Polytechnic University of the Philippines

College of Tourism, Hospitality and Transportation Management

Department of Tourism and Transportation Management
Bachelor of Science in Tourism Management

INSTRUCTIONAL MATERIAL

INTRODUCTION TO TRANSPORTATION MANAGEMENT

(TOUR 30013)

Compiled by:

MA. GAY M. TEOPENGCO

and

ENGR. NABOR C. GAVIOLA

Faculty Members
 INTRODUCTION TO TRANSPORTATION MANAGEMENT (TOUR 30013)

Overview:

Transportation is one of the basic services to society. It plays a major role in the overall socio-
economic system by providing facilities and services for goods and people to be moved from one place
to another. The importance of this role requires sound and efficient management of transport activities
so that the transportation system can effectively perform its expected functions. In this context, it can
be said that the socio-economic system of any community, society or nation depends so much on an
efficient management of transport activities in order to attain its socio-economic development goals.

Mobility is fundamental to economic and social activities such as commuting, manufacturing, or

supplying energy. Each movement has an origin, a potential set of intermediate locations, a destination,
and a nature which is linked with geographical attributes. Transport systems composed of
infrastructures, modes and terminals are so embedded in the socio-economic life of individuals,
institutions, and corporations that they are often invisible to the consumer. This is paradoxical as the
perceived invisibility of transportation is derived from its efficiency.

Course Objectives:

After the completion of the course, the learner should be able to:

 Acquire knowledge and skill necessary to effectively plan, manage and control all transportation
activities carried out by different companies.
 Understand the importance of moving people and goods as part of the services in the Tourism industry.
 Identify and explain the transportation’s environmental concerns, government regulations and
sustainable alternatives.
 Familiarize the students with the major means of passenger transportation systems including air travel,
maritime routes, passenger rail, and automotive networks.
 Indicate the economics, motivations, and means of transporting goods and people along the domestic
and international routes.
 Understand the role of transportation in the tourism industry.
 Recognize milestones in the development of the air industry and explain how profitability is measured in
this sector.
 Report on the historic importance of rail travel and challenges to rail operations today.
 Describe water-based transportation segments including cruise travel and passenger ferries.
 Recognize the importance of transportation infrastructure in tourism destinations.
 Specify elements of sightseeing transportation and explain current issues regarding rental vehicles and
taxis.
 Identify and relate industry trends and issues including fuel costs, environmental impacts, and changing
weather.
Week 1-2:
Topics to be discussed:
 Definition of terminologies
 Purpose of transportation
 Overview of the transportation system
 The importance of transportation
 Transportation system characteristics
At the end of the discussion, the learners are
expected to:
 Explain what transportation management
is and its concerns.
 Understand the basic and supplementary
components of the transportation
system.
 Determine the importance of
transportation in the tourism industry.
 Identify, and explain the different
characteristics of transportation system.

Introduction:

Movements of people, goods and information have always been fundamental components of
human societies. Contemporary economic processes have been accompanied by a significant increase in
mobility and higher levels of accessibility. Although this trend can be traced back to the industrial
revolution, it significantly accelerated in the second half of the twentieth century as trade was
liberalized, economic blocs emerged, and the comparative advantages of global labor and resources
were used more efficiently. However, these conditions are interdependent with the capacity to
manage, support and expand movements of passengers and freight as well as their underlying
information flows. Societies have become increasingly dependent on their transport systems to support
a wide variety of activities ranging, among others, from commuting, supplying energy needs, to
distributing parts between manufacturing facilities and distribution centers. Developing transport
systems has been a continuous challenge to satisfy mobility needs, to support economic development
and to participate in the global economy.

Tourism and transport are intimately connected to each other, as the movement of people is
one of the most important elements of tourism. For instance, the United Nations World Tourism
Organization (UNWTO) defines tourism as a subset of travel since it entails the movement of people to
countries or places outside their usual environment for personal or business/professional purposes
(media.unwto.org, 2014). Theobald (2005) suggests the derivative of the word tourism, tour- can also be
interpreted as a round-trip (based on the Latin word ‘tornare’ and its etymological development) while -
ism is the suffix that forms nouns of action; hence tourism can be seen as ‘the act of leaving and then
returning to the original starting point, and therefore, one who takes such a journey can be called a
tourist’.

Furthermore, in Leiper’s (1990) tourism system, transport is the key connection between the
tourist’s origin and the destination. Not without reason then, do many refer to the travel and tourism
industry. Just as the tourism product relies on natural and built landscapes, attractions and amenities as
resources, so too does it rely on transportation to facilitate the movement of tourists. In fact, tourism
not only relies on, but also causes and is affected by transportation. From a historical perspective we
have witnessed the impact of transportation on the growth and development of tourism:
 History records that the transport system has exerted a profound effect on the development of
travel from ancient times. The movement of these early travellers from origin to destination was made
possible by well engineered road systems, organised road transport based on horse and cart teams,
organised sea travel in the Mediterranean and a hospitality sector. In more recent times the
development of the steam train followed later by the car and the plane have added to humanity’s ability
to undertake travel to even the remotest corner of the globe. (Prideaux, 2000, p. 53)

It should not be surprising that although there is a mutual influence and dependence between
tourism and transport, the dependence of tourism on transport is much greater than transport on
tourism: all tourism involves travel, but not all travel involves tourism.

The Purpose of Transportation

The unique purpose of transportation is to overcome space, which is shaped by a variety of

human and physical constraints such as distance, time, administrative divisions, and topography.
Jointly, they confer a friction to any movement, commonly known as the friction of space. However,
these constraints and the friction they create can only be partially circumscribed. The extent to which
this is done has a cost that varies greatly according to factors such as the distance involved, the capacity
of modes and infrastructures and the nature of what is being transported. There would be no
transportation without geography and there would be no geography without transportation. The goal of
transportation is thus to transform the geographical attributes of freight, people, or information, from
an origin to a destination, conferring on them an added value in the process. The convenience at which
this can be done – transportability – varies considerably.

Transportability refers to the ease of movement of passengers, freight, or information. It is

related to transport costs as well as to the attributes of what is being transported ( fragility, perishable,
price). Political factors can also influence transportability such as laws, regulations, borders, and tariffs.
When transportability is high, activities are less constrained by distance.

The specific purpose of transportation is to fulfill a demand for mobility, since transportation
can only exist if it moves people, freight, and information around. Otherwise, it has no purpose. This is
because transportation is dominantly the outcome of a derived demand. There are two major types of
derived transport demand:
o Direct derived demand. Refers to movements that are directly the outcome of
economic activities, without which they would not take place. For instance, work-
related activities commonly involve commuting between the place of residence and the
workplace. There is a supply of work in one location (residence) and a demand of labor
in another (workplace), transportation (commuting) being directly derived from this
relationship.
o Indirect derived demand. Considers movements created by the requirements of other
movements. For instance, fuel consumption from transportation activities must be
supplied by an energy production system requiring movements from zones of
extraction, to refineries and storage facilities and, finally, to places of consumption.
 Warehousing can also be labeled as an indirect derived demand since it is a “non-
movement” of a freight element. Warehousing exists because it is virtually impossible to
move commodities directly from where they are produced to where they are consumed.

Distance, a core attribute of transportation, can be represented in a variety of ways, ranging

from a simple Euclidean distance – a straight line between two locations – to what can be called
logistical distance.
o Euclidean distance. A simple function of a straight line between two locations where distance is
expressed in geographical units such as kilometers. Commonly used to provide an
approximation of distance, but almost never has a practical use.
o Transport distance. A more complex representation where a set of activities related to
circulation, such as loading, unloading and transshipment, are considered. Additional elements
such as costs and time are also part of the transport distance.
o Logistical distance. A complex representation that encompasses all the tasks required so that a
movement between two locations can take place. Logistical distance thus includes flows, but
also a set of activities necessary for the management of these flows. For the transportation of
passengers, logistical distance also concerns a specific array of tasks. Taking again an air travel
example, a ticket would first need to be purchased, commonly several weeks in advance. Other
common time and cost tasks concern checking in, security checks, boarding and disembarking,
and picking up luggage.

Any movement must thus consider its geographical setting which in turn is linked to spatial flows
and their patterns. The concept of flow has four major components:

• Geographical. Each flow has an origin and a destination and consequently a degree of separation.
Flows with high degrees of separation tend to be more limited than flows with low degrees of
separation.
• Physical. Each flow involves specific physical characteristics in terms of possible load units and the
conditions in which they can be carried. Flows, depending on the transportation mode, can be
atomized (smallest load unit) or massified (moving load units in batches).
• Transactional. The realization of each flow has to be negotiated with providers of transport
services, such as booking a slot on a container ship or an air travel seat. Commonly, a flow is related
to a monetary exchange between provider of transportation and the user.
• Distribution. Flows are organized in sequences where the more complex are involving different
modes and terminals. Many transport flows are scheduled and routed to minimize costs or maximize
efficiency, often through intermediary locations.

Urbanization, multinational corporations, the globalization of trade and the international

division of labor are all forces shaping and taking advantage of transportation at different, but often
related, scales. Consequently, the fundamental purpose of transport is geographic in nature because
it facilitates movements between different locations. Transport plays a role in the structure and
organization of space and territories, which may vary according to the level of development. In the
nineteenth century, the purpose of the emerging modern forms of transportation, mainly railways
and maritime shipping, was to expand coverage with the creation, expansion, and consolidation of
 national markets. In the twentieth century, the objective shifted to selecting itineraries, prioritizing
transport modes, increasing the capacity of existing networks and responding to mobility needs and
this at a scale that was increasingly global, with its own space of flows. In the twenty- first century,
transportation must cope with a globally oriented economic system in a timely and cost- effective
way, but also with several local problems such as congestion and capacity constraints.

Core Principles of Transport Geography:

o Transportation is the spatial linking of derived demand.
o Distance is a relative concept involving space, time, and effort.
o Space is concomitantly the generator, support, and a constraint for mobility.
o The relation between space and time can converge or diverge.
o A location can be central, where it generates and attract traffic, or an intermediate element
where traffic transits through.
o To overcome geography, transportation must consume space.
o Transportation seeks massification but is constrained by atomization.
o Velocity is a modal, intermodal, and managerial effort.

Transportation and Accessibility

Mobility is a choice made by users and is, therefore, a means to evaluate the impacts of
infrastructure investment and related transport policies on regional development. Well-developed and
efficient transportation systems offer high accessibility levels, while less-developed ones have lower
levels of accessibility. Thus, accessibility is linked with an array of economic and social opportunities, but
congestion can also have a negative impact on mobility.

