Transport, Warehousing and Communication
Transport
Transport removes the hindrance of place. Road gives door-to-door flexibility and suits short distances, perishables and hilly terrain such as much of Assam. Rail suits bulky, heavy loads over long distances and is cheap per tonne-kilometre. Water is cheapest for very heavy, non-perishable cargo and slow; the Brahmaputra is National Waterway 2. Air is fastest and costliest, used for perishables, valuables and light cargo. Pipelines carry liquids and gases continuously with low operating cost but high fixed cost.
Warehousing
Warehousing removes the hindrance of time. Private warehouses belong to a firm; public warehouses rent space to traders; bonded warehouses hold imported goods under customs control until duty is paid; government warehouses (for example, FCI) store foodgrain; cooperative warehouses serve member farmers. Functions include storage, price stabilisation, risk bearing, grading, packing and financing against warehouse receipts.
Communication
Communication removes the hindrance of information. It covers postal services, telecom, internet, e-mail and e-commerce platforms. Modern logistics depends on tracking, digital invoicing and cashless payment.
Worked example
A cooperative in Nagaon must hold 500 tonnes of paddy for six months and borrow against it. Reasoning: a cooperative warehouse is local and member-owned; a warehouse receipt is a document usable as security for a pledge, so storage also solves finance.
Traps that cost marks
- Claiming air transport is cheapest for bulk goods.
- Confusing a bonded warehouse with a cold store.
- Saying warehousing creates ownership of goods.
- Limiting communication to advertising; it also includes logistics data and payment systems.