India incurs $21.3-bn loss due to delay on roads: study

In India, the scope of multi-modal transportation remains limited, given that most of the freight was carried by roads and the rest by railways.

Published: June 8, 2016 2:57:58 am

India suffers a loss of $21.3 billion annually on account of delays and additional fuel consumption due to poor road conditions and frequent halts, according to a study conducted jointly by logistics firm Transport Corporation of India (TCI) and IIM-Kolkata.

Study Highlights

* The share of waterways and airways in carrying domestic freight is almost insignificant

* Road transportation is door-to-door, reliable and efficient, with vehicles available almost in real-time

* Railways, on the other hand, suffer from inefficiency, poor service, loading delays and the unavailability of rakes

* Freight rate increased more than freight cost in the last three years with an increase in the contribution margin over the 2011-12 level on Delhi-Bangalore and Delhi-Mumbai routes

* Among the remaining 26 routes, for routes covering the eastern and north-eastern regions, average vehicle speeds were lower and average stoppage delays were higher than national averages due to poor road conditions, long queues, delays at check posts and police intervention.

* If the average statistics for the 28 major routes surveyed approximately represent the national average, it may be inferred that while average stoppage delays per km have stayed almost same as in 2011-12, average stoppage expenses per tonne-km worsened during the same period. The average contribution margin improved in 2014-15, the study said.

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