 1284 1594 2431 3613 3380 3649 Originating 2.ROADS 2.1 Total Length 000 Kms. 399.9 524.5 917.9 1491.3 1686.9 1843.4* 2.2 Percentage of Per cent N.A. N.A. N.A. 29 35 45 Villages connected with all whether roads. 3. ROAD TRANSPORT 3.1 Number of No.in 000 82 168 343 527 782 1197** trucks 3.2 Number of No.in 000 34 57 94 154 211 294** passenger Buss 4. MAJOR PORTS 4.1 Traffic M.Tonnes 19.2 39.9 55.7 80.41 107.04 147.27 handled 5. Minor Ports 5.1 Traffic M.Tonees N.A. N.A. 6.76 3.73 9.63 10.43 handled 6. CIVIL AVIATION 6.1 Domestic Airlines (a) Indian Airlines *** (i) A.Tkms Million - 113 208 663 959.6 1134.0 (ii) Revenue Million - 83 161 420 663.6 826.0 Tonne Kms.

* relates to 1987-88; ** relates to 1988-89; *** Includes internation- al traffic also

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9.4 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. passen- gers originating have grow by three-time during the same period. The aggregate length of roads has increased from 0.4 million kms in 1950- 51 to 1.85 million kms in 1989-90. Forty-five per cent of the villages in the country are now connected with all whether roads. Traffic handled by the major ports has increased seven-fold in the last four decades. The number of passenger buses has gone up by none-fold and the truck fleet during the same period has grown almost 14 times, Domestic air traffic increased ten-fold in the last 30 years.

9.5 It would be seen from Annexure 9.1 that the share of the invest- ment in the transport sector vis-a-vis the total plan outlay grew rapidly in the first three Plans, followed by relative stagnation and even decline in the later Plan periods. Paucity of resources resulted in inadequate investments which, in turn, resulted in the transport sector not being able to keep pace with the requirements of the econo- my. Substantial gap developed between demand and supply of transport needs. practically every other sector of the economy, particularly those overaged stock, slowing down of modernisation and inadequate attention to maintenance in practically every sub-sector of the trans- port sector.

9.6 Inter-model transport investment also showed considerable dispari- ties over the Plan periods. The two principal means of transport, namely rail and roads, particularly suffered from the falling share of investments from the Third Plan onwards. However, there has been same improvement in investment in the railway sub-sector. The Seventh Plan attempted to reverse this situation by enhanced outlays. This enabled the Railways in the replacement of rolling stock, electrification, modernisation and technological upgradation.

9.7 Productivity levels have improved in almost all the sub-sectors during the Seventh Plan as seen from the table below.

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                                     Table - 9.2
        
        Selected productivity Parameters of the Transport System
                                          
Sector Unit 1984-85 1989-90 1990-91
Railways NTKMs per wagon day Kms 972 1428 1410 Wagon turn round time days 12.8 11.3 11.5 Ports Average turn round of days 11.9 8.9 8.1 Ships Road Transport (State Road Transport Undertakings) Fleet Utilisation % 84 89 89 Vehicle Productivity Kms 218 257 259 per bus day

9.8 Railways witnessed substantial technological upgradation in the form of induction of new generation diesel locomotives with the latest traction technology. A multi-model system in the form of container transport has emerged as an important feature of the transport scenar- io. Six of our major ports were 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 electri- fication of the routes, on the other. State Road Transport Undertak- ings have recorded improvements in terms of fuel efficiency and pro- ductivity.

9.9 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 feasi- ble only through creation of additional capacity. The road infrastruc- ture suffers from poor maintenance. There is an urgent need to accel- erate road connectivity to villages, improve inter city and intra city transport and take steps to reduce serious regional imbalances in accessibility.

9.10 The process of technological upgradation has been very uneven. While the automotive sector in India has undergone a major transforma- tion through induction of fuel efficient, environmentally clean vehi- cles, this has, however, been by and large limited to the personalised modes of transport. Its impact is yet to be felt in the public trans- port 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.

9.11 There is considerable scope for further improvement of productiv- ity 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.

9.12 The transport system carries excessive manpower in relation to requirements. In several areas like ports, road transport, shipping 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.