Accessibility is the measure of the capacity of a location to be reached from, or to be reached by,
different locations. Therefore, the capacity and the arrangement of transport infrastructure are key
elements in the determination of accessibility. All locations are not equal because some are more
accessible than others, which implies inequalities. Thus, accessibility is a proxy for spatial inequalities.
The notion of accessibility consequently relies on two core concepts: The first is location, where the
relativity of space is estimated in relation to transport infrastructures since they offer the means to
support mobility. Each location has a set of referential attributes, such as its population or level of
economic activity. The second is distance, which is derived from the physical separation between
locations. Distance can only exist when there is a possibility to link two locations through transportation.
It expresses the friction of distance, and the location with the least friction relative to others is likely to
be the most accessible. Commonly, the friction of distance is expressed in units such as in kilometers or
in time, but variables such as cost or energy spent can also be used.

Overview of the Transportation System

Transportation is defined as a system of moving people and goods from one place to another.
The need to move people and goods is a result of socio-economic interactions for people to travel for
socio-economic purposes and for goods to be produced and distributed to satisfy people’s consumption.
As such, transportation is very vital in the socio-economic system. It is the lifeblood of the economy.
Transportation is also defined as “the movement of people, animals and goods from one location to
another”. Transportation activities do not only impact fulfillment systems and delivery times but often
constitute a large chunk of logistics costs by any company. The timely distribution of goods and services
as well as a well-designed transportation network are essential to the success of any enterprise.
Transportation is the driver of logistics, but logistics is the race car driver in the seat of transportation.

The main role of transportation is to support the socio-economic system through:

 moving production inputs, such as raw materials and other goods from their sources to
production areas
 moving finished products from production areas and distribution centers to consumption
centers
 moving people to places where they can perform socio-economic activities.

Transportation management refers to the supervision and control of a given transport operational
activity to ensure that every task and function is performed in accordance with expected performance
standards to achieve the goals of the activity. Since transportation has a very wide scope, transport
operational activities are of various types and forms.

This subject identifies and describes in general terms the various types of transportation operational
activities that require management. A thorough understanding of these activities will enable one to
effectively manage them in order to bring out desired results. Transportation as a system has a very
wide scope, covering four (4) basic modes, with each mode having distinct types of facilities and
services.

Transport is a key sector in the Philippine economy, linking population and economic centers across
the islands. The transport system of the Philippines consists of road, water, air, and rail transport.
Water transport plays an important role due to the archipelagic nature of the country, but road
transport is by far the dominant subsector accounting for 98% of passenger traffic and 58% of cargo
traffic. While the transport infrastructure has been developed and spread across the country (about
215,000 kilometers [km] of roads, 1,300 public and private ports, and 215 public and private airports),
the level of service has
not been sufficient due to the lack of sustainable financing. Improving transport infrastructure is critical
for strengthening the investment climate and enhancing economic growth. The Philippines has seen
modest improvement in the quality of its transport services, but a large part of the road network
remains
in poor condition and intermodal integration is generally weak. Poor sector governance also impedes
efficient operation of the sector.

Basic Components of the Transportation System

In general, a system is composed of several components, with each component performing a

function, which inter-relates with the other components. Each of these functions contributes to the
overall performance of the system’s function. This concept can be applied to transportation, it being a
system composed of several components. These components are identified as the elements of
transportation. There are two basic elements of the transportation system, namely: (a) static elements
and (b) dynamic elements. Static elements are the non-moving elements. These are the infrastructure
facilities, which are used in the operation of transport services. For the four (4) modes of
transportation, the facilities are:
 Mode Transport Facilities
Road Road, Street, Highway, Terminal
Railway Tracks, Terminal
Water Port
Air Airport

Dynamic elements are the moving elements of transportation and they serve as carriers or
conveyances to move people and goods. These carriers are used to operate transport services. For the
four (4) transport modes, the corresponding types of carriers are:

Mode Transport Carriers

Road Motor Vehicle
Railway Train or Rail Vehicle
Water Ship or Vessel
Air Airplane or Aircraft

Transport facilities can either be a link facility (e.g., road, railway track) or a node facility such as
terminal, port or airport. Note that in the water and air transport modes, there are no link facilities,
only node facilities.

Supplementary Elements of the Transportation System

There are also three (3) supplementary elements of the transportation system. These are:

o operational characteristics,
o regulation measures and
o economic elements.

Operational characteristics refer to the performance indicators of the facilities and services
such as capacity of facilities and services, utilization ratio of said capacities, service frequencies, and
service speeds. Regulation measures refer to the system with which government controls the operation
of carrier services, such as control on the number of public transport vehicles, the fares, traffic
regulation and safety regulation. Economic elements refer to the demand of transport services
measured in terms of volume of passengers or goods that need to be transported or are actually
transported. These also include transport costs involved in the provision and operation of facilities and
services and in availing by users of said facilities and services.

The Importance of Transportation

Transport represents one of the most important human activities worldwide. It is an

indispensable component of the economy and plays a major role in spatial relations between locations.
Transport is important since it enables trade between people, which in turn establishes civilizations.
Transport creates valuable links between regions and economic activities, between people and the rest
of the world. Transport is a multi-dimensional activity whose importance is:
• Historical. Transport modes have played several different historical roles in the rise of civilizations
(Egypt, Rome and China), in the development of societies (creation of social structures) and also in
national defense (Roman Empire, American road network).
• Social. Transport modes facilitate access to healthcare, welfare, and cultural or artistic events, thus
performing a social service. They shape social interactions by favoring or inhibiting the mobility of
people. Transportation thus supports and may even shape social structures.
• Political. Governments play a critical role in transport as sources of investment and as regulators. The
political role of transportation is undeniable as governments often subsidize the mobility of their
populations (highways, public transit, etc.). While most transport demand relates to economic
imperatives, many communication corridors have been constructed for political reasons such as national
accessibility or job creation. Transport thus has an impact on nation building and national unity, but it is
also a political tool.
• Economic. The evolution of transport has always been linked to economic development. It is an
industry in its own right (car manufacturing, air transport companies, etc.). The transport sector is also
an economic factor in the production of goods and services. It contributes to the value added of
economic activities, facilitates economies of scale, influences land (real estate) value and the geographic
specialization of regions. Transport is both a factor shaping economic activities and is also shaped by
them.
• Environmental. Despite the manifest advantages of transport, its environmental consequences are
also significant. They include air and water quality, noise level and public health. All decisions relating to
transport need to be evaluated taking into account the corresponding environmental costs. Transport is
a dominant factor in contemporary environmental issues.

Importance of Transportation in the Tourism Industry

Transportation has been an integral part of the tourism industry. Transportation links tourists
with various tourist attractions. There is a general agreement that tourism expands more when there
are better transportation systems. In many parts of the world tourism had been underperforming
compared to the natural heritage the country is endowed with. One of the things mentioned as the
reason for under performance is poor transportation systems. Transportation needs for tourism
promotion and tourism development among others, is the maintenance of the existing roads,
construction of more roads/rail track/sea and air transportation, and construction of local airports and
enhancement of local flight operations. And established that the level of security and safety in
transportation systems is not bad though transportation costs are considered high by tourists. Tourism
development could be even bigger if more could be done in various elements of transportation systems.
It is an important for all its stakeholders to take part to develop tourism in their regions.

As the matter of fact, it is difficult to think of tourism sector without transportation.

Transportation is the main mean to carry passengers, that is, the tourists to the actual site where
tourism services are performed. The development of transportation, transportation vehicles,
infrastructure and using new technologies in this sector speed up the development of tourism. If we pay
attention to the statistics of World Tourism Organization, we may see that the tourism dynamics has
changed and increased rapidly between 2005 and 2015. In 2010 international tourist arrivals rose to
940 million. This in turn brought the economies $980 billion. This trend can be explained with different
factors. But the main important factor here is the rapid development of transportation sector and
application of technological innovations which enable the tourists to reach many destinations of the
world.

Whether transportation plays important role in enriching the travel experience of a tourist
depends on the mode of transportation and the frequency of use. Transportation can turn into a
separate tourist attraction element; cruising, Orient Express trains, boat trips along the river are the best
examples to tourist attractions. The effective factors in choosing the transportation mode in tourism are
given below (Westlake and Robbins 2005, 463):
o Time limit
o Distance
o Status
o Comfort
o Security
o Benefit
o Price
o Geographical position
o Competition - An increase in traffic due to world tourism growth puts pressure on
transportation facilities, and this can have adverse effects. Those negative effects are as
follows (Goeldner and Ritchie 2012, 96).
o Congestion – means delays which leads to waste of time and energy. Serious
congestions may have a negative effect on transportation modes, especially on airports
and roads during peak times.
o Safety and security – making sure that the transportation mode is safe and secure is a
basic and important requirement for tourism.
o Environment – an increase in traffic may have disastrous effect on the environment if
that area does not have the carrying capacity for additional tourists.
o Seasonality – seasonal patterns of travel demand create overcrowding at certain times.
Adversely low occupancies and load factors will occur at other periods.

The tourist’s travel experience starts and ends with transportation. In this sense, if the
countries want to gain sustainable development of tourism sector, they must pay attention to
transportation sector, reduce monopoly in this sector; provide sound competition opportunities for the
companies. In order to develop and increase the role of transportation in tourism the countries should
pay attention to the following points:
o The transportation modes specific to the regions must be developed
o The transportation costs must always be kept competitive
o The passengers must be attracted to sea and railway modes of transportation
o New embarkation ports must be established in order to develop cruise travel
o New fast train lines must be established, and new fast trains must be bought, and
foreign experience must be applied
o The distance from stations must be kept less
o New coaches must be brought to the country
 o New technologically advanced aircraft must be put into air lines
o The personnel must be trained
o The governments should allocate financial support for the development of
transportation

Transportation System Characteristics

Security strategies must relate to the systems to be secured and defended. Transportation
systems’ common characteristics include the following:

 Openness and accessibility. Designed and organized for the efficient, convenient, and
expeditious movement of large volumes of people and goods, transportation systems must have
a high degree of user access. In some cases—highways, for example—access is almost entirely
open. Many transportation facilities, such as train stations, are public places, open by necessity.
In other cases, access is more limited, as in commercial aviation—but still not fully closed. Even
in the case of the latter, it is notable that access to most airport lobbies, ticket lines, and
baggage check-in areas remains unrestricted. Moreover, much of the transportation
infrastructure, from airports to highway and rail bridges, was designed and built long before
concerns over security and terrorism. Fully integrating security will take many decades, as assets
are gradually modified and replaced.

