Section – A

Introduction
1. Determining Factors of Transportation System:
The word transportation comes from Latin word “transportare”. “Trans” means across and “portare” means
to carry. So we can say that transport is a service which helps to carry goods and services from one place to
another. Transportation system is considered as important as blood circulation of an economy. Because
economic mobility rise with the rise of mobility of transportation system. But there are some factors that are
affecting transportation system directly and indirectly. Let us describe those factors:
i. Trends and structural change:
a) Economic activity: Transportation system is directly related with economic activities of any country. If
economic activities are highly mobile and industrialization takes place successfully, then transportation
system will be developed, otherwise development of transportation system will be affected.
b) Transport infrastructure: Infrastructure is the backbone of any industry in any country. If the
infrastructure of the country is strong, its industry can prosper. This includes good road, railways, air
transport and inland waterways system, efficient telecommunication system and modern port with capability
to break bulk commodities etc.
c) Restructuring of production activities: Growth in service industry, new industrial management
principles and logistic practice, new organizational structures are other factors that influences transportation
system.
d) Change in land use pattern: Unplanned expansion of roadway creates a huge change in land use pattern.
e) Socio-demographic factors: Geographically some places like hilly areas are not suitable to live. So
density of population is relatively low in this area. For that reason transportation system are less developed
in that areas.
ii. User Choice:
a) Value/weight ratio of commodities: If the ratio is high in that case it is a problem to carry that goods
from one place to another. The mode of transportation depends on the product to be transported. The safety
of the products is very important factors. The product should not only reach the destination in time, it should
also intact. If the product is high value and low volume (like diamonds and gold) the ideal mode of
transportation would be by air. However if the product is low value and high volume the ideal mode of
transportation would be by sea.
b) Travel time: When supply of transport is less than demand then travels time increase, it wastes
passenger’s time. That will affect transportation system.
c) Cost of Transportation: There is direct relation between cost, speed and flexibility with the choice of
transport. The cost decrease as we go from air to road transport, to rail transport, to waterways. The freight
charges depend upon type of material, size, bulk, fragility and packing.
d) Availability of Different Modes of Transportation: Now a day’s export cargo moves on various mode
of transportation. If the air services are available to an exporter of flowers or vegetables his product can
reach overseas markets in fresh condition and in time. Efficiency of logistics system depends upon the
availability of various modes of transportation.
iii. Other factors:
a) Cultural factors: Sometimes cultural tours and religious tours take place within and out side the
countries. Then a huge transport is used that creates traffic congestion, increase fare etc.
b) Dealer/Distributor Networks: A company may have an excellent product which is attractively priced
aggressively promoted but if it does not have an efficient system, its success in the market will be doubtful.
A dealer /distributors is the vital link between a manufacturer and customers.
c) Government Policies:Logistics system needs to be designed by the rule, regulation and policies of
exporting and importing country’s government. Government policies related to sales tax excise duty are the
determinants of transport.
Level of economic activity and material welfare are two very important factor in transport demand. In an
open economy, economic and political conditions in trading partner countries also influence the volume of
export and import. If we want to develop transportation system then we must consider these factors and try
to reduce constraints.
2. Stages of Transport Development
Transport is an important sector of the economy which impacts on development and welfare of populations.
When transport systems are efficient, they provide economic and social opportunities and benefits that result
in positive multiplier effects. In an industrialized nation, it is very much important to remove transport
barrier. Because it hampers evolutionary processes dictated by the rate of innovation. The procedure was
delayed to invent and has taken a country and a half to get the stage facilitating the way they move today.
For the improvement of transportation system five stages can be segmented. These stages are related to each

Page 1 of 33
other. Stage by stage up gradation of transport system is the indication of improvement of the progress
toward the better condition of living. Different stages of transport are cited below:
Stage I- The period of immobility and traditional society: In the period of immobility and the traditional
society, it was extremely difficult and costly to develop trade and cultural relation. Communications were
provided by the rivers, oceans, bullock cart, camel, donkey, ass, ox, camel, horse etc. The pattern of living
emerging from these conditions was predominantly one of localized agriculture and handicraft industries
with a minimum of economic integration.
Stage II- The period of internal improvements and the growth of trade: In this period human and
animal power were made much more effective by the development of turnpikes and canals which reduced
the cost of transport by traditional methods of moving on land and water. As a result internal improvement
and some sort of growth of trade were ensured. This period of declining transport costs saw both an
expansion of capacity.
Stage III- The period of transport mechanization and industrialization: In this period the evolutionary
process toward greater mobility and higher standards of living was that of transport mechanization and
industrialization. During this period, human power introduced both the steamship and the first railways it
was a stage in linked by heavy investments in transportation and by the establishment of a wide assortment
of manufacturing industries. The first mechanically propelled maritime vehicle was tested in 1790 by the
American Inventor Fitch as a mode of fluvial transportation on the Delaware River. By 1807, commercial
steam boat services were inaugurated. This marked a new era in the mechanization of land and maritime
transport systems alike.
Stage IV- The period of development of motorization and new mobility: The period has been marked as
an era by growing dependence on trucks, buses, and automobiles and by extensive efforts to provide all-
weather roads. This is the period when people and economic activity were freed from the limited mileage of
fixed routes provided by railways and waterways.
Stage V- The air age: The period is the air age in which the world is being united by transport speeds that
are obliterating political boundaries and adding a third dimension to the solution of transport problems. It is
not a stage, however, that has yet made its impact in local short-haul transport, which comprises a major part
of the transport problem.
Economic development is linked with transitions in passenger mobility from non-motorized (mainly
walking) to motorized forms of transportation. The initial stage of this transition involves the development
of collective forms of transportation (tramways, subways, buses) while individual forms of transportation
(mainly the automobile) become more prevalent at a later stage. This is particularly linked with the growth
of individual incomes where at some point individual motorized mobility becomes affordable. In developed
countries this transition took place over several decades. On the other hand many developing countries are
experiencing a fast mobility transition.
3. Economic Significance of Transport:
3.1 Transportation and Consumption:
Transportation and consumption are two important and closely related phenomena of the modern world.
Every state of the world is not naturally affluent for all types of goods and commodities. So it is necessary to
allocate the goods and services equally within the world. From the ancient times goods have been
transported from the countryside to big cities and towns and vice versa. Similarly the consumption patterns
of human being have become diversified. If transportation is not available, goods are not available. Factories
and workshops may be scarce in both urban and rural areas. Some important notes are furnished below:
Efficient transportation and consumption of goods is based upon:
i) The Infrastructure
ii) Vehicles or mode of transportation

iii) Operations and administration

iv) Energy or fuel supply and consumption

When our transportation networks were not as extensive, goods had to be produced closer to the markets and
consumers. With our improved transportation networks, it is easy to ship goods from one area of the country
or world to another. Now, we meet those needs by purchasing food and other goods produced far away at
local retailers or even online. Without extensive transportation networks, goods were produced closer to the
consumer. Provide cheap transportation for heavy, bulky items like coal, wheat, and cattle intermodal
containers carried via truck, rail, ship or aircraft.
Different modes for goods transportation that made the consumption easier are:
a) Road transportation:The oldest means of transport used for moving goods. The automobile
revolutionized road transport and today freight trucks, wagons and carry large volumes of goods across
highways.

Page 2 of 33
 b) Marine transportation: An important mode to transport and consuming less energy as compared to
roadways or rail, cargo ships can carry thousands of tons of freight in a single trip from one port to
another.

c) Railway transportation: After industrial revolution, high speed rail transport has proved to be efficient
in transporting goods over large distances in countries like USA, Russia, and China and in Europe.

d) Airway transportation: Large airfreight carriers like the Boeing 707 and 727 can transport significant
amounts of cargo at a time.
Railroads and Consumption of food:
i) Refrigerated railroad cars big business by 1890s
ii) Florida and California can market produce in other areas
iii) Changed Americans’ eating habits

At the finishing of the discussion it can be concluded that, owing to the reduced cost of transport, the cost of
production also scales down thus reducing the selling price which enables consumers to enjoy those
commodities in diverse varieties which are not produced in their countries. If transportation is available,
goods are available.
3.2 Transport and Competition:
The development of transport industry and the growth of human civilization go one with other from the
ancient age. It is the hallmark of civilization. A transport transfers human, goods and services from one part
to another part of the world. It not only transfer person but also transfer the ideas and the best activity of
them. In the modern age, a self-sufficient society is unimaginable. People now take the advantage of
territorial division by international trade which is not possible without transports. In our economic, social
and commercial life transport is an inevitable part.
Competition is one of the most important terms in business world. The improved transportation system
affects the competition to an appreciable extent. Transport helps to reduce competition. It basically works
both positively and negatively.
3.2.1 Positive sides: Transport helps in fast transportation of goods and services. Both the producer and
consumers gains benefit through it. The positive sides of reducing competition from business through
transport are given below:
i. Reduce production cost: Transportation cost is one of the basic costs of production. Through the
developed transportation system producers can produce more goods with continuous and fast supply of
raw materials. With the large extent production the per unit production cost also decreases.
ii. Decrease product price: The demand for a specific good remains fixed in the market with the
continuous supplies of commodities which tends the price fall.
iii. Consumer benefit: Mostly the consumers are benefited by reducing competition. Consumers can
consume product at a lower cost. The consumer benefit ensures the social and economic development of
a country.
iv. Reduce monopoly power: Local producers sometimes charge monopoly price for products in local
market. But with improved transportation system the distant producer can join the market. It helps to
curb the monopoly power of local producers.
v. Larger volume production: The improved transportation system helps the producers to send their
products in distant markets. With the new market capturing advantage the production volume and sells
of the firm also increases.
Both the producers and consumers get benefit from this. The dangers of competition in business can be
solved by transports.
3.2.2 Negative sides: Though removing competition from business is good for both producers and
consumers but it has some drawbacks-
i. Reduce product innovation: When the competition decreases the innovation in products also decreases.
The quality of homogeneous products in the market remains almost same.
ii. Market capture: When transportation system expands, the large firms can produce more products and
can sell it at a lower price. But the small firms cannot sell at that price. It incurs losses to them. The
small firms and local producers drive out from the market. The market is captured by large firms. The
pressure of large firms minimizes the market for local producers.
Here with the discussion we can say that, there is a direct linkage between transport and business
competition. With the improved transportation system the unhealthy competition of business reduces at
larger extent. Although it has some drawbacks but the positive sides are more attractive.
3.3 Transport and Price Stabilization:
Transport means to carry to the other side or from one place to another. More specifically, it is a service
which helps goods and persons to be carried from one place to another.Inflation and deflation are important
Page 3 of 33
 economic terms that have negative consequences for the economy. Basically, inflation is defined as a
general increase in the prices of goods and services over an extended period which consequently leads to a
decline in the value of money and thus its purchasing power. Deflation is often defined as the opposite of
inflation namely as a situation in which the overall price level falls over an extended period. When there is
no inflation or deflation, we can say that there is price stability if, on average, prices neither increase nor
decrease but stay stable over time. If, for instance, Tk. 100 can buy the same basket of goods as it could, say
one and two years ago, then this can be called a situation of absolute price stability. Price stability supports
higher living standards by reducing uncertainty about general price developments, thereby improving the
transparency of the price mechanism. It makes it easier for consumers and companies to recognise price
changes which are not common to all goods.
Transport plays an important role in price mechanism, more particularly price equalization and stabilization.
When a bumper crop is harvested or industrial goods have been produced in very large quantities (demand
remaining unanticipated) the surplus cannot be sent to other consuming centers in the absence of transport
facilities. This can create great fall in its price. If adequate transport facilities exist, the surplus would
necessarily be transported to deficit areas. This would enable the local market to maintain steady prices, and
prevent the price spiral of the deficit area from shooting up. If prices are stabilized, producers are happy as
they are certain of getting a fixed rate throughout the year. At the same time, consumers get commodities
throughout the year at fixed and reasonable rates. Thus, transport helps in establishing and maintaining inter-
related prices of commodities for the benefit of both producers and consumers.
3.4 Transport and Utility:
Transport means the carriage of person or thing from one place to another. Transport is a great public utility
service which had been recognized centuries ago. There are three characteristics of a public utility service-
collective demand made by society, efficient and adequate supply and its ability to exercise the power of
discrimination. Transport is a public utility service which creates time and place utilities. It makes
commodity available for consumption at a time when they are most needed. The utilities of transport are
mentioned here
3.4.1 Economic utility:
i. Transportis required at several stages in the production. Before and after sowing and take the stage of
harvesting, it plays a significant role.
ii. By performing the major function of marketing, transport plays a dominant role in the exchange of
wealth, it facilities exchange and promote competition.
iii. Transport promotes division of labor by widening the market for a commodity.
iv. Land has been utilized to the maximum advantage of the commodity due to the availability of long-
distance cheap transport.
v. When a bumper crop is harvested or industrial goods have been produced in very large quantities the
surplus cannot be sent to other consuming centers in the absence of transport facilities; and this would
cause a great fall in its price.
vi. The scale of production of industries is determined, among other things, by transport and its charges
and without Industrial development would not have taken place.
vii. As a result of transport, the productivity of agriculture lands has increased.
viii. Owing to the reduced cost of transport, the cost of production also sales down.
ix. Transport increases the demand for and supply of capital in a country.
3.4.2 Political utility:
i. Transport promotes homogeneity among the people of a country; and this sense of oneness
strengthens political unity.
ii. Transport is a major factor which determines the size of constituent states or provinces of a country.
iii. It is an important agency which helps in the mobilization of the entire resource of a country in the
event of an invasion.
iv. Transport promotes national defense, national integration and internal administration.
3.4.3 Social utility:
i. Transport has broaden the outlook of people, it has promoted culture and intelligence; and has made
emigration possible and promotes mutual understanding also.
ii. It increases middle class people’s standard of living and concentration of people within an area.
iii. It spreads the education by widely distributing mails and books and enabling people to create and
maintain personal contacts over wide areas.
iv. Internal air transport has unified the distant areas of a vast country which creates similarity in social
custom, manner of living language etc.
A commodity which has no usefulness or only a little utility at the place where it has been produced must be
transported to the place where it is demanded. Now a days, the entire economic life of the people of a
country depend upon transport service-from production of raw materials to the distribution of finished
product. If transport service is not adequate, people would suffer. So without transport modern world cannot
Page 4 of 33
be thought. Transport has become a part and parcel of present world in the field of economic, political and
social development etc.
3.5 Transport and Land Utilization:

Transport or transportation is the movement of people, animals and goods from one location to another.
Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into
infrastructure, vehicles, and operations. Transport is important since it enables trade between peoples, which
in turn establishes civilizations. On the other hand proper Land-use planning or land utilization is the term
used for a branch of public policy encompassing various disciplines which seek to order and regulate land
use in an efficient and ethical way, thus preventing land-use conflicts.

