unit7transportation.pptVIP

UNIT 7 TRANSPORTATION Definition of transportation the physical movement of goods from a point of origin to the point of consumption and can involve raw materials being brought into the production process or finished goods being shipped out to the customer. Transport principles There are two fundamental economic principles that impact transportation efficiency: Economy of scale规模经济 Economy of distance距离经济 Economy of scale Economy of scale in transportation is the cost per unit of weight decrease as the size of a shipment increases. It is generally true that larger capacity transportation vehicles such as rail and water are less costly per unit of weight than smaller capacity vehicles such as trucks and air. 随装运规模的增长，使单位重量的运输成本降低。 Economy of distance It refers to decreased transportation cost per unit of weight as distance increase. For example, a shipment of 800 miles will cost less to perform than two shipments of the same weight each moving 400 miles. Longer distance allow fixed cost to be spread over more miles, resulting in lower per mile charges. 指每单位距离的运输成本随距离的增加而减少。距离经济的合理性类似于规模经济，尤其体现在运输装卸费用上的分摊。 Modes of transport Transport happens through land, air or water, which are called the different modes of transport. The modes of transport can be broadly divided into three categories: land transport, water transport, air transport. (P121) Five basic modes of transportation Road Transportation Rail Transportation Maritime Transportation Air Transportation Pipeline Transportation Road transportation used for higher-value/lower-volume cargo over relatively short distance providing a door to door service without any break in the journey a change from one vehicle to another Problems: significant growth of fuel consumption, air pollution, traffic congestion and road accidents Rail transportation Given the high fixed cost and low variable cost of operation. offers cost-effective transport of large quantities of cargo over long distance Prices display economies