0
Management of
Transportation
Seventh Edition
Coyle, Novack, Gibson & Bardi
© 2011 Cengage Learning
Chapter 2
Transportatio...
Introduction
• Chapter focus: Holistic view on significance
and impact of improved transport
– Transport is pervasive, an ...
Historical Significance of Transport
• Contribution to growth of early civilizations
– Nile River facilitated trade, commu...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
Transportation and the Economy
Overview
• Conceptual views on the role of
transportation in an economy
– Enabler of utilit...
Economic Significance
Value of Goods
• Conceptual foundations
– Influence of transport improvement on
landed cost and size...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
Economic Significance
Utility of Goods
• Additional concepts: Contribution of
transport to:
– Geographic specialization an...
Economic Significance
Transport Patterns
• Principal global trade flows
– East-west flows
• Reflect trade between industri...
Economic Significance
Gross Domestic Product (GDP)
• GDP: measures size of an economy
– Definition: annual market value of...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
Environmental Significance
• Social costs of transport
– Various forms of pollution
– Consumption of natural resources
• P...
Environmental Significance
The Environment
• More emphasis today placed on achieving
balance between:
– Sound and efficien...
Air Quality and Acid Rain
• Acid rain: more acidic rain than normal
– Adversely affects water systems, crops, forests,
hum...
Air Quality and Acid Rain
• Greenhouse effect
– Definition: heat radiating from earth is blocked or
absorbed by gases in a...
Maritime and Water Quality
• Many potential transport-related sources
of adverse impacts on maritime
environment
– Oil tan...
Noise
• Noise from transport
– Potential annoyance as well as health concern
• Principal transport sources of noise
– Airp...
Safety
• Transport-related injuries and loss of life
– Passenger transport
• 2006: 44,912 transport-related deaths
• 95% o...
Social and Political Significance
• Social significance
– Enhancement of health and welfare
• Famine and other disaster re...
Overview of Modern
Transportation• Prior material: addresses broad impacts
– Economic (micro and macro)
– Environmental, s...
Overview of Transportation
Trends
• Deregulations of late 1970s and 1980s
stimulated major changes in transport
– Affected...
© 2011 Cengage Learning. All Rights Reserved.
May not be scanned, copied
or duplicated, or posted to a publicly accessible...
Upcoming SlideShare
Loading in...5
×

Transport Management & Theory Practices (2)

854

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
854
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
44
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Transport Management & Theory Practices (2)"

