TRANSPORTATION MEANING IMPORTANCE AND TYPES

WEEK 5

DATE:……………………………….

TOPIC: Transportation.

CONTENT: (i) meaning (II) importance (III) Forms: land, water, Air, pipeline

Sub-Topic 1: Meaning of Transportation

Transportation as an aid to trade is very important in helping goods and services get to the consumers. Transportation is the movement of people and goods from one place to another. It involves different means by which people and goods are moved from one place to another. Transportation also facilitate the transfer of raw materials like cotton, cassava etc. from source to where they are needed.

EVALUATION

Explain the meaning of transportation.

Sub-Topic 2: Importance of Transportation

Transportation is essential for the following reasons:

• Availability of Raw Materials to Producers

With the aid of transportation, raw materials extracted are easily transported through the various means of transportation to industries or locations where they are processed into finished or semi-finished products. For instance, crude oil cannot be processed into fuel, kerosene etc without the help of transportation.

• Facilitates International Trade.

Transportation has aided the movement of goods and services from one country to another. For instance, electronic product like radio, refrigerator, computer set etc have been imported from Japan to Nigeria with the aid of transportation.

• Employment Opportunities

Transportation is one of the main employers of labour, especially in the countries where white collar jobs are hard to come by (get). Many graduates work in Transportation Company like ‘the young shall grow’, ‘Edegbe Line’, and ‘Libra Motor’ and so on. Also, countless number of Nigerians survives as motorcyclist, tricyclists, taxi drivers etc.

• Mobility of Workers

Workers from different parts of the country can be moved from one place to another with the aid of various means of transportation. For instance a worker residing in Benin can easily get to his/her place of work in Warri without much ado (delay).

• Improved Standard of Living.

Transportation has made it possible for goods and services to get to the consumers at the right time and in the right place. For instance, agricultural produce can get to urban cities while industrial products are made available to rural dwellers through the various means of transportation. This of course has helped to improve the quality of life of the people.

• Influences the Location of Industries

One of the conditions for siting industries is the availability of good transport network. This means that raw materials semi finished goods and finished goods can be moved to places where they are needed without any hindrance.

• Prevention of Waste: 

Perishable goods like vegetables are moved quickly from the farms with a suitable means of transportation to places where they are needed. This has in a way prevented waste of such goods. 

• Widening of the Firm’s Market

Transportation has the ability to extend a firm’s market through the sales of firm’s product in both rural and urban areas. 

• Development of Rural Areas.

Transportation has caused the growth and development of many rural areas in this country. Through transportation, some businesses have been established as well as the provision of social infrastructures in the rural areas.

Factors Determining the Choice of Transportation

• Nature of goods: Perishable and fragile goods are better handled by fast means of transportation like aircraft while bulky goods are better handled by ship or rail.
• Cost of transport: The cost a particular transport will determine the choice of transportation of goods. This is because if the cost is high, it will result to an increase in production cost
• Weighty/Bulky goods: Goods that are bulky are better moved by road, rail and sea while light goods are best suited for air transport.
• The type of transportation available in the area: The available transport can also determine the choice to transportation. For example people living in riverine area have no option but to use water transportation.
• The value of the goods: Commodities with high cost like jewellery are better moved by air so as to reduce pilferage.
• Distance involved: The distance to be covered is also a factor to consider when choosing a means of transportation. For instance, water and air transportation are suitable for long distances while road transportation is good over short distance.
• Degree of urgency of Delivery: Goods may require urgency in delivery are better handled by fast means of transportation.
• Consumers’ preference or choice: There is a popular saying that ‘another man’s meat is another man’s poison’. This means that the kind of transportation Mr. A will like may be different from that of Mr. B.
• Speed: The rate of speed of one means of transportation is different from another. This is why a businessman will prefer to move his perishable goods by a fast means of transportation in order to avoid spoilage and loss.
• Convenience: Some means of transportation are more convenient than others. For instance aged people will prefer air transportation to road transportation because of the poor state of our roads.

EVALUATION

1. Mention and explain six importance of transportation.
2. State five factors that determines the choice of transportation.

