Development of the Trasportation Industry

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The greatest fundamental impacts of transportation industry relate to its physical capacity to convey both goods and passages from one destination to another. This involves setting of routes that enable new or existing interactions between different economic entities. Efficient transport is imperative in economic development, nationally and globally ( Dimitriou, & Gakenheimer,2011).. Improved transport positively affects global development patterns, boosting the economic growth. Tourism is perceived to be an important driver of the economies of most countries around the world. The global tourism trend has remarkably shifted over the last few decades, due to improvement of transportation sector, specifically introduction of advanced railway system (Iwnicki, Ed.). (2006). Advanced information technology backs the increased sophistication of travelers who seek larger variety in travel arrangements and require personalized services, which meet their unique needs.

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The competition between modes has produced segmented and un-integrated transport systems, with each seeking to exploit its benefits in terms of service, reliability cost, and safety. Different carriers try to increase their revenue as well as maintain their business by maximizing and controlling their line-haul (Parvatiy & Sheth, 2001). All these different modes view the other modes as competitors, and have always been seeking ways of gaining competitive advantage (Button, 2010). In countries such as USA, lack of integration between these modes was accentuated by public policy, which frequently barred companies from owning and running firms in other modes. Modalism was also preferred due to the difficulties of transferring bulk goods from one mode to the other, hence incurring additional costs and sometimes delays.

The situation has been gradually changing in since 1960s, when major efforts to integrate separate transport systems through intermodals was sphere headed. This took place in several stages, and the improvements have been continuous. The movements of passengers across different modes of transportation have been commonly taking place at different terminals (Grabara, Kolcun, and Kot, 2014). In North America, intermodal transportation is also used in reference to containerized rail transportation. In the literal sense, intermodal transportation refers to the exchange of passengers and goods between different transportation modes, but the term has recently become more common when dealing with container transportation.

Successive governments have been encouraging competition in rail markets the onset of privatization, as the experience in other modes of transportation is posing greater competition, which deliver benefits for consumers in quality and cost of services. There is a great potential to transform rail transportation to become more dynamic, mature, customer-focused and efficient industry.

Capacity has recently become a hot issue. It is getting much attention in the transportation circles nowadays. Urban highways are characterized by congestions, and there are bottlenecks at some ports. Railroads have absorbed large increases in both ton-miles and train-miles in the recent years. Many companies frequently evaluate their supply chain operations with an aim of reducing transportation costs. Most of these companies claim transportation costs takes a big share of the overall operating cost, hence they usually consider the best mode of transportation, which are cost effective.


Availability of abundant low cost land near country stations provides possibility for development

There is less damage of goods, when compared to other transportation modes.Railroads have better connectivity across the breadths and length

More carrying capacity of people and goods

Offers job opportunities to citizens

The mode helps in reducing congestions and bottlenecks in cities and different stations

Presently, many countries have seen some of their big railway transportation companies wind up due to specified challenges. Some of these challenges include:

Filthy coaches

In Nigeria for instance, poor sanitation and old coaches has discouraged the citizens from using this mode of transportation. For this reason, the operating costs surpass the collections leading to losses.

Management bureaucracy

Poor management has contributed in slowing down the progress of the rail transport. Most companies have ended in dissolution due to managements issues, where the higher management is involved in corruption, or there is laxity. Management has not only killed transportation sector, but also many other institutions.

Increased competition

There is increased competition in different modes of transport, including railway transportation. This competition has forced some companies out of business.

In conclusion, capacity will continue to grow significantly if new investments such as new high-speed services, good managements and others. Future growth will be achieved through continued investment to use infrastructure more intensively and grow capacity. Longer and faster trains new on-board signaling technology and electrification and will allow denser and faster use of the existing network. Once the improvements are made in the sector, there is guaranteed expansion of the market.


Button, K. (2010). Transport economics. Edward Elgar Publishing.

Dimitriou, H. T., & Gakenheimer, R. (Eds.). (2011). Urban transport in the developing world: a handbook of policy and practice. Edward Elgar Publishing.

Grabara, J., Kolcun, M., & Kot, S. (2014). The role of information systems in transport logistics. International Journal of Education and Research, 2(2).

Goodwin, P. B. (1992). A review of new demand elasticities with special reference to short and long run effects of price changes. Journal of transport economics and policy, 155-169.

Iwnicki, S. (Ed.). (2006). Handbook of railway vehicle dynamics. CRC press.

Kent Jr, J. L., & Flint, D. J. (1997). Perspectives on the evolution of logistics thought. Journal of Business Logistics, 18(2), 15.

Parvatiyar, A., & Sheth, J. N. (2001). Customer relationship management: Emerging practice, process, and discipline. Journal of Economic and Social research, 3(2), 1-34.

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