What are the issues the Indian transportation sector faces in 2020 and how to deal with them?
Transportation is the global leading sector employing a large number of employees and serves as one of the crucial factors in India’s economy. To support the continued economic growth and to diminish poverty from the county, major improvements are required in the transportation sector. However, there are some issues like wastage of time resources due to high loading and unloading time that serve as a barrier in transportation development.
According to a survey conducted, roads carry nearly 85% of the nation’s passenger traffic. Additionally, roads carry more than 60% of its freight. In 2009, rail carried around 19.8 million passengers plus 2.4 million tons of freight a day. The heavy pressure on road and rail transport in various cities serves as one of the major issues in the transportation sector. For the country’s economic growth, good connectivity between urban and rural areas of transportation is essential.
What are the major problems of transport development in India?
● Out of order planning of transport system: The development of the transport system in India is quite unbalanced. There are various problems including cash flow issues, load optimization, carrier mix, and mode selection that need to get concerned.
● Severe capacity constraints: The high-density rail corridors of the entire nation face severe capacity constraints. The outbound freight costs as a percentage of net sales are generally kept higher in India to subsidize passenger traffic.
● Low labor productivity: Due to low labor productivity, the transportation sector of India is facing a serious drawback. It is not only affecting the transportation sector, but also the overall growth of the nation’s economy.
● Poor quality roads: Many roads in India are of poor quality due to which companies often face delays in on-time pickup and delivery. The low lane capacity and under-funded maintenance of roads often lead to worsening and high transportation costs for the users.
● Inefficient and congested ports: Indian port’s need to enhance their efficiency along with the capacity to meet the user’s demand. In the past few years, there was non-availability of reverse booking due to which it was less preferable as compared to other modes.
How to deal with transportation issues in India?
The Indian government has initiated several networks of innovations as well as upgrades to promote a secure, integrated, and modernized transport system. Some of the initiatives that are helpful to deal with transportation issues in 2020:
● Sustainability:
The enhancement in non-fuel engines will affect the users in managing the high cost per mile, kilometer, weight, cube, pallet, and so on. Transportation sustainability is generally measured by the efficiency and effectiveness of the transportation system.
Sustainable transport systems make a positive impact on social, environmental, and even economic factors. Short-term activity often enhances fuel efficiency and provides an improvement in vehicle emission controls. Improving the sustainability of transport networks implies producing livable, vibrant, and sustainable cities.
● Logistics:
With the increasing popularity of global trade, logistics has become a crucial component of the transportation sector. It helps several transportation companies to make a better reputation with high maintenance costs and enhanced efficiency. The companies can assure safe shipping and efficient transit time with logistics.
Logistics helps businesses to deliver the right service at the right time. A more reliable logistics service helps the transportation business to maintain or build a positive image in public.
● Digitization:
The advanced technologies have a high potential to organize and manage traffic flows efficiently. In the past few years, the non-availability of advance booking was the major transportation issue. However, digitalization has offered various ways for innovation to enhance the use of existing resources plus the daily life of citizens.
Digitization helps in better supply chain visibility, controlling loading and unloading time, better use of resources, time management of traffic, and many other benefits.
The above-mentioned factors are helpful to deal with issues in the Indian transportation system 2020.
Conclusion
Though there are several issues in the Indian transportation sector, logistics and digitization are helpful in overcoming those challenges effectively. It’s the need of an hour to focus on critical changes in the transportation system and enhance business productivity. Transloop can help you achieve that prospect with your business. Get in touch with us today.
