TOWARDS A BOTTOM-UP COST MODEL FRAMEWORK FOR FREIGHT TRANSPORTATION IN INDIA: ROAD AND RAIL PERSPECTIVES

Abstract

India's road and rail haulage sector is crucial to the country's economy, but it faces challenges due to fragmented operations, diverse regional practices, inconsistent infrastructure quality, and an unstructured nature. Hence, it results in inefficiencies and more expensive logistics, and therefore, the need for an accurate cost model specific to the Indian context is proposed. This conceptual article conducts an extensive review of the global and domestic literature to identify critical fixed costs, variable costs, and miscellaneous cost elements in freight transport and logistics. This conceptual article included the bottom-up approach to the cost estimation model to enable a more thorough evaluation of transport expenses. The cost model is linked to a variety of networks with in the structured vehicular and rail transit freight transportation system. So as to achieve real-time coordination and monitoring within India's intermodal freight transportation system, a multi-faceted technological approach is employed. This intelligent freight transportation system is utilised for effective control of transport workflow. The theoretical application of the cost model framework is applied for the Delhi region, where it is shown that the systematic transportation framework and the intelligent freight transportation system has the potential to lower the transit time and cost of transportation in India. Moreover, the comparative assessment will analyse both the total and per-unit costs of moving freight through a road-and-rail star network, benchmarking the results against traditional long-haul road routes that traverse multiple states. Based on the outcome from cost analysis, the company management accepts effectiveness and the least expenses and minimal time duration of transit in a star network as compared to traditional long-haul road transportation. The study concluded that the proposed cost model has the potential for implementation in real-world scenarios, contingent on the development of the web application. The implementation of the cost model framework would facilitate informed decision making among stakeholders, thereby improving the performance of the transportation sector of India while reducing overall expenses and promoting sustainability.