It has been generally experienced that during the past one hundred years, land has been utilized to the
maximum advantage of the community due to the availability of long-distance cheap transport. Even those
people who were living at distant places from the market began to produce. Thus, a rise in the demand for
land increased land values. Even waste lands are now being used. The value of land depends upon location
also. The average price of the land prior to railroad construction through the section was often less than one
dollar per acre. The price of the land after the building of the railway, including that of the Federal
Government, often rose to several dollars an acre. This is true not only of the United States but also of the
entire world. In our own country we find that the value of land situated near a railway station or bus stand or
lying on a bus route, has gone up several. So, at last it can be said that transportation decisions affect land
use patterns and resulting economic, social and environmental impacts. These include direct impacts on land
used for transportation facilities, and indirect impacts caused by changes to land use development patterns.
In particular, certain transportation planning decisions tend to increase sprawl (dispersed, urban-fringe,
automobile-dependent development), while others support smart growth (more compact, infill, multi-modal
development). These development patterns have various economic, social and environmental impacts.
3.6 Transport and Industrial Development:
Transport and industrial development are closely related with each other. Industrial development occurred
and became faster because of the development of transportation system. Development of transportation
system always forces and assists the industrial development of country. Advances in transport assisted
largely in the development of the industrial age and engine-powered vehicles are now the main forms of
transport in industrially developed countries. In fact the transportation industry is one of the biggest
industries in the world, consisting of passenger and freight carriers, equipment manufacturers as well as
related industries including fuel production, fuel services and infrastructure construction. As we can see that
every country which is developed in transport also developed in industrial sector. Industries depend upon
transport and transport creates new industries. Industrial development would not have taken place if there
were no transport. It means that transport and industrial development are two sides of coin. How transport
development assists to industrial development is being described below:
a) Establishment of industry in remote areas:
The development and use of transportation has been a vital factor in the development of industry,
particularly in areas distant from major resource and production centers. By dint of transport we can now set
up industry even in village or any remote corner of the country. It is because the required materials for
establishing and running an industry can be supplied through transportation system.
b) Development of Maritime Industry:
Transport industries have been set up in all the countries of the world to move huge quantities of goods and
transport millions of passengers. For the movement of freight from one place to another especially in
industrial setting, water is currently the cheapest way to move general cargo despite being the slowest. As a
result of the development of water transportation system, maritime industries like ship-yards have been
established to build new ships and repair old ones. Besides river port and sea port are also established to
conduct internal and international trade.
c) Development of Motorized Industry: A new era of industrial development had been emerged because
of the development of motorization and new mobility in transportation system. This has been an era marked
by growing dependence on trucks, buses and automobiles. Because of the development of the road transport,
motor industry has been established to manufacture buses, cars, trucks and other motorized vehicles.
Locomotive workshops and coach-building factories are set up to manufacture railway engines, passenger
coaches and wagons. In this way different motorized industries are now being established which focuses on
industrial development of the world.
d) Development of Air Age related Industry: The latest and fastest mode of transport is air way. Air way
based industry have been established after the emergence of this mode of transport. In the air age aircraft
factories are set up to manufacture aero planes. Besides, different industries related with this mode of
transport have been established from time to time.

Page 5 of 33
In the conclusion, it can be said that from the above discussion it is very much clear that transport and
industrial development are linked with each other. Industrial development is impossible if there is no
industrial development. Thus equal emphasis must be given to both these sector for the overall economic
development of a country.
3.7 Transportation and Distribution:
Transport has a great bearing on Distribution. It increases the demand for and supply of capital in a country
and goes a long way in raising the level of productivity and real wages of labor. The low rate of transport
enables the owners of outlying lands to send their commodities in to the nearby markets. Thus, increasing
total supply and causing prices to go down for the benefit of consumers. The determining factor of rent is
transport and every change or improvement in the facilities provided or in the cost of service, must have an
influence on the total amount of rent received by the owner of natural agents.
Transport system plays a vital role for the development of nation. No nation can be developed without the
development of transport system. An adequate and efficient transport system is a pre-requisite for both
initiating and sustaining economic development. Investment in improving transport efficiency is the key to
expansion and integration of markets - sub-national, national and international. It also helps the generation
of economies of scale, increased competition, reduced cost, systematic urbanization, export-led faster
growth and a larger share of international trade.
In order to increase its utility, a commodity must be transported, but the amount of transport depends on the
nature of the commodity and the distance it is carried. As a commodity, these days is produced in a large
quantity, it requires a large number of workers and a huge investment. Transport is required in every stage of
distribution of goods and commodities from one place to another. An increase in the efficiency and
sufficiency of transport lowers the cost of production and reduces the selling price of a commodity.
Reductions in transportation rates have further increased production as on account of low and reasonable
prices prevailing in the national and international markets, demands for commodities have considerably
gone up.
3.8 Transport and Agriculture:
Before discussing transport and agriculture at first we should know what is transport and agriculture.
Definition of Transport: Transport refers to the movement of people and goods between destinations.
Definition of Agriculture: Agriculture is the use of land for farming or pasturage for production of
provisions, forage and primary products for energy purposes or to further industrial improvement or
preparation.
Transport and its Linkage with Agriculture: The increasing importance of transport in the sphere of
world agriculture cannot be over emphasized. Before and after sowing and after the stage of harvesting,
transport plays a significant role. As a result of transport services, the productivity of agricultural lands
which had exhausted on account of long and unwise uses has increased through the application of improved
manures and fertilizers. Prior to the introduction of railways and motor trucks this facility was not available.
The increased application of manures and fertilizers has undoubtly increased farm production all over the
world. Transport again helps in marketing of agricultural produce.
Agriculture is best served by consistent high urban and international demand. This is best brought about by
an efficient, high volume; transport and marketing system where the transporting and marketing unit costs
are low. If the margin between what the farmer receives from the sale of his produce and what the urban
consumer pays for his produce is high then the effective demand transferred to the farmer will be
correspondingly reduced. Similarly, if internal transport costs in a country are particularly high then the
scope for agricultural exports will also suffer in comparison with other more efficient countries.
Agricultural Marketing: An efficient transport system is critically important to efficient agricultural
marketing. If transport services are infrequent of poor quality or expensive then farmers will be at a
disadvantage when they attempt to sell their crops. An expensive service will naturally lead to low farm gate
prices (the net price the farmer receives from selling his produce). Seasonally impassable roads or slow and
infrequent transport services, coupled with poor storage, can lead to losses as certain crops (e.g. milk, fresh
vegetables, and tea) deteriorate quickly over time. If the journey to market is made over rough roads then
other crops (e.g. bananas, mangoes) may also suffer losses from bruising; this will also result in lower prices
to the farmer. The pattern of agricultural marketing is strongly influenced by the nature of transport services.
Many developing countries suffer from monopolistic, low volume and high cost transport and marketing
systems. Economies of scale are present in both transport and marketing operations.
The chief means of transporting agricultural produce from village to the urban is the bullock cart- the same
commodities require the services of trucks and railways to be sent to distant markets or consuming centers.
Shipping services are paramount importance in transporting agricultural produce from one country to
another. The development of transport has greatly contributed to the general improvement in farm
operations.

Page 6 of 33
4. Social Significance of Transport Development:
‘Transport is civilization’ which is the de facto barometer of economic, social and commercial progress has
transformed the entire world. The importance of transport is the greatest magnitude is now a days. In that
case transport plays vital role in every sphere of social life. These are considered some basic points-
1. Infrastructural development: Transport plays an important role for social Infrastructural development.
Transport carries goods and services from one place to another place to reach very remote area.
2. Expansion of education: To reach the education facilities across the country we need more transport to
set up various educational institutions –schools, colleges, University etc.
3. Building relationship between rural and urban area: In Bangladesh due to colonial oppression there
had indiscriminate among the rural and urban people. As a result of development of transport it has
reduced indiscriminate rural and urban people and finally builds up a good relation between the rural and
urban people.
4. Increase standard of living: Socially transport is very important, it increase the social standard of living
among the people both rural and urban.
5. Broadened outlook of the people: As development of transport, as a result to move one place to another
place within very short time. It has furthered the cause of education by widely distributing mails and
books and enables people to crate and maintain personal contacts among the people.
6. To promote culture and intelligence: Transportation system which is significant to promote culture
and increase intelligence among the people across the country. Due to improvement of transport one can
easily move from one place to another to meet people, as a result increase family ties among the groups.
7. Helps to migrate: The contribution of development transport it helps to easily migrate goods, services
and passengers.
Finally, above the discussion it has been concluded here, transport system promotes mutual understanding
and increase universal brotherhood all over the world.
5. Drawbacks of Transport:
The movement of goods and persons from one place to another is called transport. Presence of good
transport system brings a lot of advantages for the country. An important and efficient system of transport
increases the wealth of a country, raises the standard of living of the people. In spite of many advantages, it
suffers from following drawbacks:
i. Elimination of Cottage Scale Production: Huge amount of production has facilitated the growth of
large scale industries than small scale industries. The main reason is that the cost of production per
unit is much lower in case of large scale industries than that of cottage industries.
ii. Restrictions of International Transport: As national unity and defense are primary consideration
with individual countries in developing transport facilities, international transport facilities have not
developed satisfactorily which could bring all countries together and eliminate tension and conflict.
iii. Linguistic Characteristics: When international contacts developed as a result of transport facilities,
they do not always enrich human experience but often takes away the distinguishing marks of individuality.
Different countries have different customs and modes of living but when they come nearer each other, they
begin to adopt common practices and lose their own traditions, emotions and behavior.
iv. Mass-destruction: The fastest means of transport i.e. aircraft is used during the period of war for
sending troops and bombarding military targets and cities, thus killing thousands of innocent people and
destroying houses, bridges, railway stations, hospitals etc. In this way transport is misused.
v. Concentration of Population: Owing to the availability of transport facilities the concentration of
population in big cities has created new problems-- of health, housing and squalor. The growth of
urbanization has much reduced the charm of rural life. Few social problems are more pressing than the
clearance of slum areas and the improvement of housing conditions in our large towns. The improvement of
transport facilities gives a greater inducement to the town- dwellers to reside in the outline areas and the
surrounding. Transport should lead the way in the movement towards decentralization of urban life.
Therefore, at the finishing stage we can declare that, transport adversely affects the growth of small scale
and cottage industries because it facilitates in large scale production. The presence of well developed
transport system has created many cities and towns. It also creates a state of concentration of people in those
cities. Transport cannot be conducted efficiently and smoothly because of international restrictions.
Increased transport facility causes more accidents and mass-destruction.
6. Link between Affluence and Mobilty of Transportation:
We are the citizen of modern world. Day by day transportation system is being developed. There is a link
between affluence and transport mobility. Human transportation is linked with travel mobility and goods
transportation is linked with freight mobility.
One of the reasons for the increased interest in transport economies from late 1960s was the recognition of
the important link between transport and land use patterns especially those relating to urban location. The
effects of changes in the transport system on land use tend to be long term but given the longevity of much
Page 7 of 33
transport infrastructure such interactions must to some extent concern transport policy makers. The changes
that occur in land use will also in turn. By altering the nature and size of the local residential population and
industrial base, exert an enormous influence on future transport demand. A new major suburban
underground railways for example’s will immediately attract some travellers away from other models of
transport in addition to encouraging trips to be made by former non-travellers.
From a research (extracted from Owen, 1987) it is shown that GNP per capita income, travel mobilty and
freight mobility of Switzerland are respectively 139, 104 and 81. But unfortunately GNP per capita income,
travel mobilty and freight mobility of Bangladesh are 1, 2 , 3 respectively. In developed countries GNP per
capita is at satisfactory level. So mobility of transportation also enhances . But in the third world countries
the affluence is at the minimum level. So the mobility of transport is lower down.
In third world countries urban areas tend to be more economically productive (there is less poverty and more
widespread affluence) where mobility opportunities are maximized. Personal mobility strategies currently
provide the least costly and most effective means of point to point mobility throughout urban areas. This is a
principal reason why transferring demand from automobiles to public transport is so difficult. People tend to
use the mobility options that they perceive to best serve their interests. As a result, automobile and
motorcycle based transport is inevitably increasing and will continue to increase especially in middle and
lower income urban areas. At the end it can be said that affluence should be increased to enhance transport
mobility in the third world countries.
Problems of transport
1. Traffic Congestion

