Introduction Transportation is crucial to industry and the economy. Without it, goods and services would not be able to get to market and labor would be unable to migrate. Based on these statements, one could assume that more transport is always better. Or, one could assume there are diminishing marginal gains to productivity in regards to transport. The sources of these productivity gains have been theorized substantially and numerous methods of trying to determine the gains to productivity have been developed. This is a brief review paper on the topic of transport and industrial productivity. Generally speaking, industrial productivity will be defined here as the output of a region. This is not the only measure of productivity used …show more content…
The final section contains final remarks and a conclusion.
Theory and Methodologies As mentioned in the introduction, transport is theorized to raise industrial productivity. Determining the causal mechanism for these productivity gains is difficult, and measuring them accurately and efficiently is even more difficult due to statistical hurdles and data availability. The three most common approaches to estimating industrial effects of transportation are microeconomic and macroeconomic approaches and a historical or wider benefits approach (Lakshmanan, 2011). The microeconomic approach to estimating the impacts of transport infrastructure uses the basic concept of consumer surplus. Beginning with a downward sloping demand curve and a flat transportation supply curve, the area below the demand and above the supply curve is the consumer surplus. If the supply of transportation is raised, say by building a new road, the supply curve shifts outwards (down in this particular case). This new higher level of supply lowers the cost for users, and therefore increases the gap between the supply and demand curve, resulting in increased consumer surplus (Lakshmanan, 2011). This can then be measured by examining difference levels of road supplied before and after a project is undertaken, and changes to industrial productivity that may have shifted as a
The town of Halton Hill’s population includes the areas of Georgetown and Acton and other communities such as Erin, Oakville, Burlington and Milton regions. This is what is considered to be my community because these are the many places that I am visiting most often and they are always referred to together as “Halton Hills Region” (p.5, 2011). With the substantial increase in population in the Halton Hills region, more specifically Georgetown, there should be a strong demand for a public transit system to counteract all of the environmental disturbances that are being caused due to this increase. One of the things that is happening is that there are so many trees they are cutting down in order to expand and grow the population with houses being built. Statistics are showing that the population of Halton Hill’s region will expand by 54% over the next 20 years (p.5, 2011). By the year 2031, employment rates will increase by 75%, leaving Halton with 42,100 jobs being offered (p.5, 2011). With this rapid influx of citizens, this will only increase the demands of travel to get to these work places as well as other destinations (p.5, 2011). Over the past couple of year’s the traffic congestion on the major roads in Halton Hills such as Trafalgar Road and Regional Road 25 with individuals trying to get to and from work. There used to be very little traffic in these areas, however since Halton Hill’s has continued to expand, the utilization of automobiles has significantly increased due to the fact there is no public transit system. The Transportation Demand Management in Halton Hill’s is noticing the increase in automobiles stating that there needs to be a major shift in more efficient ways of transportation, yet there still has been nothing improvised (p.7, 2011). The Transportation Demand
Transportation in the United States has changed dramatically in the past few hundred years, from dirt roads, to canals, to railroads, and back to roads to again. Improvements in transportation between the years 1820 and 1860 allowed for almost all of America to be accessible which caused the US economy to explode. Transportation turned the U.S. into a flourishing economy and caused a large increase in sectionalism, industrialization, and expansion.
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
The Organisation of the Petroleum Exporting Countries (OPEC) aims to coordinate and unify the petroleum policies of its Member Countries and ensure the
In result of the new railroads “you can travel cheaply from place to place” (Document 9) Before the railroads, traveling was not very common. It was a large expense to travel but industrialization later made it a feasible cost. It was stated that it more money to ship a shipment out of Europe in the early 1800s. After the industrial revolution began, the prices dropped significantly. It was also proposed that “during the 1800s the amount of railroad tracks increased dramatically in Britain, the Continental Europe, and the United States” (Document 5).
As the highway system made land more accessible, development of these new pieces of land was heavily encouraged. And due to the reliability of travel time for shipments of goods, “just in time” delivery was far more feasible. This reduced the warehouse costs and led to an increase of manufacturing efficiency. The Interstate Highway system not only allowed for quick travel, but expanded the geographical range and options for consumers, which resulted in larger selections and lower consumer prices. This caused an increased retail competition. With companies able to supply their products to much larger geographical areas, and less expensively, the Highway system enhanced inter-regional access and created a genuinely national domestic market. As the Interstate Highway System made more cheap land available, the expansion of residential, industrial and commercial construction exponentially increased. This indirectly led to an expansion of jobs. The highway itself resulted in more jobs as for every $1 billion investment over 40, 000, non-construction jobs, could be made and currently the highway employs close to 150,000 a
In “Add title,” Professor Alan Imhoff conveys the significant influence that transportation has on the local economy. Several modes of transportation have been valuable in stimulating the growth of Frederick County. Of these approaches, waterways and railroads were indispensable.
The difference in the share of railways in the USA and the EU is due to the geographical distances between cities in the USA and the EU. Railways cost less to operate and have fewer emissions when compared to trucking. Yet, the use of railways is limited for the following reasons: (i) building its infrastructure is very costly; (ii) the long lead time required for developing the infrastructure; (iii) consistent-high-volume of the freight traffic is needed for economic viability; and (iv) the need for trucks for the distribution to the final destinations. Trucks have many advantages over other modes of transportation, especially that they provide last mile delivery. Trucks, as compared to railways, ships, or planes have the most flexibility in reaching a destination, and the upfront
What was transportation like during the Second Industrial Revolution? In the Second Industrial Revolution the United States said goodbye to horse and carriages and said hello to oil and electric powered vehicles. When electricity took over as the main energy source transportation boomed. The first internal combustion engine was built in 1860. With the cities getting bigger electricity helped when creating trams. Trams were used in the cities to transport people to and from their desired destination. Britain also took advantage of new energy sources by building an underground railroad in 1863 that was also powered by electricity. By 1908 Henry Ford planned an assembly line to produce a large number of cars. During this time the car industry
There was a huge amount of works on the collaboration between trade and transport costs. Improvements from the trade should be balanced the related transaction costs, in the method of direct expenses for the transportation service, because of the value associated with the quick option for transporting goods. Another important locational conclusion influences, mainly for export-oriented businesses, is closeness to airports with the wide transport.
This proposal will outline and validate the impending document generally. First the general nature of the document will be discussed; then the ensuing proposal will be outlined.
agreed to keep a stretch of road in good repair if they could charge a
Passenger and freight transportation systems have a number of similarities in the investment evaluation process, with a few significant differences. The table below offers an initial look at the stakeholders for each and their relative financial interests.
Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.
The use of the transportation system has made life in the world simpler, since we depend on transportation to transport us to and from our daily operations. Today, in this world we can go anywhere we choose to, due to how transportation has evolved over the years starting from the wheel. Transportation has made the world a very comfortable to live in, but sometimes as humans we sometimes forget to appreciate the small things in life like transportation. Our time in life is very valuable, and transportation helps supports our valuable time by transporting us to different places at a faster speed. If transportation decided to abruptly come to an end, the world would end up in chaos, because without transportation this world would be a difficult place to live in. If people have no means of transporting them themselves in this world, how would they keep their job and find a job, in order to put food on the table for themselves and their families. If people in this world today, just all of sudden get sick, how would they be able to transport themselves to the hospital. If there is no transportation how people go into stores in buy food, clothes, medicine, and other necessary items that help them sustain health. Transportation is one of the reason, why so many of us have food on our refrigerator and tables at night and clothes on our back. In this world today, there are many sick children in this world that need our support, and transportation is one of the