Types of Transportation for managent students

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Types of Transportation There are various types of transportation that keep the day to day operations of American society up and running. We need roadways open and unobstructed to get to work each day. Airplanes need to fly us to far away destinations to transact business deals or just for vacation getaways. Subways and public transportation are the center of major city operations. School buses transport thousands of children to classes. Trucks deliver everyday items to distribution centers and warehouses. Barges float down rivers and waterways carrying natural resources like coal and steel. It is all a part of keeping our daily lives moving every day. History of Transportation Transportation began with the invention of the wheel in about 3500 BC. Wheels were placed first on carts and then chariots. Next came travel by riverboats believed

Transcript of Types of Transportation for managent students

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Types of Transportation

There are various types of transportation that keep the day to day operations of American society up and running.  We need roadways open and unobstructed to get to work each day.  Airplanes need to fly us to far away destinations to transact business deals or just for vacation getaways.  Subways and public transportation are the center of major city operations.  School buses transport thousands of children to classes.  Trucks deliver everyday items to distribution centers and warehouses.  Barges float down rivers and waterways carrying natural resources like coal and steel.  It is all a part of keeping our daily lives moving every day. 

History of Transportation

Transportation began with the invention of the wheel in about 3500 BC.  Wheels were placed first on carts and then chariots.  Next came travel by riverboats believed to have first been used by the Egyptians.  Horses were added as a means of transportation.  It is believed Asians were the first to place some kind of protector on the horse's hooves. The wheelbarrow was instrumental in transporting heavy goods from one site to another.  The submarine used to travel underwater was invented in 1620 by Cornelis Drebbel.  The first paddle wheel steamboat began rolling down the river during the late 1700s and the beginning of the Industrial Revolution.  About 100 years later we saw the first cable car.  The Wright Brothers took off in the first airplane which they called a "flying machine" in 1903. (They also made bicycles.)  Henry Ford created the system to mass

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produce cars in 1908.  Successful helicopter flights took off in the 1940's.  Jumbo jets began gracing the runways in 1970.  And, the SpaceShuttle blasted off in 1981.

Interstate Highway System

In the United States, one key type of transportation is the use of interstate highways.  Federal officials refer to it as the National Highway System which includes about 160,000 miles of paved roads and interstate that serves the purposes of keeping residents mobile, keeping the country safe and keeping the economy stable.  Officially, the National Highway System is divided into several key groups:

Interstates: The current system of interstate highways in the U.S. is formally called the Dwight D. Eisenhower National System of Interstate and Defense Highway.  Congress passed a law in 1944 to begin the creation of about 40,000 miles of roadway.  However, it was President Eisenhower who was instrumental in getting the roadways funded.  Interstate roadways all carry standard markers that include a red, white and blue shield, a number.  Roadways with odd numbers travel north to south.  Roadways with even numbers travel east to west.

Principal Arterials: These roads generally carry a high volume of traffic between large cities.  They can be considered highways and are key links to major transportation facilities and airports.

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Strategic Highway Network: This is a combination of interstate highways and other roadways to provide a strategic route of operation for the government in peacetime and wartime.  It includes 61,000 miles and is connected to over 200 military installations.  It is commonly referred to as STRAHNET.

Strategic Highway Network Connectors: These are roadways that connect major U.S. defense operations and military compounds to to highways that make up STRAHNET.

Inter modal Connectors:  These are additional connector highways that link interstates, major ports and transportation systems.  These connectors are also used to link the other four subgroups of highways.

 

 

Automobiles & Trucks

It is hard to believe that some people thought the automobile would never be widely received as a mode of transportation in America.  Not only is it a main way to get around in the United States, the availability and use of cars is the key to local and regional travel worldwide.  The United States is the number one market in the

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world for passenger vehicles.  As of 2007, the Department of Transportation reported over 254 million registered vehicles.  Ironically, there are actually more registered vehicles in America than there are licensed drivers which is contributing to a growing problem of overcrowding on U.S. roadways.  However the declining U.S. economy and periodic spikes in fuel costs is causing some drivers to change their driving patterns.  A recent Harris Poll showed that "stay-cations", public transportation usage, telecommuting and car-pooling were all increasing options that American drivers selected to deal with the recent changes in the economy.