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9.13 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 financially viable entity for construct- ing and operating a Mass Rapid Transport (MRT) system. The enormous increase in number of personalised vehicles has substantially in- creased pressure on the already fragile network of roads and resulted in congestion in most of the cities. The deterioration 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 search for low-cost options like better engineering, expansion of public transport system etc. it is also time that effec- tive action is initiated to find acceptable answers to the problems of finding funds for construction of an integrated MRT system in metro- politan cities.

Transport and Energy

9.14 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 weight age 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 movements, with road transport handling intra-region shor 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 transport modes must be promoted by phasing out the old, obsolete units, induction of fuel efficient state of art systems, achievement of higher operational efficiency and expension of electric traction etc. Thirdly, well considered attempts must be made to reduce transport intensity. Re- tionalisation of the movement of certain bulk commodities, transport- ing power to end use areas, rather than movement of large quantities of coal to thermal plants over ong 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 demands are influenced by factors, not necessarily conforming to patterns suggested by comparative cost considerations. Timeliness in the movement of goods, theft or pilfer- age 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 channel- ing the consumer demand in desired directions.

Transport & Environment

9.15 Transport systems consume scarce resources of land and energy, and can have wide ranging impact on environment. The central problem is to strike a harmonious balance between competing imperatives. Two district ways of guarding against environmental pollution while build- ing the transport network will have to be kept in view. One is to design standards to which transport equipment in operation must con- form in order to prevent pollution and the other is to devise means to prevent pollution while constructing the transport network.

Strategy and Thrust in Eight Plan

9.16 The Eighth Plan must continue the process of consolidation and further intensify 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 a part of the overall perspective for the transport sector playing a critical role, augmentation of capaci- ties wherever required will have to be initiated. Some of the major areas are discussed in the following paragraphs.

Productivity

9.17 Productivity is influenced by a number of factors such as induc- tion 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, manpow- er training and deployment must go hand in hand with such upgradation.

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Rural and Intermediate Transport

9.18 A state of dualism prevails in the transport system of the coun- try. Traditional forms such as bullock-carts, animal and even manually handled carts exists in large number alongside a growing modern trans- port system. These traditional forms of transport perform a useful role and would continua to be on the scene for the foreseesble future. improved design of animal driven carts and providing 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 priori- ty as introduction of modern modes of transport. Innovative forms of intermediate transport have also come up in rural areas such as modi- fied three wheeler 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

9.19 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 principals of Long Run Marginal Cost (LRMC) pricing for public enterprises is recommended. The main benefit of this pric- ing principles is that it reflects the current social cost of deliver- ing the services using the most efficient plant available. It also links investment planning to costs and enables the enterprises to become financially viable. It must, however, be recognised that trans- port undertakings also have to serve socio-economic objectives and hence an element of subsidisation is inevitable. Cross subsidisation, too, is advisable to limited extent, so that it does not become bur- densome. In general, subsidies should be retained only on specific social or societal considerations and need to be explicit.

Induction of Private Investment

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

9.21 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 ineccessi- ble 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 carri- ers to augment passenger road transport, operation of air taxi serv- ices, construction and operation of toll needs, 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 Transport

9.22 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 few identified corridors which are likely to reach saturation levels. Action to create requisite capacity has to be initiated. Alternative routes will be preferable where they help in reducing the overall distance/trans- port effort.

9.23 With the increasing diversification of the economy and accelerat- ed 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 for 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 need to be reoriented to faciliti- ate their development on a sound commercial basis.

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9.24 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 foreseeable future. The emphasis will be on modernisation and on building an energy efficient transport system.

9.25 The road network will need to be expanded and upgraded and main- tenance ensured to promote smoother running and saving on fuel. Rail- ways will need to induct higher horse power locomotives, improve rail track and extend electrification, Ports will witness a sea change handling techniques with the advent of containerisation. The average size of ships will need to conform to the modern port handling sys- tems. 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 revigation and communication systems, along with commensurate airport ground facilities.

9.26 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

9.27 Indian Railways occupy an unique position in the socio-economic map of India. Energy efficient, economical in land use and with high degree of operating efficiency, the railways are considered a vehicle of growth contributing to rapid industrial and infrastructural devel- opment of the country.