Types of Transport Impacts

The relationship between transportation and economic development is difficult to formally establish and has been debated for many years. In some circumstances transport investments appear to be a catalyst for economic growth while in others, economic growth puts pressures on existing transport infrastructures and incite additional investments. At start there are different impacts on the transport providers (transport companies) and the transport users. There are several layers of activity that transportation can valorize, from a suitable location that experiences the development of its accessibility through infrastructure investment to a better usage of existing transport assets through management.

This is further nuanced by the nature, scale and scope of possible impacts. Timing of the development varies as the impacts of transportation can precede, occur during or take place after economic development. The lag, concomitant and lead impacts make it difficult to separate the specific contributions of transport to development. Each case study appears to be specific to a set of timing circumstances that are difficult to replicate elsewhere. Types of impacts vary considerably. The spectrum of impacts range from the positive through the permissive to the negative. In some cases transportation impacts can promote, in others they may hinder economic development in a region. In many cases, few, if any, direct linkages could be clearly established.

Cycles of economic development provide a revealing conceptual perspective about how transport systems evolve in time and space as they include the timing and the nature of the transport impact on economic development. This perspective underlines that after a phase of introduction and growth, a transport system will eventually reach a phase of maturity through geographical and market saturation. There is also the risk of over investment when economic growth is credit driven, which can lead to significant misallocations of capital, including in the transportation sector. The outcome is a surplus capacity in infrastructures and modes creating deflationary pressures that undermines profitability. In periods of recession that commonly follow periods of expansion, transportation activities may experiment a setback, namely in terms of lower demand and a scarcity of capital investment.

Transport, as a technology, typically follows a path of experimentation, introduction, adoption and diffusion and, finally, obsolescence, each of which has an impact on the rate of economic development. They follow a cyclic behavior where a high level of benefits and productivity is realized in the early phase while later phases are facing diminishing returns. Containerization is a relevant example of such a diffusion behavior. As most innovations are eventually abandoned, many technologies go through what can be called a "hype phase" with unrealistic expectations. In addition, transport modes and infrastructures are depreciating assets that constantly require maintenance and upgrades. At some point, their useful lifespan is exceeded and the vehicle must be retired or the infrastructure rebuilt. Thus, transport investments for their amortization must consider the lifespan of the concerned mode or infrastructure.

 

Transportation and Economic Development

Like many economic activities that are intensive in the use of infrastructures, the transport sector is an important component of the economy impacting on development and the benefit of populations. A relation between the quantity and quality of transport infrastructure and the level of economic development is apparent. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities and lower quality of life. Efficient transportation reduces costs, while inefficient transportation increases costs. The impacts of transportation are not always intended, and can have unexpected or unintended consequences such as congestion.

Transport also carries an important social and environmental load, which cannot be neglected. The added value and employment effects of transport services usually extend beyond employment and added value generated by that activity indirect effects are salient. For instance, transportation companies purchase a part of their inputs from local suppliers. The production of these inputs generates additional value-added and employment in the local economy.

 The suppliers in turn purchase goods and services from other local firms. There are further rounds of local re-spending which generate additional value-added and employment. Similarly, households that receive income from employment in transport activities spend some of their income on local goods and services. These purchases result in additional local jobs and added value. Some of the household income from these additional jobs is in turn spent on local goods and services, thereby creating further jobs and income for local households. As a result of these successive rounds of re-spending in the framework of local purchases, the overall impact on the economy exceeds the initial round of output, income and employment generated by passenger and freight transport activities.

 Related impacts the outcome of economic activities and firms partly relying on efficient transport services for both passengers and freight. For instance, the steel industry requires cost efficient import of iron ore and coal for the blast furnaces and export activities for finished products such as steel booms and coils. Manufacturers and retail outlets and distribution centers handling imported containerized cargo rely on efficient transport and seaport operations.

 

Mobility is one of the most fundamental and important characteristics of economic activity as it satisfies the basic need of going from one location to the other, a need shared by passengers, freight and information. All economies and regions do not share the same level of mobility as most are in a different stage in their mobility transition towards motorized forms of transport. Economies that possess greater mobility are often those with better opportunities to develop than those with scarce mobility. Reduced mobility impedes development while greater mobility is a catalyst for development. Mobility is thus a reliable indicator of development.