1.1 Definition of Traffic Congestion:

Traffic congestion can be defined as the saturation of road network capacity due to increased traffic volume
or interruptions on the road that cause an increase in travel times. Traffic Congestion is also known as traffic
jam. When traffic demand is great enough i.e. interaction between vehicles slows the speed of the traffic
stream, this results in some congestion. So, traffic congestion is a condition when traffic demand is greater
than the capacity of a road.
1.2 Causes of traffic congestion: The main causes of traffic congestion are presented below:
i. Inadequate road capacity: Capacity of the road is very important for the mobility of the vehicle.
When the capacity of the road is lower than the traffic demand, there occurs traffic congestion.
ii. Increase in number of vehicle: As the population is increasing, the number of vehicle is also
increasing for their transportation. Large number of vehicle creates traffic congestion in the road.
iii. Ineffective capacity management of traffic control system: Presently many drivers are carelessly
driving in the road by violating traffic rules. This ineffective capacity management of traffic control
system creates traffic congestion.
iv. Accidents: When there are accidents in the roads, vehicles cannot move for a long time, which is
another reason for traffic congestion.
v. Construction works: Often we see many construction materials are putting down in the roads. It
hampers mobility of the vehicle. Therefore, it creates traffic congestion.
1.3 Negative impacts of traffic congestion:
Traffic congestion has many negative impacts. These are mentioned below:
i. Waste of time both passengers and motorists: Traffic congestion creates waste of time both
passengers and motorists as they cannot move from the road for a long time.
ii. General delays: Traffic congestion creates general delays for the people. It results in late arrival,
professional and personal losses.
iii. Inability to predict travel time accurately: Both passengers and motorists cannot predict travel
time accurately when there is traffic congestion on the road.
iv. Increase in fuel use: Traffic congestion increases in fuel use. Because in the traffic jam the motorist
has to run the start of the vehicle which increases in the fuel use.
v. Reduce health of both passengers and motorists: Traffic congestion creates various types of
pollutions and these pollutions reduce the health of both passengers and motorists.
vi. Creation of frustration among them: When the passengers and motorists are in the traffic
congestion, it creates frustration among them as they are unable to move for a long time.
vii. Creation of air pollution: Traffic congestion also creates air pollution as it increases fuel use of the
vehicle.
1.4 Measures to overcome traffic congestion:
In order to overcome traffic jam the following steps should be taken:
i. Development of road infrastructure: The road infrastructure should be developed in the urban
areas to overcome traffic congestion.
ii. Separate lanes for user group: To reduce traffic congestion in an economy separate lanes should be
built for user group. When vehicles move from separate lanes, traffic congestion will be minimized.
Page 8 of 33
 iii. Increase road capacity by adding new routes: There are needed new routes to increase the road
capacity. When road capacity increases, traffic congestion decreases.
iv. Increase parking facilities: Parking facilities should be increased to minimize traffic congestion.
Vehicle should be parked in certain places.
v. Proper traffic management: To overcome traffic congestion, proper traffic management is
required. People should abide by the traffic rules.
vi. Proper management of construction materials: Construction materials should not be put down in
the road. It will ensure the mobility of the vehicle which will reduce traffic congestion.
vii. Prevention of accidents: Drivers should be more conscious when they are driving. It will minimize
the number of accidents. Where there are fewer accidents in the road, traffic congestion will be
minimized.
So, at the concluding stage we come to a conclusion that, as traffic congestion is not desirable to
us, we have to take above necessary measures mentioned above to overcome traffic congestion.
Traffic congestion:
Traffic congestion:
Traffic congestion is a condition when traffic demand is greater than the capacity of a road. It is well-known
as traffic jam. It is characterized by a condition on a network as use increase, slower speed and longer trips.
1. Main causes of traffic congestion:
1.1. Increase in number of vehicles is responsible for traffic congestion.
1.2. Change in mode share is also responsible for traffic congestion.
1.3. When construction works are running any road we can see there traffic congestion.
1.4. Increase in number of accident is also responsible for traffic congestion.
2. Negative impacts of traffic congestion:
2.1. It creates waste of time both passengers and motorists.
2.2. It generates delays, results in-
 Late arrival
 Professional losses
 Personal losses
2.3. Due to it we cannot predict travel time accurately.
2.4. It increases in fuel use.
2.5. It reduces health of both passengers and motorists.
2.6. It creates frustration among them.
2.7. In case of emergencies, it creates intolerable situation.
2.8. It creates air pollution.
3. Measures to overcome congestion:
Traffic congestion is not our desire. In order to alleviate it following steps can be taken:
3.1. To development of road infrastructure we can overcome traffic congestion.
3.2. If user group uses the separate lanes then we can overcome traffic congestion.
3.3. To increase road capacity by adding new routes we can overcome traffic congestion.
3.4. To Increase parking facilities we can overcome traffic congestion.
3.5. To develop the traffic management we can overcome traffic congestion.
3.7. School opening time can be arranged to avoid peak hour traffic.
3.8. To prevent of accidents we can overcome traffic congestion.
2. Congestion pricing:
Congestion pricing gradually becomes popular all over the world. Congestion pricing is an efficiency
pricing strategy that requires the users to pay more for that public good, thus increase the welfare gain or net
benefit for society. Congestion pricing is one the alternatives demand side strategy offered by economists to
address congestion.
Folwing table shows the year of introducing congestion pricing of some famous cities in the world.
Name of the city Year
Singapore city 1975
Rome 2001
London 2003
Stockholm 2006
Milan 2008
To mention about congestion pricing we shall illustrate two different aspects in the following:
2. 1) Positive sides of congestion pricing:
2.1.1 Congestion pricing is helpful to reduce traffic jam.
2.1.2 Proper utilization of the services of vehicles can be ensured.
2.1.3 Transpotation cost will reduce.
Page 9 of 33
 2.1.4 People will discourage to buy more vehicles than their necessity.
2.1.5 Fuel consumption will decrease.
2.1.6 Congestion pricing is helpful for the overall transportation development.
2.2) Problems in implementing congestion pricing system:
2.2.1 People donot take it spontaneously.
2.2.2 It is a public sensible issue.
2.2.3 Congestion pricing system increase cost of vehicle owner.
2.2.4 Politicians donot interested to implement this system due to public dissatisfaction.
2.2.5 Middle-class motorist faces a problem to pay high price.
Even the transport economists who advocate congestion pricing have anticipated several practical
limitations, concerns and controversial issues regarding the actual implementation of this policy. Critics also
argue that charging more to drive is elitist policy, pricing the poor off roads so that the wealthy can move
about unencumbered. It is for all these reasons peak-period pricing remains a pipe-dream in the minds of
many.
3. Urban Sprawl
Urban sprawl is the unchecked spreading of a city and a haphazard growth of urban and suburban
throughout a larger demographic area. In transport economics urban sprawl is a crucial subject matter. It has
some sorts of linkages with transportation system. Not only that but also it creates some side effects on
environmental, social life and economic life.
3.1: Urban sprawl:
In easy words, urban sprawl is the unplanned development of the city included in urban area.
It also can be depicted as the unplanned, unorganized, uncontrolled spreading of urban development. In the
end urban sprawl is the unorganized growth of housing pattern.
3.2: Linkage between urban sprawl and transportation:
Urban sprawl is a major problem for transportation development. It hampers planned development of city.
There are some linkages between urban sprawl and transportation.
i. Costing: It is not economically efficient as it creates most of private, public, social cost that are not
adequately captured.
ii. Long transport distance to work: It creates long transport distance to work that is not economically
feasible.
iii. High car dependence: Due to urban sprawl, usage of car may be increased that makes high car
independence.
iv. Travel time: It increases long travel time that is not economically feasible also make dead weight loss in
man hour.
v. Standard of living: It increases actual transport cost and degraded the standard of living. As transport
cost increases, living expenses also increase that resulted in degradation of living condition of people.
vi. Parking facilities: It decreases parking facilities and that’s why it causes traffic congestion. Therefore it
hampers the transportation development.
vii. Transaction problem: It creates transaction problem due to long transport distance and excessive
transport cost that is not economically feasible.
3.3: Side effect of urban sprawl:
i. Loss of farm land: It makes the loss of farm lands. In many areas urban development pressure and
increased property taxes are forcing farmers out of business. They often sell their farms for housing
development.
ii. Loss of wild life: It creates the loss of wild life. Wild forest and wit land are also disappearing and
replaced by pavement, buildings and sterile urban landscaping.
iii. Air pollution: It increases air pollution. Sprawl enhances car and truck traffic that leading to major
increases in air pollution. It is being threat for public and wild health.
iv. Misuse of water: It makes the improper usage of water and cause pollution. Sprawl increases water
pollution which falls out to become water pollution. In addition, urban activities create water pollution
directly through land run off of construction erosion, fuel spills, oil leaks, paint spills, lawn chemicals
and pet waste.
v. Energy consumption: It increases the energy consumption. When it needs to decrease energy usages
then sprawl enhances the usage of it. Sprawl development increases energy consumption per person for
increasing gasoline, home heating and electricity use.
vi. Social fragmentation: Urban sprawl also causes some social fragmentation. It creates the loss of time.
People are forced to spend more time commuting for longer distance for sprawl and accelerate the loss
of time. It also increases private cost and risk. It degrades normal habitation environment and natural
condition too. It damages tourism industry. These are the prime reason why social fragmentation takes
place by dint of urban sprawl.

Page 10 of 33
4. Causes of Urban Sprawl:

Generally unplanned development of a city included in the urban area is called urban sprawl. It is low
density, automobile dependent development beyond the edge of service and employment areas. It can be
loosely defined as low-density residential area that is outside the borders of higher density urban centers.
There are some reasons behind it. Those are given below:

i) Rapid population growth: An increase in residents beyond the capacity of nearby urban centers
requires the creation of new communities. As the population continues to increase, communities begin to
spread farther away from centers.
ii) Infrastructural improvements by subsidization: One condition that encourages urban sprawl occurs
when municipalities subsidize the cost of infrastructure such as roads and sewer to undeveloped or
underdeveloped areas.
iii) Consumer preferences: One of the causes of urban sprawl is to quantify the preference of consumer.
Some people simply prefer more space or more home square footage than what is affordable or available
in more crowded city centers.
iv) Lack of comprehensive planning: Due to the lack of proper planning in city areas, the urban areas are
being crowded day by day. If uncontrolled and unplanned growth of housing cannot be controlled, urban
sprawl will be occurred.
v) Government policies: Due to lack of proper government policies, urban sprawl has extended day by
day. When the infrastructural facilities in the urban centers by government cannot be provided properly,
the people are becoming interested to live in the side of urban areas. And urban sprawl is created.
vi) Cheaper land and housing costs: In the sub urban areas, the land and housing costs are lower than the
urban centers. And it has attracted many to settle in these areas.
vii) Higher property and business taxes: In the center of the city we know that the tax is generally high.
And it is pushed businesses to the suburbs where taxes are generally low.
viii) Other opportunities: There has been an increase in public spending for the development of
infrastructure like roads, water and electricity in the suburbs than in existing urban centers, thus adding
benefits to life in sprawls.

Urban sprawl is the later stage of urbanization and is an inevitable phenomenon. Those are the main reasons
of urban sprawl. Just like every other process urban sprawl has its own pros and cons. However, the negative
aspects of urban sprawls can be neutralized by monitoring their growth in a planned way, the economy will
be benefited.

5. Link between Urban Sprawl and Congestion:

Urban Sprawl: Urban Sprawl is the unplanned, uncontrolled and disorganized spreading of urban
development into areas adjoining the edge of a city. It is the unchecked spreading of a city or its suburbs
over rural land at the edge of an urban area. Urban sprawl negatively impacts land, water quantity and
quality and with so on and closely linked to a decline in social capital.
Congestion: Congestion, commonly known as traffic congestion, is a condition on any network as use
increases and is characterized by slower speeds, longer trip times and increased queuing. Its most common
example is for physical use of roads by vehicles. It occurs when traffic demand is greater than the capacity
of a road.
Link between Urban Sprawl and Congestion: It is found that there is a positive correlation between
Sprawl and Congestion. For the positive correlation between the two, if urban sprawl increases, congestion
also increases and vice versa. Actually, the probable link between urban sprawl and congestion can be
shown in case of the followings:

1. Long Transport Distance to Work: Urban sprawl through causing long transport distance to work
causes congestion and increases human sufferings.
2. High Car Dependence: For the causes of urban sprawl, there occurs high car dependence and
congestion becomes severe.

Page 11 of 33
3. Waste of Time: Urban sprawl causes waste of time of both passengers and motorists and increases
travel times in case of late arrival, professional losses and personal losses.
4. Rise of Transportation Cost: Urban sprawl and congestion are actually linked with rising of
transportation cost.
5. Reduce of Parking Facilities: Parking space is minimized for the causes of urban sprawl and
congestion.
6. Creation of Transit Problem: Transit problem is created for urban sprawl and congestion.
7. Unpredictable Travel Time: Travel time can’t be predicted accurately for congestion and urban sprawl.
8. Increase in Fuel Use: A huge amount of fuel is being used for congestion and urban sprawl.
9. Frustration: Congestion and urban sprawl create frustration of both passengers and motorists.
10. Emergent Cases: In cases of emergent situation congestion and urban sprawl are the causes of great
troubles.
Recommendation: As urban sprawl and congestion cause great troubles and sufferings for people in
many respects, so both problems should be reduced as best as possible through the application of
congestion tax, applying taxes on auto use, gasoline tax, parking tax and capacity expansion of road
space and so on.

Transport Supply
1. Factors Affecting Transport Supply

Transportation means the conveyance of person or goods from one place to another. All the nation of the
world has realize that the development of transportation is essential for economic development because it
reduces the total cost of production and distribution. According to Stanton "a system of handling the
physical movement of goods services from the place of origin to the destination as fast as possible at a low
cost and with safety and security."

 Factors Affecting Transport Supply:

i) Availability of Different Modes of Transportation: Now a day’s export cargo moves on

various mode of transportation. If the air services are available to an exporter of flowers or
vegetables his product can reach overseas markets in fresh condition and in time. However, in
absence of air services one has to depend upon refrigerated to carry his cargo to the nearest port
or air port. This also causes delays in arrival of the cargo of the destinations. Efficiency of
logistics system depends upon the availability of various modes of transportation so why the
supply is changed.
ii) Availability of Infrastructure: Infrastructure is the backbone of industry in any country. If the
infrastructure of the country is strong, its industry can prosper.

iii) Location of Manufacturing Plants: Normally the manufacturing plants are located either close
to the source of raw material or close to market. In such case, if the manufacturing plant is close
to the port or airport, the movement of material would be easy.

iv) Government Policies: Logistics system needs to be designed by the rule, regulation and policies
of exporting and importing country’s government.

v) Cost of Transportation: There is direct relation between cost, speed and flexibility with the
choice of transport. The cost decrease as we go from air to road transport, to rail transport, to
waterways and it affects the supply of transport.

vi) Technical Improvement: With the improvement of technical equipments the transportation
system becomes more easy and cost effective and makes people habituated with it.

vii) Weather: Weather condition of an area greatly effects on the supply of transport.

viii) Availability of Energy: Energy is such a factor which beings people on it and it greatly affects
the transport system to change the supply of transport.

ix) Financial Capacity of Transport Service Provider: It works just like a power and changes the
transport supply.