 Extent and ubiquity. Transportation systems require vast amounts of physical infrastructure and
assets. The U.S. highway system consists of 4 million interconnected miles of paved roadway,
including more than 45,000 miles of interstate freeway and 600,000 bridges. The freight rail
networks extend for more than 300,000 miles, and commuter and urban rail systems cover
some 10,000 miles. Even the more contained civil aviation system has some 500 commercial-
service airports and another 14,000 smaller general aviation airports scattered across the
country. These networks also contain many other fixed facilities such as terminals, navigation
aids, switchyards, locks, maintenance bases, and operation control centers. Most of this
infrastructure is unguarded and sometimes unattended. Distributed over the networks are
millions of vehicles and containers, which are repeatedly moved from one location to another,
complicating the task of monitoring, safeguarding, and controlling them.

 Emphasis on efficiency and competitiveness. Although much of the transportation

infrastructure is owned by the public sector, the development of this infrastructure is driven
largely by the demands of private users. Widespread use of private cars and motor carriers, for
instance, spurred greater investment in the highway system relative to public transportation
and railroads. Likewise, travel by motor vehicle and airliners displaced demand for intercity
passenger rail service in the second half of the 20th century, prompting increased government
spending on airports and freeways. The economic deregulation that swept through the
transportation sector during the last quarter of the 20th century led to even greater emphasis
on efficiency as a criterion for transportation investments and, to a certain degree, led to a loss
of redundancy and excess capacity in the sector as a whole. The dynamism of the U.S.
transportation sector is unmatched in the world, and a major reason for the country’s high
 productivity and mobility. Another consequence of the emphasis on efficiency, however, is that
costly security measures that promise unclear benefits or that impede operations are likely to
be resisted or eschewed, whereas those that confer economic benefits are apt to be deployed
and sustained.

 Diversity of owners, operators, users, and overseers. Much of the physical infrastructure of
transportation—from highways and airports to urban rail networks—is owned and administered
by the public sector. Most of it is controlled by thousands of state and local governments. While
private companies and individuals own some fixed infrastructure (as with freight railroads), they
function mainly as service providers and users, controlling most of the vehicles and containers
that ply the networks. These public and private owners and operators are largely responsible
for policing and securing the system, with the help of state and local law enforcement
authorities and, for movements outside the country, foreign governments and international
organizations. In addition to providing financial support for infrastructure (and now security for
commercial aviation), the federal government’s main role is in promoting and regulating safety
and environmental performance; supporting research and system planning; and monitoring and
regulating transportation activity at border crossings and international gateways.

 Entwinement in society and the global economy. Trucks of all sizes distribute to retail outlets
nearly all the products purchased by consumers and many of the goods and supplies used by
industry and government. The rail, pipeline, and waterborne modes, along with large trucks,
move products and commodities long distances among utilities, refineries, suppliers, producers,
and wholesalers, as well as to and from ports and border crossings. In recent years, these
transport modes have increased their efficiency to the point where just-in-time inventorying and
manufacturing are commonplace. At the same time, the airlines have become indispensable in
connecting cities all over, and passenger airline service is essential to many areas of the country
that depend on tourism and business travel.

Highways are also used by emergency responders, and both the highway and public transportation
systems are vital security assets to evacuate people in a crisis and move critical supplies and services.
Consequently, disruptions to transportation networks can have far-reaching effects not only on
transportation operations but on many other interconnected functions and activities.

Implications for Security Strategies

Certainly, undermining the ability of terrorists to attack in the first place is a national imperative.
Should these efforts fall short, however, the transportation sector must be prepared to defend itself.
The above characteristics reveal the great difficulty, indeed impossibility, of defending each potential
target or perceived vulnerability one by one. The transportation sector is simply too spread out, diverse,
and open—by necessity—for such a defensive approach to work. This does not mean that little or
nothing can be done to counter terrorism. Sound security measures can do a lot; for instance, they can
confound and deter terrorist operations, increase the likelihood of the terrorists being detected and
intercepted, keep casualties and disruptions to a minimum, and reduce panic and reassure passengers in
a crisis.
 What the characteristics of the transportation sector do suggest is the need for a coherent and
systematic approach to security, such an approach should be shaped by:

o well-designed, layered security systems,

o the adaptive, opportunistic, and dual use of security technologies and techniques, and
o broad-based and unconventional thinking on terrorist threats and responses.

Week 3-4
Topics to be discussed: At the end of the discussion, the learners are
 Modes of transportation expected to:
 Diversity of modes  Identify the different modes of
transportation and its advantages.
 Explain the regulations affecting the
operation of the different modes of
transportation.
 Understand and differentiate the
diversity of the modes of transportation.

Transportation modes are essential components of transport systems since they are the means
of supporting mobility. Modes can be grouped into three broad categories based on the medium they
exploit: land, water, and air. Each mode has its own requirements and features and is adapted to serve
the specific demands of freight and passenger traffic. This gives rise to marked differences in the ways
the modes are deployed and utilized in different parts of the world. More recently, there is a trend
towards integrating the modes through intermodality and linking the modes ever more closely into
production and distribution activities. At the same time, however, passenger and freight activity is
becoming increasingly separated across most modes.

 Air Transportation
One of the most important transportation modes in tourism is air travel. Air travel has made
significant changes in people’s minds concerning time and distance. To meet the demand which
increases every day, the airline companies spend billions of dollars and apply new technological
innovations. Having matchless role in long distances the air travel industry develops very rapidly. The
world’s airline industry numbers 1,629 airlines, 27,271 aircraft, 3,733 airports, 29.6 million scheduled
departures a year, and carries 2.7 billion of passengers a year. The major aircraft making companies to
share the market will be Airbus and Boeing.

Air transport is an important element of the tourism system as just over half (52%) of all worldwide
inbound travelers enter a country via air (UNWTO, 2013). It is the fastest mode of travel. The increasing
number of available flights, travel destinations, and low-cost carriers have enabled people to travel. But
airplanes are more than just a quick way to travel. If cruise ships are ‘floating resorts’, then airlines can
be considered as ‘flying hotels’. The intense competition in the airline industry leads to continuous
innovations in flight conveniences and amenities. Just imagine the range of onboard facilities available,
from in-flight entertainment, spacious seats, menu choices, to mood lighting. Even the amenity kits
have gone beyond the usual slippers. The most innovative loot bags include beauty and skin care
products and designer pouches with dental kits, eyeshades and expensive razors.

The airliner industry comprises passenger air transportation, including both scheduled and
chartered, but excludes air freight transport. The term ‘aviation industry’ encompasses the aerospace
industry, aviation organizations, and air transportation.
o Aerospace industry - Encompasses all of the economic, organizational and technical air
transport facilities required for the manufacture (for example, airframe and turbines) and
delivery of aircraft, as well as infrastructure such as airports and air traffic control facilities
(Pompl, 2007).
o Aviation organizations - Consist of all institutions that constitute the legal and transactional
framework necessary for the realization of air transportation and the production of the
aerospace industry (Maurer, 2006; Pompl, 2007).
o Air transportation - This includes all processes which encompass the transportation of persons
or objects by air, including any direct or indirect services (Rössger and Hünermann, 1965, as
cited by Pompl, 2007).

Other Terms:
Aircraft: any machine capable of flying by means of buoyancy or aerodynamic forces, such as a glider,
helicopter or aeroplane; ‘any machine that can derive support in the atmosphere from the reactions of
the air other than the reactions of air against the earth’s surface.
Passenger aircraft: An aircraft configured for the transport of passengers and their baggage. Any
freight, including mail, is generally carried in cargo holds in the belly of the aircraft.
Airline (commercial air transport operator): An aviation enterprise operating aircraft for commercial
purposes which (i) performs scheduled or non-scheduled air transport services, or both, which are
available to the public for carriage of passengers, mail and/or cargo and (ii) is certified for such purposes
by the civil aviation authority of the state in which it is established.
Commercial air flight: An air transport flight performed for the public transport of passengers and/or
freight and mail, for remuneration and for hire.
Domestic flight: A flight having exclusively domestic flight stages.
International flight: A flight having one or more international flight stages.
Transport infrastructure: includes the material conditions such as routes (e.g. roads, tracks, etc.), means
(e.g. vehicles), control systems (traffic control), handling facilities (bus, train or plane terminals), and
transfer facilities.
● Mode of transport: refers to the environment in which the transport takes place: air,
ground or water based transport (Duval, 2007). All vehicles which utilize the same environment belong
to the same transport mode.
● Transportation routes: utilized by the transportation means.
● Transportation means, type or carrier: refers to the actual ‘means of mobility realized
within a particular mode’ (Duval, 2007, p. 3). Examples include the aeroplane, boat or car
as illustrated in Fig. 1.4. In conjunction with the transportation infrastructure, these means
enable the implementation of transport services.

IMPORTANT REGULATIONS
 International Air Law
As commercial aviation grew, an international code of regulations became essential. Early on, the
legal issues were handled by each nation individually; however, once the environment became
increasingly international the lack of uniformity proved to be a considerable impediment (Wensveen, 2007).
Therefore, several international organizations encouraged movements aiming at the international
codification of commercial aviation law.

 Multilateral agreements
In air traffic it is assumed that every state has unrestricted sovereignty over its airspace. This
principle was established in the Paris Agreement of 1919 as well as in the Chicago Convention of 1944.
The Chicago Convention has great significance for international air traffic and was adopted by 54 states
at the International Conference on Civil Aviation, also called the Chicago Conference (Maurer, 2006;
Wensveen, 2007; Odoni, 2009; Gross, 2011) . The first article of this law states ‘The contracting States recognize
that every State has complete and exclusive sovereignty over the airspace above its territory’ (ICAO, 2006,
p. 2).

Furthermore, the Chicago Convention differentiates between scheduled airline traffic and
unscheduled traffic. According to Article 6 of the agreement, scheduled airline flights may only be
carried out over a country’s territory if said country has granted a special permit. Unscheduled flights
are generally permitted to approach into a country’s territory, board and deplane passengers, and
receive and dispatch cargo and/or post (Article 5). Interestingly, many states issue their own regulations,
conditions or restrictions, as the legal system allows for this (Conrady et al., 2013).

