Explain how the transport industry contributes to the development of the economy

      

Explain how the transport industry contributes to the development of the economy

  

Answers


MERCY
Return on investment and increased productivity; Transport is the major factor in any manufacturing or processing industry, it enables the increased accessibility of people and business to reach goods, services, jobs and activities in a timely manner for instance also good transport network will enable perishable products to be moved efficiently to the market or manufacturing facility thus reducing the wastage and losses,hence increasing productivity.

Opens new markets for new businesses; Good and efficient transport network attracts new businesses to be set in an area since there will be reduced costs for transportation, reduced delays and increasing efficiency to the industry,for instance the development of the railway and airstrip will attract the development of the warehouses and other industries like the floriculture industries since the railway is cheap and convenient for transport of heavy bulky goods, as the airstrip will help in the faster delivery of the perishable products like the flowers and the vegetables.

Enhances supply chain visibility; When businesses are clustered together, it is easier and quicker for them to reach their suppliers and customers. This phenomenon has a positive impact on freight logistics and delivery schedule. Easier access to needed supplies and materials and faster delivery times to customers can help lower transportation and inventory carrying costs while increasing both productivity and profitability.

Reduced costs for movement; For example, an urban highway expansion may improve motorists' access and reduce their costs per vehicle-mile, but by creating a barrier to pedestrian travel and stimulating more dispersed land use development patterns, reduces access by other modes, and increases the total amount of travel required to reach destinations. Similarly, improving access to a particular area can expose businesses to more competition (for example, if previously captive local customers can more easily access regional shopping centers), reducing business activity there.
SADIKI0790 answered the question on September 11, 2019 at 07:35


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