  1. 1. Management of Transportation Seventh Edition Coyle, Novack, Gibson & Bardi © 2011 Cengage Learning Chapter 2 Transportation’s Role in the Economy © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
  2. 2. Introduction • Chapter focus: Holistic view on significance and impact of improved transport – Transport is pervasive, an essential element of daily life. Its vital to economic development and growth and has significant social, environmental, and political consequences • Chapter organization – Historic significance – Economic significance – Environmental, social, and political significance © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2
  3. 3. Historical Significance of Transport • Contribution to growth of early civilizations – Nile River facilitated trade, communication, defense, political and cultural growth in ancient Egypt • Creation of social structures – Fosters unification of political and cultural ideals • Facilitation of trade and economic growth – Canals, rail and road systems spur U.S. expansion and growth through 19th and 20th centuries • Role in national defense © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
  4. 4. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4
  5. 5. Transportation and the Economy Overview • Conceptual views on the role of transportation in an economy – Enabler of utility creation – Provider of services at a varying costs – Factor of production – Influence on market access and extent of market – Spatial and temporal relationships • Transport as a bridge for the producer-consumer or supply-demand gap © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 5
  6. 6. Economic Significance Value of Goods • Conceptual foundations – Influence of transport improvement on landed cost and size of market area • Place utility: creation of economic value through transport cost reduction • Law of Squares in Transport and Trade (Lardner’s Law) • Reduction of producer-consumer gap – Time utility – Quantity utility © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 6
  7. 7. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7
  8. 8. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8
  9. 9. Economic Significance Utility of Goods • Additional concepts: Contribution of transport to: – Geographic specialization and principle of comparative advantage – Enabling of large-scale production economies – Increased competition through market area expansion – Changing land values © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9
  10. 10. Economic Significance Transport Patterns • Principal global trade flows – East-west flows • Reflect trade between industrialized nations largely in Northern Hemisphere – North-south flows • Reflect trade between industrialized nations and developing economies in Southern Hemisphere • Trade flows within countries – Principally link major metropolitan areas and ports © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 10
  11. 11. Economic Significance Gross Domestic Product (GDP) • GDP: measures size of an economy – Definition: annual market value of all goods and services made within border of a nation • GDP = Consumption + gross investment + government spending + (exports – imports) – Transport: 10.5% of 2007 U.S. GDP • Trails housing, health care, and food, exceeds education • Downward trend due to improving transport productivity • Transport: 18% of household expenditures – Exceeds all expenditure categories except housing © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11
  12. 12. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12
  13. 13. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13
  14. 14. Environmental Significance • Social costs of transport – Various forms of pollution – Consumption of natural resources • Policy challenge is to develop clear understanding of relationships between – Transport investment and operations – Economic benefits of transport – Social costs of transport © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 14
  15. 15. Environmental Significance The Environment • More emphasis today placed on achieving balance between: – Sound and efficient transport system – Clean and safe environment • Green supply chain concept • Business leaders and environmental quality – Increasingly believe business has important role – Environmental quality does not have to be a zero-sum game © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15
  16. 16. Air Quality and Acid Rain • Acid rain: more acidic rain than normal – Adversely affects water systems, crops, forests, human health, and air visibility – Sulfur dioxide, nitrogen oxides, and volatile organic compounds produce acid rain – Internal combustion engine emissions are a source of these pollutants – Existing regulations limit emissions • More reductions may be needed. This may involve difficult policy-balancing choices © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16
  17. 17. Air Quality and Acid Rain • Greenhouse effect – Definition: heat radiating from earth is blocked or absorbed by gases in atmosphere • Source of gases – human activity, such as transportation – Contributes to climate change • Ozone reduction in stratosphere – Ozone reduces amount or ultraviolet radiation reaching surface of the earth – Concern that chlorofluorocarbons used in home and vehicle air conditioners contribute to ozone depletion © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17
  18. 18. Maritime and Water Quality • Many potential transport-related sources of adverse impacts on maritime environment – Oil tanker spills – Ship generated garbage dumping – Hazardous material spills – Motor oils in water runoff • Adversely affects birds, marine mammals, and quality of water used for drinking and recreation © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18
  19. 19. Noise • Noise from transport – Potential annoyance as well as health concern • Principal transport sources of noise – Airplanes and motor vehicles • U.S. DOT and Federal Aviation Administration – Sponsors research on noise abatement strategies – Provides funding for noise abatement projects • Noise emissions governed by Noise Control Act of 1972 © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19
  20. 20. Safety • Transport-related injuries and loss of life – Passenger transport • 2006: 44,912 transport-related deaths • 95% of fatalities occurred in highway vehicles • Number of deaths has remained stable. Death rate is declining due to: – Increased licensing requirements – More reliable vehicle designs – Freight transport • Safety trends not as favorable as on passenger side • Rising number of accidents, spills and explosions© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20
  21. 21. Social and Political Significance • Social significance – Enhancement of health and welfare • Famine and other disaster relief efforts • Political significance – Wide range of governmental responsibilities • Regulatory role examples – Common carrier concept – Power of eminent domain • Promotional role – Facilitation of commerce • Preservation of national defense © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21
  22. 22. Overview of Modern Transportation• Prior material: addresses broad impacts – Economic (micro and macro) – Environmental, social, political • Transport system shaped by three decision- making groups: – Users: create the demand requirements – Providers: supply, operate, and manage transport services to meet demand – Government: develop policy, supply infrastructure, and regulate • Each group’s decisions influenced by impacts © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 22
  23. 23. Overview of Transportation Trends • Deregulations of late 1970s and 1980s stimulated major changes in transport – Affected how carriers organized, priced, sold services, and managed operations • Numerous key trends continue to shape transport – Key trends in demand for transport services – Key trends in supply, operation, and management of transport services – Key trends in government policy and regulation© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 23
  24. 24. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×