Two further important documents came out of the Chicago Conference: the International Air
Services Transit Agreement (Two Freedoms Agreement) and the International Air Transport Agreement
(Five Freedoms Agreement). These agreements determine certain traffic laws or freedoms of the air that
were agreed upon during the conference. The International Air Services Transit Agreement settles two
technical traffic laws, namely the first and second freedoms of the air (for details on the freedoms of the
air see Fig. 2.3). Besides these two freedoms, the International Air Transport Agreement also defines
freedoms three
to five, which are also called commercial freedoms (Wensveen, 2007; Odoni, 2009; Gross, 2011). The Two
Freedoms Agreement was widely accepted by various nations, whereas the Five Freedoms Agreement
did not receive strong support from the representatives. Although the USA originally agreed to the Five
Freedoms document, they later withdrew their decision (Wensveen, 2007). Today, there are nine freedoms
of the air The first five freedoms originate from the Chicago Conference and the eighth and ninth
freedoms are based on the Chicago Agreement, while the sixth and seventh freedoms were formed in
practice.
 Further important multilateral agreements are the Tokyo Agreement from 1963 (prevention of
prosecutable actions on board), the Haag Agreement from 1970 (illegally taking possession of
airplanes), and the Montreal Convention from 1971 (combat against illegal actions against the security
of civil aviation). Another significant multilateral agreement between the USA and the EU concerns the
liberalization of transatlantic air traffic (‘Open Skies Agreement’).

 Open Skies Agreement

On 30 March 2008, the Open Skies Agreement between the USA and the EU took effect. This
agreement allows European airlines to fly from any point in the EU to any point in the USA. Until then,
this was only possible from the respective homelands. Likewise, every US carrier is allowed to fly into
every EU member state. This is especially an advantage for those EU member states that previously did
not have a bilateral agreement with the USA as this agreement increases the number of possible
destinations for many Europeans. Therefore, these European countries have been more affected by the
Open Skies Agreement than those countries that had previously existing bilateral agreements with the
USA (Cento, 2009; Conrady et al., 2013). Furthermore, ‘other key factors of the agreement provide for
cooperation in fields such as security, safety and environment’ (Cento, 2009, p. 17).

First Freedom: A carrier may fly over the territory of another nation without landing.
Example: Northwest (NWA) flies from the United States over Iceland to Norway.
Second Freedom: A carrier may land in another nation for non-traffic related purposes, i.e., crew change
or refueling.
 Example: NWA flies from the United States to Norway but lands in Iceland for fuel.
Third Freedom: A carrier may drop off passengers from its own country in another nation.
Example: NWA flies passengers from the United States to Norway.
Fourth Freedom: A carrier may pick up passengers in another nation and carry them back to its own
country.
Example: NWA flies passengers from Norway to the United States.
Fifth Freedom: A carrier may pick up passengers from a state other than its own and deliver them to a
third state, also not its own.
Example: NWA picks up passengers in Iceland and drops them off in Norway.
Sixth Freedom: A carrier may carry passengers from one state through its home country to a third state.
Example: NWA flies passengers from Norway to Iceland while stopping in the United States.
Seventh Freedom: A carrier may carry passengers from one state to a third state without going through
its home country.
Example: NWA flies from Norway to Iceland without stopping in the United States.
Eight Freedom: A carrier may operate domestic services in a foreign country with continuing service to
or from one’s own country (also known as cabotage).
Example: NWA flies between two cities in Norway or between two cities in Iceland.
Ninth Freedom: A carrier may operate within a foreign country without continuing service to or from
one’s own country (sometimes known as stand-alone cabotage).
Example: NWA flies between two cities in Iceland.

Advantages of air transport:

o It is considered as the fastest mode of transport.
o It is convenient when travelling overseas.
o It has interconnecting hubs across the country and all over the world.
Types of flights:
o Non-stop: a flight that proceeds to the final destination without any stops in between
o Direct: a flight with one or more stops in between origin and destination, without any
changes in flight number and aircraft
o Connecting: a flight where the passenger has to change aircraft to reach his final destination;
his ticket will also show a change in flight number
o Change of Gauge: a flight where there is a change in aircraft, but no change of flight number
o Chartered: this refers to rental of an entire airplane for a specific route, either for a one-way
or round-trip flight

Classification of Philippine Airports:

o International airports - are airports capable of handling international flights
o Domestic airports – serve only local destinations
 Principal airports (Class 1) - are airports capable of serving jet aircraft with a
capacity of at least 100 seats
 Principal airports (Class 2) - airports are airports capable of serving propeller
aircraft with a capacity of at least 19 seats
o Community airports – mainly used for general aviation
 Air Passenger Bill of Rights
 Right to be provided with accurate information before purchase
 Right to receive the full value of the purchase
o Right to be processed for check-in
o Right to sufficient processing time
o Right to board aircraft for the purpose of flight
 Right to compensation
o Right to compensation and amenities is case of cancellation of flight
o Right to compensation and amenities in case of flight delay and exceptions thereto
o Right to compensation for delayed, lost, and damaged baggage
o Right to compensation in case of death or bodily injury of a passenger
o Right to immediate payment of compensation

 Automobile Transportation / Road-Based Transport

In short distances automobile transportation comes forward regarding other modes of
transportation. The automobile transportation makes it easy to see local culture and nations. It presents
great flexibility in contrast to other modes of transportation (Oter, 2007). The importance of this mode
in tourism is also very important. When compared with the prices in air transportation, this mode of
transportation is frequently used by tourists because of low prices. But the main factor affecting this
choice is time and distance.

In the Philippines, land transportation dominates the flow of trave of goods and people. With the
exception of the use of private vehicles, the daily commute in Metro Manila is characterized by a
combination of different modes of transport. From a tricycle, Asian utility vehicle (AUV) or a public
utility jeep (PUJ), you take a public utility bus (PUB) traversing main roads and tollways. However, you
can ride a metered taxi to reach your destination quickly. Aside from these, there are pedicabs and mini
buses plying the provinces.

The Philippine Nautical Highway System aims to interconnect the islands through an efficient
transportation network of highways, roads, airports, and ferry services. The 919-kilometer Nautical
Highway Road Roll-on/Roll-off Travel System (RRTS) connects roads and bridges across Luzon, Visayas
and Mindanao. It is composed of three major routes namely, Western Nautical Highway, Central
Nautical Highway, and the Eastern Nautical Highway. It opened to the public in April 3, 2003 as the
Strong Republic Nautical Highway (SRNH).
Advantages of Road/Land Transport:
o It is relatively cheaper as compared with the other modes of travel.
o It is flexible allowing for stops along the way.
o It enables the movement of people and goods without the need for airports or piers.

Philippine Expressways:
 North Luzon Expressway (NLEX) – it is an 83.7 km expressway that connects Metro Manila to the
northern provinces of Bulacan and Pampanga
  South Luzon Expressway (SLEX) – this is a network of two expressways that connect Metro
Manila to the provinces of the CALABARZON region; it runs between the Skyway System which
comprises the elevated section and the ground level road, and STAR tollway
 Tarlac Pangasinan La Union Expressway (TPLEX) – it is an 88.85 km four-lane expressway
connecting Tarlac, Pangasinan, La Union and Nueva Ecija
 Manila Cavite Express (CAVITEX) – this is a 14 km long toll expressway linking Manila to the
southern province of Cavite
 South Metro Manila Skyway (SKYWAY) – it is a six-lane elevated toll expressway built above the
existing at-gate highway from Makati City to Muntinlupa City; it includes the rehabilitation of
the South Luzon Expressway from Magallanes to Alabang
 Southern Tagalog Arterial Road (STAR TOLLWAY) - or CALABARZON expressway, is a two-to-four-
lane expressway that has a total span of 42 km; this expressway stretches from the intersection
of Maharlika Highway and SLEX in Santo Tomas, which then runs south near Diversion Road to
Batangas International Port; this road then traverses through Malvar, Lipa, and Ibaan.
 South Luzon Expressway Toll Road 4 (TR4) - construction is currently underway for the new
expressway connecting Laguna, Batangas and Quezon provinces; route will measure 67km when
complete and should reduce journey times for drivers in the area; the work on the toll road
project is split into six stretches while the intended completion date is in 2022
 NAIA Expressway or NAIAX - is an elevated expressway that links the Metro Manila Skyway, the
Entertainment City, and Ninoy Aquino International Airport (NAIA); the said expressway runs
through Pasay and Paranaque
 Subic-Tipo Expressway - also known as STipEx and the Subic Freeport Expressway is a highway
which passes through the provinces of Zambales and Bataan
 Subic-Tarlac Expressway or SCTEX - is the longest expressway in the Philippines; It is a four-lane
highway in the region of Central Luzon that has a total of 94 km
 Muntinlupa-Cavite Expressway - or commonly called MCX, is currently the shortest expressway
in the Philippines; It is a 4-kilometer, access-controlled toll expressway that connects the
southern part of Cavite to Muntinlupa City

 Railway Transportation
A train is a form of rail transport consisting of a series of vehicles that usually runs along a rail track
to transport cargo or passengers. There are several types of passenger trains. Some of these are the
long-distance passenger trains, light rail transits, monorail, the tram, and heritage trains. The other
mode that affects tourism is railway transportation. This type of transportation is considered the oldest
one. In 19th century the railways were frequently used. Currently in many countries the railways are
used for transportation of loads. The reason for this is tourist choice of air or automobile transportation.
But there exist such railroads that have been included to touristic packages. For the example, we can
give Orient Express railways. But nowadays application of technology and technological innovation gave
birth to fast trains which compete with air and automobile transportation modes.

An increasing number of travelers are choosing the train over the airplane. Aside from the speed,
you do not have to go through the inconveniences of transiting thru the airport. One of the most
famous railway systems is the Amtrak. It operates a nationwide rail network, serving the United States
and three Canadian provinces.
 Currently, the Metro Manila rail system is composed of the LRT Line 1, LRT Line 2, and the MRT Line
3, Philippine National Railways (PNR).

Advantages of Rail Transport:

o It is relatively faster than land transport.
o Assuming that the tracks are in good condition, the trains are less affected by changes in
weather.
o It is a convenient mode of travelling long distances.