TRUCKING INDUSTRY CHALLENGES

Transport trucks are faster than rail transportation and cheaper than air freight. This is because the transport truck to provide service door-to-door delivery to the customer compared to other transport only transport is limited in certain areas only and customers are able to save costs and time. In addition, this also provides truck transportation good position in the transportation industry. Commercial trucking industry move more than 80 percent of U.S. freight, generating revenues of $ 525 billion in 2003.

Trucking industry has been growing faster than other industries in terms of the overall economy because other modes of transportation are constraints in terms of time, distance and cost. The truck transportation also well-suited for current business practices such as just-in-time supply. In addition, the economies of scale suggest a trend for larger, centralized manufacturing and warehousing operations, and shipping more goods also require transport truck for truck transport service can provide door-to-door. On-line shopping and online sellers also need a truck as a commercial transport to deliver the products to customers quickly and without causing any damage to the truck transportation is becoming more increasingly popular.

International challenges in the trucking industry has been faced by companies in the transport truck is high fuel costs and stringent regulatory environment following

have put additional pressure on the trucking industry. The main challenge is the industry low operating margins. It is because of intense competition with other industries, namely water, water, pipelines, and rail. Moreover, the lack of drivers is also one of the factors that had to be faced by a specific party. This is so because of the high rate of drivers to move to the construction, addition, more stringent regulations have resulted in loss of productivity and an increase in operating costs.

Eligibility driver is also high causing high costs for hiring and use the driver . Greater challenge is the rising price of oil. Other reasons are the drivers of dissatisfaction on the quality of life issues that are away from home for extended periods, irregular schedules, and the inability to follow after work routine. Although drivers are more educated and more qualified than ever before, they have little voice in their companies. Decision making is highly centralized in the truck companies, although the workforce is highly decentralized, with the driver controlling about 80 percent of the variable cost. Variable costs are factors such as labor, fuel, and maintenance. For these reasons, high driver turnover. The conclusion is trucking industry has many challenges that need to face by company in the transport truck.

Transport as a Factor of Production

Contemporary trends have underlined that economic development has become less dependent on relations with the environment (resources) and more dependent on relations across space. While resources remain the foundation of economic activities, the modification of the economy has been linked with higher levels of material flows of all kinds. Concomitantly, resources, capital and even labor have shown increasing levels of mobility. This is particularly the case for multinational firms that can benefit from transport improvements in two significant markets which is commodity market and labor market.

Commodity market is improvement in the efficiency with which firms have access to raw materials and parts as well as to their respective customers. Thus, transportation expands opportunities to acquire and sell a variety of commodities necessary for industrial and manufacturing systems labor market. Improvement in the access to labor and a reduction in access costs, mainly by improved commuting (local scale) or the use of lower cost labor (global scale).

A common misunderstanding  in assessing the importance and impact of transportation on the economy is to focus only on transportation costs, which tend to be relatively low (5 to 10% of the value of a good). Transportation is an economic factor of production of goods and services, implying that relatively small changes can have substantial impacts in on costs, locations and performance. An efficient transport system with modern infrastructures favors many economic changes, most of them positive. It provides market accessibility by linking producers and consumers.

The major impacts of transport on economic processes can be categorized as Large scale production  an efficient transport system offering cost, time and reliability advantages permits goods to be transported over longer distances. This facilitates mass production through economies of scale because larger markets can be accessed. The second is Increased competition is when transport is efficient, the potential market for a given product (or service) increases, and so does competition. Globalization has clearly been associated with a competitive environment that spans the world. The third is increased land value is Land which is near or serviced by good transport services generally has greater value due to the utility it confers to many activities.

Transport also contributes to economic development through job creation and its derived economic activities. Accordingly, a large number of direct (freighters, managers, shippers) and indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employment are associated with transport. Producers and consumers take economic decisions on products, markets, costs, location, prices which are themselves based on transport services, their availability, costs and capacity.