Meanwhile, if you have driven on the road at any point, you know you have to share the road with an increasing population of freight trucks.  Freight trucks that transport goods from point A to point B on a 24/7 basis are the blood flow of the American economy.  And, as the American economy and population increases, so will the need for transportation via freight trucks.  According to the Federal Highway Administration, about 53 million tons of freight is on the move daily valued at $36 billion.  Goods moved include everything you can think of from consumer goods to industrial equipment to hazardous materials. 

However, the use of both automobiles and trucks on American roadways is expected to increase in the coming years.  The Federal Highway Administration estimates that by 2035, we will see congestion increase nearly 30 percent from where it was in 2002.  

Rail

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Union Pacific was the first intercontinental railroad connecting the Eastern United States to the new frontier of the West.  The railroad was built in the mid-19th century by hand with a workforce of about 20,000 men, many of whom were immigrants.  While England is credited with creating the first modern railroad in the 1820s, many saw the expansion of the U.S. railway as the key to growing the nation.  As a result, traveling by train became the primary way to travel distances and transport goods during the late 19th century. 

Rail also became a viable option for local and regional transportation with the advent of subways, rapid systems, monorails, commuter and light rail.  The London Underground or the Tube was the first to begin this method of local travel in 1863.  Since then it has transported over one billion people.  The attraction of mass transit rail systems is that they can quickly transport large numbers of people within metropolitan areas which can take some of the stress off of roads and highways.

Aviation

Ever since the Wright Brothers flew onto the scene with the success of the first flight, we have looked to aviation as another viable type of transportation.  Air travel is used for military, commercial and pleasure travel.  However, like other modes of transportation, air travel is highly susceptible to changes in the economy and oil prices.  Recent increases in oil prices have left airline travelers to pay additional fees and surcharges that help airline companies compensate for their increasing overhead costs.   Also, the tragedy of the 9/11 terrorist plots caused a worldwide restructure of airline and airport safety measures that permanently changed air travel.

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Yet, there are advances being made in the technology of aviation.  Aircraft builders are coming up with newer, lighter, more fuel efficient air crafts that could deliver another change in the way we travel by air in the future.

Water

Travel by boats and ships date back to Biblical times and are still useful today as a mode of transportation that is used in daily commerce worldwide.  In fact, many cities were established along river and seaports because of their access to waterways that were a main hub of transportation of goods.  Similar to freight transportation, shipping is another primary way goods are transported from one point to another.  And, because waterways link cities, regions and countries, cargo shipping is essential to transporting goods internationally.  The Great Lakes St. Lawrence Seaway System is an example.  It stretches from the Atlantic Ocean to Lake Superior in Minnesota and incorporates waterways in the U.S. and Canada.

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The advantages and disadvantages of air transport.

Air transport is of recent origin in the development of transport system of a country. It is the gift of 20th century to the world. The second world ware 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. The transport of goods through airways is costly and therefore it is designated to carry costly goods of small quantity. When goods or passengers are carried by air, certain documents are issued because the carriage of Air Act, 1972 has made it obligatory. The documents issued when goods or passengers are carried are:

Passenger Ticket

Luggage Ticket

Air Consignment Note.

In India two nationalized airways operate which help in the conduct of air transport. These airways are the Indian Air Lines and the Air India International. The former is concerned for domestic operation whereas the later is concerned for international operation.

Advantages

The following are some of the advantages of air transport:

High Speed: Air transport is the fastest mode of transport and therefore suitable carriage of goods over a long distance requiring less time. There is no substitute for air transport when the transport of goods is required urgently.

Quick Service: Air transport provides comfortable, efficient and quick transport service. It is regarded as best mode of transport for transporting perishable goods.