 Sea/Water Transportation
Here we may include cruise travel, boat travel, yachting, ferry travel and etc. The cruise travel has a
special place in tourism. We can infer that cruise travel has been much more developed in North
America. The cruise ships named as sailing hotels provide tourists with indispensable travel opportunity.
While travelling with a cruise ship, the tourists get the opportunity to see several countries at a time.
This type of transportation is one the most expensive one, because the price for a cruise ship exceeds
$100 million. More than thousands of employees work in a cruise ship at a time, may see that in cruise
travel from North/south Americans to Asia, Europe and Middle East companies gained great successes.
Advantages of Water Transportation:
o Maintenance cost of water transport is quite less
o Transport channel is quite cheap as compared rail and road transport
o Useful for bulky goods
o Useful during natural calamities
o Helpful in defense
o Water transport plays important role in foreign trade

Diversity of Modes
Transport modes are designed to either carry passengers or freight, but most modes can carry a
combination of both. For instance, an automobile has the capacity to carry some freight while a
passenger plane has a belly hold that is used for luggage and cargo. Each mode is characterized by a set
of technical, operational, and commercial characteristics. Technical characteristics relate to attributes
such as speed, capacity, and motive technology, while operational characteristics involve the context in
which modes operated, including speed limits, safety conditions, or operating hours. The demand for
transport and the ownership of modes are dominant commercial characteristics, as transportation
modes are used to support economic activities and generate an income.
 (Main Passenger Modal Options)

(Main Freight Modal Options)

A. Road transportation
Road infrastructures are large consumers of space with the lowest level of physical constraints
among transportation modes. However, physiographical constraints are significant in road construction
with substantial additional costs to overcome features such as rivers or rugged terrain. While historically
road transportation was developed to support non-motorized forms of transportation (walking,
domestic animals, and cycling at the end of the 19th century), it is motorization that has shaped most of
its development since the beginning of the 20th century.
 Road transportation has average operational flexibility as vehicles can serve several purposes but
can rarely operate outside roads. Road transport systems have high maintenance costs, both for the
vehicles and infrastructures, which are related to low life spans. They are mainly linked to light
industries and freight distribution, where rapid movements of freight in small batches are the norm.
With containerization, road transportation has become a crucial link in freight distribution between
ports and commercial hinterlands.

B. Rail transportation and pipelines

Railways are composed of a traced path on which wheeled vehicles are bound. In light of recent
technological developments, rail transportation also includes monorails and maglev. They have an
average level of physical constraints, and a low gradient is required, particularly for freight. Heavy
industries are traditionally linked with rail transport systems, although containerization has improved
the flexibility of rail transportation by linking it with road and maritime modes. Rail is by far the land
transportation mode offering the highest capacity with a 23,000 tons fully loaded coal unit train being
the heaviest load ever carried. Gauges, however, vary around the world, often challenging the
integration of rail systems.

Pipeline routes are practically unlimited as they can be laid on land or underwater. Their purpose is to
move liquids such as petroleum products over long distances in a cost-effective fashion. The longest gas
pipeline links Alberta to Sarnia (Canada), which is 2,911 km in length. The longest oil pipeline is the
Transiberian, extending over 9,344 km from the Russian arctic oilfields in eastern Siberia to Western
Europe. Physical constraints are low and include the landscape and pergelisol in arctic environments.
Pipeline construction costs vary according to the diameter and increase proportionally with the distance
and with the viscosity of fluids (from low viscosity gas to high viscosity oil). The Trans Alaskan pipeline,
which is 1,300 km long, was built under challenging conditions and had to be above ground for most of
its path. Pipeline terminals are essential since they correspond to refineries and harbors.

C. Maritime transportation
With physical properties such as buoyancy and limited friction, maritime transportation is the most
effective mode to move large quantities of cargo over long distances. Main maritime routes are
composed of oceans, coasts, seas, lakes, rivers, and channels. However, due to the location of economic
activities, maritime circulation takes place on specific parts of the maritime space, particularly over the
North Atlantic and the North Pacific. The construction of channels, locks, and dredging are attempting to
facilitate maritime circulation by reducing its discontinuity, but such endeavors are highly expensive.
Comprehensive inland waterway systems include Western Europe, the Volga / Don system, the St.
Lawrence / Great Lakes system, the Mississippi and its tributaries, the Amazon, the Panama / Paraguay,
and the interior of China.

Maritime transportation has high terminal costs since port infrastructures are among the most
expensive to build, maintain, and operate. These high costs also relate to maritime shipping, where the
construction, operation, and maintenance of ships is capital intensive. More than any other mode,
maritime transportation is linked to heavy industries, such as steel and petrochemical facilities adjacent
to port sites. Yet, with containerization, maritime shipping has become the linchpin of globalization,
allowing trading a wide range of goods and commodities.
 D. Air transportation
Air routes are practically unlimited, but they are denser over the North Atlantic, inside North
America and Europe, and over the North Pacific. Air transport constraints are multidimensional and
include the site (a commercial plane needs about 3,300 meters of runway for landing and take-off), the
climate, fog, and aerial currents. Air activities are linked to the tertiary and quaternary sectors, notably
finance and tourism, which lean on the long-distance mobility of people. More recently, air
transportation has been accommodating growing quantities of high-value freight and is playing an
increasing role in global logistics.

E. Intermodal transportation
Intermodalism concerns a variety of modes used in combination so that the respective advantages
of each mode are advantaged. Although intermodal transportation applies to passenger movements,
such as using the different, interconnected modes of a public transit system, it is over freight
transportation that the most significant impacts of intermodalism have been observed. Containerization
has been a powerful vector of intermodal integration, enabling maritime and land transportation
systems to interconnect.
Intermodal transportation concerns the movements of passengers or freight from an origin to a
destination relying on several modes of transportation. The container has become the dominant
intermodal transport unit. Competition between modes has tended to produce transportation systems
that were segmented and un-integrated; in their own “silos”. Each mode, particularly the carriers that
operated them, has sought to exploit its advantages in cost, service, reliability, and safety.

From a functional and operational perspective, three components are involved in intermodalism:
 Intermodal transportation. The movements of passengers or freight from an origin to a
destination relying on several modes of transportation. Each carrier is issuing its own ticket
(passengers) or contract (freight). Transfers from one mode of transport to another are
commonly taking place at a specifically designed terminal. Therefore, intermodal
transportation refers to an exchange of passengers or freight between two transportation
modes. The term has become more commonly used for freight and container transportation
across a sequence of modes. In North America, the term intermodal is also used to refer to
containerized rail transportation.
 Multi-modal transportation. The movements of passengers or freight from an origin to a
destination relying on several modes of transportation using one ticket (passengers) or contract
(freight). Technically the same as intermodal transportation, but represents an evolution
requiring a higher level of integration between the actors involved such as carriers and terminal
operators.
 Transmodal transportation. The movements of passengers or freight within the same mode of
transportation. Although “pure” transmodal transportation rarely exists and an intermodal
operation is often required (e.g. ship to dockside to ship), the purpose is to ensure continuity
within the same modal network.

F. Telecommunications
 Cover a grey area in terms of if they can be considered as a transport mode since
telecommunications often do not have an apparent physicality. This physicality is real since they are
structured as high capacity networks with very low constraints, which may include the physiography and
oceanic masses crossed by fiber optic cables. They provide for the “instantaneous” movement of
information (speed of light). Wave transmissions, because of their limited coverage, often require
substations, such as for cellular phone and data networks where WiFi connections are of even more
limited range. Satellites are often using a geostationary orbit, which is getting crowded.

Week 5-6
Topics to be discussed: At the end of the discussion, the learner is
 Main functions of the transportation expected to:
sector.  Determine the functions of the
 Description of main functions of the transportation sector.
transportation sector.  Describe the characteristics of the
 Desired characteristics of the transportation system.
transportation system.

Main Functions of the Transportation Sector

The transportation system as described earlier provides facilities and services to move people
and goods. Each of these facilities and services are expected to perform functions related to the
respective types of facilities and services in relation to the need for moving people and goods. The task
to perform these functions is vested on the transportation sector of the economy. The transportation
sector is that group of government institutions and private entities which perform the various functions
to make the transportation system work efficiently.

The development of transportation systems takes place in a socioeconomic context. While

development policies and strategies tend to focus on physical capital, recent years have seen a better
balance by including human capital issues. Irrespective of the relative importance of physical versus
human capital, development cannot occur without both interacting as infrastructures cannot remain
effective without proper operations and maintenance. At the same time, economic activities cannot take
place without an infrastructure base. The highly transactional and service-oriented functions of many
transport activities underline the complex relationship between its physical and human capital needs.
For instance, effective logistics rely on infrastructures and managerial expertise
 Because of its intensive use of infrastructures, the transport sector is an important component
of the economy and a common tool used for development. This is even more so in a global economy
where economic opportunities have been increasingly related to the mobility of people and freight,
including information and communication technologies. A relation between the quantity and quality of
transport infrastructure and the level of economic development is apparent. High-density transport
infrastructure and highly connected networks are commonly associated with high levels of
development. When transport systems are efficient, they provide economic and social opportunities and
benefits that result in positive multiplier effects such as better accessibility to markets, employment, and
additional investments. When transport systems are deficient in terms of capacity or reliability, they can
have an economic cost such as reduced or missed opportunities and lower quality of life.

At the aggregate level, efficient transportation reduces costs in many economic sectors, while
inefficient transportation increases these costs. In addition, the impacts of transportation are not always
intended and can have unforeseen or unintended consequences. For instance, congestion is often an
unintended consequence in the provision of free or low-cost transport infrastructure to the users.
However, congestion is also an indication of a growing economy where capacity and infrastructure have
difficulties keeping up with the rising mobility demands. Transport carries an important social and
environmental load, which cannot be neglected. Assessing the economic importance of transportation
requires the categorization of the types of impacts it conveys. These involve core (the physical
characteristics of transportation), operational and geographical dimensions:

 Core. The most fundamental impacts of transportation-related to the physical capacity to

convey passengers and goods and the associated costs to support this mobility. This involves the
setting of routes enabling new or existing interactions between economic entities.
 Operational. Improvement in the time performance, notably in terms of reliability, as well as
reduced loss or damage. This implies a better utilization level of existing transportation assets
benefiting its users as passengers and freight are conveyed more rapidly and with fewer delays.
 Geographical. Access to a broader market base where economies of scale in production,
distribution, and consumption can be improved. Increases in productivity from the access to a
larger and more diverse base of inputs (raw materials, parts, energy, or labor) and broader
markets for diverse outputs (intermediate and finished goods). Another important geographical
impact concerns the influence of transport on the location of activities and its impacts on land
values

Description of Main Functions

The transportation sector shall perform these main functions:
 Policy Formulation / Strategic Planning
As a guide to all the groups in the sector, government lead agency in transportation, shall
promulgate a transportation policy for the whole sector. This policy consists of general statements on
the main courses of action to be undertaken by each group to achieve the objectives of the sector,
guided by the desired characteristics. With these policy statements, strategies shall also be prescribed as
to how the policy statements can be achieved.
  Infrastructure Development
In line with the policies and strategies, transportation infrastructure planning shall be prepared by
designated government agencies for each transport mode. Based on the infrastructure plans,
corresponding funding shall be provided, after which the planned infrastructure projects shall be
implemented / constructed.
Once the infrastructure facilities are in place, designated government agencies shall manage the
operation of such facilities. Infrastructure development has been for years a function of the
government. However, in recent years, due to the privatization policy of government, several
transportation infrastructure facilities have been developed by the private sector.

