Project on Supply Chain

In: Business and Management

Submitted By deepinmi
Words 6753
Pages 28
CHAPTER – I

INTRODUCTION

The Role of Container Transport

It is widely acknowledged fact that container transport has a crucial role to play in economic Development. More specifically, it has been recognized that the provision of a high quality container transport system is a necessary precondition for the full participation of remote communities in the benefits of national development:

Transport volumes in India remain much less than those in the developed countries. India has still to go a long way in strengthening its transportation network. The countries transportation network suffers from several inadequacies and, in particular it has little resilience to deal with unforeseen demands.

With the changing economic scenario, factors such as globalization of markets, international economic integration, and removal of barriers to business and trade and increased competition have enhanced the need of transportation. It is one of the most important infrastructure requirements which is essential for the expansion of opportunities and plays an important role in making or breaking the competitive positioning.

Increased Producer Prices

For many agricultural commodities and low value added manufactures, the costs of transport represent a substantial proportion of total product costs. One study has indicated that, in developing countries, transport costs typically account for between 10% and 30% of final product price.

Frequency and reliability of transport also have a very significant impact. Irregular or infrequent transport services require purchasers to hold high levels of stock in order to ensure that they in turn can ensure continuous transport.

Transport Sector

Transport sector improvements can serve as a catalyst that promotes a virtuous circle of economic development. The reduction in…...

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