Features of Different Modes of Transportation


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A.Rail
-Capability to transport large shipments economically with more frequency.
-High fixed costs because of expensive equipment, right of way, switching yards, and terminals.
-Variable cost per kg/km has been considerably reduced by electrification.
-Bulk industries and heavy manufacturing use railways more frequently.
-Can improve effectiveness of transportation by having alliances with other modes.

B. Highway

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-Growth of motor carrier industry has resulted into door-to-door operating flexibility and speed of inter-city movement.
-Compared to railways, motor carriers have relatively small fixed investments in terminal facilities and operate on publicly maintained highways.
-Variable cost per kilometer is high because a separate driver and cleaner are required for each vehicle.
-Labour cost is also high because of the need for substantial dock labour.
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