 Carrier Service Operations

The other main component of the transportation system is the carrier services. More specifically,
carrier service operation refers to public transport carrier services, i.e. those services which are offered
for use by the general public, with a user’s fee charged. Generally, the operators of these carrier services
are private entities, which can be an individual person, a partnership, a corporation or a cooperative.
These are the bus / jeepney / taxi operators in the road sub-sector, vessel operators in the water
transport sub-sector and airline operators in the air transport sub-sector. However, in the Philippines,
several railway service operators are government agencies. Although lately, some operators have been
privatized.

 Regulation of Carrier Service Operations

Another function of the transportation sector is regulation of carrier services. Public transportation
carrier services should be subject to government regulation for the reason that service users, i.e.
passengers and goods owners should be protected, in terms of level of supply and pricing.

Furthermore, all carriers should be regulated for safety reasons, particularly on worthiness to
operate characterized by a good physical and running condition and for traffic movement efficiency
reasons, to ensure smooth and safe travel along transport paths. In connection with the above, there
are three (3) types of carrier service regulations, undertaken by designated government agencies.
These are:
o Economic regulation
o Safety regulation
o Traffic regulation

 Economic Regulation - This refers to government regulation on public transport carrier services.
There are two (2) areas in public transportation regulation:
o Level of supply – This regulates the authority to operate a public transport service by choosing
qualified operators and the number of units authorized per mode and route of public transport.
This is done through public transport franchising function.
o Price or Fare – This regulates the pricing or fare rate to be changed by the operator to the
passengers.
  Safety Regulation - This is a government regulation addressed to ensure safety of carrier
services, both public transport and private carriers, as well as safety to passengers and other
road users. There are two (2) areas in safety regulation:
o Carrier Worthiness - This regulates the carrier unit, e.g. motor vehicle in road transport, to be
allowed to operate along travel paths based on the “worthiness” of said unit, in terms of its
physical and running condition. The process is undertaken through the carrier registration
system which requires carrier inspection to check worthiness of carriers.
o Carrier Crew Competence - This regulates the crew to be authorized to man a carrier unit, e.g.
motor vehicle driver in road transport, in terms of his skill in manning a carrier unit and
knowledge on traffic rules and regulations. The process is undertaken through the crew
licensing system, which requires an examination.

 Traffic Regulation – This is another government regulation which manages the movement of
carriers along the travel paths. This is more critical in road transport where traffic regulation is
essential along roads due to mixed-traffic situation where various vehicle types are using the
road section. The objective of traffic regulation (or road traffic management) is to ensure
smooth flow of traffic, i.e. continuous movement with minimum delay, and safety to road users.
The process involves putting up of traffic signs, loading and unloading areas, barriers, traffic
signals, etc. and strict implementation and enforcement on the rules involved.

Desired Characteristics of the Transportation System

For the transportation system to work efficiently, the various groups in the transportation sector
shall strive to attain objectives in line with the desired characteristics of the transportation system.
These characteristics are summarized as an acronym, as stated below. To efficiently serve the need to
move people and goods from one place to another, we need a transportation system that: CARES.

The acronym CARES refer to the following desired characteristics:

C – comfortable and convenient

A – adequate
R – reliable
E – economical and environment friendly
S – safe and secure

More specifically, said characteristics are:

o Comfortable – Sufficient space to accommodate people in a carrier, in a terminal, or vehicles in

a road, and others. Space sufficiency will provide physical well-being or comfort to the users of
the facility or service.
o Convenient – For convenience to users, facilities and services should be accessible, i.e., easy to
 reach or easy to use, e.g., easy transfer facilities from one mode to another, easy boarding /
alighting, etc.
o Adequate – The level of supply of facilities and services should match the demand. The
location
of these facilities as well as the carrier routes should be demand-based. The physical attribute of
facilities and the number of carriers serving routes should also be demand-based.
o Reliable – The level of service of carriers should provide acceptable / appropriate waiting
time for passengers. The speed of carriers travelling along travel paths should be reasonable
enough to minimize travel time delay. On time services characterize reliability to passengers.
o Economical – The provision of facilities and services should support socio-economic
development programs of the government. Furthermore, operation of facilities and services
should be economically viable. Financial viability of facilities and services is likewise needed to
sustain operations. Transport user charges, such as fares, shall both be affordable to users and
reasonably profitable to operators.
o Environment friendly – Operation of carrier services should not harm the environment i.e.,
vehicles and other carrier modes with environmentally acceptable air and noise pollution level.
o Safe – Facilities and services should have the necessary safety measures to avoid accidents.
For example, road facilities should be designed and constructed properly to provide safe travel
paths and corresponding traffic signs and signals to guide motorists. Motor vehicles should pass
safety inspection and drivers should pass licensing examinations. The same is true for the other
modes, such as trains, railroads, ports, vessels, airports, airplanes.
o Secure – Users of services and facilities should be protected from harm due to illegal
intervention of people. Security inspection is needed, if possible, or security consciousness shall
be promoted.

Week 7-8
Topics to be discussed:
 Entities responsible for the functions of
transportation services in the Philippines.
At the end of the discussion, the learners are
expected to:
 Identify and describe the main functions
of government agencies involved in
transportation infrastructure
development, carrier regulation and
private entities involved in carrier
operations.

Entities Responsible for the Functions

In order to have a clear understanding on the functions to be performed, identification of
government agencies, and private sector entities involved are hereby presented in tabulated form.

Table A – Summary of Entities Performing Functions

Functions Road Transport Rail Transport Water Transport Air Transport
Policy Formulation DOTr & DPWH DOTr DOTr DOTr
Strategic Planning
Infrastructure Roads Railroads, Ports Airports
Development Terminals,
 Stations
 Planning & DPWH (National DOTr, PNR, PPA, CPA CAAP, MIAA,
Funding search Roads, LGU LRTA, LRMC MCIAA
(Local Roads) (private)
 Implementation DPWH (National DOTr, PNR, PPA, CPA CAAP, MIAA,
Construction Roads, LGU LRTA, LRMC MCIAA
(Local Roads) (private)
 Operation HPG (National DOTr, PNR, PPA, CPA CAAP, MIAA,
Roads), LGU LRTA, LRMC MCIAA
(Local Roads), (private)
MMDA (Metro
Manila National
Roads)
 Infrastructure DPWH (National DOTr, PNR, LRTS, PPA, CPA CAAP, MIAA,
Maintenance Roads, LGU LRMC (private) MCIAA
(Local Roads)
Carrier Service Private DOTr, PNR, Private Vessel Private Airline
Operation Operators LRTA, LRMC Operators Operators
(private)
Economic Regulation LTFRB Self-regulation MARINA CAB
by PNR, LRTA
Safety Regulation LTO Self-regulation MARINA CAAP
by PNR, LRTA
Traffic Regulation HPG (National LRMC PCG CAAP
Roads), MMDA
(Metro Manila
National Roads)

A. Government Agencies
1. DOTr – Department of Transportation
2. DPWH – Department of Public Works and Highways
3. HPG – Highway Patrol Group of the Philippine National Police (PNP)
4. LGU – Local Government Units
• Provincial
• Municipal
• City
• Barangay
5. MMDA – Metro Manila Development Authority
6. LTFRB – Land Transportation Franchising and Regulatory Board
7. LTO – Land Transportation Office
8. PNR – Philippine National Railways (Inter-City and Inter-Regional Railway)
9. LRTA – Light Rail Transit Authority (Urban Railway Services)
10. PPA – Philippine Ports Authority (National Ports)
11. CPA – Cebu Ports Authority (Province of Cebu National Ports)
12. CAAP – Civil Aviation Authority of the Philippines
13. MIAA – Manila International Airport Authority
14. MCIAA – Mactan Cebu International Airport Authority
15. CAB – Civil Aeronautics Board
16. MARINA – Maritime Industry Authority
17. PCG – Philippine Coast Guard

B. Private Entities
Private Operators
a) Road-Based Public Transport Operators
• Bus Operator
• Minibus Operator
• Jeepney (PUJ) Operator
• UV Service Operator
• Taxi Operator
• Others
b) LRMC – Light Rail Management Corporation
c) Water / Maritime Vessel Service Operators
Example: Sulpicio Lines Inc., Aboitiz Shipping, 2 GO Transport
d) Airline Service Operators
Example: Philippine Airline, Cebu Pacific, Air Asia

Week 9
Topics to be discussed:
 Economic Elements
Transportation System
At the end of the discussion, the learners are
Affecting the expected to:
 Understand the transportation demand.
 Illustrate the components of passenger
transportation demand.

Economic Elements Affecting the Transportation System

The main reason why there are transportation facilities (infrastructure) and carrier services is
the need for movement of people and goods. This is generally termed as transportation demand. While
the facilities and services are being put up and are in operation there are several expenses involved
which are called transportation cost. In addition to these, operating carrier services will earn revenues to
the operators through fees collected for the services. Other infrastructure facilities also earn revenue
through fees collected.

Transportation Demand

Transportation demand is generally defined as the volume of goods and people moving from one
place to another. This means that quantities are to be determined / estimated. To illustrate, to
determine / estimate volume of demand, consider the following example:
 B
3km

A C
6 km
A, B and C are individual places. They can be towns in a province, district within a city, or
barangays within a municipality. The solid lines AB and AC are road links. To estimate transportation
demand among these places, the movement from one place to another shall be determined for each
pair of origin (O) and destination (D). For the above figure, there are six (6) OD pairs, namely:

From origin To destination (D)

(O)
A B
A C
B A
B C
C A

There are two (2) types of demand, namely (a) Passenger Demand and (b) Goods Demand. In
the case of passenger demand.
 Passenger Transport Demand - This refers to the volume of passengers moving from one place
to another. Passenger transport demand is presented in table form. This is called an Origin-
Destination Table (OD Table).
An example of a passenger OD Table is shown in Table below.

