RAILWAYS

CHAPTER 03

Name RollKhadiza Noor 55Aaqib Md. Shatil 87Cynthia Islam 101Zakia Shabnam Maria 27Poly Talukder 47

Group “Liberty”

Railway industry run their own vehicles at their own track, calling at their own terminals, operating their own sales outlets. Some of them construct their vehicles and infrastructure

In most of the country government have granted a monopoly to one organization to run the railway system in that country

Profitability of railway was terrifying having a loss before paying interests on loans and allowing for reinvestment for the last five years in Europe

RAILWAYS

Railways are old technology In the late 19th and early 20th century

railways dominated the economic development of Europe

The main hinder of this sector is Government policy Political decision Spurious cost and benefit measurement Obsession with the operation of the

railway itself

RAILWAYS

THE GOVERNMENT AS CONSUMER

Travel products are either sold to individual customers or central and local government.

Government performs the following roles in the railways: - Principle Shareholder. - Banker of National Railway Company

Positioning the govt. as a customer is useful in separating these roles.

It enables to be completely customer oriented in all aspects of business and create a market-based strategy.

THE GOVERNMENT AS Consumer Government buys travel products in an unfinished form, it

pays for provision of travel facilities in certain places by:

- Funding the infrastructure - Facilitating hardware - Proportion of variable cost

Government pays large PSO sum for train service.

Travel is relatively a up-market activity, people who travel doesn’t fall in the socio –economic group that requires state assistance.

THE GOVERNMENT AS Consumer

State funded assistance with “artificially low” consumer prices has generated consumer behavior which now requires the maintenance of these equilibrium prices.

Artificially low prices have caused: - Movement of population out of suburbs- Move into towns- Property prices of towns has risen to balance the low travel cost with city center earning potential.

THE GOVERNMENT AS Consumer

Economic and Environmental considerations are also quoted as the reason why government still subsidizes national rail system.

Military was once a vital reason but now that is considered less significant.

Underlying cause for state support is considered “ Political”.

One risk for primarily political basis is its “inherent unstable nature”.

THE consumer AS Consumer

Rail travel products are consumed by customers and they go through the same purchase decision as they go through with other products.

Marketing strategy for customers

Segment customers and identify their different needs. We design profitable products to meet these needs.

THE consumer AS Consumer

Concepts of short and long distance travelers, business, commuting and leisure travelers, high and low price travelers are found in many passenger marketing activities.

Application of such segmentation is limited. Differentiated markets has varying propensity to pay. Railway companies are now moving away from the

commodity view of their service into lifestyle products.

It is important to provide fair idea about a product while designing a product range

Customers must be offered with what he expects in lieu of the money he pays

A bundle of tangible and intangible attributes influences the customer decision

DESIGNING THE PRODUCT RANGE

1. Ability2. Day3. Time4. Degree of comfort5. Availability of

alternatives6. Level of standard

7. Degree of safety8. Staff contact9. Ability to buy meal10. Luggage11. Previous

Experience

DESIGNING THE PRODUCT RANGE

Choosing from alternatives depends on

Product Range Product Range is the number of different

products on sale on different price The evolution of differential fares and the need

for mechanisms to prevent trading down has led to the accidental development of product range.

Individual product design will direct customers to the appropriate product for them

The concept of product design leads to product management

DESIGNING THE PRODUCT RANGE

The difference between a good and mediocre product is the amount of discretionary effort

Very rigid industrial relations of railways work directly against such efforts

Different travel products require different levels of discretionary effort

Building them into product specification is difficult

DISCRETIONARY EFFORT

PRODUCT PROFITABILITY Railway management is asset-oriented,

rather than market oriented This happens due to the difficulties in

measuring product profitability So many costs of railway systems

appear to be shared One approach to the problem of shared

costs is not to measure them, but to negotiate them

It is important to provide fair idea about a product while designing a product range

Customers must be offered with what he expects in lieu of the money he pays

A bundle of tangible and intangible attributes influences the customer decision

DESIGNING THE PRODUCT RANGE

1. Ability2. Day3. Time4. Degree of comfort5. Availability of

alternatives6. Level of standard

7. Degree of safety8. Staff contact9. Ability to buy meal10. Luggage11. Previous

Experience

DESIGNING THE PRODUCT RANGE

Choosing from alternatives depends on

Product Range Product Range is the number of different

products on sale on different price The evolution of differential fares and the need

for mechanisms to prevent trading down has led to the accidental development of product range.