Advantages and disadvantages of Rail Transportation

Transportation of goods from one place to another is essential in any country because no state or city has sufficient resources available for carrying out their day to day activities.

Railway transport means carrying of goods from one place to the other by means of using trains.

There are certain advantages and disadvantages of railway transport . The advantages of railway transport are like safety. Transportation by the means of railway ensures safety for the desired goods because unlike the road transports a train only stops at a desired station instead of the will of the driver. In case of road transports for example, the drivers can at any point of time decide to rest or stop for tea, refreshments, lunch or dinner. Besides that, the another advantages are cheap.Railway transport any day is cheaper as compared to air transport. As a matter of fact, railway transport is even cheaper than road transport because of the reason that goods in bulk quantities are carried from a desired destination to the other. In cases of road transport for instance, less goods as compared to road transport can be carried.

Furthermore, Increase employment. Railway transport helps people to carry cheap products from a place to another and sell them at high prices. As a result of this, a number of people who are unemployed find a source of their daily bread. Bulk quantity. Because railway transportation is cheaper as compared to air and road transport, goods can be carried in bulk quantities as a result of which a lot of time is saved.

It is true that as compared to air transport and road transport, rail transport is easier and cheaper.

Although it has many advantages but it still has a few disadvantages. The disadvantages are loss of goods it is because goods in bulk quantities are carried chances of goods getting lost are high in case of railway transport as compared to air and road transport. It also unsafe for fragile items. Railway transportation is particularly unsafe for carrying fragile items like glass because these items can easily break at times when a train halts unexpectedly of when the train is speeding up at times. It also late bookings because railway is the cheapest medium of transport, it is hard to find suitable bookings for the transportation of your goods. Railway transport is not suitable in cases of emergency.

The other disadvantages are unsuitable for short distances. Railway transport is unsuitable for carrying goods at shorter distances; road transport is most suitable in this case. Lastly are, unsuitable for rural areas. Proper railway system is not build up in the Indian villages as a result of which railway transport is unsuitable in the villages of India. Whatever be the disadvantages of railway transport it was, it is and it will always be the safest and the best means for the transportation of goods.

Characteristics of Rail transportation

Rail transport is the most important medium of transportation across the globe. Railways not only carry passengers, but they also carry goods, emergency services, and army equipment.

The first characteristic about rail transportation is about railway track, track component and also continuous welded rail.

Railway tracks  mainly comprises two steel rails that are parallel and fixed perpendicular to the elements known as railway sleepers, the purpose of which, whether made of wood, steel, or concrete, is to keep a constant distance between the tracks, the track directs the flanged wheels of the cars on the desired direction without much steering effort. The tracks allow the trains to be significantly longer compared to road transport. The rails and the sleepers are placed on compressed earth foundations. It is ensured that the load of rails and sleepers is evenly distributed on the foundations to avoid the track buckling.

Next is about track components.

Track components are a complex composition of rails, sleepers, and fasteners installed on hard foundations. This complicated configuration is like other structures that are firmly embedded in the ground. Rail track may be believed to be hovering on the ground foundation. Therefore, the study and analysis of track stresses is complicated and important for the track safety. The rail track can be assembled at the site or prefabricated. The outward rail is higher compared to the inner side rail on the curves. This technique is called super elevation, and it decreases the forces that tend to dislocate the track. The ride is also made comfortable by this process. The track is designed to endure the static and dynamic wheel loads and disperse them to the ground

Lastly is about continuous welded rail.

Continuous welded rail, as used in modern rail systems, is also called ribbon rail. In this type of track, flash butt welding is used to weld the rails together. Flash butt welding requires an automatic track laying mechanism with a strong electric current. The color of the ends becomes white hot because of the electrical resistance, and then they are joined with each other creating a strong weld. A continuous rail can be some kilometers long. The continuous welded rail segments are repaired by thermite welding. Since the joints are few, this track is extremely durable, needs less maintenance, and the ride is smooth. The trains can attain high speeds with little friction.

That’s all for today, thank you for reading.

