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Road Transport in India

Road Transport in India. 22 nd April 2016. B.N. Puri CEO & Director Former Principal Advisor, Planning Commission. Asian Institute of Transport Development. Modal Mix: Overview. Passenger Traffic Share. Freight Traffic Share. Significance of Road Transport.

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Road Transport in India

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  1. Road Transport in India 22nd April 2016 B.N. Puri CEO & Director Former Principal Advisor, Planning Commission Asian Institute of Transport Development

  2. Modal Mix: Overview Passenger Traffic Share Freight Traffic Share

  3. SignificanceofRoadTransport • Increase in share of high value and low volume commodities. • Increase in passenger traffic intensity. • Demand for quality transport. Economic development leads to Increase in productivity • 10 per cent increase in travel speed labour market expands by 15 per cent and productivity by 3 per cent. Significant contribution to GDP and government revenue • (about 3 per cent and Rs. 2000 billion). Favourable impact on education and medical facilities • Participation rate in schools education increases by 100 per cent for girl and 33 per cent for boys Highly employment intensive. • Only next to IWT

  4. Issues, Diagnosis and Solutions

  5. Externalities Energy and Environment • Transport sector accounts for nearly 18 per cent consumption of total energy. • Share of road transport is 90 per cent. • 98 per cent of total energy demand is met through petroleum products which represent half of consumption of petroleum products. • CO2 emission of road transport sector is 206.4 million tonnes which is 92 per cent of total emission of transport sector. Significance Life Cycle Analysis • Consider Full life cycle energy and Co2 impact of transport modes Except one no oil producing country can balance their budget at price less than US$ 100 per barrel.

  6. Safety Road accidents in 2014 • Accidents 4.9 lakh (1 every minute) • Deaths 1.40 lakh (one death every 4 minutes) • Injured 4.63 lakh Accidents impose significant costs • 3 per cent GDP for India Accidents on NH (2014) • 28.2 per cent of all accidents • 34.1 per cent of persons killed • 29.9 per cent persons injured • Drivers’ fault – 78.8 per cent of total accidents in India • Overloading/overcrowding of vehicles caused 20 per cent of total accidents Major causes of accidents

  7. Fiscal Issues Taxes, user charges and subsidies serve : • Generation of revenue 2. Economic efficiency. • 3. Income distribution. 4. Environment sustainability. • i.e. transport input required to produce 1 unit of output is • 11 per cent higher than South Africa, • 14 per cent more than China and • 38 per cent higher than Brazil. Transport intensity in india Tax per unit of output in India • more than 40 per cent higher than South Africa. • Introducing efficiencies under various scenario the economy gains 0.042 to 0.0148 in GDP under various scenario. Impact of less efficient usage transport services Simplify the multiplicity of state level taxes • through a mechanism akin to that used for transforming the complex state-level sales taxes to the simplified state VAT system.

  8. Institutional Strengthening

  9. Trend of Road Traffic Fatalities in Selected Countries, in Numbers

  10. Road Traffic Fatalities in India in Numbers

  11. Public Transport Market can determine role of private and public transport, provided there is • perfect competition • No significant indivisibilities • No unpriced externalities. • Selection of appropriate modes and technically and economically efficient development of these modes- (The Carrots). • Action to restrain competing private mode with uncharged externalities (The Stick). Training a donkey.. (Gwilliam) Institutions • A capable public transport regulatory and management authority is highly desirable. Integration • Effective physical coordination through ticketing between modes critical to the attractiveness of public transport. Role of Buses • Even in cities with mass transit system the majority of trips will taken by ordinary buses

  12. Technology • One-third of fleet (freight) does 300 to 400 kms. • 12 per cent of trips are empty. • Use of information technology. • Route rationalisation. • Fleet deployment. • Rationalisation of maintenance practices. • Maximisation of revenues. Improvement in productivity Innovative Technologies • Determine the way companies develop and build vehicles. • Promote electric and fuel-cell vehicles offer lower energy and emissions. • Introduction of autonomous vehicles. Business Models

  13. Integrated Multimodal Transport System

  14. R&D and Capacity Building

  15. Summing Up

  16. Thank You

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