Page 12 of 33
 x) Income of Passenger: Due to the change in income there comes the change in demand and that
affects the supply of transport.

2. Regulation and Competition:

Regulation of the supply of transport capacity relates to both safety regulation and economic regulation.
Transport economics considers issues of the economic regulation of the supply of transport, particularly in
relation to whether transport services and networks are provided by the public sector (i.e. socially), by the
private sector (i.e. competitively) or using a mixture of both. Transport networks and services can take on
any combination of regulated or deregulated and public or private provision. For example, bus services in
the UK outside London are provided by both the public and private sectors in a deregulated economic
environment ( where no one specifies which services are to be provided, so the provision of services is
influenced by the market), whereas bus services within London are provided by the private sector in a
regulated economic environment ( where the public sector specifies the services to be provided and the
private sector competes for the right to supply those services-i.e. franchising).
The regulation of public transport is often designed to achieve some social, geographic and temporal equity
as market forces might otherwise lead to services being limited to the most popular travel times along the
most densely settled corridors of development. National, regional or municipal taxes are often deployed to
provide a network that is socially acceptable (e.g. extending timetables through the daytime, weekend,
holiday or evening periods and intensifying the mesh of routes beyond that which a lightly regulated market
would probably provide). Franchising may be used to create a supply of transport that balances the free-
market supply outcome and the most socially desirable supply outcome.
Regulation and competition in the urban transportation

The aim of regulating urban transportation, whether private or public is to correct the distortions of the
market in its role as a process for allocating resources in the transportation sector. Free market competition
is unable to secure all of the necessary conditions for efficient public transit services, the important
deficiencies being the following:
a) The bus fares that appear in a free market do not show a competitive equilibrium given that the first bus
to arrive at a stop can always charge a premium over and above those that follow due to the cost to the
user of waiting and the uncertainty regarding the next buses’ fares. This results in important transaction
costs for riders attempting to choose among different service providers. Competition therefore tends to
raise fares rather than increase them.
b) Competition among various bus operators emphasize on policies for capturing as many users as
possible. In high-demand areas, for instance, drivers race to arrive first at each stop or wait at heavily
used stops to capture additional passengers. Such practices decrease safety and therefore the quality of
service, creating negative externalities for riders aboard the bus.
c) Free competition between services creates incentives for buses to agglomerate on the important traffic
arteries, which is undesirable, and to develop service to new urban development and adjust to changing
needs for connectivity (a new shopping centre, hospital, suburb, etc.), which is desirable. But such
competition should not occur along the same routes. Other competition alternatives exist that avoid these
negative phenomena, such as network overlap.
d) Coordination problems tend to grow as the number of operators in a given management unit increases.
This effect can be observed in behavior such as the minimal decline in supply in off-peak periods and the
lack of integration between routes.
e) Public goods shared by various operators suffer from under investment. This is especially true of bus
stops and terminals. Clearly, then, public transit cannot be left to regulate itself through free competition
and must be subject to some government intervention. The optimal regulatory mechanism will depend,
among other things, on how the problem of inefficient modal split is addressed. One of the well-known
principles of welfare economics is when two or more related markets all have distortions, a measure that
correct one of the markets but not the others may lead to a more inefficient allocation of resources than
when the degree of distortion is the same in all of the markets.
Regulators responsible for setting infrastructure access prices are frequently accused of allowing too high a
rate of return on capital cost. The risks of setting rates too low are, however, higher than setting them too
high as investments simply would not be made undermining quality of service and deterring expansion. This
illustrates the risks associated with much regulatory intervention to promote competition. It is also a factor
in explaining the advantages of structural remedies over behavioral remedies to prevent potential market
power abuse.

Page 13 of 33
 Section- B
Road Transport
1.Animal Transport
In general, transport means the movement of people, cattle, animals and goods from one place to another
place. In other sense, transport means the vehicle which carries ideas and inventions to the peoples of
different countries and has considerably contributed to the evolution of civilization. From the surface point
of view transport has been divided into three kinds:- (a) Land transport; (b) Water transport and (c) Air
transport. Land transport has again been divided into four kinds:- (i)Human porter; (ii)Animal transport;
(iii)Road transport and (iv)Railway transport. Animal transport is considered to discuss in this paper.

Animal-powered transport is a broad category of the human use of non-human working animals (also
known as "beasts of burden") for the movement of people and goods. There are a number of places in the
world where the number of the beasts of burden is very large. Animals are the only means of transport in
those areas which are now-a-days, regarded as under-developed and backward. Humans may ride some of
the animals directly, use them as pack animals for carrying goods, or harness them, alone or in teams, to pull
sleds or wheeled vehicles. Animals are superior to people in their speed, endurance and carrying capacity,
prior to the Industrial Revolution they were used for all land transport impracticable for people and they
remain an important mode of transport in less developed areas of the world. There were so many animals
which were used for transportation. These are given in a following table:
Animals domesticated for transport
In the air On land On water
pigeon i. camel (Arabian and Dolphins (to carry markers to
Bactrian) attach to detected mines)
ii. carabao,
iii. dog (sled dog,
Dogcart)
iv. elephant
v. equine (pack horse,
draught horse, riding
horse, coach horse,
donkey, mule, hinny)
vi. llama
vii. moose
viii. ostrich
ix. ox
x. reindeer
xi. sheep
xii. yak

Page 14 of 33
 In Australia camels were used to transport mail and supplies from Oodnadatta to Alice Springs until
around 1929 when the railroad superseded it. The journey of around 520 kilometers took Afghan cameleers
around four weeks. The service was celebrated by descendants of the cameleers in 2002. In the
Mediterranean region, donkeys and mules are generally employed in transporting commodities. This animal
can carry a load of 300 pounds. Dogs were used to deliver mail when pulling a dogsled. Dogsled mail saw
limited use in the northern parts of Alaska and Canada during the Klondike gold rush (1896–1903). In the
early years of Alaska settlement, there was no regular mail service to the interior post offices during the
winter months (October to May), although individuals might agree to transport letters to coastal areas.
Regular service seems to have begun around the 1910s, replaced in the 1930s by small aircraft. The elephant
is the common beast of burden in countries like Burma, Ceylon, Thailand, Malaya, etc. It is of great service
in marshy lands and thick jungles. An elephant can clutch a load of 1,000 pounds with great ease; but its
sluggish speed is a great handicap. Besides these animals, yaks in Tibet, sheep on the Himalayan range,
bikuna in rockey areas and goats in Turkey are very helpful in transport. Regular mail delivery is now
provided by horses in limited areas where other forms of transportation are not practical. For example, some
towns in mountainous parts of Sichuan and Tibet, in China, are served by horse couriers. The village of
Supai, in the bottom of the Grand Canyon of Arizona, United States, is served by a regular mule train from
the canyon's rim. Horses were a primary method of delivering mail and messages for many years in different
countries around the world. Riders on horseback could take small bundles quickly, while carts pulled by
horses could take large amounts of mail very long distances. From around 1899 reindeer were used to
deliver mail in Alaska for the U.S. postal service. Distances of 30–50 miles were covered by the service with
the reindeer carrying up to 300 pounds (140 kg) of mail. Horses and dogs are equally serviceable in Russia,
Poland, Denmark and etc. Many advantages have been claimed for animal transport. No special track is
required for this means of transport. Animals are ready to resume transportation service after a brief interval.
This form of land transport is very cheap and a very small amount of money is required for its maintenance.
The question of repairs does not arise as in case of other forms of transport.
From the above discussion it is said that the animal transport is a very ease, cheap and low cost
maintenance transport in the world. But it consumes a lot of time of the passengers. So as a land transport
animal transport is not worse than other transport.
1. Characteristics of Road Transport
Every means of transport has certain characteristics. Road transport has competition with rail transport that
is the other part of land transport. Railways are the most economical means of transport as this mean can be
used for carrying hundreds of passengers or thousands of tones of commodities for long journeys. Water
transport by ships or steamers is also very economical but very slow. Air transport is the fastest among all
the means of transport but very costly. And now the enumeration of the characteristics of road transport:
i. Small investment: Road transport requires small investment for the development of roads and cost of
operation of road vehicles.
ii. Multipurpose nature: Roads possess the special characteristics of being used by various means of
transport such as motor cars, buses, trucks, motor rickshaws, cycle rickshaws, horse carriages, camel and
bullock carts etc.
iii. Full freedom of movement: In road transport, the owner of a means of transport has complete freedom
to pay it on any road or transfer it from one road to the other according to his need and convenience.
iv. Less dependable and less safe: Road transport vehicles are less dependable than others. Besides, they
are not always safe for having mechanical defects and overcoming tendency of the drivers.
v. Flexibility of road services: Road transport provides without any extra charge, a flexible service which
can’t be provided by the other means of transport. As for example, when a passenger bus is reserved for
pleasure trip or other purposes, it comes to the very door of the people which is impossible for the other
means of transport.
vi. Economy of time: As road transport is meant for short distances, there is no question of time when
goods are in transit. But incase of rail transport, time is unnecessarily wasted due to long journeys-
loading and unloading.
vii. Working expenses beyond control: In road transport, the factors behind working expenses are beyond
the control of the owners of the road vehicles. For example, duties charged by the Union and State
government- import duty on petrol consumption, vehicles, parts and accessories, levied by the Union
government; registration, license fees etc.
viii. Diversity of interests: The interests of road authorities and road users are quite different- authorities
being the Union and State governments and district boards. The construction and maintenance of roads is
their responsibility where as the owners of the vehicles concerns the road use only.
2. Metal, Non-metal and Earthen Road:
Metal Road
Metal roads are the soul road of a country. These roads are constructed for the good communication of a
country. Generally broken stones are used for making roads or railways. These kinds of roads are called
Page 15 of 33
Metal roads. These roads are made mainly for protection of rainy season. Metals generally conduct heat well
and in solid form are relatively malleable and ductile compared to other solids. They are usually shiny and
opaque. All metals except mercury are solid at room temperature.
Small stones or gravel, mixed with tar to form tarmac for the surfacing of roads.
Usage most metallic elements are lustrous or colorful solids that are good conductors of heat and electricity
and readily form ionic bonds with other elements. Many of their properties are due to the fact that their
outermost electrons, called valence electrons, are not tightly bound to the nucleus. For instance, most metals
form ionic bonds easily because they readily give up valence electrons to other atoms, thereby becoming
positive ions. The electrical conductivity of metals also stems from the relative freedom of valence
electrons. In a substance composed of metals, the atoms are in a virtual "sea" of valence electrons that
readily jump from atom to atom in the presence of an electric potential, creating electric current.
Non-metal Road
Non-metals roads are the opposite of Metal road. Non-metal elements are the main of non-metal roads.
Non-metal roads are not used for heavy communication. These roads are made for fix time communication.
Then it is constructed for permanent communication. Non-metals are electronegative, which means that they
are able to gain electrons when bonding with metals. Apart from the noble gases, the non-metal elements
have incomplete outer electron shells, and so try to gain enough electrons to fill them. The noble gases do
not react because they already have complete outer electron shells. The type of bonding where ions are
formed is known as ionic bonding. Non-metals may also share electrons with other non-metal elements to
complete their outer shell; this type of bonding is known as covalent bonding.
Earthen Road
Earths roads are kacha roads. These roads are made in the rural areas. Earths roads become unable to use in
the rainy season. These roads are more suitable for communication in the dry seasons. Developing and under
developing countries construct these roads. Its construction cost is low but it breaks frequently. So these
roads are not favorable for economic development.
3. Opportunities of Road Transport
Every means of transport has certain opportunities. In ancient time when people moved nomadically in
search of food, beaten paths or tracks were the only means of communication. The importance of roads
came to be realized only when organized governments were established. Road transport provides huge
possibilities as compared to air transport and water transport. The opportunities of road transport are given
below:
Small investment: One of the most important opportunities of road transport is that it requires a small
amount of investment as compared to other means of transport. The cost of operation of road vehicle, as
compared to that of other forms, is low.
Availability of different types of vehicle: Whereas rail tracks are used by railway only, the ocean surface
by ships and steamers only, river and canal by steamer and boats only. In case of road transport, several
types of vehicles like motor cars, buses, trucks, motor rickshaws, horse carriage, camel etc can run at a time.
Full freedom of movement: The owner of a means of transport has complete freedom to ply it on any road
or transfer it from one road to another according to his need. Such a freedom of movement is not possible in
railways. There is another advantage. A motor bus or a lorry can be easily converted into a load-carrying
vehicle with a few alterations only.
Flexibility of road services: Road transport provides, without any extra charge, a flexible service. Door to
door transport services are also possible in case of road transport. This opportunity provides a great
convenience to business community. Such facility cannot be provided by railways because stations cannot
be constructed everywhere.
Economy of time: In other types of transport delays occur due to long journeys, loading and unloading or
any other reasons beyond the control of the authorities. Thus, time is unnecessarily wasted. In case of road
transport, availability of vehicles saves time.
Cheaper transport: Road transport is cheaper as compared to air transport and water transport. Besides,
due to availability of different types of vehicle, competition among vehicle owners reduces the cost of
transport.
Rapid speed: Road transport is faster as compared to other modes of transport. Availability of vehicle helps
people to find a way to move that reduces the time wastage.
Low packing cost: The process of packing in road transport is less complicated as compared to other modes
of transport. Goods transported by motor transport require less packing or no packing in several cases.
Private owned vehicles: Another advantage of road transport is that big businessmen can afford to have
their own motor vehicles and initiate their own road services to market their products without causing any
delay.
Convenient for all class of people: Due to cheaper and faster transport, road transport is convenient for all
class of people. People find road transport as the easiest way of movement. Most of the people move from
one place to another through road transportation system.
Page 16 of 33
Road transport is the most flexible and easiest way of movement. At the time of necessity, by road transport
people move from one place to another place easily. Vehicle is available in case of road transport. Risk is
also low in road transport as compared to water and air transport. So, road transport is the most favorable
way of movement to people.

