Chapter 1: (cont.

)
Importance of Transportation,
Characteristics of Road Transport
RALPH ANGELO ESTILLER
Transportation plays a major role in the
daily life of human beings. It is
necessary for things to be moved
around and as transportation systems
have developed over time, the speed
and efficiency of these systems have
improved drastically.

A society cannot function optimally if it

does not have measures in place to
facilitate transport. From movement to
work to travel around the world, being
able to arrive at various places or
deliver different items on time is vital for
overall productivity and sustainable
development.
Transportation in daily life
Mobility and market accessibility depend on
effective transportation networks. Many people rely
on transport in order to attend schools, work,
shopping and other matters.

Transportation for work

Distribution and accessibility of resources results in
more economic opportunities, for individuals as well
as businesses. Many industries rely on fast and
efficient transportation to receive raw materials and
deliver manufactured or processed goods – without
which people couldn’t buy and use them.

Transportation for connectivity

Transportation connects communities throughout a
country, and different countries across the world.
Transport not only links products and consumers, but
also broadens knowledge and fosters international
relationships.
Transportation for convenience
From next-day delivery on Shopee or
Lazada, to ordering a late-night pizza on
FoodPanda and GradFood, modern life is
prospering in more convenient ways than
ever thanks to transportation. You can drive
or take the bus or train to work in a city miles
away, and pop to the shops for something
whenever you need to.

Transportation for wellbeing

transportation is also crucial in supplying and
sharing life-saving resources like medication
and hospital equipment. From police and
firefighters to government offices, our
security and safety often depend on
internationally developed technologies.
Everything comes back to transportation.
Transportation for business
It’s essential for any business to be able to
procure materials, take them to a production
location, and distribute their final goods.
Transportation connects companies to
suppliers and customers, creating an
important framework that allows supply to
meet personal and professional demands.

Transportation for movement of goods

The most obvious and significant way that
transportation helps businesses is by
facilitating the movement of goods. As
transport methods have developed
throughout history, so have production and
distribution. This is especially vital for
perishable and agricultural goods like poultry
and dairy.
Transportation and Economic
Development
In a macroeconomic sense,
transportation activities form a portion of
a nation’s total economic product and
play a role in building or strengthening a
national or regional economy and as an
influence in the development of land and
other resources. In a microeconomic
sense, transportation involves relations
between firms and individual consumers.

Due to the intensive use of infrastructures

by the economy (economic activities),
the transport sector is an important
component of the economy and a
common tool used for development.

Economic Impacts of Transportation Infrastructure

Assessing the economic importance of transportation requires the categorization of the
types of impacts it conveys. These involve core (the physical characteristics of
transportation), operational and geographical dimensions:

Core. The most fundamental impacts of transportation-related to the physical capacity

to convey passengers and goods and the associated costs to support this mobility. This
involves setting routes enabling new or existing interactions between economic entities.

Operational. Improvement in the time performance, notably in terms of reliability, as

well as reduced loss or damage. This implies a better utilization level of existing
transportation assets benefiting its users as passengers and freight are conveyed more
rapidly and with fewer delays.

Geographical. Access to a broader market base where economies of scale in

production, distribution, and consumption can be improved. Increases in productivity from
the access to a larger and more diverse base of inputs (raw materials, parts, energy, or
labor) and broader markets for diverse outputs (intermediate and finished goods). Another
important geographical impact concerns the influence of transport on the location of
activities and its impacts on land values.
The economic impacts of transportation infrastructure can be categorized as core
(fundamental), operational, and geographical:

Capacity (core). Improving intermodal (terminals) and modal capacity through

infrastructure investments is a core strategy to promote economic opportunities. An
economy has a greater capacity to move passengers and freight, which conveys economies
of scale and higher economic output levels.

Costs (core). Transport developments are commonly associated with lower unit transport
costs, implying that mobility becomes more affordable. Alternatively, additional volumes can
be carried at a similar cost. Overall, the share of transportation costs in the final costs of
goods declines.

Time (operational). The economic benefits of time improvements are multi-

dimensional. First, passengers and freight will arrive at their destinations faster, which is
convenient and has economic value. Second, time gains result in better inventory
management levels and better utilization of transport assets (infrastructure, terminals,
vehicles, containers, etc.).
Reliability (operational). Commonly involves a higher probability that a passenger
or cargo unit will reach its intended destination within a scheduled timeframe and without
loss, spoilage, or damage (for cargo). Reliability enables economic systems to synchronize
their activities better, which, like time benefits, enables better utilization of transport assets.
Accessibility (geographical). The capability to access a wider market base is a common
economic benefit for firms. Inputs such as raw materials, parts, energy, or labor become
more readily available for an economy. At the same time, outputs such as finished goods
have access to a wider market base. Greater accessibility to regional and global
passenger markets also has economic impacts linked with commercial transactions and
tourism.

