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LOGISTICS

AND

SUPPLY CHAINMANAGEMENT

ON

RAIL TRANSPORT

Presented by:

Ravindra Pujari-2012123

Shaikh Arif-2012149


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INTRODUCTION

Indian Railway ( IR ) is an Indian state ownedenterprise ,owned & operated by the government of

India through the ministry of Railways.

It is one of the worlds largest railway networkscomprising 1,15,000 km ( 71,000 mi) of track over a

route of 65,000km ( 40,000mi) and 7,500 stations.


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INTRODUCTION

Railway was first introduced to India in 1853 fromBombay to thane .

Indian Railway carries about 7,500 millionpassengers annually or more than 20 million

passenger daily & 2.8 million tones of frieght daily.


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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.


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COMMERCIAL MOVEMENT

The main function of the Commercial Department isthe sale of Transport, creating and developing traffic,securing and maintaining friendly relations with the

travelling and trading public and cultivating goodpublic relations generally.

Indian Railway earns about 70% of its revenues from

freight traffic ( Rs 686.2 billion from freight ) & Rs304.6 billion from passengers in 2011-2012.


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CLASSIFICATION OF GOODS

All commodities have been classified into 16 different classes for thepurpose 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 classesfrom 59 to 15.

It has been attempted to fit all commodities into one of these existingclasses only


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Along with reducing the number of classes,the total number of commodities which havebeen so classified have also been reduced.

Over the years railways have reduced thetotal number of classified commodities fromover 4000 to only 21 groups.


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LR 4 Bamboos, Coffee, Tea, Coir, Cotton.

LR 3 Charcoal, Paper.

LR 2 Fireworks.

LR 1 Jute, Organic manure, Timber.

Class 100 Leather, Rubber & Plastic, Edible oil.

Class 110 De oiled cake, Sugar, Salt. Class 120 Clay, Oil cake and Seeds, Fly ash.

Class 130 Fertilizer, Food grain, Steel Pipes,


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Class 140 Caustic Soda, Slag, Edible Oils.

Class 150 Cement, Coal & Coke, Clinker

Molasses, Gypsum, Sand & Stones.

Class 160 Minerals & Ore, Metal scrap, Pig

Iron.

Class 170 Bitumen.

Class 180 Iron Ore for domestic, Alloys&Metal, Iron & Steel, LPG.

Class 200 Acids, Alcohol, Petroleum products.


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FREIGHT RATE STRUCTURE

In existing freight structure , some 3000commodities have been classified into severalclasses, 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 loadrates has also been introduced.


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GOVERNMENT REGULATION

Liability of railway for wrong delivery-

section 80

Open delivery of consignment Section 81

Partial Delivery of consignment- Section 82


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Disposal of unclaimed consignment section84

Disposal of perishable consignment in certain

circumstances- section 85

General Responsibility of railway administration ascarrier of goods section 93

Goods to be loaded or delivered at a sliding notbelonging to railway administration section 94


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Delay and detention in transit section 95

Goods carried at owners risk rate-section 97

Goods in defection condition or defectively packed section 98


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GOVERNMENT REGULATION Exponention of bailee liability.

A Railway administration shall not be responsible after the termination of transitfor loss, destruction, damage, deterioration, or non delivery of the goods specifiedin the scheduled below:

1. Inflammable solids

2. Petroleum and other inflammable liquids

3. Oxidizing substances

4. Acids and other corrosives5. 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.
http://localhost/var/www/apps/conversion/tmp/scratch_6/Dedicated%20Freight%20train%20service%20of%20the%20Indian%20railways%20for%20Oil%20transportation.mp4http://localhost/var/www/apps/conversion/tmp/scratch_6/Dedicated%20Freight%20train%20service%20of%20the%20Indian%20railways%20for%20Oil%20transportation.mp4


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SERVICES OFFERED BY INDIAN

RAILWAY


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FREIGHT

OPERATIONS

INFORMATI

ON SYSTEM

An on line real timesystem for

management andcontrol of freight traffic

FOIS

User driven

design andimplementa

tion

Foundationsfor a totallogisticssystem


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PARCEL MANAGEMENT SYSTEM

Following Functions are covered1. 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


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A Service-Oriented IT Vision For

IR

E-enabled Freight Management System

Customer care centers

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

Operations & Scheduling

Staff Management

Yield Management

WAP Gateway

WAP Applications and WML Pages

SMS Gateway

Payment Gateway

ERP for IR

An IR PORTAL


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DOCUMENTATION


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DOCUMENTS REQUIRED

A) In case of Damages :

i) Original assessment certificate issued by the Railway

ii) Original Trade Invoice/Bill.

iii) Letter of subrogation and special power of Attorney fromthe 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.


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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


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TO WHICH RAILWAY THE CLAIM IS TO BE PREFERRED :

According to Section 106 of Railway Act, 1989, application for claim forcompensation 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.


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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.


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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 forwardingnote 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 orarticles in a defective condition;

(v) Explosives and other dangerous goods.


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(B) UNDER SECTION 64 OF THE RAILWAY ACT

(1) EVERY PERSON ENTRUSTING ANY GOODS TO A

RAILWAY ADMINISTRATION FOR CARRIAGE SHALLEXECUTE 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 DAMAGESUFFERED BY IT BY REASON OF THE INCORRECTNESS OR

INCOMPLETENESS OF THE

PARTICULARS IN THE FORWARDING NOTE


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OTHER RELAVANT INFORMATION


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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.


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WEAKNESS

1. This is a highly capital intensive business and the costof 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.


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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 limitedscope 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..


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THREATS

1. This industry is highly dependent on external agencies such as Indian

Railways, port terminal operators and shipping lines. There are stillseveral 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.


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PROCESS INVOLOVED FOR TRNPORTING

GOODS BY RAIL


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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


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PROBLEM FACED

1. Old Track and Poor State of Rolling Stock.

2. Railway Accidents

3. Attack on Railways

4. Lack of Modern Management5. Outmoded Technology

6. Problem of Replacement

7. Problem of Laying Double Lines

8. Inadequate Investment

9. Competition with Road Transport


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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 thecost 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


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Any Question?


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THANK YOU

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