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No Infrastructure Investment: Air transport does not give emphasis on construction of tracks like railways. As no capital investment in surface track is needed, it is a less costly mode of transport.

Easy Access: Air transport is regarded as the only means of transport in those areas which are not easily accessible to other modes of transport. It is therefore accessible to all areas regardless the obstruction of land.

No Physical Barrier: Air transport is free from physical barriers because it follows the shortest and direct routes where seas, mountains and forests do not obstruct.

Natural Route: Aircrafts travels to any place without any natural obstacles or barriers. Because the custom formalities are compiled very quickly. It avoids delay in obtaining clearance.

National Defence: It plays a significant role in the national defense of the country because modern wars are conducted with the help of aero planes. Airways has a upper hand a destroying the enemy in a short period.

Disadvantages

Inspite of many advantages air transport has a number of disadvantages. These disadvantages are:

Risky: Air transport is the most risky form of transport because a minor accident may put a substantial loss to the goods, passengers and the crew. The chances of accidents are greater in comparison to other modes of transport.

Very Costly: Air transport is regarded as the costliest mode of transport. The operating cost of aero-planes are higher and it involves a great deal of expenditure on the construction of aerodromes and aircraft. Because of this reason the fare of air transport are so high that it becomes beyond the reach the common people.

Small Carrying Capacity: The aircrafts have small carrying capacity and therefore these are not suitable for carrying bulky and cheaper goods. the load capacity cannot be increased as it is found in case of rails.

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Unreliable. Most of the air transport are uncertain and the unreliable because these are controlled by weather condition. It is seriously affected by adverse weather conditions. Fog, snow and heavy rain weather may cause cancellation of some flights.

Huge Investment: Air transport requires huge investment for construction and maintenance of aerodromes. It also requires trained, experienced and skilled personnel which involves a substantial investment.

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Transportation concerns the movement of products from a source—such as a plant, factory, or work-shop—to a destination—such as a warehouse, customer, or retail store. Transportation may take place via air, water, rail, road, pipeline, or cable routes, using planes, boats, trains, trucks, and telecommunications equipment as the means of transportation. The goal for any business owner is to minimize transportation costs while also meeting demand for products. Transportation costs generally depend upon the distance between the source and the destination, the means of transportation chosen, and the size and quantity of the product to be shipped. In many cases, there are several sources and many destinations for the same product, which adds a significant level of complexity to the problem of minimizing transportation costs. Indeed, the United States boasts the world's largest and most complex transportation system, with four million miles worth of roads, a railroad network that could circle the earth almost seven times if laid out in a straight line, and enough oil and gas lines to circle the globe 56 times.

The decisions a business owner must make regarding transportation of products are closely related to a number of other distribution issues. For example, the accessibility of suitable means of transportation factors into decisions regarding where best to locate a business or facility. The means of transportation chosen will also affect decisions regarding the form of packing used for products and the size or frequency of shipments made. Although transportation costs may be reduced by sending larger shipments less frequently, it is also necessary to consider the costs of holding extra inventory. The interrelationship of these decisions means that successful planning and scheduling can help business owners to save on transportation costs.

BASIC MEANS OF TRANSPORTATION

There are five basic means of transporting products utilized by manufacturers and distributors: air, motor carrier, train, marine, or pipeline. Many distribution networks consist of a combination of these means of transportation. For example, oil may be pumped through a pipeline to a waiting ship for transport to a refinery, and from there transferred to trucks that transport gasoline to retailers or heating oil

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to consumers. All of these transportation choices contain advantages and drawbacks.

Air transport. Air transportation offers the advantage of speed and can be used for long-distance transport. However, air is also the most expensive means of transportation, so it is generally used only for smaller items of relatively high value—such as electronic equipment—and items for which the speed of arrival is important—such as perishable goods. Another disadvantage associated with air transportation is its lack of accessibility; since a plane cannot ordinarily be pulled up to a loading dock, it is necessary to bring products to and from the airport by truck.

