What is Transportation? Explain the different functions of transport. Classify the means of transport. Explain in detail the economic importance of transport.


Meaning and Definition of Transport

Transportation provides place utility to the product produced by the organization, that is, it makes the product available at those places where there is a demand for it. Similarly, transportation also provides time utility to the product. Cheap and fast transport is essential for large scale development of trade and commerce because transport is a basic link between production and marketing activities. Products manufactured in factories and crops grown in farms are not consumed at their place of origin, but such products and crops are transported through transportation to those places where there is a shortage and there is a demand among customers.

The word ‘transport’ is used to carry man, material, news etc. from one place to another or from country to country. According to Fair and Williams, “Transport is the movement of human beings or property from one place to another.” Thus it signifies the free movement of goods, services and human beings. Of. Of. According to Gupta (KK Gupta) “Transportation is that marketing activity by which

The distance existing between the centers of production and consumption is less. According to Fair and Williams, “Transport is the movement of human beings or property from one place to another.”

Main Functions of Transport

In this era of mass production, the following important tasks in the field of trade and industry are performed by transport

(1) Relationship between rural and urban economy, (2) Elimination of fear of scarcity or scarcity, (3) Development on insurance, banking and communication tools, (4) Exploitation of natural resources (5) Specialization and division of labour, ( 6) Promotion of large scale production, (7) increase in demand for goods, (8) balanced regional development, (9) availability of resources of power, (10) helpful in agricultural and industrial development, (11) employment opportunities creation, (12) increasing the mobility of the components of production,

(13) Creating space utility, (14) Helping national security (16) Stabilizing values. of transportation

Classification of Means or Modes of Transport

At present, the means of transport are being used for transportation by water, land and land, trains, buses, cars, trucks, ships, planes etc.

(I) Land Transport, (II) Water Transport, (III) Air Transport

(I) Land Transport It is the oldest and most important mode of transport. Rail transport can be mainly divided into two parts (i) road transport, (ii) rail transport.

(i) Road Transport – Road transport has a special role in the economic development of the country. Road transport is most suitable for short and medium distance travel. Fast reliable and door-to-door transportation facility is possible only with this. Road transport complements other modes of transport. According to Ruskin, “The overall social and economic progress of the nation

Depends on the roads itself. According to Benham, the roads are the channels of the nation’s body through which all progress runs. To maintain the health of a nation, roads do the same work as the arteries and veins in the body. As the arteries carry healthy blood to every part of the body, similarly roads carry essential parts of national life and people, things and ideas to every nook and corner of the country.

Roads are mainly divided into the following 5 parts according to their importance

(1) National Highway

(2) State Highways 13 (3) District Roads

(4) Village Roads

(5) Merits of Road Transport – The main advantages of road transport are as follows

(1) Less capital is required in road transport system. (2) Road transport is helpful in national security.

(3) Rural development has become possible through road transport. (4) A wide area can be reached by road transport.

(5) In the case of road transport, there is no need for frequent unloading and unloading of goods. (6) The movement of livestock can be done conveniently in less time by road transport.

(7) Thousands of people get employment in the work of road construction and maintenance. (8) The movement of agricultural commodities is encouraged through road transport. (9) By road transport, goods are transported from one place to another quickly. (10) In road transport, the service is provided according to the need of the person.

Demerits of Road Transport: Following are the major defects of road transport

(1) Road transport is less reliable. (2) Most irregularities are seen in road transport.

(3) There is no safety of goods in road transport. (4) Road transport is unsuitable for heavy goods. (5) Road transport is more expensive in the case of long distance. (6) Road accidents cause damage to both life and property.

(ii) Rail Transport – Rail transport caters to the needs of large-scale transportation of passengers and goods. Rail is the main mode of transport in our country. Railways are used to transport food grains, coal, chemical fertilizers, petroleum products, national security goods etc. Rail transport is an important contributor to economic development. Creation of time and space utility is possible through rail transport. Rail transport has proved to be very helpful in communication system, agriculture, industrial development etc. Exploitation of natural resources, increase in government revenue, creation of new employment opportunities, mobility in labor, utilization of resources of power, etc. Many important works have been possible only through rail transport system. Railways are also of great importance in bringing about social change and increasing national integration.

Advantages of Rail Transport – The following are the advantages of rail transport (1) employment opportunities (2) suitable for long distance (3) safe, (4) cheap means, reliable (6) for heavy goods Suitable, (7) fast speed.

Demerits of Rail Transport: The following are the drawbacks of rail transport (1) Requires more capital, (2) Unsuitable for rural and hilly areas, (3) Expensive.

