Function of Transport Chapter 1 Chapter Outline Definition of Transport Transport and civilization The Concept of Derived Demand The Function of Transport Definition Of Transport Transport is a movement of people and goods from the point of origin to the point of consumption. Transport and civilization The Concept of Derived Demand The demand to transport a product to a given location depends on the existence of a demand to consume (use) the product at that location. Eg: Freight is generally not transported to a location unless a need for the product exists at the location. In Example: Derived Demand The Function of Transport

1. Function of
Transport
Chapter 1

2. Chapter Outline
• Definition of Transport
• Transport and civilization
• The Concept of Derived Demand
• The Function of Transport

3. “A means for increasing human satisfaction by the mvmt
of goods & pax,
so that inaccessible goods may be moved to those points
where consumers require them
or
consumers may be moved to those points where
otherwise inaccessible service facilities may be enjoyed”
‘Any activity that moves people and/or goods from one
point (origin) to another point (destination) to satisfy its’
needs and wants’

4. Definition Of Transport
• Transport is a movement of
people and goods from the
point of origin to the point of
consumption.

5. Transport and civilization
Role
Economic
Activities
Employment
Reduce
Travelling time
Generates income
Accessibility
Bridging
consumer gaps

6. IN SHORT, TRANSPORT:
• Enable people to see many different places and enjoy facilities
• Releases resources from their geographical bondage eg. fruits
• Bring raw materials to place of manufacture/process
• Bring finished goods from factory to where consumer are located
• Move people from home to place of work, vice versa
• Enable people to seek medical treatment & education

7. The Concept of Derived Demand
• The demand to transport a product to a given
location depends on the existence of a demand to
consume (use) the product at that location.
• Eg: Freight is generally not transported to a location
unless a need for the product exists at the location.

8. • The demand for a good/service is the quantity of the good/ service
which people are prepared to pay for at a certain price
• Many goods are demanded ‘directly’
• Indirect/derived demand
 the object demanded is not demanded for itself alone, but only as a
means to provide other desirable goods and services
 transport is a derived demand
 eg job opportunity in urban areas
needs for heavy machinery and labour force
business, meeting, holiday in other countries

9. In Example: Derived Demand
City A City B

10. The Function of Transport
Function
Socia
l
Political
Economics
Military

11.  Economics
 ‘the study of mankind in the everyday business of life’
 concerned with the production of goods & services
which satisfy man’s wants
 combination of 3 F.O.P: land, labour + capital
Labour
Land
Capital
Land All the non-human natural resources of
the earth
Labour All the human resources
Capital All the accumulated wealth of tools,
equipment, techniques of pdtn, etc
inherited from the previous pdtn period
Transport is that part of economic activity which is concerned with increasing
human satisfaction by changing the geographic position of goods or people

12. Production Marketing
Transport/
Logistics
Form utility
Possession
utility
Place & Time
utility
ECONOMIC UTILITY CONCEPT
• Form Utility
the process of creating good/service, or
putting it in the proper form for the
customer to use
• Possession Utility
the value added to a product/service
because the customer is able to take actual
possession
• Time Utility
value added by having the item when it is
needed
• Place Utility
having the item/service available where it is
needed
Utility is the value or usefulness that
an item/service has in fulfilling a
need/want

13. “Any activities that move people and/or goods from where
they are to where they would prefer to be or
to where their relative value is greater”
As simple and easy as walking & bicycling
As complex as moving hundreds of people/tonnes of goods
IMPORTANT ROLE IN HUMAN DAILY LIFE
TRANSPORT
FOODS
CLOTHES
SHELTER

14. OBJECTIVE OF TRANSPORT
Passengers/goods must arrived at their wanted
destination in safety, without any damage or injury
Safe arrivals means satisfactory arrivals
Damage to goods or injury to passengers lead to
inefficient and unreliable transport service
Transport service must not only achieved zero
injury/damage but also arrive punctual, according to the
published/fixed timetable

15. • Tpt is a liberating force, setting free natural, man-made and human
resources from situations where they are yielding little satisfaction, and
transferring them to places where their full utility can be realised
• Due to the capability & rapid tpt development, earth today is now a
‘shrinking’ world
 the distances we have to cover are great as ever, but the time required to
traverse them has shrunk drastically
• The business environment has lead to mutual interdependence of all
nations
 Thus, tpt enables business activity take place smoothly
• The rapid growth in world population requires increases in transport:
 tpt of raw materials, vege & other crops, meat, milk etc
 tpt of manufactured goods
 tpt of people themselves

16. • Opening up new land development
• Expansion of market
• Linking remote, deserted areas with
developed areas
• Job opportunity
• Job Mobility
• Speed up industrialization process
• Energy saving
• Bridging the producer-consumer gap

17. • Tpt plays a vital role in moving capital, labor, fuel/energy, machinery & raw
materials to the producer/manufacturer in order to process the raw materials
into finished goods
• When the goods are ready, the producer also require transport to send the
finished goods to consumers
 Here it shows transport brings buyers and sellers together by providing place and
time utility, and thus adding value to the goods
• Transport also allows exchange of trade in the market, and thus widen the
market
 Dd for goods increasing, resulting an increase in pdtn. Thus, tpt is needed to
carry more raw materials, skilled and unskilled labor
 development of many industries
 improvements in quality of pdtn = increasing competition among producers

18. SOCIAL
• shopping, entertainment,
education, sports & medical
• enhances travel
• enhances welfare
• enables human to
integrate among
themselves, exchange ideas,
thus develop/increase
standard of living
POLITICAL
• Military needs,
peacekeeping, protection
• aids & help during disaster
• strengthening national
unity
• leaders to meet & discuss
political issues and
problems