Sub-Topic3:  Forms/Types of Transportation

There are four major forms or components of the transportation system. They are:

1.  Land
2.  water or sea
3.  air 
4.  Pipeline.

TRANSPORTATION BY LAND:

Land transportation is the movement of goods and people from one place to another by land. Land transportation can be sub-divided into two: road and rail transportation.

Road transportation: It is the movement of goods and people from one place to another on road. Examples of this type of land transportation are motor vehicles, trailer, buses, motorcycles, camels and so on. In Nigeria, road transport is the most used means of transportation across the villages, towns and cities. 

Rail Transportation

Rail transport is the means of conveying goods and passengers from one place to another by train. Heavy and bulky goods are carried by train. A train moves on special routes. It moves on iron tracks known as railway lines. In Nigeria, the Nigerian Railway Corporation manages the rail system.

There two types of train. They are (a) the passenger train and the cargo or goods train. Passenger train carries people while cargo train carries goods.

TRANSPORT BY PIPELINE

Transport by pipeline is the movement of gases and liquid from one place to another through the use of pipeline. Pipelines are constructed or laid underground as means of carrying water, gases and petroleum products. In Nigeria, pipelines are constructed to transport crude oil from Warri to Kaduna refinery.

TRANSPORT BY AIR.

Transport by air means the movement of people and goods from one place to another through the air by aeroplanes, helicopters, hovercrafts, jets etc. This is the fastest means of transport and is carried out on fixed routes. Air transport is comfortable but expensive. Air transport has aided both local and international trade. Some airlines operating in Nigeria include Belview, Okada, ADC etc.

TRANSPORT BY WATER OR SEA

Water transport is the movement of people and goods from one place to another through rivers, oceans and seas etc. by ships, canoes etc. Water transport facilitates international trade between different nations because goods and people can be easily transferred. The Nigerian Ports Authority is responsible for providing facilities as well as management of the ports in Nigeria. Water or sea transport is divided into two: 

1. Inland water transport 
2. International water transport

Inland water transport involves movement of passengers and goods through the rivers, canals, creeks and lakes within the country. Inland water transport aids home trade but passenger transport through water ways is not popular in Nigeria except for areas surrounded by water. Inland water transport is carried out by the following means: Canoes, Engine, boats, Ferry boats, Launches.

International water transport ensures that cargoes and people are moved from one country to another through the seas and oceans. Since one port is connected to another, it aids foreign trade. The various means of transportation by sea are; ocean liners (passenger and cargo) tramp liners, coastal liners and special purpose ship.

1. Ocean liners: it sails through the high seas and oceans in all the continents of the world, e.g. Atlantic, Indian and pacific oceans etc. It is divided into: passengers and cargo liners and they charge standard rates.
2. Passenger liners are luxurious ship which conveys passengers from one place to another on a definite or specific route and they usually move on scheduled timetable. 
3. Cargo liners are ships which carry heavy and bulky goods from one place to another on the high seas and oceans. Cargo liners operate on a specific timetable and they normally run on definite routes. They can also carry few passengers.

Characteristics of ocean liners

1. Ocean liners act as passenger liners, passenger-cargo liners, and cargo liners, ranging from say 10,000 to 50,000 gross tonnages or more.
2. They maintain a regular service, I e at scheduled times between specified ports and at a scheduled freight charges.
3. Their freight charges are normally fixed by the shipping companies themselves.
4. Cargoes may vary from comparatively small but valuable cargoes to the more bulky cargoes of the cargo-liners. 

1. Tramp liners: they carry cargoes where they are found and leave when there are sufficient cargoes. Tramp liners have no fixed timetable and do not run along specific routes. They are available for general hire, hence are referred to as cargo water taxis. 

Characteristics of tramp liners

1. They are sometimes described as unspecialized general purpose ships.
2. Tramp vessels have no fixed routes or scheduled sailing times.
3. Tramp shipping are usually fixed
4. They do not carry cargoes un parcels but prefer dealing with bulk cargoes. 
5. Tramp vessels are frequently employed on a charter basis, i.e. by importers or exporters on either a time or voyage charter.
6. They operate as sea taxis.