(II) Water Transport

Water transport is an ancient mode of transport in India. The history of Indian water transport is very ancient and glorious. According to Dr. Radhamukund Mookerjee, “Ancient Indian civilization could reach every nook and corner of the world by its immense sea power. The people of the world were influenced by our religion and culture because of the powerful shipping industry. Water transport system existed in our country since BC. Water transport is very cheap as compared to other modes of transport, because it does not require the preparation of roads nor the laying of railway tracks. It is the oldest mode of transport. At present it is used to transport all kinds of goods. Water transport has played a special role in world trade.

Merits of Water Transport: Following are the main advantages of water transport

(1) Suitable for specific areas (2) Development of international trade, (3) Suitable for heavy goods (4) Not congested, (5) Safe, (6) Demerits of water transport The major drawbacks of water transport are- (1) Political and international problems, (2) Services in limited areas (3) Less reliable, (4) Slow speed.

(III) Air Transport

The credit for the invention of air transport goes to the Wright brothers, who realized the human imagination of flying in the air in 1904. Today this service has become world wide and due to its fast speed the world has become smaller and smaller. In addition to being a very fast means, it is also against surface obstacles. From a strategic point of view, transport is considered the most useful. It is used for carrying passengers and goods. Its usefulness is special in flood, earthquake, war and other emergencies. In the modern competitive era, the utility of air transport is increasing continuously. According to Fair and Williams, “Among the various means available to man, air transport is the newest, most developing, most challenging and most revolutionizing our economic and cultural life.”

Merits of Air Transport- Following are the major advantages of air transport

(1) Rugged areas can be surveyed.

(2) Air transport is of utmost importance in tourism. (3) Air transport is helpful in emergency or crisis.

(4) Air transport is more suitable for the transportation of perishable goods quickly. (5) The speed of air transport is very fast.

(6) Air transport is helpful in establishing cultural and political cooperation.

(7) Air transport proves helpful for the farmers. (8) Air transport is safer than road transport and water transport.

Demerits of Air Transport: Following are the major defects of air transport

(1) The fear of hijacking remains.

(2) High level training is required for successful operation of air traffic.

(3) Air transport facility is not possible for all the places.

(4) Air transport is very expensive.

(5) International sanctions hinder the development of air transport services. (6) The capacity of air transport is limited as compared to rail and water transport.

Economic Significance of Transport

In the field of marketing, the means of transport are as important as the importance of blood vehicles in the human body. The means of transport have helped in the manufacture and distribution of goods, thus the importance of transport is very important which can be known from the following points.

(1) Transportation of raw materials to the factory- Transport facilities play an important role in transporting raw materials to the factory. Without these facilities it is not possible to carry out large scale production work.

(2) Due to the development of large quantities of production-transport, production has started in huge quantities. The development of minerals and other industries also became possible. In order to produce a large quantity, it is necessary that the consumer receives the produced goods at a low price on time and at the same time, the producers also get sufficient quantity of raw material, labor and capital etc., which is possible only by means of transport.

(3) Reduction in the cost of production – Availability of cheap and adequate means of transport contributes in reducing the cost of production because the system of advanced transport makes it possible to arrange cheap and quality raw materials.

(4) Transportation of manufactured goods to the consumer- These transport facilities are also useful in transporting the manufactured goods to the consumer in the factory. Marketing work is not possible without their help. (5) Stability in Prices – With the help of means of transport and by balancing demand and supply, prices can be kept stable. Means of transport minimize price changes by making goods reach different places on time. If the price of an item is less in an area, then the traders take it to the area where its value is higher. In this way, transport provides stability in prices by establishing adjustment in demand and supply through these activities.

(6) Optimum exploitation of natural resources – Natural resources are abundant in our country. The pace of economic development of the country can be accelerated only by optimum exploitation of these resources. Transport services are necessary to transport the necessary labor and tools to the destination and the oil, coal, minerals etc. obtained after extraction to the factories and consumers.

(7) The development of transport services that aid in the development of agriculture have promoted the development of agriculture. Availability of necessary tools for agriculture, fertilizers, seeds, insecticides etc. has become very easy due to transport services. Along with this, it has become easily possible to reach the produced crops to the markets and consumers. The easy availability of necessary resources and access to the market for the goods produced has increased agricultural production.

(8) Aids in specialization The means of transport help a great deal in bringing specialization in production. Specialization refers to the promotion of specialization in the quantity, quality, form, etc. of the goods produced. Specialization in production is established only when there is abundance of means of transport, skilled trained labor, good cheap materials, latest scientific instruments etc.

(9) Localization of industries – In places where cheap and favorable means of transport are available, the industrialists are ready to set up their industries to get additional profit. This is the reason that industries get localized in the areas rich in transport facilities. The reason for the centralization of cotton textile mills in Bombay was the transport facilities of the Bombay port.

(10) Development of Marketing Sector – The more developed the means of transport in the country, the more national and international trade increases in the field of marketing in that country. Human society has got the least direct benefit from the growth in this area that the items of daily life have started getting from country to country.


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