4. Economic Significance of Road Transport:

Road transport is an imperative category of land transport system for the internal routs of the country. In
case of land-locked countries the economic significance of road transport system is more crucial than the
others. From the primeval time road transport system is used for the movement of human being from one
place to another place. Several types of carriages are used for the transport in road such as bullock cart,
human porters like rickshaws, bicycles; buses, tramways etc. The gradual development of road transport is
seen accordingly by the time being. Economic importance of road transport is very considerable for an
economy. Now the economic importance will be pointed below and explained briefly:

5.1. A general overview of economic significance of road transport at a glance:

5.1.1 Reduces dead-weight loss: An improved road transport system reduces traffic congestion and thus it
decreases the consumption of time and consequently it also trims down the loss of human working hour. So
it decreases the dead-weight loss in the road.

5.1.2 Maximizes the utility of goods: Goods can be transported from one place to another by the improved
road transport system timely. Thus, utility of goods is maximized.

5.1.3 Helps to earn more profit: Transport is needed for the production process. It increases the supply of
raw materials for producing final goods and also flexible the supply of goods in the market. Increasing the
utility of human and goods it helps to earn more profit by decreasing loss.

5.1.4 Ease the gap between backward and forward linkage: In case of industrial development gap
between backward and forward linkage is acted as a negative role. By the proper transportation of primary
goods this gap can be reduced and industrial production can be accelerated.

5.1.5 Rise of economic mobility: There are various indicators of road economic mobility one of them is
developed road transport system. Good road transport system indicates the rise of economic mobility. There
is a positive relationship between economic mobility and good transport system. Each other is dependent on
either.

5.1.6 Stabilizes the price of goods: It is seen frequently in case of perishable goods. The characteristics of
perishable goods are known to all. If the perishable goods can be transported timely in the local market then
the price can be stabilized.

5.1.7 Economic growth is achieved: Government can achieve economic growth by the improved
international trade regulations for cross-border shipment of goods. The above discussion indicates the
indirect benefit of achieving economic growth by road transport.

5.1.8 Reduces the peak demand problem: Peak demand creates the problem of traffic jam. But if the
road transport system is developed and private transport is restricted then the congestion will be lowered
down. Strict regulation also reduces the peak demand problem.

5.2 The other economic indicators of road transport:

5.2.1 Trade development: This is more effective for the land-locked countries. It also increases
international trade of neighboring countries. It smoothes good transport form one place to another which
smoothen the trade by changes in custom duties and means of collection, improved safety regulations.

5.2.2 Travel fair and cost reduction: It increases the availability of internal transport and travel service at a
low given price. For this reason, travel cost in trimmed down and more tourists will be eager to travel in the
certain country.

Page 17 of 33
 5.2.3 Equity among supply and cost of transport: It reduces cost of transport for any given level of
supply. If the supply is not more than the demand and the capacity of road then the public transport system
will be improved. If public transport is improved then the cost of internal transport will automatically be
reduced.

5.2.4 Improve transport oriented market: It expands the size of markets which is depended on the
transport. Mainly the vegetables and fish markets are example of such kind of market.

5.2.5 Achieve individual affluence: It creates new income opportunities for the poor people from the road
transport. By industrial development economic affluence is achieved.

These are the economic significance of road transport system in a country. So to develop like security along
the roads, changes in regulations of governing economically, it is very important to improve the road
transport system of a country.
5. Political Significance of Road Transportation System:

Road transportation performs great political functions. The programmes of transport development occupy a
significant place in the development of a country. Road transport has been seen as a basic infrastructure
which is crucial for the success of a developmental plan. An efficient and well developed system of
transport and communication is vital to the success of a plan of economic development which lays stress on
rapid industrialization. In this case government is the pioneer of those plans and development. So road
transport has a great political significance in every country of the world. Some distinguishing features can be
traced out to observe the importance of political significance of road transportation system.

i. A good transportation system raises the standard of living, makes possible improved housing, clothing,
food and recreation. A government has a great role in the infrastructure development and development of
the country.
ii. As government wants to make a peaceful country, it helps government to break the barrier of isolation
by promoting social interaction and thus promotes culture and intelligence, especially in a country of
small and large size and population.
iii. It promotes national unity as well as it promotes homogeneity among the people. Another reason is that
it creates a need for political unity, by making the different parts of the country economically
interdependent.
iv. Transport frequently is an issue in national security. Policies are developed to establish sovereignty or to
ensure control over national space and borders.
v. It helps in strengthening national defense. It is an important agency which helps in the mobilization of
the entire resources of a country in the event of war and peace.
vi. In modern world, transport along with energy is the basic infrastructural requirement for
industrialization. The developing countries have accorded it an important place in their programmes of
economic development. Transport provides a vital link between production centre, distribution areas and
the ultimate consumers. It also exercises a unifying and integrating influence upon the economy.
vii. A good road transportation system also helps to make a good relation with foreign country as well as to
earn foreign currency by providing transit and transshipment.
viii. Because of the lack of proper collaboration and legality of the government the World Bank has denied
providing fund in the Padma Bridge which has slowed down the development of the southern part of
Bangladesh.
After all governments often perceive that it is their role to manage transport systems due to the important
public service they provide in addition to impose a regulatory framework. So for the development of a
country a good transportation is required and government has a great influence in this issue.

6. The Problems of Road Transportation System:

Broadly transportation system is divided into three categories. Land transport is one of them and road
transport is the part of land transport. Though it easies the transportation system, it have some problems. It is
discussed briefly in below:
i. Cost of vehicles: The cost of vehicles such as buses, cars, trucks etc. is relatively high than other
transportation system. As so, sometimes rent which is paid by the passengers is high in this way.
ii. Slow speed: The speed of road transport vehicles is relatively slower than other means of transport
service. So it needs more time to reach the destinations.

iii. Limited carrying capacity: Almost all the road transport vehicles suffer from limited capacity. The
carrying capacity of animal vehicles is very limited such as the animal carts, trucks, buses etc. Most of
Page 18 of 33
 the carriages of road transport cannot carry more passengers and goods due to its limited carrying
capacity.
iv. Higher frequency of accidents: There is higher frequency of accidents on road transport than other
means of transport. The desperate behavior of the drivers creates most of the accidents. Most of the
times, they make competition among each other to reach the first position and these events create
accidents.
v. Less reliable: Road transport is less reliable than other means of transport. Such as, there are chances of
occurring road accidents, traffic jam, environmental unfriendly situation etc. on road transport.
vi. Traffic congestion: When number of vehicles is increased, traffic congestion is occurred. Traffic
congestion is a condition when traffic demand is greater than the capacity of a road. Due to this
congestion, required times are wasted for both passengers and motorists. Besides, there have the lacking
of control of traffic way due to more vehicles.
vii. Environmental non-friendly: Due to more vehicles, air pollution, noise pollution etc. is increased
which is environmental non-friendly. And this situation contributes on global warming.
viii. Lack of organization: Road transport is not organized and coordinated properly. Generally in
developing countries, due to corruption, road transportation cannot be developed. The concerned
authorities of roadway transport want to get their own benefits and so they do not concentrate on
developing the road transportation system
Besides, road transportation has more problems such as congested roads, lack of proper management of new
roads construction etc. which hampers our daily life, because most of the people use this transport way. So,
road transport system should be well-planned and organized with proper management, so that road
accidents, traffic jam etc. may be controlled.
7. Road Transport and Externalities
With the development of human civilization the movement of goods and commodities increase from one
place to another place. There are three types of transportation system in the world among them road
transport is one. Road transportation system is the cheapest transportation system after the water ways. It
plays a vital role in any country’s socio-politic and socio-economic development. By the help of road
transport we can easily carry our goods and commodities from one place to another place with low cost and
minimum time. Transport economics provide benefits to their users. As road transport is a part of Transport
economics, Road transport creates both positive and negative externalities. An externality occurs when a
transaction causes costs or benefit to the third party.
Positive and Negative Road Transport Externalities are Pointed Below Sequentially:
8. 1. Positive externalities:
8.1.1. Positive externalities of transport networks may include the ability to provide services. With the help
of road transport the emergency patient can be transferred to the well equipped hospital for developed
treatment.
8.1.2. Increases in land value and benefits: When the development of road transportation occurs then well
established businessman tries to establish their industries in the country side for cheap labor. At that time the
land owner increase their land value because of competition.
8.1.3. People and goods flow over networks at certain speeds: Due to the development of road
transportation system people and goods flow increase in the economy.
8. 1.4. Advanced ticket purchase is often induced by lower fares: Sometimes the passengers can buy
travel ticket with lower fares and they can save their surplus money for the future betterment.
8.1.5. We can know about modern technology with the help of road transport.
8. 1.6. Development of industrial sector thorough the country side because of getting extra benefits to the
government and lower operation cost.
8. 1.7. The poor people get access to the higher education facilities due to shortage of distance.
8.1.8. Information technology spread easily through the country because the development of road transport.
8.1.9. Benefits for political parties to spread their activities through the country.
8.1.10. The country side farmers get actual price of their produced commodity by dint of road transport.
8.2. Negative externalities:
The consideration of these externalities particularly the negative ones is a part of transport economics.
8.2.1.Negative externalities are wide-ranging and may include local air pollution, noise pollution, light
pollution, safety hazards, community severance and congestion.
8.2.2. The creation of potential hazardous on climate change: with the development of road transportation
system the movement of various types of vehicles increase rapidly and the vehicles emit smoke which
contains carbon dioxide that is very harmful for our environment.
8.2.3. Congestion is considered as a negative externality by economists.
8.2.4. Disbursement of polluted politics through the country which is very hazardous for the community.
8. 2.5. Due to development of road transport hijack, robbery, aggression and many others crimes occur
through the country.
Page 19 of 33
 8.2.6. Lost of man working hour due to traffic congestion.
8.2.8. Unplanned road transportation decreases our arable land which causes food shortage for our country.
8.2.9. Due to illegal competition among the drivers frequent accident occurs and many of them die on the
spot and the expense which is expend for treatment as well as vehicles repairing is actual economic loss.
9.Problems of railway transportation system in Bangladesh:
In any economy, the development of a nation highly depends upon the transportation system of that country.
Human civilization changes overtime with the changes of modes of transportation system. Among many
transportation modes, railway transportation system is cheapest and easiest mode of transportation system in
the world. Like other modes of transportation, railway transportation system faces a lot of problems in
Bangladesh which is characterized by highly densely populated country with limited resources. Bangladesh
economy is burdened with major transportation constraints resulting from a combination of factors such as
physical, geographical and historical. The main point of problems that face railway transportation system is
given briefly:
Uneven competition: Bangladesh railway is forced to face the unhealthy competition with other modes of
transport like truck, cargo, bus etc. for loading and unloading goods and passengers.
Shortage of locomotives and route capacity: The length of rail road is not long and does not cover whole
areas of the country in comparison to other road way vehicles. Rail infrastructure is not well constructed.
That’s why it has been suffering from various operating bottlenecks.
Lack of availability of speedy trains: Bangladesh Railway is facing major threats to its long term survival
because of its various lackings. There are not enough longer and speedy trains which are necessary to carry
longer and heaviest trips in whole areas of the country.
Unavailable ticket: Ticket is so much untouchable many times either it is peak time or not. People face
many problems to get ticket with paying high cost than original cost.
Improper time management: People pass hazard time for improper time management of control system
and trains do not come and go proper time.
Lack of productive/efficient employee: There are more human/personnel in Bangladesh railway that
required running any railway systems but most of them are given unproductive and lengthy service that
decreases the demand of this system.
Misunderstanding between management and workers: Most of the employees are not satisfied with their
pay checks and also their service terms and conditions. Besides, misuse of railway 'pass' and such amenities
cause discrimination among the employees.
Insufficient investment: To maintain railway system like infrastructural development, improvement and
adding new trains, training of guards and officers etc. require huge amount of working capital. But our
government body gives very small portion to develop in this system and create many identical problems
Political bias of legislative body: In our country all the systems are influenced by the political Godfather
either directly or indirectly. In such a way, railway system is not out of this biasness. To take appropriate
decision for improving this system is many times hampered by political biasness of corrupted legislative
body.
These problems decrease railway development which causes hamper in economic development but there are
still hopes in Bangladesh railway. It tries improving this system with better human resources management;
this white elephant may come back to life with efficiency and serve the nation and its people.
10. International Routes of Railways
Railways are significant and potential means of transporting men and material over long distance. It is faster
and reliable. It has great influence on economic development of a country. It carries raw materials and
finished products from one country to another country. Thus it promotes international trade. Some
international routes of railways are given below:
I. The Trans-Siberian Railway of Asia: The Trans-Siberian Railway is a network of railways connecting
Moscow with the Russian Far East and the Sea of Japan. It is the longest railway in the world. There are
branch lines to China through Mongolia and Manchuria with service continuing to North Korea. The
Trans-Siberian Railway gave a positive boost to Siberian agriculture, facilitating substantial exports to
central Russia and Europe. The Trans-Siberian Railway also brought millions of peasant-migrants from
the western regions of Russia and Ukraine with it.
II. The Canadian National Railway of North America: It is the largest railway in Canada in terms of both
revenue and the physical size of its rail network. It is currently Canada's only transcontinental railway
company spanning Canada from the Atlantic coast in Nova Scotia to the Pacific coast in British Columbia.
It was privatized in 1995. It was born out of both wartime and domestic urgency. Until the rise of the
personal automobile, railways were the only viable long-distance land transportation available in Canada
for many years.
III. The Canadian Pacific Railway of North America: The railway was originally built between eastern
Canada and British Columbia between 1881 and 1885 (connecting with Ottawa Valley and Georgian Bay
area lines built earlier). It was Canada's first transcontinental railway, but currently does not reach the
Page 20 of 33
 Atlantic coast. Primarily it was the only practical means of long-distance passenger transport in most
regions of Canada. The railway was instrumental in the settlement and development of Western Canada.
IV. The Chile-Argentine Railway of South America: Chile's railways (except for a few dedicated industrial
lines) are operated by the state owned company. The rail system once served the entire country, running
rail lines from Africa in the north to Puerto Monte in the south. Due partly to the nature of the terrain and
evolution in transportation systems, rail travel has suffered greatly at the hands of bus and air competition.
The train usually takes longer time to reach a destination than a bus.
V. The Cape-Cairo Railway of Africa: The Cape-Cairo Railway is an uncompleted project to cross Africa
from south to north by rail. During the time of colonial rule, this plan was initiated at the end of the 19th
century in the attempt to connect adjacent African possessions of the British Empire through a continuous
line from Cape Town, South Africa to Cairo, Egypt.
11. Road Space Rationing:

Road space rationing is a travel demand management strategy aimed to reduce the negative externalities
generated by peak urban travel demand in excess of available supply or road capacity, through artificially
restricting demand (vehicle travel) by rationing the scarce common good road capacity, especially during the
peak periods. This objective is achieved through restricting access into an urban cordon area, city center or
district based upon the last digits of the license number on pre-established days and during certain periods,
usually, the peak hours.
Road space rationing is a condition where regulatory restrictions prevent certain types of vehicles from
driving under certain circumstances or in certain areas. Transport economists consider road space rationing
an alternative to congestion pricing, but road space rationing is considered more equitable, as the restrictions
force all drivers to reduce auto travel, while congestion pricing restrains less those who can afford paying
the congestion charge. Nevertheless, high-income users can avoid the restrictions by owning a second car.

