Importance of Transport:

    • Needed to bring raw materials to manufacturing units
    • Needed to transport manufactured goods to market
    • Leads to extension of local and overseas market
    • Improves standard of living
    • Encourages trade between countries
    • Leads to different regions specializing in goods in which they have comparative advantages
    • Encourages local production

    Characteristics of different methods:

    1. Road:
    • Door to door delivery
    • No unloading and reloading from one carrier to another
    • Suitable for delivery of fragile goods
    • Road links are available to even the remotest areas
    • Special trucks for special items
    • Not restricted by time schedule
    • Road vehicle can take the shortest possible routes, whereas trains are restricted to avail tracks only.
    • Cheaper and faster for short distance
    • Expensive and slower for long distance
    • Not suitable for very bulky goods
    • Traffic is a problem




    1. Rail:
    • Cheap and fast
    • Suitable for heavy bulky goods
    • No doorstep delivery
    • Not suitable for perishable items
    • Goods have to be handled four times
    • High chances of theft
    • Timetabling is a problem
    • Inflexible-governed by time tables
    • Expensive for short distances
    • Widely available but not everywhere


    1. Air:
    • Fast
    • Free from topographical obstacles
    • Low packing costs
    • Less chances of accidents
    • Less documentation
    • Suitable for urgent orders, perishable goods and fragile items
    • No door to door service available
    • Limited carrying capacity
    • Goods need to be handled four times


    1. Sea:
    • Cheap
    • Refrigeration facility available
    • Containerization reduces the loss of goods due to pilferage or damage due to bad weather or poor handling
    • Slow
    • Documentation
    • No door to door service
    • Custom clearance takes a lot of time
    • Risk of accident


    1. Waterway:
    • Cheap for heavy and bulky goods
    • Requires navigable rivers free from rapids and sitting
    • Canals are expensive to build and maintain


    1. Pipeline:
    • Cheap
    • Difficult to detect leakage
    • Not accessible in rugged areas
    • Only carries one substance
    • Continuous supply
    • Fast
    • Rare availability

    Factors affecting choice of method:

    • Nature of goods
    • Quantity
    • Value of goods
    • Risk of damage
    • Urgency
    • Convenience
    • Cost
    • Door-to-door service
    • Availability
    • Security
    • Reliability

    Modes of transport:



    1. Passenger train:
    • Governed by time tables
    • Cheap and fast over long distance
    • Not available everywhere
    • No door to door service


    1. Ferry:
    • Used for local transport
    • Specially designed ships
    • For carrying passengers for fairly short distances


    1. Delivery vans:
    • Owned by some companies and businesses
    • Wholesalers detainer goods to retailers
    • Mail order businesses deliver goods through them

    Benefits to a business on having own transport:

    • Convenient
    • Reliable availability
    • Cautions and careful handling
    • High security
    • Expensive
    • Needs regular maintenance
    • Wages to drivers
    • Only for those businesses who deliver on regular basis


    • Containerization:
    • Involves the stacking of goods in large metal containers
    • 20ft x 8ft x 8ft or 40ft x 8ft x 8ft
    • Waterproof
    • Weatherproof
    1. Advantages/reasons for increased use:
    • Increased security
    • Increased protection-water and weatherproof
    • Items don’t break
    • Containers can’t get lost they are transferable due to their code name
    • Available worldwide
    • Reduces transport cost to the harbor
    • Less handling charges
    • Quicker turn-round time


    • Other trends in transportation:
    1. Charter transport:
    • Flight hired by a firm or person which is not scheduled
    • For very precious and perishable goods
    • Very expensive
    • Not for regular use
    • As per the need of customer


    1. Express road routes:
    • Fast road transport
    • Better roads
    • Quicker
    • Less chances of accident
    • Good for vehicles
    • Convenient for custom officers to check trucks


    1. Changes in use of rail transport”
    • Fast railway operation
    • Bullet cargo trains save time
    • Less chances of accident
    • Cheaper than air transport


    • Transport documents:
    1. Delivery/consignment note:
    • This document is sent with goods
    • It allows the purchaser to check the items received against those listed in the note.
    • The purchaser signs this note which means that he has accepted the consignment without any flaw.
    • The note is then handed over to whosoever had delivered the goods.


    1. Bill of lading:
    • States the quantity and provides the value, description shipping marks of goods sent by ship.
    • Also contains the name of ship, port of departure and destination of goods.
    • It is in sets of two or more transferable copies, all of which are signed by the master of ship.
    • It is a receipt of goods in good condition on board.
    • When delivery of goods has taken place, all other copies are considered invalid.
    • It helps in recording statistics.
    • It allows custom authorities to check whether the goods are taxable or not.


    1. Airway bills:
    • It is used whenever a consignment is sent by air
    • It is prepared in triplicate by consigner.
    • It is an evidence of contract of carriage and note of flight charges.
    • One copy is signed by the consigner, one copy travels with the goods and one is signed by the carrier and returned to the consigner.


    • International transport:

    Services offered at sea ports:

    • Provision and maintenance of deep water whirrs and control of harbor traffic.
    • Maintenance and control of navigation with port limits.
    • Provision and maintenance of efficient navigational aids.
    • Provision and maintenance of berthing facility.
    • Recording of details and particulars of goods from a ship.
    • Provision of dry and wet docks to repair ships.
    • Provision of fire brigade and security services.
    • Licensing of harbor and pleasure craft used with port limit.
    • Maintenance of bonded warehouses
    • Maintenance of roads and railways within the port area.
    • Improvement and expansion of port facilities.
    • Make terminals in deep sea to provide clear access to the port for ships.
    • Provide pilots for ships.
    • The port authorities have to build a road to provide access to the main market city area.
    • As they own the port, they have to provide office space and communication facilities to customs etc.

    Services offered at airports:

    • Approving airport licenses and permits.
    • Conducting bilateral airport negotiations.
    • Providing legal advice on air legislation.
    • Maintain statistical record.
    • Control air traffic.
    • Providing search and rescue services.
    • Providing aeronautical information.
    • Providing radio navigation to aircrafts.
    • Providing communication services between aircraft and ground units.
    • Fire fighting facility.
    • First aid associated staff.