LOGISTICS AND SUPPLY CHAINMANAGEMENT ON

RAIL TRANSPORT
Presented by:

Ravindra Pujari-2012123 Shaikh Arif-2012149

INTRODUCTION
Indian Railway ( IR ) is an Indian state owned

enterprise ,owned & operated by the government of India through the ministry of Railways.

It is one of the worlds largest railway networks

comprising 1,15,000 km ( 71,000 mi) of track over a route of 65,000km ( 40,000mi) and 7,500 stations.

INTRODUCTION
Railway was first introduced to India in 1853 from

Bombay to thane .

Indian Railway carries about 7,500 million

passengers annually or more than 20 million passenger daily & 2.8 million tones of frieght daily.

INTRODUCTION
In 2011-2012 Indian Railways earned 1,04,278.79 core

( us $19.71 billion ) which consist of 69,675.97 core ( us $13.17 billion ) from freight and 28,645.52 core from passenger tickets.

Indian railway holds over 229,381 freight wagons ,

59,713 passenger coaches 7 9,213 locomotives.

COMMERCIAL MOVEMENT
The main function of the Commercial Department is

the sale of Transport, creating and developing traffic, securing and maintaining friendly relations with the travelling and trading public and cultivating good public relations generally.
Indian Railway earns about 70% of its revenues from

freight traffic ( Rs 686.2 billion from freight ) & Rs 304.6 billion from passengers in 2011-2012.

CLASSIFICATION OF GOODS

All commodities have been classified into 16 different classes for the purpose of charging of freight. Base class is class 100. Lowest class whose freight is cheapest is LR 4. Highest class whose freight is maximum is 200 for Petroleum products. All other commodities come somewhere in between. Over the years railways have gradually reduced the number of classes from 59 to 15. It has been attempted to fit all commodities into one of these existing classes only

CLASSIFICATION OF GOODS
Along with reducing the number of classes,

the total number of commodities which have been so classified have also been reduced.

Over the years railways have reduced the

total number of classified commodities from over 4000 to only 21 groups.

CLASSIFICATION OF GOODS

LR 4 LR 3 LR 2 LR 1 Class 100 Class 110 Class 120 Class 130

Bamboos, Coffee, Tea, Coir, Cotton. Charcoal, Paper. Fireworks. Jute, Organic manure, Timber. Leather, Rubber & Plastic, Edible oil. De oiled cake, Sugar, Salt. Clay, Oil cake and Seeds, Fly ash. Fertilizer, Food grain, Steel Pipes,

CLASSIFICATION OF GOODS
Class 140 Class 150 Class 160

Class 170 Class 180 Class 200

Caustic Soda, Slag, Edible Oils. Cement, Coal & Coke, Clinker Molasses, Gypsum, Sand & Stones. Minerals & Ore, Metal scrap, Pig Iron. Bitumen. Iron Ore for domestic, Alloys &Metal, Iron & Steel, LPG. Acids, Alcohol, Petroleum products.

FREIGHT RATE STRUCTURE

In existing freight structure , some 3000

commodities have been classified into several classes, which are shown as class rates.
The class rates start from 60 which is the lowest &

end at class rate 300, which is the highest.

Along with class rates wagon load rates , train load

rates has also been introduced.

GOVERNMENT REGULATION
Liability of railway for wrong delivery-

section 80
Open delivery of consignment Section 81 Partial Delivery of consignment- Section 82

GOVERNMENT REGULATION
Disposal of unclaimed consignment section84

Disposal of perishable consignment in certain

circumstances- section 85
General Responsibility of railway administration as

carrier of goods section 93

Goods to be loaded or delivered at a sliding not

belonging to railway administration section 94

GOVERNMENT REGULATION
Delay and detention in transit section 95

Goods carried at owners risk rate-section 97

Goods in defection condition or defectively packed

section 98

GOVERNMENT REGULATION

Exponention of bailee liability.

A Railway administration shall not be responsible after the termination of transit for loss, destruction, damage, deterioration, or non delivery of the goods specified in the scheduled below: 1. Inflammable solids 2. Petroleum and other inflammable liquids 3. Oxidizing substances 4. Acids and other corrosives 5. Poisonous (Toxic) substances 6. All radioactive materials 7. Heavy water 8. Drugs and narcotics 9. Gold 10. Silver 11. Pearls 12. Precious stones 13. Jewellery 14. Currency notes and coins 15. Government stamps.