According to Transportation and Distribution, air cargo remains a comparatively small segment of total freight transportation volume when measured by tonnage (12.5 billion domestic ton-miles of freight annually). But L. Clinton Hoch noted in the magazine that "access to air transportation is expected to become increasingly important since a growing number of customers (such as hospitals and electronic manufacturers) depend upon 'just in time' delivery systems as well as the increasing number of high-tech industries (such as computer manufacturers) adopting the 'build-to-order' strategy." These trends, coupled with increased pressure on consumer goods manufacturers to deliver products quickly to 1) meet customer expectations and 2) reduce inventory and other supply chain costs, are expected to "fuel the demand for expedited services," wrote Hoch. "Accordingly, competition is heating up among the major air cargo and express carriers who are building specialized hubs to handle larger aircraft and major sorting facilities."

Railways. The rail transportation network in the United States included about 120,000 miles of major rail lines in the late 1990s, on which carriers transported an estimated 1.3 million tons of freight annually. Trains are ideally suited for shipping bulk products, and can be adapted to meet specific product needs through the use

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of specialized cars—i.e., tankers for liquids, refrigerated cars for perishables, and cars fitted with ramps for automobiles.

Rail transportation is typically used for long-distance shipping. Less expensive than air transportation, it offers about the same delivery speed as trucks over long distances and exceeds transport speeds via marine waterways. In fact, deregulation and the introduction of freight cars with larger carrying capacities has enabled rail carriers to make inroads in several areas previously dominated by motor carriers. But access to the network remains a problem for many businesses.

Motor carriers. Accessible and ideally suited for transporting goods over short distances, trucks are the dominant means of shipping in the United States. In fact, motor carriers account for approximately $120 billion in annual revenue, much of it due to local shipments (shipments to and from business enterprises in the same community or local region). This industry sector underwent tremendous change in the 1990s with the introduction of deregulation measures that removed most state and federal regulations in the areas of pricing and operating authority. "With few exceptions, motor carriers are now free to operate wherever they wish and to charge any rates that are agreeable to the shipper and the carrier," wrote Hoch, although he noted that trucks are still subject to federal laws on vehicle specifications and the parameters of the sanctioned truck routes of the Surface Transportation Assistance Act of 1982.

Water transport. Water transportation is the least expensive and slowest mode of freight transport. It is generally used to transport heavy products over long distances when speed is not an issue. Although accessibility is a problem with ships—because they are necessarily limited to coastal area or major inland waterways—piggybacking is possible using either trucks or rail cars. However, industry observers note that port terminal accessibility to land-based modes of transportations is lacking in many regions. The main advantage of water transportation is that it can move products all over the world.

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Pipeline facilities. Most pipeline transportation systems are privately owned. Generally used for transport of petroleum products, they can also be used to deliver certain products (chemicals, slurry coal, etc.) of other companies. According to Transportation and Distribution, the nation's natural gas line networks include 276,000 miles of transmission pipe and more than 919,000 miles of distribution lines, which combine to deliver nearly 20 trillion cubit feet of gas on an annual basis.

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The economic benefit/functions of transport.

The movement of goods from one place to another is called transport. Transport removes the hindrances of persons, place and time in exchange of goods and commodities. Effective transport plays an important role in the economic progress of the country. The various economic benefits/functions of transport are as follows:

Extensive market: Transport helps in the assembly of raw materials and distribution of finished goods. It makes it possible to move goods from the place of production to the place where they are to be consumed. In the earlier days, there were only local markets due to the absence of safe means of transport. Now a days, trade is not restricted to the boundaries of a nation, but has spread through out the world. Development of the efficient means of transport has knit together all the nations of the world into one big world market. Even the perishable articles like fish, dairy products, meat etc. are being transported to distant places of the world. But for good transport facilities, such a development in trade and commerce would not have been possible.

Mobility of labour and capital: Transport reduces the rigours of immobility of certain factors of productions. Mobility of labour and capital increases with the development of transport. An efficient network of transport services encourages the movement of people from one place to another. Labour can migrate to the place where they can get better job opportunities which states would not have been possible without immigrations from Europe. With the development of transport, the investment of capital is also channelised to new lands and other places of the world.