Table 3.1 – Passenger OD table (in passengers / day)

From\To A B C Total

A - 2,000 920 2,920

B 2,200 - 1,400 3,600

C 980 1,100 - 2,080

Total 3,180 3,100 2,320 8,600

The above OD table can also be presented in the following form:

 Table 3.2 – Alternative Passenger OD Table (passenger/day)
From To Pax Volume
(pax/day) 1/
A B 2,000

A C 920

B A 2,200

B C 1,400

C A 980

C B 1,100

Total 8,600

1_/ pax: stand for passenger

The above quantities are determined by conducting a passenger origin-destination (OD) survey.
This survey is generally conducted through a home interview survey (HIS), a census type of survey where
household members are asked their travel pattern in a given weekday, to gather the following data per
household member:
 Age, gender, occupation, income
 Trips made in one day; for each trip:
o Origin
o Destination
o Trip purpose
o Path taken from origin to destination
o Modes of transport used
o Travel time
o Travel cost / expense

The processed data shown in Table 3.1 or Table 3.2, show the total volume of passengers from
one place to another place. In transportation planning parlance, each place is called a zone. So, OD
pattern is shown as interzonal passenger movement or flows. In real situation, there are also passenger
movements within A, or Zone A, within Zone B, within Zone C. these are called intrazonal passenger
flows. For purposes of this example, transportation demand determination is for interzonal flows.

 Trip Generation/ Trip Attraction

Going back to Table 3.1, the quantities shown have the following interpretations:
Row A total = 2,920 pax / day
Row B total = 3,600 pax / day
Row C total = 2,080 pax / day
These quantities are termed trip generation, which means, these are quantities representing the
total passenger (or pax) volume coming from each zone. Trip generation volume of a given zone
depends on the population of the zone and per capita income of the people. From Table 3.1;
Column A total = 3,180 pax / day
Column B total = 3,100 pax / day
Row C total = 2,320 pax / day
 The above quantities are termed trip attraction meaning, these are the total volume of
passengers going to each zone. Trip attraction volume of a given zone depends on land use quantities
such as employment, number of students, number of factories, etc.

 Trip Distribution
Furthermore, within Raw A, are two (2) quantities:
From A to B = 2,000 pax / day
From A to C = 920 pax / day
These quantities are termed trip distribution, meaning the OD pattern of passengers coming
from Zone A. Similarly, the trip distribution for the other Zone are:
From B to A = 2,200 pax / day
From B to C = 1,400 pax / day
From C to A = 980 pax / day
From C to B = 1,100 pax / day

Further data details on passenger demand are as follows:

 Modal Split:
This refers to the relative shares of transport modes used for all trip distribution quantities. Let us
say, the modal split derived from the survey is: 20% private mode, 80% public transport mode. Using
the above modal split, the OD table can be presented, as follows:

Table 3.3 pax OD By Mode

From To Pa x Volume Pa x Volume Public Total Pa x Volume
Private (pax/day) transport (pax/day) (pax/da y)
A B 400 1,600 2,000
A C 184 736 920
B A 440 1,760 2,200
B C 280 1,120 1,400
C A 196 784 980
C B 220 880 1,100
Total 1,720 6,880 8,600

 Trip Assignment
This refers to the estimated volume of passengers per link in the network. In this example, the
network involved shown below:

B
3 km

A C
6 km
Link AB: 3 km (also link BA)
Link AC: 6 km (also link CA)
Were AB, BA, AC are road links
Arrow line indicates a public transport link.
 Trip assignment involves a process of assigning pax volume from an origin to a destination to the
only possible path, as shown below. It should be noted that possible path is measured in terms of
distance, transport cost or travel time. For this example, let us use distance as basis since there are no
alternative paths for each OD pair.

Table 3.4 – Trip Assignment Table (private mode)

From To Pax Volume Possible Path Pax Volume / Link (Pax/day)
(per/day)
AB BA AC CA

A B 400 AB 400 - - -
A C 184 AC - - 184 -
B A 440 BA - 440 - -
B C 280 BA, AC - 280 280 -
C A 196 CA - - - 196
C B 220 CA, AB 220 - - 220
Total 620 720 464 416

Table 3.5 – Trip Assignment Table (public transport mode)

From To Pax Volume Possible Path Pax Volume / Link (Pax/day)
(per/day)
AB BA AC CA

A B 1,600 AB 1,600 - - -
A C 736 AC - - 736 -
B A 1,760 BA - 1,760 - -
B C 1,120 BA, AC - 1,120 1,120 -
C A 784 CA - - - 784
C B 880 CA, AB 880 - - 880
Total 2,480 2,880 1,856 1,664

 Goods Transportation Demand

The demand for transportation involves likewise the movement of goods from one place to another.
This activity is a vital part in the economic system of the country as it supports the production,
distribution, and consumption of goods. Goods in this case refer to raw materials and other products
which are inputs to the goods production process, as well as finished products which will be distributed
to the various consumption centers.

The representation of goods transportation demand is also in an OD table form. However, since
there are numerous types of goods, the OD tables are as numerous as the number of goods types.
Basically, there are two general types of goods, namely agricultural products, and industrial products.
For each type, there are numerous specific goods. For example, in the agriculture sector, the various
types are food products such as rice, crops, vegetables, aquatic products, and many others. Industrial
products are those which are manufactured in factories such as consumer goods (processed foods,
household products, beverages), supplies to various work, school, health, and other related socio-
economic activities.

The main theory in determining goods transport demand is based on the economic principle of
production and consumption of goods or commodities. This principle is explained as follows:
 o Each place (or zone) produces a certain commodity type. The volume of production is a
source of supply for such commodity types;
o Said place also consumes that commodity. Volume of consumption depends on the
population of that place and the consumption rate;
o For each place, the net demand for said commodity is volume of production minus
volume of consumption.

Week 10 – MIDTERM EXAMINATION

Week 11-13
Topics to be discussed:
 Basic Aspects of Transportation expected to:
Management
- Operation of Transportation Facilities
- Operation of Carrier Services
- Regulation of Carrier Services
- Goods Movement Management
- Passenger Travel Arrangement
- Basic Traffic Management Tools
At the end of the discussion, the learners are
 Manage operations of transport facilities
and other carrier services.
 Identify the tools used in traffic
management.
 Evaluate the regulations of carrier
services.

Basic Aspects of Transportation Management

Management is related to a certain operational activity. Within the transportation system, as
the various elements or components perform their functions, there are aspects or operational activities
that require a management undertaking. These activities involve operations covering transport-related
functions and tasks. The aspects of transportation management are as follows:

a) Operation of transport facilities

b) Operation of carrier services
c) Transportation regulation
d) Goods movement arrangement
e) Passenger travel arrangement

 Operation of Transportation Facilities

The management of the operation of transport facilities, i.e., transport infrastructure facilities,
involves the stage when a given transport facility has already been put up or constructed and the facility
is in operation, meaning, the facility is being used by its users. Note that a facility is being put up
because its users need it. The operation of each type of transport facility is described below.
 Road Facility
The road (or street, highway) is a facility where motor vehicles operate. The users therefore are the
motor vehicles (of course, with the owners and/or drivers). The first thing to consider is the owner of
the facility. In this case, there are two types of roads in terms of ownership. One is the public road,
which is really owned by the public, represented by the government. The other type is the privately
owned road, which is open for public use. This is commonly known as a toll road or a tollway. The
issue on facility ownership is important because it determines who or which entity is tasked to manage
the operation of the facility.

There are two features to be managed in a road facility, namely: (a) regulation and control of the
movement of road users (basically the motor vehicles, as well as pedestrians) and (b) maintenance of the
road. The main objective in managing the operation of a road facility is for a smooth traffic movement,
convenience, and safety to road users. Regulation and control of road users is generally termed as road
traffic management. Road maintenance is a basic function of the road owner. Its purpose is to
preserve the good physical condition of the road to help attain the main objective. Along this line, it can
be said that the management of a public road is a function of the government, i.e., the Department of
Public Works and Highways (DPWH) for national roads, assisted by agencies involved in road traffic
management, and the Local Government Units (LGUs) for local roads. On the other hand, the
management of a toll road rests on the toll road owner or operator. For example, the North Luzon
Expressway (NLEX) is managed by a private company (i.e., the Manila North Tollways Corporation or
MNTC) while the South Luzon Expressway (SLEX) is managed by a government corporation, the
Philippine National Construction Company (PNCC).

Road traffic management involves the following basic activities:

o Planning and implementation of traffic management facilities. These are markings, small
structures, equipment, devices to guide and control the use of the road by its users such as
traffic signs, road markings, traffic signals, islands, barriers, or separators, etc.
o Designation of traffic control areas, such as no parking areas, loading and unloading zones,
pedestrian crossings, etc.
 o Planning and operation of traffic flow circulation patterns, such as directional flows, one-way
flow, counter flow, no entrance, etc.
o Planning and operation of traffic control measures such as vehicle reduction scheme, truck ban,
banning of turning movements, etc.
o Supervision, control, and enforcement of actual traffic activities based on established traffic
management rules, laws and regulations.
o Monitoring of all traffic activities for purposes of correcting deficiencies in traffic management
activities.
o Information dissemination/education to the general public and specifically the road users on
traffic rules and regulations.

Within the DPWH are two units involved in road facility management, namely, the Traffic
Engineering and Management (TEAM) group and the Bureau of Maintenance. Each LGU has its own
traffic management and enforcement unit. For Metro Manila, there is the Traffic Engineering Center
(TEC) for the planning, design and implementation of traffic management facilities, the Traffic Operation
Center (TOC) for traffic supervision, control and enforcement and the Traffic Academy (TA) for training
of enforcers. The PNP, specifically the Traffic Management Group, also assists the MMDA and LGUs in
traffic enforcement.

Traffic management authorities generally summarize the basic activities described above as the 3 Es
of traffic management, namely, Engineering, Education and Enforcement.

 Motor Vehicle Terminal

A motor vehicle terminal is a structure where motor vehicles, particularly, public transport
vehicles, stay to load and unload passengers or cargoes. It is generally located at the trip end. One
thing to consider is that a terminal should be located off-street so as not to impede traffic flow. Loading
and unloading areas along a public transport route are called stops (for motor vehicles) and stations (for
railway vehicles).