SERVICES OFFERED BY INDIAN RAILWAY

FREIGHT OPERATIONS INFORMATI ON SYSTEM

User driven design and implementa tion

An on line real time system for management and control of freight traffic

FOIS

Foundations for a total logistics system

PARCEL MANAGEMENT SYSTEM

Following Functions are covered
1. Parcel Booking, Cancellation and Loading 2. Monitoring and tracking of Parcels 3. Printing of Parcel labels 4. Networking of all parcel offices 5. RFID tags for tracing parcels

A Service-Oriented IT Vision For IR

E-enabled Freight Management System Customer care centers

Operations & Scheduling

Staff Management
Yield Management WAP Gateway WAP Applications and WML Pages SMS Gateway Payment Gateway ERP for IR An IR PORTAL

Intelligent Stations Infrastructure

Self service kiosks at Stations

Smart and Stored Value Cards for

MST / Passes

RFID based Smart card & Biometric technology for passenger screening

Re-vamped Revenue Management

DOCUMENTATION

DOCUMENTS REQUIRED
A) i)

In case of Damages : Original assessment certificate issued by the Railway

ii) Original Trade Invoice/Bill.

iii) Letter of subrogation and special power of Attorney from the consignor/consignee/endorsed consignee if the claim is lodged by Insurance Company.
iv) Mode of payment to the sender if the claim is lodged by the consignee/endorsed consignee.

B) IN CASE OF SHORT DELIVERY : I) ORIGINAL SHORTAGE CERTIFICATE/ORIGINAL PARTIAL DELIVERY; CERTIFICATE/ORIGINAL OPEN DELIVERY CERTIFICATE/ORIGINAL GATE PASS ISSUED BY THE RAILWAY. II) UNDER TAKING TO REFUND THE AMOUNT TO BE PAID AS CLAIM IF THE MISSING CONSIGNMENT IS SUBSEQUENTLY TRACED AND OFFERED FOR DELIVERY . TIME LIMIT TO LODGE A CLAIM (A) A PERSON SHALL NOT BE ENTITLED TO CLAIM COMPENSATION AGAINST A RAILWAY ADMINISTRATION FOR THE LOSS, DESTRUCTION, DAMAGE, DETERIORATION OR NON-DELIVERY OF GOODS CARRIED BY RAILWAY, UNLESS A NOTICE THEREOF IS SERVED BY HIM OR ON HIS BEHALF B) TO THE RAILWAY ADMINISTRATION ON WHOSE RAILWAY THE DESTINATION STATION LIES, OR THE LOSS, DESTRUCTION, DAMAGE OR DETERIORATION OCCURS, WITHIN A PERIOD OF SIX

TO WHICH RAILWAY THE CLAIM IS TO BE PREFERRED : According to Section 106 of Railway Act, 1989, application for claim for compensation can be sent either to the Chief Claims Officer of the Forwarding Stations Railway or to the destination stations Railway. Notwithstanding this legal provision, the claims are invariably settled by the destination Railway as decided by Rule 314.6 of Indian Railway Conference Association. If the claim application is sent to any Railway other than the Railway on which destination station lies such claims are transferred by that Railway to the destination Railway for dealing with.

POWERS OF THE OFFICERS TO SETTLE THE CLAIMS 1) In terms of Railway Boards letter No. 77-TC-III/4 dated 22.4.81, powers to settle the claim valuing upto Rs. 400/- have been delegated to the Station Masters of important stations. 2) Asst. Comm. Manager/Claims : upto Rs. 8,000/-. 3) Sr. Comm. Manager/Claims : From Rs. 8,001/- to Rs.15,000/-. 4) Dy. Chief Comm. Manager/Cl. : From Rs. 15,001/- to Rs.30,000/-. 5) Chief Claims Officer : From Rs. 30,000/- to Rs. 1,00,000/-. 6) General Manager : Unlimited.