Characteristics of Road freight

Road freight services are the most common of all the options that one might think of in the transport industry. For instance, in offering transit services for export goods that need to be transported from one country to another, road remains to be the best when a number of factors and characteristics are considered.

Flexibility is a major characteristic of road freight that attracts most people to choose the method as their best in transporting their wares. Besides that, the goods and are delivered at points of convenience. On the other hand, that roads happen to be anywhere from the most civilized cities of the world to the remotest villages on the planet. Whether the roads are of high standards or not what is important to note is that road is the best choice to offer door to door deliveries. Compared to other modes such as maritime or the use of rail, road freight stands on the advantage side in that the others deliver the goods or to fixed destinations where the other option turns out to be road.

Secondly, speed of delivery is another characteristic associated to road freight that makes many to take the method of transport as the best to suit their convenience. Transit time mostly for across the border services is often less in road transport compared to other means such as water and rail. The whole process of transport for road freight is even sometimes shorter compared to the protocols and the time of delivery associated with air transport. Considering the distance that the goods are to be taken, road freight is the best choice for short distance deliveries.

Next characteristics of  road freight transportation also provides the door to door service. It can proceeds directly from the shipper's door to the consignee's door. If the shipment direct to deliver, it lower the transit time and less danger when hold the shipment. Transportation also can smooth the operation of shipment. It more safety because it ship in small quantity than the rail or shipping modes. The bulk quantity of freight in rail and shipping modes can damage the goods. With road mode, the risk of damage can be reduce and less cost insurance.

Road freight is limited capacity. Water and rail mode can carry the bulk quantity rather than road mode. But, it suitable to carry the high value product such as electronic goods. It also suitable for short distance and domestic market. As a conclusion, every type of modes have their own characteristics and benefits.

Furthermore, the road freight is limited capacity because it can accessible to anywhere. With development of highways, road freight has potential to access to almost every destination. It can pick up or delivery the shipment without constrains by waterways, rail track, and airport location. Besides, with road transportation the shipment can deliver to airport or port to next destination.

Trucking in Malaysia

Road freight(motor carrier) has one important element that is difference between Truck Load(TL) and Less Truck Load(LTL) carriers. LTL suitable for small volume shipment but TL for high volume shipment. TL provide door to door shipment but differ with LTL that consolidate and break bulk the cargo. Other than that, LTL charge based on size and weight but TL charge based on truck unit. Besides, LTL need a higher investment but TL only invest for vehicles. Last but not least TL have time efficiency and LTL have longer transit time.

A term common to the shipping industry is LTL or “less than truck load.” That means that the item being shipped will not take up the entire available space on the truck. FTL or “full truck load” means that the load will fill up the entire truck. Shippers that accommodate full truck loads cater to those customers who typically ship in bulk. The large amount of goods being shipped offsets the cost of a larger truck. For those shipping smaller items or items that won’t fill an entire truck, an LTL shipment is the way to go. Most LTL loads average between the 100 pounds that is the limit for many parcel carriers and the 10,000 lbs per load when it makes sense to look at an FTL shipment.

With an LTL shipment, you only pay for the amount of space you use on the truck. For example, if your products only take up a quarter of the truck, you only pay a quarter of the cost for the truck. The rest of the truck is packed with shipments from other companies who also want to save money on their smaller shipments. These options are ideal for smaller businesses that don’t ship in large volumes like their larger counterparts.

Because of the nature of an LTL load, it can take longer than an FTL load. LTL loads typically have more destinations or pick up locations to accommodate the different needs of the various shipments on board. The larger FTL loads usually contain a shipment for one company and one destination

 There were many types of road vehicles that allowed in Malaysia for logistics activities like container, open sided truck, dry van, open top truck, tank trailer, flatbed, high cube truck, special truck, van and refrigerated vehicles. Container truck is combination of three or more axles for longer distance. Open sided truck is a truck that can open the both sided of the container on the truck usually for drinks product. Dry van is a truck that enclosed all sides of container. Open top is a trailer top is open for freight loading such sand. Tank trailer used for delivery of liquid chemical and petroleum.