Transportation (wk 3)

Meaning: transportation is the movement of people and products from one place to

another. It’s one of the aids to trade.

Importance of transportation

• It widens organization’s market by enhanced sales

• It promotes international trade• Prevents wastage especially of perishable

goods t through quick movement• It improves standards of living• It creates employment opportunities

Methods of transportation

There are four major means of transportation. They are :• Land• Air• Water• Pipeline

A. Land transportation: This is made up of Road transport and Rail

transport.

Road Transport

It involves the movement of people and goods using buses, lorries, cars etc

ADVANATAGESProvides door to door service It is fast over short distances It is flexible in it’s operation It complements other forms of transportSuitable for speedy delivery of perishable goods

Rail Transport

It is the movement of goods and people through trains which use special tracks known as railways. Trains are either passengers or cargo trains

ADVANTAGES• It has capacity to convey heavy/bulky goods• It is very cheap• Accident rate is low/minimal• It operates on schedule• No problem of congestion and hold-up compared road

transport

Disadvantages

• It is not flexible• Operation and maintenance cost is high• It is slow and waste time on short distance• Accidents, though rare is often fatal if they

occurB. AIR TRANSPORTIt is the movement of people and goods in

airspace using jets, helicopters planes etc. There are passengers and cargo planes.

Advantages

• It is the fastest means of transportation• Most suitable for conveying fragile and expensive

goods• It offers comfort and is luxurious• Operates on schedule and direct routesDISADVANTAGES• Air freight is expensive• Operational cost is high• Operation is often affected by bad weather

Water transport

This is the movement of people and goods through rivers, seas and oceans. There are two main categories, namely:

Inland water ways: This is within the nation on rivers, canals, creeks, by use of boats etc

Sea waterways: This makes it possible for goods and people to move across countries . It is classified into

A. Ocean liners: it moves on high seas and oceans on fixed routes and schedules. It comprises of passengers and cargo liners.

B. Tramp liners: It carries passengers and cargos where ever it’s available on high sea/oceans. It is also known as ocean taxi

C. Coastal liners: They are coastal steamers that are used to move goods to main port.

Advantages of water transport

• Most suitable for conveying bulky goods• Aids international trade• Cheapest means of transportDISADVANTAGES• It is slow and time consuming• Stealing and pilfering is rampart• Lacks door to door services

Pipeline transport

It is a means by which liquid and gasses are moved from one place to another through pipelines laid underground.

ADVANTAGES• Operation is affected by weather• Cheap to maintain• There are no congestions or hold ups that cause delaysDISADVANTAGES• High cost of construction• Leakages if not detected lead to wastage and destruction of

lives• Prone to illegal tapping of product

Factors that influence choice of transportation

• Convenience/customers preference• Nature of goods being conveyed e.g.

perishable, fragile, expensive etc• Distance involved• Urgency of delivery or arrival• Available means of transport• Cost of transportation• Safety

Some of the terms used in transportation

• Freight: costs or expenses incurred in transporting cargoes e.g. by air or sea.

• Charter party: it is the contract between ship-owner and a consignor (i.e. owner or representative of the goods owner) for the transportation of the goods.

• Dead freight: This is the freight paid on unoccupied space in the ship.

Assignment

• State three advantages of land transport over rail transport.