Applications of Road Space Rationing

Road space rationing based on license numbers has been implemented in cities such as Athens (1982),
México City (1989), São Paulo (1997), Santiago, Chile, Bogotá, Colombia, La Paz (2003), Bolivia, and San
José (2005), Costa Rica. The main objectives of road space rationing in Latin American countries are
dropping traffic congestion, restricting consumption of oil and reducing air pollution. Traffic sign used to
warn drivers of the prevailing access restriction into the city centre according to license plate number by day
of the week.
During the discussions regarding the proposal to introduce congestion pricing in New York, the commission
created in 2007 by the New York State legislature to evaluate other traffic relief options, considered road
space rationing based on license plates as an alternative to congestion pricing.
Beijing implemented a similar plan before 2008 Olympics to improve air quality. It was so successful that
the city made it permanent. Some traffic experts prefer road space rationing to congestion pricing because
the restrictions are more equitable and don’t place an undue burden on one segment of the population.
In developed countries sufficient roads are constructed in a planned way designated with several lanes but in
developing countries unplanned roads and hazardous traffic make traffic congestion, pollution and economic
loss. Road Space Rationing may be a perfect measure for a well traffic system in Bangladesh.
Water Transport

1. Lake Transport:

Water transport is an important mode of transport. It may be separated into two general categories: ocean
transport and inland water transport. Among these categories lake transport is an important inland water
transport system. Inland water transport use boats, launches, barges, streamers, etc., to carry goods and
passengers on lake, river and canal routes. These routes are called inland waterways and are used in
domestic or home trade to carry bulky goods. There are many lakes in the world which are used for this
purpose. A few lakes provide local requirements only while others are important from the commercial points
of view. There are five big lakes of North America, namely, Lake Superior, Lake Michigan, Lake Huren,
Lake Erie and Lake Ontario, are very famous. These are called Great Lakes. The Great Lakes is the largest
expanse of freshwater in the world with a unique and diverse landscape. The Great Lakes encompass 16,000
kilometers (10,000 miles) of inland coastal waters, and collectively have been referred to as "the inland
seas" and "the fourth coast of the United States". The Great Lakes are carved by ancient glaciers; these lakes
contain approximately 20 percent of the world's surface fresh-water supply and 95 percent of the surface
fresh water in the United States. These lakes also serve as the focal point of the industrial and agricultural
base of this region by providing a strong marine transportation system. Rivers, straits, canals, locks, and
channels interconnect the Great Lakes, and together form one of the busiest shipping arteries in the world.
There are some other lakes. These are the lakes of Africa-Victoria; Tanganyika and Nyasa and those of
Page 21 of 33
Eurasia- Caspian and Baikal. These lakes satisfy local requirements only. Many times it is found more
economic to send commodities by lakes than railway or road transport.

The main advantages and disadvantages of lake transport system are the following:
1.1 Advantages:
1.1.1 Cheapest traffic means: Lake transport system has the cheapest traffic means. It needs low cost for
maintaining the traffic system.
1.1.2 Most important in security of nation: As this is a type of inland water transport system for this
reason it ensures the safety of the nations.
1.1.3 Significant in international trade: This way of transport system plays important role in
international trade. Lake transport system is a cheapest mode of transport and also helpful to carry
some sort of specific type of goods and commodities. As a result it helps to spread the international
trade.
1.1.4 High load carrying capacity: It possesses high load carrying capacity. It is the easiest way to carry
bulky and heavy goods.
1.1.5 Requires cheap motor powers: In this way it requires cheap motor powers than for other means of
transportation like airplanes.
1.1.6 Does not require any special infrastructure: Lake transport system does not require any special
infrastructure like roads, and airports.
1.1.7 Brings many countries together: Through the lake transport system unity among the nations
increases. Many times the lakes are passed through different countries which help to bring many
countries together.
1.1.8 Relatively economical mode of transport: It is a relatively economical mode of transport for bulky
and heavy goods. In this way it is possible to transport large volume of merchandise goods and also
suitable for products with long lead time.
1.2 Disadvantages:
1.2.1 Slow in speed: The speed of motor transport is comparatively slow and limited. This mode of
transport is unsuitable and costly for transporting cheap and bulky goods over long distances.
1.2.2 More chances of attack: There are more chances of attack on boat sailing through. Because most of
the time these lakes are passed through different places. For this reason it is not so safe mode of
transport.
1.2.3 Seasonal nature: This way only can be used when sufficient water is available. That is why it is
seasonal in nature. As a result it is not so effective all the time.
1.2.4 Special maintenance is required: As this transport system is seasonal in nature so special
maintenance for water tightness of boat is required.
1.2.5 Affected by weather conditions: It is adversely affected by weather conditions because in rough
season this way is not so safe for transportation.

In fine it can be said that in spite of these drawbacks the lake transport system has huge possibility to
contribute in an economy.
2. Differences between Tramp and Liner:
In the past days, oceans were considered a large barrier in the waterway. However, in the modern time they
are more advancing instruments for international trade. Up to 1824, sailing vessels were used. Now a day,
the importance of steamers and diesel ships has increased. From the viewpoint of service, water ships have
been divided into two categories:
(a) Tramp and
(b) Liner.
Definition of Tramp: A Tramp Service is a ship that has no fixed routing system, journey, or schedule and
is available at short notice.
Definition of Liner: A liner service is a ship that has fixed route and schedule and with a high level of cargo
safety.
Differences between them are pointed out below:

1. Tramps leave the port whenever they get cargo. However, liners do not need to do this.
2. Tramps mainly carry heavy and bulky goods on the other hand liners carry passengers, perishable
goods and valuable commodities.
3. Liner shipping is more efficient mode of transport than tramp shipping.
4. In the tramp shipping the freight rates are not fixed, on the other hand in the liner shipping the freight
rates are fixed.
5. In one year, a single large liner can carry over 200,000 container loads of cargo. A big tramp usually
carries 8,000 to 10,000 tones of goods.
Page 22 of 33
These are the main differences between tramp and liners. However, they have some similarities also. These
are:

(i) Large Loads: As time progresses, so does the size, science and structure of ships. Today, they
are relied upon for an assortment of tasks that still cannot be done as successfully through other
means. The primary advantage of ships is their ability to carry tons of merchandise and
equipment. They transport many of the world's finite resources, including oil and coal.
(ii) Low Cost: The secondary advantage of liners and tramps is their low cost. Transporting goods
across the sea is much cheaper than carrying them through the air, mostly due to the massive
quantities that can be delivered at once with a tramp or liner. Shipping via air cargo would
require several planes costing much more in fuel to equal the load of a ship.
(iii) Time: Unfortunately, liners and tramps have disadvantages too. Although ships are better than
planes for cargo loading, they are much slower than airplanes. Liners and tramps can travel for
days and even weeks to deliver cargo. In many industries where time is of the essence, this can
be a central issue. Although rare, problems with sinking or crashes can occur. Tankers that carry
oil can cause a significant environmental impact if a catastrophic event takes place.
Besides these tramp and liner, services have impact on global economic engine, low environmental impact
and efficiency in renovation of commodities, goods and services. They also connect countries, markets,
businesses and people, allowing them to buy and sell goods on a scale not previously possible. Today, the
liner shipping industry transports goods representing approximately one-third of the total value of global
trade.
3. The Possibilities and Opportunities of Water Transport:
Transport is a service which helps to carry goods and services from one place to another. Water transport is
based on water ways to transport human and goods from one place to another. Water transport includes
canals, lakes, rivers and ocean transports. The water transport has a great importance for the economic
development of any country. However, in recent times the importance of this mode of transport has declined
considerably with the expansion of road and rail transport, still there is huge opportunities in this transport
system. The possibilities and opportunities of water transport are discussed below.
i) Cheap cost of transport: The way of transport is a very important element. For water transport
there is no cost to develop ways because water ways are naturally given. The construction cost,
opening cost, maintaining cost and even the vehicle cost are very low. In Bangladesh transport by
boat is very cheap and more flexible and simpler than on land.
ii) Huge carrying capacity: Incase of transporting huge and bulky goods, water transport is very much
helpful because it has huge carrying capacity. A big ship usually carries 8,000 to 10,000 tons of
goods.
iii) Represents the culture of a country: Bangladesh is a country in which a high proportion of the
land area is in a river delta. The long history of reliance on water transport shows that it is embedded
in the culture of the people. Even if today urban dwellers who seldom see the water, they remain
emotionally attached to the concept of village life based around the water. It represents the culture of
Bangladesh. So this sector should be developed.
iv) Helps to maintain defense of a country: Coast and navy are an important part of national defense
for any country. Water transport is very important for defensive purpose.
v) Expansion of foreign trade: In increasing foreign trade, the water transport has great importance.
Due to low cost and huge carrying capacity, three-forth of the world’s trade is done through the
water transport. All over the world water ways are used to expand their trading activities.
vi) Alternative way of transportation: In case of underdeveloped countries, where the road, rail and
air transport are not well developed to support all the people in every situation, water transport works
as alternative way of transportation there. For an example, in Bangladesh the south west region
which has half the national average population density and where the major roads are in poor
condition, the transportation of people and goods becomes impossible in the wet season. Also in the
time of natural disasters like flood the water transport becomes the important alternative way of
transport there. Water transport should be developed in those backward areas of Bangladesh.
vii) Means of access to economic opportunities and basic services::Access to basic services such as
schools, health centers, markets, government services and clean water are not equally accessible to
all people who are living in remote rural communities. For example people living on the islands in
the middle of Uganda, have to travel long distances, using water transport to get to hospitals and
schools on the mainland or in the District Centre. In some parts of Madagascar the only way to get to
hospital is by motorboat. In Bangladesh during the period of natural disaster the only way to
communicate to the affected people in remote areas is the water transport. So the development of
water transport is much important by the side of land transports.
Page 23 of 33
 viii) A source of direct employment: Rural water transport facilitates poor peoples’ access to economic
opportunities. Rural water transport is defined as inland water transport that is used by poor people.
Water transport can help poor people to work in the cities while living in less expensive locations
and it is a means of livelihood based on fishing and fish marketing. For many rural people rural
water transport is an important source of employment, based on skills that have been developed over
the generations. In Bangladesh, men work as boat operators transporting goods and passengers along
the waterways. It is estimated that the boats provide 60% of all employment in the transport sector
and are the main source of income for 4 million people supporting 10 million dependents.
ix) Technological Diversity: In Bangladesh, the boats using diesel engines and modern designs can be
combined with traditional building skills to produce boats that are fast enough to compete with road
transport. These techniques will provide the advantages of mobility and access of local input. The
long tailed boats of Thailand, Cambodia and Peru can carry their passengers at great speed. The
technology of water transport is energy efficient in operation and more sustainable than road
transport. In case of water transport the energy use per unit transported is much less than on roads.
Water transports by changing its technology can meet changing demand.
x) Decreases roadway congestion: Impacts of traffic congestion are accidents, increased energy
consumption, environmental damage, waste of time, and greater social tension. Water transport, in
contrast, does not have congestion problems. Roadway congestion is decreased as freight is
transferred to waterways without additional infrastructure expenditures. It will reduce the waste of
time and energy that occurs in the roads due to congestion.
xi) Minimum land use: Trains and trucks travel in the streets and highways. The rail lines passing
through the urban areas and roads need land. But the way for water transport is provided by nature.
For a densely populated country like Bangladesh to save land, increasing the use of water transport
can be helpful.
xii) Produces multiple benefits: Transporting bulk commodities by water has many other opportunities
and benefits. A developed waterway system can provide recreation, flood control, public water
supply, irrigation, and industrial use. Navigation not only creates opportunities for new industries,
but may also change trade patterns that can have a major economic impact on local and regional
development.
The use and the importance of water transport are declined nowadays due to the expansion of railways and
road transports. But it is an environmentally friendly, reliable and less costly mode of transport. Even today
the water transport can be an important way to develop the economic condition of different nations.
4. Problems of Water Transport
Whereas in olden days oceans were considered a big hindrance, in modern times they are keeping great
contribution in promoting international trade. From the very ancient time water ways are used to transport
goods and passengers from one place to another place. Canals, lakes, rivers, seas and oceans are being used
as water ways. Up to 1824, sailing vessels were used as mode of water transport. Now-a-days, importance of
steamers and diesel ships has increased. If there is a water route people simply prefer to transport their
commodities through water way because here low cost is incurred and this way is more convenient to
transport bulky goods. In spite of these advantages of water transport there are certain problems such as
possibility of high dead-weight loss, more time consuming, high risk incurred, water pollution etc. These are
discussed below:
i. Dead-weight loss: When the movement of goods which need to transport to the particular destination
hampers due to any unfavorable situation then the lost working hours for each unit of the products are
considered as dead-weight loss. It is one of the main problems of water transport.
ii. Time consuming: Water transport is more time consuming in comparison to road transport and air
transport. Water vehicles are less speedy than road way and air way vehicles. So to transport in this way
it takes more time.
iii. High risk: In case of water transport high risk is incurred. Among different uncertainties of water
transport natural calamities are more severe. Due to these calamities every year businessmen face huge
losses. Water vehicle drowning is another uncertainty of water transport.
iv. Problems in case of land locked regions: The region which has no direct link with the water route i.e.
the land locked region faces difficulty in case of transporting its’ goods through water way. It is another
vital problem of water transport.
v. Problems incurred in passing through different routes: In case of transporting through vessel it only
can pass through the oceans but these vessels cannot pass through the small sea and river. So there needs
to unload the commodities from the vessels and then small ships are used to transport the commodities to
different parts. It is also one of the main causes of water transport which creates hazards.
vi. Water pollution: Water transport is one of the main causes of water pollution. Water vehicles pollute
water by dumping oil, food waste and human waste into the canals, rivers, sea and oceans and thus water
is being polluted.
Page 24 of 33
vii. Require high investment: In case of water transport, there requires high investment in building suitable
port facilities and water vehicles.
At last it can be said that though there are certain problems of water transport, this very way is more
preferable way of transferring goods and commodities from the ancient time to modern time. This way is
keeping contribution in promoting international trade all over the world.
5. Renowned Canals of the World
Introduction: From the point of view of trade, canals occupy an important position. Canals are of the
greatest assistance in some countries in transporting commodities in bulk over short distances. Whereas
some canals were constructed to join two rivers, some others join two oceans- thus reducing long distances
between two ports. At some places canals have been constructed to fill a void as no other means of transport
was available. For transporting heavy and bulky commodities canals provide a good and cheap means of
transport which should be adequately developed.
Some famous canals of the world
Canal Place Length(k.m.) Width (m.) Depth (m.) Declaration
Grand canal China 1127 - - 7th Century
Panama canal Panama 81 91 14 1914