Specialization and Division of Labour: Transport helps each region and country to make optimum and efficient use of its national resources. Each region can concentrate on production of those goods for which its resources are best suited.

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Thus, movement of goods and people from one place to another leads to specialization and division of labour which results in minimum wastage of resources and reduction in the cost of production.

Economies of large scale production: Transport has helped the development of large scale industries. It would not have been possible for these industries to procure raw material, gather large number of workers and sell the finished goods, without the efficient facilities of transport. Thus, transport has made possible various economies of large-scale production which tend to reduce unit cost of production and help the economy.

Stability of Prices: Transport facilities iron out wild fluctuations. Goods ca be transported to places where there is scarcity and the prices are high from places where there is surplus and the prices are low. Such movement of goods helps in maintaining uniform prices throughout the country and further tends to equalize the prices of goods throughout the world.

Benefits to Consumers: Improved means of transport benefit the consumers in many ways. The consumers can enjoy the benefit of use of many goods, which cannot be produced at their place, by transporting such goods from other distant places. Further, it helps in reducing the cost of goods to consumers and increases their purchasing power.

Employment Opportunities and Increase in the National Income: The various means of transport provide employment to millions of people throughout the world. The economic development of a country depends upon the improved means of transport. Thus, transport contributes substantially to the national income of the nations.

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Characteristics of Transport Services

Characteristics of Transport Services

Creation of Transport infrastructure requires time: - it is necessary to anticipate the demand on the transport system ahead of socio -economic changes. Some of the transport infrastructure requires more than one plan for its completion. Often the capabilities created in expanding transport network during one plan period are the results of the investments of made in earlier plans. Therefore two issues emerged out of it such as

(1) the need to complete all ongoing works to derive the maximum benefits from the earlier investments

(2) to make investments in transport sector keeping in view the long time frame perspective.

Transport infrastructure is capital intensive: - in view of the long gestation involved, transport development requires heavy investment. Massive investment is required is required for quality road construction, laying the railway lines and creation of rolling stocks, creation port facilities and ship building industry and terminal facilities. As social return is involved in the development of these facilities, private initiation is practically absent. For this purpose government initially develops most of the transport services.

Effective use of energy is a critically aspect of transport sector. :- Different modes of transport use different forms of energy with varying degree of efficiency and intensity. In this connection due weightage is being given while considering the choice among available alternatives. Development of transport largely depends on the availability of various forms of energy.

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Development of transport is connected with the scientific and technological progress:- During past two hundred years the economic development in various regions of the world was possible only because of growth of transport network. The process of technological up-gradation has been very uneven in many areas, as a result some mode of transport has been advanced and frequently used by consumers while they don’t use at all some other modes of transport due to several; constraints.

Freight structure and cost of transportation influence transport services:-The transport pricing policy and subsidization of freight structure by and large influences the consumers decisions for choosing a particular transport mode. Often the transport demands are influenced by factors not necessarily confirming to patterns suggested by comparative cost considerations.

Security and speedier movement of goods is an important aspect of transport:- Security in travel and safe delivery of goods is the important considerations, which influences the user preference to various modes of transport. Timeliness in the movement of goods and door-to-door service influences the customers to pay more for utilising a particular transport service.

Significance of Transportation

Effective transportation is indispensable to economic progress. Mining, manufacturing, trade and banking and agriculture are also necessary, but these activities, like many others, depend upon transportation Without adequate facilities for moving goods and people from place to place, economic and social activities can be carried on in a limited way only. Using a mobility index that combines available data on transport facilities and movement of passengers and freight, Wilfred Owen finds out that immobility and poverty go together. The countries

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with low per capita had a mobility index for freight and passenger transport in single digits, whereas this index was significantly high in countries with high per capita income. Indeed, a more recent study finds out that every one-percentage growth in the Indian economy presumes a growth of 1.2 to 1.4 per cent in the transport sector.