Importance of transport in economic development

 Development in transport increases travelling and trade, leading to

development of ports and cities.
 In production, transport enables easy access to raw mat and labour,
moves intermediate goods to next stage and move finished goods to
customers. Just In Time (JIT) systems reduce costs as the raw mat is
delivered only when needed – no stock, hence lower unit costs.
 Increases productivity as it improves access to markets, services,
employment, housing, health care and education.
 Leads to job creation
o Direct - drivers , logistics managers and pilots
o Indirect - insurance and financing industry to protect transport
related assets.
 Geographic specialization – regions can become specialized in efficiently
producing one kind of product – leading to economies of scale, example
electronics manufactured in Asia, shipped to Africa.
 Trade – international transportation allow trade between countries –
allowing imports and exports – regions specialized in one products exports
to others with need for same.
 Tourism – air transportation has become fast, safe and cheap allowing
tourists to visit all places round the world. Other examples – car rental
industry,
 Time utility – product at proper location when needed.
 Place utility – access to distant suppliers
 Quantity utility – assurance that goods will arrive without damage.