| Road Transport | Rail Transport |
| 1. Meaning | Road Transport vehicles have limited speed particularly over long distances due to rough roads, hilly areas, traffic jams, observation of signaling system, road accidents, etc. | Rail transport operates at a high speed due to mechanical devices, straight railway tracks and absence of obstructions on the railway tracks. |
| 2. Suitability | It is suitable for short distances and for carrying perishable goods such as fruits, fish, vegetables, food grains and other consumer goods. | It is suitable for carrying heavy and bulky goods such as machinery, cotton, coal, etc. for long distances. |
| 3. Door to Door services | It provides door-to-door services. It reaches the goods at the doorsteps of the buyer. | It cannot provide door-to door services. It carries goods and passengers from one railway station to another. |
| 4. Carrying Capacity | It has limited carrying capacity. | It has large carrying capacity. |
| 5. Cost of construction and maintenance | It requires relatively less capital investment in terms of construction of roads and their maintenance. | The cost of construction and maintenance of trains, railway tracks and stations is very high. |
| 6. Transport charges | Transport charges are not fixed but they are usually high due to increase in fuel charges. | Transport charges are fixed according to the distance and they are relatively low. |