Location (geographical). An important impact of transportation concerns

influencing the location of economic activities. Specific sites in proximity to modal or
intermodal infrastructure are likely to generate higher value than less accessible sites. This is
often referred to as the clustering effect. Thus, through location decisions involving
commercial, residential, or manufacturing activities, the economic landscape is modified.
The economic importance of the transportation industry can thus be assessed from a
macroeconomic and microeconomic perspective:

At the macroeconomic level (the importance of transportation for a whole economy),

transportation and related mobility are linked to a level of output, employment, and income
within a national economy. In many developed economies, transportation accounts for
between 6% and 12% of the GDP. Further, logistics costs can account for between 6% and 25%
of the GDP. The value of all transportation assets, including infrastructures and vehicles, can
easily account for half the GDP of an advanced economy.

At the microeconomic level (the importance of transportation for specific parts of the
economy), transportation is linked to producer, consumer, and distribution costs. The
importance of specific transport activities and infrastructure can thus be assessed for each
sector of the economy. Usually, higher income levels are associated with a greater share of
transportation in consumption expenses. Transportation accounts for between 10% and 15% of
household expenditures. In comparison, it accounts for around 4% of the costs of each unit of
output in manufacturing, but this figure varies greatly according to sub-sectors.
Characteristics of Road Transport
Road transport is one of the modes of transport which
involves the use of motor vehicles (cars, lorries, buses,
bicycles, trucks and animals).

Types of Road Transport

• Animal
• walking
• Automobile
• Cycling
• Bus
• Heavy-duty vehicle
• Non-motorized transport
Types of Road Transport
Animal: this is mostly referred to as beast of
burden. It is the oldest means of transportation; this
usually involves the use of animals for the
transportation of people and goods on land or road.
Examples of animal used for this transportation
include camel, horse, donkey, elephant, and giraffe.

Walking: Walking is a means of transport that is

commonly done on the road, it is used for only on
short distance trips.

Automobile: this is motorized vehicle consisting of

wheels and it is powered by an internal engine and
does not operate on railways like trains and trolleys.
Automobiles are used to transport people and items
from one location to another location on roads.
Cycling– this is also referred to as biking or the
use of bicycle; this means of transportation is often
used for conveying people or goods within short
and moderate distance trips. It is one of the
cheapest means of transportation. Cycling is a
very efficient, an effective mode of transportation
with zero emission and it is as time-effective or
even better as motorized traffic in dense and
congested urban areas.

Bus: this is a road vehicle designed to carry

passengers and goods to various locations. Some
buses are designed with a large capacity to
convey about 18 to 60 passengers at a time on
larger roads. Examples of the common types of
buses are the single-decker rigid bus, double-
decker buses, articulated buses, midibuses and
minibuses.
Heavy duty vehicles: these are vehicles
designed for heavy work for example the pick-up
truck, Truck tractors with a GVWR above 26,000
pounds, heavy duty vans, heavy-duty trailers and
tankers. Most heavy-duty vehicles are powered by
diesel engines especially in older models, they can
emit high levels of particulates, nitrogen oxides,
and other pollutants that cause both chronic
disease and premature death, especially in urban
areas and among the most vulnerable
populations.

Non-motorized transport: these are small-

wheeled transport like skates, skateboards, push
scooters and handcarts and wheelchair travel.
Non-motorized transportation is also known as
active transportation or human powered
transportation; these modes of transport are
commonly used for recreational purposes
Advantages of Road Transport
• Road transport creates flexibility of service since numerous routes and
destinations are possible.
• The maintenance cost involved in road transport is low.
• It offers directness and door-to-door communication is made possible.
• It enables great speed and cheapness over short distances, continuous
movement is made possible.
• Road transport carries more passengers and goods within localities because
they are normally constructed to connect towns and villages where rail, air
and water transports are absent.
• Wide range of goods can be carried since roads are more able than other
systems to handle outsized objects.
• It offers maximum access along their line sides: maximum scope for
intervening opportunity.
Disadvantages of Road Transport
• Roads and motor vehicles need constant maintenance and this adds greatly to
running costs.
• Road transport links many places more than any other means of transport
• Most drivers and road users are very careless and as a result of this, a lot of accidents
have claim thousands of lives and property.
• Road transport at times can be very slow due to many factors such as poor
maintenance, weather and traffic congestion.
• Most cities have so many vehicles which ply the road, hence resulting in traffic
congestion.
• Road transport is not suitable for conveying heavy and bulky goods.
• Motorways are detrimental to the beauty of the countryside and to urban living,
motor vehicles cause a lot of air pollution in the city leading to global warming and
other environmental hazards.
• Transport by roads does not operate on schedule and therefore it is very
disappointing most times.
• Goods are not normally weighed and therefore charges are indiscriminately done.
ACTIVITY:
Answer the following questions objectively.

1. Discuss briefly the importance of transportation in Economic Development.

2. Discuss briefly the graph shown below.

3. How does improvement of intermodal (terminals) and modal capacity promotes economic
opportunities. Construct an argument for or against and support with evidence.
4. Choose at least three types of road transport and make a judgment about its strengths and
weaknesses, positive or negative aspects.
Thank you