1. Coastal liners: these are flat bottom steamers that are used to convey goods along the coast to the main port. They can go through the creeks and rivers easily. Sometimes they are referred to as lighters and tugs. Coastal liners are good for carrying raw materials for firms.
2. Special purpose ships: special purpose ships are specially built for particular cargoes. For instance, in conveying crude oil, specially built tanker ships are used.

Containerisation

This is a method of freight handling in which metal boxes of standard sizes are filled with goods at the manufacturer’s warehouse and transported to their various destinations. Containers are used in road, rail, sea, and air transport. Containers are loaded or off-loaded by a special machine called crane.

Advantages of containers

1. It reduces pilferage: pilferage of goods can be reduced since the containers are sealed.
2. Quickens loading: it increases the speed of loading of goods into a ship as containers are transferred from one form of transportation to another with specialized cranes.
3. Protection: goods can be protected from water, fire, or bad weather etc.
4. Cost Reduction: the use of containers reduce cost of loading and offloading of goods because they are packed in containers.
5. Easy movement: it can be easily moved to their destination without being unpacked.

Disadvantage of containers

1. High Costs are usually incurred in purchasing the containers
2. Packing the goods into the containers entails additional expenses.
3. The quantity of goods involved may be too small to fully occupy the available space in the containers.

CARRIER

A carrier is a firm or organization that specializes in transporting other people’s goods. Carriers can be classified into three namely, private carrier, common carrier and contract carrier. 

Common carrier: is a person or firm who undertakes to transport goods from one place to another for anyone willing to pay a reasonable charge. They are open to the generality of the people. 

Contract carrier: is a public carrier which undertakes to transport goods from one place to another under contract. Example, tanker that transports oil to the oil depot.

Private carrier: helps to move his or its own goods from one place to another

 CHARTER PARTY

Charter party is a written agreement between the hirer or the importer and the shipping company stating the conditions for hiring the ship or vessel for the purpose of transporting cargoes from one place to another. The charterer must pay charges called charter freight. 

There are two types of charter.  1. Time charter 2. Voyage charter.

1. Time charter: time charter is the written agreement for hiring of a ship for an agreed period.
2. Voyage charter: voyage charter is a written agreement for hiring a ship for a specified voyage or voyages.

EVALUATION

1. Explain three forms of transportation.

GENERAL EVALUATION

1. Which of the following is not a form of transportation? A land. B. sea or water c. pipeline d. airspace.
2. Rail transport is less flexible than road transport because a. rail lines run between specific terminals b. train is slow over long distances c. only bulky goods are carried by rail d. road transport is suitable for short distances.
3. Which of the following is used for moving only goods from one sea port to another? A. ocean liner b. cargo liner c. ferry d. coaster
4. The main advantage of sea transport over air transport is a. capacity b. safety. C. speed d. patronage.
5. It is safer and quicker to transport petrol and gas by a. rail b. road c. pipeline d. air.

ESSAY TEST

1. (a)Explain five roles of transport to businessmen. 

(b) State three characteristics of tramp vessels and two characteristics of ocean liners (SSCE 2003)

1. What is transportation? Outline the importance of transportation.
2. What factors determine the choice of transportation by traders?
3. Write briefly on pipeline transport, coastal liners and ocean liners
4. What is containerization? State three advantages and three disadvantages of containerization. 

WEEKEND ASSIGNMENT: 

Read commerce for Senior Secondary School book2 by Onuka P S et al; (pages69-77)

PRE- READING ASSIGNMENT:

Read about the following: Advantages and disadvantages of each form of transportation.

WEEKEND ACTIVITY:

1. State five advantages and disadvantages of water transport
2. Mention the advantages of air transport over sea transport.

REFERENCE TEXTS:

1. Commerce for Senior Secondary School book2 by Odedokun et al; Longman Nigeria PLC. 
2. Commerce for Senior Secondary School book2 by Onuka P S et al; Melrose Books and Publishing Limited.
3. Extension Modern Commerce for Senior Secondary School by A .A. Bello et al; Extension Publication Limited.
4. Commerce for Senior Secondary Schools by Ahukannah et al; African First Publishers PLC