GENERAL RULES FOR BOOKING OF PARCELS :

EXECUTION OF FORWARDING NOTE :

(a) when parcels tendered for booking contain articles of any of the

following categories, they must be accompanied by a forwarding note in the appropriate form, duly executed by the sender or his authorized agent : (i) articles to be carried at owners risk rate; (ii) Articles of a perishable nature;

(iii)Articles mentioned in part I of Schedule II of the Railways (Extent of Monetary Liability and presumption of percentage charge) Rules, 1990;
(iv)Articles not packed in accordance with the prescribed conditions or articles in a defective condition; (v) Explosives and other dangerous goods.

(B) UNDER SECTION 64 OF THE RAILWAY ACT

(1) EVERY PERSON ENTRUSTING ANY GOODS TO A RAILWAY ADMINISTRATION FOR CARRIAGE SHALL EXECUTE A FORWARDING NOTE IN SUCH FORM AS MAY BE SPECIFIED BY THE CENTRAL GOVERNMENT. PROVIDED THAT NO FORWARDING NOTE SHALL BE EXECUTED IN THE CASE OF SUCH GOODS AS MAY BE PRESCRIBED. (2) THE CONSIGNOR SHALL BE RESPONSIBLE FOR THE CORRECTNESS OF THE PARTICULARS FURNISHED BY HIM IN THE FORWARDING NOTE. (3) THE CONSIGNOR SHALL INDEMNIFY THE RAILWAY ADMINISTRATION AGAINST ANY DAMAGE SUFFERED BY IT BY REASON OF THE INCORRECTNESS OR INCOMPLETENESS OF THE PARTICULARS IN THE FORWARDING NOTE

OTHER RELAVANT INFORMATION

SWOT ANALYSIS

STRENGHTS:

There is a consistent growth over a CAGR of 25 % with a potential of 100 mmt in the year 2005-06. A total of 1.7 MTEUs were rail borne, out of which the North contributed 0.71 MTEUs and the West 0.23 MTEUS.

WEAKNESS

1. This is a highly capital intensive business and the cost of rolling stock is around Rs.13 crores/rail. The cost of operating an inland container depot is around Rs. 100 crores. 2. There is a long gestation period and the project may take sometimes up to 10 years to achieve break even. 3. There is high concentration of traffic at selected port. 78 % of the total container cargo is handled by west coast ports. 70 % of total traffic at the west coast is handled by a single port, i.e. Jawaharlal Nehru Port Trust (JNPT).

4. 60 % of the traffic of the west coast moves to the northern hinterland, which leads to a heavy congestion along the routes.

OPPORTUNITIES 1. With the growth of containerization due to growing GDP, there exists huge potential in the form of a largely virgin market. With the congestion at the existing road linkage ICDs and limited scope for excavation, there is an opportunity for development of competing facilities. 2. There is a potential for running double stacked trains with the lower haulage charges and better utilisation of rolling stock and track capacity..

THREATS 1. This industry is highly dependent on external agencies such as Indian Railways, port terminal operators and shipping lines. There are still several unresolved issues on operational matters, such as stability of rakes, service guarantee and dedicated freight corridors. 2. With regards to double stacked operations due to the lack of a developed infrastructure, this may take time to take off in a larger way. 3. There exists fragmentation on volumes due to multiple operations and there is no control on haulage cost.

PROCESS INVOLOVED FOR TRNPORTING GOODS BY RAIL

PROCESS OF TRANSPORTING GOODS 1. Selection of the Train 2. Packing of Goods 3. Dispatch Note 4. Booking of goods 5. Dispatch of Railway Receipt

6. Delivery of Goods

PROBLEM FACED
1. 2. 3. 4. 5. 6. 7. 8. 9.

Old Track and Poor State of Rolling Stock. Railway Accidents Attack on Railways Lack of Modern Management Outmoded Technology Problem of Replacement Problem of Laying Double Lines Inadequate Investment Competition with Road Transport

ROLE OF MANAGER OF MANAGING RAIL TRANSPORT

1. There is a time limit set by the govt. to vacate the wagons of the train . It is responsibility of the manager to see that the wagons get empty with in the stipulated time period to avoid fines which would further increase the cost of ultimate product 2. Booking train in advance for transporting final product. 3. Asking Govt. officials for regular maintenance of the railway track and electric line reaching the company

Any Question?

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