CHAPTER 15:

THE TRANSPORT
SYSTEM Lesson 1 of C hapter
15
 EQUIPMENT USED IN FACILITIES
Learning outcome of this lessons

After your have studied this lessons, you should be able to:
▶ explain the role of transport in the business logistics process;
▶ discuss the service characteristics of the basic modes of transport;
▶ Identify the various components of the transport system, and discuss the role(s) of each one;
▶ Discuss the characteristics of goods, and explain the way in which each of them influences the transport cost of
different groups of goods;
▶ Identify the four types of service providers, and discuss the function of each;
▶ Discuss the ways in which freight forwarders and freight transport brokers can add value in the logistics channels; and
▶ Discuss the various reasons why governments involves themselves in transport.
 THE TRANSPORT SYSTEM
INTRODUCTION
The carriage of goods from one place to another, known as freight transport, is a key activity, and usually the largest cost component, within
the business logistics process. Therefore, freight transport adds value to this process by creating place and time utility.
NOTE: Goods can be grouped according to the following:
 Raw materials: represent the primary products of agriculture, fishing, and mining
 Semi-finished goods are in the process of being converted from raw materials to finished goods, but are not yet in a suitable
form for consumption or final use; and
 Finished goods are those goods that have been processed into the form required for consumption or final use.

In this lesson, the physical component and constituent members of the transport system are identified and discussed. The main physical
components of the transport system are the various modes of transport, terminals, and the goods carried. The main stakeholders of the freight
transport system are service providers, transport users, and the authorities.

OPERATIONAL CHARACTERISTICS OF THE VARIOUS MODES OF FREIGHT TRANSPORT

There are three basic forms of transport: (1) Air, (2) land, and (3) water transport
▶ There are two forms of surface transport: (1) land and (2) water transport, which can be further divided into sub-forms or modes of transport,
distinguishable by the physical right of way and the technology on which they rely.
▶ Land modes are represented by road, rail, and pipeline transport.
▶ Water carriage can be grouped into sea transport and inland water transport.
 THE TRANSPORT SYSTEM
▶ MODES OF FREIGHT TRANSPORT
There are five modes of freight transport: (1) air transport; (2) road transport; (3) rail transport; (4) pipeline transport; (5) sea transport.

▶ AIR TRANSPORT: Although this mode of transport provides short transit times, delivery delays and congestion at terminals may substantially
reduce some of this advantage over short distances. The total origin-to-destination transit time is more important to the shipper than the transit time
from terminal to terminal.

 Types of air carries available:

 Air parcel postal service: designed for carrying small, light packages, are provided by the public mail service of a country. There are
restrictions on the size and mass of the items handled by air parcel post: the maximum mas of an airmail parcel is often limited to 32 kg.
 Courier and express services are generally restricted to small consignments weighing less than 32 kg. The main characteristic of such
services is that short transit times and next-day or second next-day delivery are standard.
 Regularly, schedule passengers’ flights: this type of carrying focuses on transporting passengers, but the excess capacity in the freight
compartment also allows the carriage of freight.
 Freight or all-cargo aircraft have larger hatch openings, freight compartments, and higher floor-bearing ratings than passenger aircraft.

 Strengths of Air transport are that (1) aircraft can follow a strategy flight path, while the routes of other modes are circuitous. (2) Air transport
has a good security record, which can be ascribed to stringent self-regulation;
 Limitations that, (1) the carrying capacity is limited; (2) Frequent flights are not always available, although the high speed may compensate for
this, and (3) congestion at airports can increase total transport time.
 THE TRANSPORT SYSTEM

▶ ROAD TRANSPORT: this mode of transport can transport goods of any size, and masses over long distances. Road
freight transport is also more flexible and versatile than other modes because of the availability of extensive road networks, and
can therefore offer point-to-point service between almost any origin and destination.

 There are 12 types of trailers and semi-trailers commonly used internationally: (1) van; (2) refrigerated van; (3) container
carrier; (4) flatbed trailer; (5) low-bed semitrailer; (6) tanker; (7) livestock trailer; (8) dry bulk trailer; (9) furniture van; (10)
motorcar carrier; (11) side stanchion trailer; and (12) open-top trailers.