Suez canal Egypt 168 60 10.36 1869

Gota canal Sweden 185 14 3 1832
Alock trade Germany 66 22 4.6 1900
canal
Manchester England 58 37 9 1894
canal
Wieland canal Canada 43 61 8 1887

Princes Juliana Netherlands 32 16 5 1135

canal
Amsterdam Netherlands 26.55 27 7 1876
canal
Kiel canal Germany 98 46 14 1895
Volga – baltic Russia 2977 - - -
canal

A brief discussion of some famous canals in the world have been presented in below:
The Suez Canal: The Suez Canal is considered to be the shortest link between the east and the west due to
its unique geographic location; it is an important international navigation canal linking between the
Mediterranean sea at port Said and the red sea at Suez.The canal is somewhat more than 100 160 km long.
The unique geographical position of the Suez Canal makes it of special importance to the world and to
Egypt as well. The following factors make Suez Canal vital in the world:
i) It saves distance from London to Chittagong by 4648 km., to Calcutta by 5610 km and to Sydney by 1800
km. if compared with the route round the African coast.
ii) The ships which are transporting through this canal can get better opportunities of goods delivery on their
way in different sea ports.
iii) It is the longest canal in the world with no locks.
iv) Fuel stations are situated both side of the river. So fuel facilities are available for ship transporting.
v) Because of short distance and the advantages of better sea port facilities it can easily transport cheaper
goods within short time.
vi) Because of opening this canal some countries of South America and Europe have got the beneficiary in
petroleum trading.
The Panama Canal: The Panama Canal is 82-kilometre ship canal in Panama that connects the Atlantic
Ocean (via the Caribbean Sea) to the Pacific Ocean, saving about 8000 miles (12,875 km) from a journey
around the southern tip of South America, Cape Horn. The canal cuts across the Isthmus of Panama and is a
key conduit for international maritime trade.
Work on the canal, which began in 1880, was completed in 1914, making it no longer necessary for ships to
sail the lengthy Cape Horn route around the southernmost tip of South America and to navigate the
dangerous waters of the Magellan Straits. One of the largest and most difficult engineering projects ever
Page 25 of 33
undertaken, the Panama Canal shortcut made it possible for ships to travel between the Atlantic and Pacific
Oceans in half time previously required. The shorter, faster, safer route to the U.S. West Coast and to
nations in and along the Pacific Ocean allowed those places to become more integrated with the world
economy.

Ownership of the territory of Panama Canal was first Colombian, then French and then American before
coming under the control of the Panamanian government in 1999. The American Society of Civil Engineers
has named the Panama Canal one of the seven wonders of the modern world.
The Manchester Canal:The Manchester Ship Canal is a river navigation 36 miles (58 km) long in the
North West of England. Starting at the Mersey Estuary near Liverpool, it generally follows the original
routes of the rivers Mersey and Irwell through the historic counties of Cheshire and Lancashire.
Construction began in 1887; it took six years and cost about £15 million. When the ship canal opened in
January 1894 it was the largest river navigation canal in the world. Although it enabled the newly created
Port of Manchester to become Britain's third busiest port despite the city being about 40 miles (64 km)
inland the canal never achieved the commercial success its sponsors had hoped for.
The Grand Canal:The Grand Canal of China is the world's oldest and longest canal, far surpassing the next
two grand canals of the world: Suez and Panama Canal.

The building of the canal began in 486 B.C. during the Wu Dynasty. It was extended during the Qi Dynasty,
and later by Emperor Yangdi of Sui Dynasty during six years of furious construction from 605-610 AD. The
canal is 1,795 Km (1,114 miles) long with 24 locks and some 60 bridges.

The Gota Canal:The Gota Canal is a Swedish canal constructed in the early 19th century. It formed the
backbone of a waterway stretching some 382 miles (614 km), linking a number of lakes and rivers to
provide a route from Gothenburg on the west coast to Söderköping on the Baltic Sea via the river Göta älv
and the Trollhätte kanal, through the large lakes Vänern and Vättern.

The canal itself is 118 miles (190 km) long, of which 54 miles (87 km) were dug or blasted, with a width
varying between 23–46 ft (7–14 m) and a maximum depth of about 9 ft (3 m). It has 58 locks and can
accommodate vessels up to 105 ft (32 m) long, 21 ft (7 m) wide and 9 ft (2.8 m) in draft. Göta Canal is a
sister canal of Caledonian Canal in Scotland, which was also constructed by Thomas Telford.

The Welland Ship Canal:The Welland Ship Canal, 27.6 mi (44.4 km) long, SE Ont., Canada, connecting
Lake Ontario with Lake Erie and bypassing Niagara Falls.Built between 1914 and 1932 by Canada to
replace a canal opened in 1829, it can accommodate (minimum depth 27 ft/8 m) the largest lake.

The Kiel Canal:The Kiel Canal is also the busiest manmade waterway in the world. Over 60,000 ships pass
through every year, as well as around 25,000 private yachts during the summer. It therefore comes as no
surprise that the canal is very precisely organised to ensure a faultless flow of traffic.The Kiel Canal (Nord-
Ostee Kanal) (formerly Kaiser Wilhelm Canal) connects the Baltic with the North Sea. Built by Germany in
the years (1895) before World War I, the canal allowed the German Navy to move from Baltic Bases to the
open sea without traveling through international waters.  

The Volga–Baltic Canal:The Volga–Baltic Waterway, is a series of canals and rivers in Russia which link
the Volga River with the Baltic Sea. Its overall length between Cherepovets and Lake Onega is 368
kilometres.

Originally constructed in the early 19th century, the system was rebuilt for larger vessels in the 1960s,
becoming a part of the United Deep Inland Waterway System of European Russia.
Air Transport

Air transport is recent origin in the development of transport system. It deals a transportation system for
moving passengers or goods by air. The sky is used as the way of air transport. It is the fastest means of
transport flying more than 320 kilometers an hour.
1. Types of Air Transport
The air transport is classified into two ways which are:
i) Domestic Air Route: Domestic air route means the transportation system which provides services within
the country.
ii) International Air Route: International air route means the transportation system which provides services
between or among the countries.
Page 26 of 33
2. Characteristics of Air Transport
From the date of the birth of the aviation industry, air transport takes the fast and famous. So far, the
aircraft is still the most efficient means of transport. The main characteristics of air transport are:
i) Air transport is the highest speed among the various means of transport.
ii) Unbroken journey over land and sea is possible by only air transportation system.
iii) Special preparation like flood light, search light, wireless system, meteorological station etc. is needed in
air transport.

3. Advantages of Air Transport

The second world war has stimulated the growth of air transport and it has made progress in the recent
years because it is the fastest way of transporting of goods. It is the gift of 20 th century in the world. The
advantages of air transport are:
i) Air transport is the fastest mode of transport and therefore suitable carriage of goods over a long distance
requiring less time.
ii) It provides comfortable, efficient and quick transport service. It is regarded as best mode of transport for
transporting perishable goods.
iii) It has no infrastructure investment. As it has no capital investment it is considered as a less costly mode
of transport.
iv) There are no physical barriers in air transport because it follows the shortest and direct routes where
seas, mountains and forests do not obstruct.
v) International relationship, foreign trade, and cultural mobilization are enhanced by air transport.
vi) It plays a significant role in the national defense of the country because modern wars are conducted with
the help of aeroplanes.
vii) In emergency purpose, air transport is regarded as the best mode of transportation system.

4. Disadvantages of Air Transport

Inspite of many advantages air transport has a number of disadvantages. These disadvantages are:
i) Air transport is the most risky form of transport because a minor accident may put a substantial loss of
goods, passengers and the crew.
ii) As compared to other means of transport there is a high fright rate in air transport.
iii) Aircrafts have small carrying capacity and therefore these are not suitable for carrying bulky and
cheaper goods.
iv) Air transport requires huge investment for construction and maintenance of aeroplanes. It also requires
trained, experienced and skilled personnel which involves a substantial investment.
v) It has lack of freedom of movement and only a particular class of people can enjoy it.

5. Elements of Air Transport

There are four elements of air transport which are given bellow:
i) Air way: The sky is used as the way of air transport. It is permanent way and requires no expenditure
either in construction or maintenance.
ii) Airport: An airport is defined as any locality, either of water or land, which is adapted for landing and
flying-off of aircraft.
iii) Air craft: The vehicle used in air transport is called air craft.
iv) Motive power: The aircrafts are driven by motors using highly inflammable petrol.

6. Economies of Air Transport

Economies of air transport are concerned with the sources of revenue and expenditure of this transport
system. The sources of revenue are passenger’s fares, freight of goods, mail revenue and miscellaneous
income. The sources of expenditure are fuel, oil, service charges, depreciation cost, insurance cost, housing
cost, administrative cost etc.