Individual product design will direct customers to the appropriate product for them

The concept of product design leads to product management

DESIGNING THE PRODUCT RANGE

The difference between a good and mediocre product is the amount of discretionary effort

Very rigid industrial relations of railways work directly against such efforts

Different travel products require different levels of discretionary effort

Building them into product specification is difficult

DISCRETIONARY EFFORT

PRODUCT PROFITABILITY Railway management is asset-oriented,

rather than market oriented This happens due to the difficulties in

measuring product profitability So many costs of railway systems

appear to be shared One approach to the problem of shared

costs is not to measure them, but to negotiate them

Overview of the future If the future demand for air travel is to be satisfied

they can develop strategies to deal successfully sometimes with conflicting needs of the market and consumer.

Firstly it is highly probable that the number of air journeys made will increase substantially.

Secondly it is highly likely that the industry will be less regulated leading to more intense competition between airlines.

Overview of the future Thirdly the consumer will demand both giving a

greater choice and also arising from greater familiarity

Fourthly regardless of the outcome of possible changes in ownership. Lastly it is unlikely in pursuit of the goal of better profits that improved cost effectiveness.

Overview of the future The major components of cost for an airlines are:

a) the cost of acquiring and maintaining a suitable fleet of aircraft. b) fuel costs c) the wage bill

Controlling costs is one part of the equation for success for the airline . Revenue maximization is another important consideration.

The message for airline management is quite clear: the successful airline in the future controls its costs and reacts more quickly and more sensitively to the market than its competitors

Overview of the future The main difficulty in achieving an optimum balance for

yield is in the accurate prediction of demand in each price bracket .this problem will need the use of more sophisticated computerized controls governing the number of seats available in each price category.

Traditionally the air travel market has always been split between two major groups the business traveler and the leisure market. general predictions of growth over the next 10-15 years have been in the range of 5 per cent -7 per cent per year leading to a doubling in size of the total market worldwide over that time .

Overview of the future The age group which is most increasing in size is

the 35-45 years old as the growth segment of the past the 20s-30s mature

History & development of Bangladesh railway Bangladesh railway is a crucial element in

Bangladesh’s transportation system and is used for mass travel.

Railway operation in today's Bangladesh began on 15 November 1862 when 53.11 kilometers .

In 1891, the construction of then Bengal Assam Railway was taken up by the British government assistance but that was later on taken over by the Bengal Assam Railway Company

History & development of Bangladesh railway At time of the partition of India in 1947, Bengal-Assam

Railway was split up and the portion of the system, about 2,603.92 kilometers fell within the boundary of then East Pakistan

Control remained with the central Government of Pakistan. Later with the effect from 1 February 1961, Eastern Bengal Railway was renamed as Pakistan Eastern Railway.

Then in 1962, the control of Pakistan Eastern Railway was transferred from the Central Government to the Government of East Pakistan and placed under the management of a Railway Board with the effect from the financial year 1962–63 by the presidential Order of 9 June 1962.

History & development of Bangladesh railway

The total length of railroad is 2,855 kilometers. 660 km are broad gauge tracks (mostly in the

western region) 1,830 km are meter gauge tracks (mostly in the

central and eastern regions) 365 km are dual gauge tracks. The gauge problem is being tackled by adding

third rails to the most important broad and meter gauge routes, so that they become dual gauge.

History & development of Bangladesh railway  Mission of BR:1. Develop & maintain railway tracks & station infrastructures

throughout the country.2. Maintain & upgrade locomotives, coaches & other rolling stocks.3. Maintain & modernize signaling & interlocking system Telecom

system of Bangladesh Railway.4. Ensure safe, speedy & efficient train operation.5. Implement Government transport policy in rail sector.6. Procure modern technology related rolling stocks, track

materials & signaling systems suitable for Bangladesh Railway.7. Manage land asset of Bangladesh Railway.8. Ensure optimum utilization of Development Budget & Revenue

Budget of Bangladesh Railway.

Manpower of BR

Class Allowed Vacant Position

Employed

1st 586 446 102

2nd 1356 947 409

3rd 21876 14625 7251

4th 16484 11517 4967

40268 12729 12729

Work of BR

Work Description Achievement

Construction of new rail line 112 K.M

Construction of duel gauge 20 K.M

Renovation of railway 756 K.M

Construction of bridges 65

Station remodeling 22

Collection of Locomotive 46

Freight wagon collection 516

Collection of DMH 20 set Mg

Passenger coach renovation 260Opening of new train 92

Extension of service 24