 Strengths for this mode of transport include, (1) road transport is limited to a fixed routes or terminals (door to door
service); (2) Capacity: the carrying capacity, although relatively small compared with other modes of transport, is adaptable
and can be readily increased. (3) Freight protection, as a result of the ability to supply a door-to-door service, little handling and
few transshipments take place between origins and destinations.

 Limitations include (1) The dimensions and gross mass of road vehicles are limited through legislation; (2) road vehicles
consume more fuel than other forms of surface transport to convey the same unit of freight; and (3) Inclement weather
conditions and traffic congestion can impact on the reliability and punctuality of road transport operations, especially in
countries with severe climate conditions, such as heavy fog and snowfalls.
 THE TRANSPORT SYSTEM

▶ RAIL TRANSPORT: can carry large and high-density commodities and bulk consignments over long distances at a low cost.
Rail transport is therefore well suited, to carrying raw materials and semi-finished goods, such as mining and agricultural
products. Freight trains can broadly be divided into two classes: unit trains and wagon-load trains.

 With unit trains, all wagons are connected in a fixed set, carry the same commodity, and operate between the same
origin to the same destination terminals without being split up. There are three types of unit trains (1) bulk- commodity unit
trains; (2) standard intermodal container unit trains; and (3) car carrier unit trains.

 Non-unit trains may be referred to as wagon-load trains which are formed from single wagon consignments of freight. These
trains usually consist of an individual wagon loaded with break-bulk freight at separate locations, transferred to a marshaling
yard where the wagons are formed into trains sorted by destinations, then transported to a destination marshaling yard, where
individual wagons are separated and assembled into trains per destination. There are nine contemporary rail wagon types
commonly used internationally. They are (1) covered wagons/vans;
(2) refrigerated wagon/van; (3) flat wagons; (4) tank wagons; (5) well wagons; (6) open wagons; (7) hopper wagons;
(8) side stanchion and centre partition wagon; and (9) motorcar wagon.

 Strength of rail transport: (1) Rail transport generally costs less; (2) This mode is not as vulnerable to traffic congestion as
road transport; (3) rail transport is less affected by inclement weather conditions than other modes.

 Limitations: (1) rail transport requires enormous capital investment; (2) rail transport is vulnerable to pilferage when rail
wagons rain stationery in marshaling yards for long periods; (3) rail transport has a high damage record.
 THE TRANSPORT SYSTEM

▶ SEA TRANSPORT: Ocean carriage is the most cost-effective way of transporting high-bulk commodities over long distances and is
therefore the most widely used international shipment method. It is used for both inbound and outbound shipments, although there is
usually an unbalanced flow of freight.
 Types of vessel used internationally: (1) bulk carriers; (2) container vessels; (3) conventional cargo vessels; (4) roll-on/roll- off
(ro-ro) ships; (5) combination carriers; (6) lighter-aboard ships (LASH); (7) livestock carriers.
 Strength of sea transport: (1) A low-cost service can be supplied; (2) standard intermodal containers can be utilized to facilitate
freight handling and transshipment. (3) traffic congestion is virtually non-existent on the open sea.
 Limitations: (1) A service can only be rendered to and from seaports that have the facilities to receive the ship and conduct the required
transshipment; (2) Ships are vulnerable to inclement weather conditions; (3) sea transport offers a slow and low- frequency service.

▶ PIPELINE TRANSPORT: Internationally, pipelines have long been used for water supply, sewerage, and local gas supply as a form of
public utility. This type of mode of transport is able to transport only a limited number of commodities for commercial purposes, such as
natural gas, liquids (which include crude oil, petroleum products, and chemicals), and purified raw materials.
 Strength of pipeline transport: (1) pipelines are environmentally sound. They do not generate fumes or noise and can be disguised
to prevent visual intrusion; (2) pipelines are able to move voluminous slugs of fluids and gas very reliably over long distances at a low
unit cost and at low risk; (3) Once the investment is made, the variable cost is low.
 Limitations: (1) pipeline transport are able to transport only a limited range of products commercially, mainly fluids and gases; (2)
there is a finite capacity that cannot be altered to accommodate sudden surges in demand; (3) pipelines require a high investment cost.
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