7. The Famous Airport of the World

London Heathrow Airport (England), Jeddah King Abdulaziz International Airport (Jeddah), Narita
International Airport (Tokyo), Beijing Capital International Airport (Asia), Hong Kong International Airport
(Hong Kong) etc.
Above this discussion we hope that air transport corporation would continue their operational efficiency and
would help in increasing the economic prosperity of the country.
8. Problems of Air Transportation System
Air transport is the latest and fastest mode of transport flying more than 320 kilometers (and in many cases
more than 800 kilometers) an hour. It is the most modern means of transport. The modern air transport may
Page 27 of 33
be dated from the middle of the eighteenth century. Aeroplanes do not require any artificial track as railways
and roadways do. The greatest advantage of air transport is that aeroplanes fly over both – land and water. It
has fulfilled the most cherished desire of man to fly in the open sky like birds, forgetting all barriers and
reaching far distant places. There are many problems of air transportation system. Those problems are given
below:
(i) Highly expensive mode of transport: The rates and fares charged by airlines are substantially
higher than the rates charged by railways, roadways and shipping lines. It is a transport of rich and well to
do passengers and cargos who can afford to bear high charges. In developed countries busy person choose
this mode of transport to save their time.
(ii) High operating expenses: The operational cost of air transport system is very high. The cost of aero
plane, installation of wireless and meteorological stations is very high. The construction of light houses and
neon beacon, construction of airport tracks and buildings require high capital expenditure. This cost has to
be recovered from the fares and charges of a limited number of passengers and goods.
(iii) Low carrying capacity: The aero planes are quite misfit for carrying heavy weight materials.
Heavy weighted and low valued goods are not carried by the aircrafts. Only low weighted and high valued
goods are carried by it. Their use for carrying bulky goods, raw materials, heavy machinery, industrial goods
and food grains minerals are negligible. As compared to a ship or a train the capacity of an aircraft is very
limited.
(iv) Risky mode of transport: Air transport miserably suffers from higher frequency and greater
intensity of accidents. Most of the accidents are fatal and survivors are rare. The accidents may be due to
miscalculations on the part of the pilot, failure of the machine of the aircraft, fire, crash against some high
peak or building or due to fatigue of crewmen or inadequate training of the pilots and so on. Sometimes they
may be due to insufficiency of light or failure to receive wireless information of the inclement weather. This
restricts its use and operation.
(v) Not suitable for all classes of people: This mode of transport is affordable for only upper class
people. Lower and middle classes people are totally excluded from this facility. So it cannot become a mass
transport system.
(vi) Requirement of higher investment: Development of this air transportation system requires higher
level of investment. Because, the operational and maintenance cost is very high. The high depreciation cost
of valuable aircrafts, their repairing cost, and the cost of highly inflammable petrol, salaries of staff, pilots
and air hostesses are generally very high.
(vii) Environment unfriendly: The motive power is used for running the aircraft is gasoline. This
gasoline pollutes air very badly. Because, the most finished form of petroleum is highly environment
unfriendly. It creates heavy air pollution. Due to fast displacement of the air, the aero plane creates great
noise. There is no scope to live beside the port area. So, it is a great limitation of air transportation system.
Although the future of air transport will depend on the extent and pace of development of technology, yet it
can be safely said that in the years to come it will play greater role and offer much greater service to
mankind.
Short Sea Shipping (SSS):Short Sea Shipping has been defined as commercial waterborne transportation
that encompasses the movement of cargo and passengers mainly by sea, without directly crossing an ocean.
It is an alternative form of commercial transportation that utilizes inland and coastal waterways to move
commercial freight from major ports of a nation as well as between a nation’s ports and the ports of adjacent
countries (say, from Lisbon to Rotterdam or from New Orleans to Philadelphia).
Practice of SSS in Different Countries:
Europe:Europe has the longest shoreline in the world after Canada and it is the only region where
there is no flag restriction. The European perspective concerning short sea shipping has been
developed based upon considerable study during the past approximately twenty or so years.  Selected
short sea shipping trade routes are identified in the following table.
Selected Short Sea Shipping Trade Routes
Gioia Tauro – Genova Bordeaux – Setubal Naples – Barcellona
Rotterdam – Felixstowe Rotterdam – Oslo Helsinky – Gdansk
Patras – Brindisi Stuttgart – Birmingham Lisbon – Brest
Bilbao – Antwerp Gdansk - Copenhagen Bilbao – Bordeaux
Antwerp – Hamburg  Antwerp – Felixstowe Valencia – Livorno
Rostock – Gothenburg Antwerp – Lisbon Athens – Trieste
Hamburg – Stockholm Bilbao – Gothenburg Athens – Taranto
Bremen – Southampton Taranto-Benelux Athens – Marseille
Barcellona – Genova Marseille – Naples Piraeus - Rotterdam
Gioia Tauro – Genova Bordeaux – Setubal Naples – Barcellona
Page 28 of 33
In 2005, short sea shipping accounted for approximately 41% and road transport approximately 45% of ton-
kilometers for cargo movement within the European Union (EU).  The promotion of greater short sea
shipping appears to be a continued expression of the Commission. 
USA and Canada:The St. Lawrence Seaway Management Corporation of Canada with its U.S. counterpart
the St. Lawrence Seaway Development Corporation has for the past several years promoted this concept
under its marketing umbrella ‘Hwy H2O’. The concept is intended to utilize existing capacity on the 3,700-
kilometer (2,300 mi) St. Lawrence - Great Lakes corridor in harmony with rail and truck modes to reduce
overland congestion. Cargo movements on the Great Lakes Seaway System are an excellent example of
broadening SSS in North America.
Asia-pacific Region:The accelerated growth of Asian economy has both influenced and mirrored changes
in the scope and operation of shipping connections within Asia and with the rest of the world, causing the
repercussions on extra- and intra- Asian container shipping networks. In the North-eastern part of Asia this
practice are being run successfully. Especially in China, Hong Kong, Japan, South Korea and Singapore SSS
network covers a large part of transportation.
Benefits and Obstacles of SSS:SSS may produce public and private benefits, by providing an additional
and alternative option for transporting passenger and freight. SSS services are more fuel efficient than
trucks and they can contribute to improving air quality and reducing noise. SSS also plays a key role in
reducing the road and terminal congestion as well as the number of trucks and trains traveling on
crowded port access routes. It also improves trade competitiveness, decreases per unit cost of transport and
maintains vital transport links. As a result, SSS development may provide a more cost-effective
alternative to building new roadways and rail lines. In particular, a new concept of “Motorway of the
Sea” in Europe has contributed to reducing the amount of money spent on infrastructure projects and
maintenance costs. Transport safety and sustainability are ensured through this mode.
Despite of the benefits noted above, the potential obstacles can be identified in terms of legal,
operational, and acceptance-related challenges. Legal requirements could present a barrier to SSS
development by increasing the start-up or operating costs of operations. Operational challenges involve
incompatible infrastructure and potential strain on port capacity. Furthermore, a general unwillingness
among logistics providers to switch from well-established modes can become a barrier to SSS
development. Security is another factor.
Economics of SSS:Short sea shipping has therefore aroused interest at policy level as an alternative to road
transport, the predominant mode in Europe. It already accounts for a large share of intra-EU trade
(around 30% in volume terms), of which a significant portion (more than 80% in volume terms) is
bulky commodities. The total volume of SSS of containers declared by EU-25 main ports amounted to
22.2 million TEUs in 2005. In the same year, the SSS of the United Kingdom represented 354 million
tons of cargo, accounting for 16% of the total SSS of the EU-25. It was followed by Italy, Netherlands and
France with shares of 14%, 11% and 10% respectively, the four countries together represented more than
50% of the EU-25 SSS with 4.7 million tons.
From the data of Eurostat Trends (2008) represented in the following three tables we can easily make an
economic analyze of SSS.
Table 01: Intra EU trade by mode of transport and commodity (in per cent)
Sea Rail Road Inland water others
Import (%) 29.9 5.6 41.3 14.4 8.8
Export (%) 30.5 7 41 12.7 8.7

Total volume of goods (imports) transported between the EU countries amounted to 685×106 tons in 1992.
From 1995-2010 the freight traffic has increased by 37%.
Table 02: Price and time ratio for transportation
Price ratio Time ratio
Routes road: ship road: ship
General Cargo from Hamburg to
- Venice 1.27 7.26
- Piraeus 2.55 4.51
Sawn timber from Sweden to
- Rouen 3.00 3.31
- Bilbao 3.71 2.51

Page 29 of 33
Table 02 shows that in case of transportation of general cargo from Hamburg to Venice or Piraeus price and
time ratio for road: ship ≥ 1 and it is true for Sweden to Rouen or Bilbao. So SSS saves time and serve in
lower price than road transport.

Table 03: Energy consumption by mode of freight transport (In kJ/ton-km)

Marine Road Rail Air Pipeline
42 2 890 677 15 839 168
3
Table 04: Air Emission Factor ranges for Truck, Rail and Marine, in g/ton-km

Pollutant Truck Train Marine

CO 0.5 s0.2 0.04
CO2 98 28 15

By analyzing table 03 and 04 we see marine transports use less fuel and emit less CO 2 and CO than other
transports. So, SSS is economically beneficial and provide many opportunities.

After all discussion from the viewpoint of Transport Economics, it is inevitable to say that to promote a
sustainable transportation system, more intensive use of short sea shipping (SSS) should be spread not
only within the EU but throughout the world.

Transport Management
Definition of transport management
A transportation management system (TMS) is a subset of supply chain management concerning
transportation operations and may be part of an enterprise resource planning system.
Transportation management systems manage three key processes of transportation management:
1. Planning and decision making – TMS will define the most efficient transport schemes according to
given parameters, which have a lower or higher importance according to the user policy: transport
cost, shorter lead-time, fewer stops possible to ensure quality, flows regrouping coefficient, etc.
2. Transport follow-up – TMS will allow following any physical or administrative operation regarding
transportation: traceability of transport event by event (shipping from A, arrival at B, customs
clearance, etc.), editing of reception, custom clearance, invoicing and booking documents, sending of
transport alerts (delay, accident, non-forecast stops…)
3. Measurement – TMS have or need to have a logistics Key Performance Indicator (KPI) reporting
function for transport.
Various functions of a TMS:
 Planning and optimizing of terrestrial transport rounds
 Transportation mode and carrier selection
 Management of air and maritime transport
 Real time vehicles tracking
 Service quality control
 Vehicle Load and Route optimization
 Transport costs and scheme simulation
 Shipment batching of order
Policies for traffic management and parking management
Use of parking spaces is for staff, students, visitors and other accredited users only. Parking is only
permitted in marked car park spaces. Vehicle owners infringing on parking regulations will be liable to have
their vehicles clamped. No parking permitted on grass, landscaped or common areas.
During routine daily patrols, traffic police, will observe for vehicles which are not parked in Designated
Parking Spaces and take the necessary course of action. Particular attention will paid to the following
offences observed on campus
 Obstruction of Emergency Access,
 Obstruction of Disability Access
 Misuse of Disability Parking Bays
 Parking in the Yellow Boxes and on Yellow Lines
 Obstructing pedestrian crossings

Page 30 of 33
  Vehicles parked in a manner deemed to be causing any safety hazard
Advantages and disadvantages of one way street system
Advantages of One-Way Streets
 Fewer automobile and pedestrian conflict points at intersections and pedestrian need only watch for
traffic in one direction.
 Some right turn on red movements eliminated, thus eliminating a potential auto/pedestrian conflict.
 Left turns into the street from driveways have fewer conflicts.
 One-way streets generally provide more vehicular capacity and long lines of turning vehicles don’t
block through lanes.
 One-way streets have more simplified traffic signal operations reducing delay for individual drivers.
 One-way streets can accommodate more on-street parking since parking doesn’t need to be removed
to accommodate left turn lanes. Drivers have option to park on both sides of the street.
 One-way streets can provide better traffic signal synchronization set to the slower speeds expected in
downtowns.
Disadvantages of One-Way Streets:
 One-way street systems without uniform patterns are confusing, especially to visitors.
 One-way streets can result in higher speeds and be perceived as a barrier to pedestrian crossings.
 One-way streets can increase certain types of pedestrian accidents.
 Higher speeds on one-way streets can increase crash severity, and one-way streets have the potential
for wrong way, head-on collisions.
 For downtown circulation, one-way streets have longer travel times (looping) causing
inconvenience, use more fuel and create more auto emissions.
 Undesirable for transit users as they separate and increase the distance between routes.
 One-way streets can create circuitous emergency response routes, and circuitous truck routes.
 One-way streets that eliminate turning movements at some intersections will increase them at others.
 Reduces exposure of businesses to passing motorists.
Principles of traffic signs
As stated in the MN MUTCD (Manual on Uniform Traffic Control Devices) Section 1A.2, in order for
traffic signs to be effective, they should meet the following basic requirements:
1. Fulfill a need.
2. Command attention.
3. Convey a clear, simple meaning.
4. Command respect from road users.
5. Give adequate time for proper response.
Basic Considerations for Installation of Traffic Signs
As stated in the MN MUTCD, and summarized in the Transportation and Traffic Engineering Handbook
(published by the Institute of Transportation Engineers) five basic considerations are employed to ensure
that the above basic requirements are met. These considerations are:
Design: The combination of physical features such as size, colors, and shape needed to command attention
and convey a clear message.
Placement: The installation of devices should be within the viewer's cone of vision, so they will command
attention and allow time for response. A 20 degree cone of vision should be used for placement of signs.
Signs must remain within this cone of vision to be read. Care should be taken when placing signs near
intersections so that they do not restrict intersection sight distance.
Operation: The application of devices so that they meet traffic requirements in a uniform and consistent
manner. Devices should fulfill a need, command respect, and allow time for proper response.
Maintenance: The upkeep of devices to retain legibility and visibility, the removal of devices if not needed,
and to aid in commanding respect and attention while fulfilling the needs of users.
Uniformity: The uniform application of similar devices for similar situations so that they fulfill the needs of
users and command their respect. The importance of uniformity in signing cannot be overemphasized.
Types of traffic sign
Informatory sign

Page 31 of 33
Information signs give information about direction and distance, usually guiding drivers to destinations,
facilities, services and attractions. Often these signs have names of locations with an arrow pointing towards
the direction of the destination and a number giving the approximate distance.
Warning sign
Warning signs give a warning of that there are dangerous or unusual conditions ahead. Often these signs
have a greater more conspicuous presence than a regulatory sign. These signs often do not have much text
on them, as they should be internationally understood due to the nature of the message that they are
conveying.
Mandatory sign
Regulatory signs “give a direction that must be obeyed.” Often these signs show content or action that is
either allowed or prohibited and these two modes are signified by color (i.e. green and red), orientation (i.e.
open circle and circle with diagonal line through the centre) and/or shape (i.e. square and triangle).
Prohibitory sign
These non-permanent temporary signs are erected to warn drivers of unexpected conditions such as road
work zones, diversions, detours, lane closures and traffic control. Often these signs are portable and can also
be digital variable message signs.

Department Classification by Sign Design Type

While the previous sign classifications describe general functions, Mn/DOT has further classified signs by
design type.
Type A signs are large breakaway guide, directional, or informational signs normally installed on mainline
freeways, expressways, and occasionally on conventional highways. They are supported on wide-flange
steel posts.
Type C signs are primarily regulatory, warning, route marker assemblies, and auxiliaries, as found in the
Standard Signs Manual. They are the most common sign type and are typically installed by Mn/DOT sign
crews.
Type D signs are the smaller guide, destination, or informational signs. They are supported on driven U
posts or mounted on overhead structures with punching and stringer spacing as indicated in the Standard
Signs Manual.
Type OH signs are large overhead guide, directional, or informational signs, either spanning a roadway,
cantilevered over the roadway/shoulder, or bridge-mounted. The requirements of the structural support
system generally require installation or maintenance by contract. There are three kinds of Type OH signs: 1)
sign support (no walkway or sign lighting), 2) truss (may or may not include walkway and sign lighting) and
3) bridge-mounted (may or may not include walkway and sign lighting).
Type OH signs are necessary where ground-mounted signs are not deemed effective. Typical applications
include, but are not limited to, the following:
1. Freeway signing where space is not available for ground mounted signs or where there are three or
more lanes of travel.
2. Guide and/or lane use control signing approaching intersections in urban areas.
3. Approach warning sign/flasher for mid-block pedestrian crosswalks.
4. Locations with restricted sight distance (may be coupled with other factors cited).
Type EA signs are exit number panels attached with U-posts to Type A sign panels.
Type EO signs are exit number panels attached with U-posts to Type OH sign panels.
Changeable Message Signs (CMS) may be used to inform the road user of special conditions about
advisory situations, traffic congestion, or safety messages as determined by the district traffic engineer.
Rules of pricing
Shoup (2005) provides the following guidelines for efficient parking pricing:
 Price parking for full cost recovery: at a minimum, all costs of building and operating parking
facilities should recovered from users. Prices may be higher to reflect the opportunity cost of land
and to provide profits.

Page 32 of 33
 Price the most convenient parking, such as on-street spaces, so occupancy averages 85-90%. Use
variable fees, with higher rates during peak periods and lower rated during off-peak periods.
 Dedicate some or all of the revenue from on-street parking to benefit local businesses and residents.
 Unbundle parking from building rents, so occupants only pay for the number of parking spaces they
want.
 Allow private developers and building managers to decide how much parking to provide at each
destination, rather than relying on rigid regulations.

Page 33 of 33