| Sr. No. | Basis of Difference | Road Transport | Rail Transport |
| 1. | Speed | Road transport has limited speed due to bad road conditions, accidents, etc. | It has considerable speed since it runs on tracks which rarely get disturbed. |
| 2. | carrying capacity | It has limited carrying capacity. | It has huge carrying capacity. |
| 3. | Cost of construction and maintenance | It requires limited capital investment in terms of construction of road, vehicles and their maintenance. | The cost of construction of trains, railway tracks is high. Also the maintenance of trains, tracks and stations is high. |
| 4. | Distance | Recommended for short distance. | Recommended for both short and long distance. |
| 5. | Transport charges | Transport charges are not fixed but are high due to increased fuel prices. | Transport charges are relatively low and are fixed according to the distance. |
| 6. | Door to door service | It provides door to door service. | It does not provide door to door service. |
| 7. | Means of transport | It uses animal’s carts, motor-cycles three and four wheelers. | It uses passenger and goods train. |
| 8. | Ownership | Ownership is in the hands of private parties. | Ownership is in the hands of the government. |
| 9. | Safety | It provides limited safety to goods from sun, rain, wind, etc. | Goods are kept in locked wagons which provides protection against sun, wind, rain etc. |
