Advantages and disadvantages of monopoly in indian railways

Railways is the most important form of transport system. Inthe first railway line was laid between Mumbai and Thane in It was a distance of 22 miles.

Advantages and Disadvantages of Railway Transport Article shared by: The greatest advantage of the railway transport is that it is the most dependable mode of transport as it is the least affected by weather conditions such as rains, fog etc.

The rail transport is better organised than any other form of transport. It has fixed routes and schedules. Its service is more certain, uniform and regular as compared to other modes of transport.

High Speed over Long Distances: Its speed over long distances is more than any other mode of transport, except airways. Thus, it is the best choice for long distance traffic.

Suitable for Bulky and Heavy Goods: Railway transport is economical, quicker and best suited for carrying heavy and bulky goods over long distances.

It is a cheaper mode of transport as compared to other modes of transport. Most of the working expenses of railways are in the nature of fixed costs. Every increase in the railway traffic is followed by a decrease in the average cost.

Rail transport is economical in the use of labour also as one driver and one guard are sufficient to carry much more load than the motor transport.

Railway is the safest form of transport. The chances of accidents and breakdowns of railways are minimum as compared to other modes of transport. Moreover, the traffic can be protected from the exposure to sun, rains, snow etc.

The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic which can easily be increased by adding more wagons. It is the largest public undertaking in the country.

Railways perform many public utility services. In fact, it is national necessity. Administrative Facilities of Government: Railways provide administrative facilities to the Government.

The defence forces and the public servants drive their mobility primarily from the railways. The railways provide greater employment opportunities for both skilled and unskilled labour. Over 16 lakh persons are depending upon railways for their livelihood.

Although railway transport has many advantages, it suffers from certain serious limitations: The railway requires is large investment of capital. The cost of construction, maintenance and overhead expenses are very high as compared to other modes of transport.

Moreover, the investments are specific and immobile. In case the traffic is not sufficient, the investments may mean wastage of huge resources.

Another disadvantage of railway transport is its inflexibility.

Its routes and timings cannot be adjusted to individual requirements. Lack of Door to Door Service: Rail transport cannot provide door to door service as it is tied to a particular track. Intermediate loading or unloading involves greater cost, more wear and tear and wastage of time.

The time and cost of terminal operations are a great disadvantage of rail transport. As railways require huge capital outlay, they may give rise to monopolies and work against public interest at large.

Advantages of monopoly

Even if controlled and managed by the government, lack of competition may breed inefficiency and high costs.

Unsuitable for Short Distance and Small Loads: Railway transport is unsuitable and uneconomical for short distance and small traffic of goods. It involves much time and labour in booking and taking delivery of goods through railways as compared to motor transport.

Because of huge capital requirements and traffic, railways cannot be operated economically in rural areas.INDIAN RAILWAYS FACTS General Facts: World's largest railway networks comprising , km of track over a route of 65, km and 7, stations. As of December , it transported over 25 million passengers daily (9 billion on an annual basis).

It involves much time and labour in booking and taking delivery of goods through railways as compared to motor transport. 7. No Rural Service: Because of huge capital requirements and traffic, railways cannot be operated economically in rural areas. Thus, large rural areas have no railway service even today.

Top 11 Advantages and Disadvantages of Privatization (Economics) Privatization is a process in which private sector is involved in the ownership and management of public sector or transfer of ownership and Management in the private sector and economic democracy is been established by reducing government control in economic activities.

Mar 29,  · Advantages: 1. Dependable: The greatest advantage of the railway transport is that it is the most dependable mode of transport as it is the least affected by weather conditions such as rains, fog etc.

The advantages & disadvantages of railway transport.

Indian Railways Products and Services

Railway transport occupies a significant role in the transport system of a country because the development of trade, industry and commerce of a country largely depends on the development of railways.

ii. It is a quick and more regular form of. Advantages And Disadvantages Of Indian Railway Reservation System. Introduction: Indian Railways is the nationalized railway company of India which owns and operates most of the country's rail transport. It is the world’s second largest employer behind Chinese army; has one of the largest and busiest rail networks in the world, an extensive network, which is spread over Route Kilometre, of which .