Managing a terminal again brings back the question of ownership because as a rule, the facility
owner should be the one to manage the facility. In the Philippines, most of the public transport
terminals are owned and managed by the owner or operator of a public transport service. Examples are
the big bus companies, which own and operate their own terminals. Seldom does the government own
and operate a public transport terminal for motor vehicles. Very few local government units operate
public transport terminals in their localities. In some cases, there are jeepney associations or private
entities, which also operate and manage jeepney terminals. Truck terminals are not common in the
Philippines because loading and unloading of cargoes are usually done at the clients’ areas, such as
warehouses or at ports and airports.

The basic activities and functions in a motor vehicle terminal include the following:
o entry and exit of vehicles to/from the terminals
o loading and unloading of passengers
o parking of vehicles while waiting to load (in a holding area)
o light maintenance works (cleaning of vehicles)
 o waiting of passengers prior to boarding
o arrival of passengers
o baggage handling
o ticketing
o fueling of vehicles (in some cases)
o safety and security measures
o administrative and financial management activities

Generally, a terminal also provides amenities and supplementary services to passengers, such as
vehicle parking areas, food and beverage services, shopping or retail outlets, comfort rooms, drinking
stations, telephones, televisions, public address system, proper ventilation, security, and others.

 Railway Facilities
In the railway transport mode, the facility is composed of the railway track jointly built with the
terminals and stations. The need to package these three components together is due to the unique
characteristic of the railway vehicle or train, which operates in a manner wherein the track both serves
as the travel way of the vehicle and connects terminals and stations. In the Philippines, the owner of the
railway facility (track, terminal, station) is also the operator of the train services. For example, the
Philippine National Railway (PNR) owns the tracks, terminals and stations as well as owns and operates
the train services. The same thing is true with the Light Rail Transit Authority (LRTA). This is unlike road
transport where the owner of the facility (e.g., government) is not the same entity as the vehicle owners
or operators (who are usually private entities).

The operation of the railway facility involves the running of the railway vehicle along the track and
the stopping of the said vehicle at the terminals and stations. This is a case wherein the user of the
facility is the railway vehicle whose owner or operator also supervises and controls the movement of the
vehicles along the facility. This differs with the road transport mode in that the movement of the road
users operating along roads are supervised and controlled by another entity, which is the government.
In the railway mode therefore, management of the operation of the facility mainly consists of track
maintenance. The management of train operations involving the control of train movements along the
tracks, terminals and stations is part of the operational aspects of the carrier or train services.
The various activities to be managed in a railway terminal and station are similar to the activities in a
motor vehicle terminal. In a railway station and terminal, the main carrier arriving and departing is the
train. Passenger activities in these areas are almost similar to a vehicle terminal.

 Port
In the water transport mode, the basic facility is the port. In general terms, the port is that place or
area where the trips of vessels or ships start (depart) or end (arrive). The difference between this
mode and the land-based transport modes (i.e., road and rail transport) is that in this mode the facility is
located at the trip ends. There is no infrastructure facility along the travel way. The port as an area is
composed of several structures, which serve specific activities.

Most of the national ports in the Philippines are owned and operated by the Philippine Ports
Authority (PPA), a government corporation attached to the Department of Transportation and
Communications (DOTC). The Cebu Ports Authority (CPA) supervises ports, which are within the
geographical jurisdiction of the province of Cebu. Management of port operations should take into
consideration the operational activities in a port. The following are the basic operational activities in a
port:

o departure and arrival of vessels

o docking and berthing of vessels
o loading and unloading of cargoes (into and from vessels), or cargo handling
o loading and unloading of cargoes (into and from trucks)
o loading and unloading of passengers (into and from vessels)
o storage of cargoes
o waiting of passengers (pre-departure)
o vehicle parking (for passenger and goods vehicles)
o vessel traffic management
o safety and security measures
o administrative and financial management activities

To serve the above tasks, the main structures in the port should include an administration building,
a pier or wharf, cargo holding area, passenger terminal building, and vehicle parking area. In the
passenger terminal building, amenities and supplementary services to passengers are provided such as
check-in-counters, ticketing, comfort rooms, food and beverage services, shopping outlets, telephones,
public address system, drinking stations, television, proper ventilation, security services and others. In
addition to the above tasks, another aspect in port operations, which should be managed, is the
maintenance of port facilities and structures.

 Airport
In concept, the operation of an airport facility resembles that of a port facility. Although the air
transport mode is technically different from water transport, the basic operational concept of the two
modes are the same. Thus, the airport can be described as that place or area where the trips of aircrafts
(or airplanes) start (aircraft departure) and end (aircraft arrival). Like the water transport mode, the
basic facility of the air transport mode is located at the trip ends.

Most of the national airports in the Philippines are owned and operated by the government through
the Air Transportation Office (ATO), a line agency under the DOTC. The Manila International Airport
Authority (MIAA) operates the Manila International and Domestic Airports while the Mactan
International Airport is owned and operated by the Mactan Cebu International Airport Authority
(MCIAA). Both offices are attached to the DOTC.

In managing airport operations, the basic activities involved, are:

o landing and take-off of aircrafts
o taxiing and parking of aircrafts
o loading and unloading of cargoes (into and from aircrafts), or cargo handling
o loading and unloading of cargoes (into and from trucks)
o loading and unloading of passengers (into and from aircrafts)
 o storage of cargoes
o pre-departure activities of passengers
o waiting of passengers prior to boarding
o arrival activities of passengers
o vehicle parking
o air traffic control
o safety and security measures
o administrative and financial management activities

The main structures in an airport include the runway, apron, and aircraft parking area, passenger
terminal building, air traffic control tower, cargo storage area, and vehicle parking area. Amenities and
supplementary services in the passenger terminal building include check-in counters, ticketing, baggage
claim area, food and beverage services, shopping outlets, telephones, television, flight schedules board,
public address system, comfort rooms, proper ventilation, security service and others. Maintenance of
airport facilities and structures is also an aspect to be managed in an airport.

 Operation of Carrier Services

This refers to the operation of various carrier services to move people and goods from place to
place. These are provided by carrier service operators.

 Operation of Public Passenger Carriers (Public Transport for Passengers)

This refers to the provision of services to carry passengers for a fee. The provider of the service,
which is generally called a public carrier operator, or a public transport operator has two main
responsibilities, namely: (a) provision of efficient and safe service to passengers and (b) ensuring a
reasonable profit in the operation. These two responsibilities usually conflict with each other. A good
public transport operator should be able to achieve both, without sacrificing one over the other. As has
been known already, the services involved are:

o road based modes (e.g., buses, taxis, jeepneys, etc.)

o railway modes (e.g., the train services of LRTA , PNR)
o water modes (e.g., the vessel services of Super Ferry, Negros Navigation Company,
Sulpicio Lines, Inc)
o air modes (e.g., airline services of Philippine Airlines, Cebu Pacific, Air Philippines, etc.)

Like the operation of transport facilities, operation of carrier services involves two main
activities. These are (a) service provision and (b) carrier maintenance.

The basic activities in service provision are:

o Scheduling and dispatching of carrier trips
o Running of carriers along routes or areas of operation
o Passenger handling at terminals, stops, stations
o Passenger handling inside the carriers
o Baggage handling at terminals, stops, stations
 o Ticketing or fare collection
o Monitoring carrier operational activities
o Safety and security measures at terminals, stops, stations and inside carriers
o Administrative and financial management activities

Carrier maintenance includes the following basic activities:

o Check-up/inspection of carrier condition
o Regular maintenance works or preventive maintenance
o Monitoring of carrier conditions
o Major repair works
o Inventory and availability of carrier parts

 Operation of Public Goods Carriers

The operation of public goods carriers has the same concept as the operation of public passenger
carriers. Only in this case, goods or cargoes are involved, thus, the manner of handling is different from
that of passengers. Goods or cargoes are packed in various forms and their handling at terminals or
inside carriers are such that there should be minimum damage or loss on them. Service provision
involves the following basic activities.
o Scheduling and dispatching of carrier trips
o Running of carriers along routes or areas of operation
o Cargo arrangement inside the carrier
o Monitoring of carrier operational activities
o Security measures
o Administrative and financial management activities

Note that cargo handling at terminals or stations is handled by cargo handling operators.
Maintenance activities for the carriers are generally similar to that of public passenger carriers.

 Operation of Private Cargo Carriers

This refers to the operation of a fleet of carriers owned by a private company, which utilizes the
fleet to transport the company’s products. The company by itself has to undertake the following basic
activities:

o Scheduling and dispatching of carrier trips

o Running of carriers along areas of operation
o Cargo handling at factories, warehouses and delivery areas
o Cargo handling inside the carrier
o Monitoring of carrier operational activities
o Security measures
o Administrative and financial management activities

 Regulation of Carrier Services

 Transportation regulation refers to the control on the operation of carrier services in order to
ensure that such operation will be able to attain the objectives, which they are expected to achieve. The
main purpose of transportation regulation is to protect the interest of the general public or the people.
Regulation is necessary because transportation services concern people whose interests should be
protected.

The interest of the public as far as transport services are concerned is in the form of providing the
public with safe and efficient services. To ensure that the public will have safe and efficient transport
services, the government is tasked to regulate them. As such, there are government agencies mandated
to regulate transport services. Since transport regulation is a form of control, it is then a tool in the
management of the overall transport service system. There are three types of transportation regulation,
namely: (a) economic regulation, (b) safety regulation and (c) traffic regulation.

 Safety Regulation
This is a type of regulation, which is applied to all types of transport services, i.e., both private and
public. This is a form of government control on the carriers that will be allowed to operate and the crew
to be allowed to handle the carriers while in operation. The basic concept here is that only carriers,
which are found to be “worthy” to be operated, and carrier crew to be “competent” to handle carrier
operation should be authorized to perform the required tasks. In so doing, the safety of carrier
operation is given due consideration. Transportation safety is a very important quality of transportation
services because it concerns the life of the people. Thus, this type of regulation should be imposed
strictly.

To screen the carriers to be authorized to operate, the government regulatory agency employs a
carrier registration system wherein a carrier shall only be registered if it passes the test of “worthiness”.
Similarly, a carrier crew is also screened through the licensing system wherein only competent crews are
authorized to handle the operation of a carrier.

The basic operational activities undertaken by the regulatory agencies are:

o screening of carriers that are allowed to operate
o screening of carrier crew that are licensed to handle the movement of carriers
o supervision and monitoring of carrier registration and crew licensing regulations
o imposing sanctions on violations of said regulations

 Traffic Regulation
This is a type of regulation, which is also applied to both private and public transport services. This
regulation controls the movement of carriers along their respective travel ways. The purpose of this
regulation is to ensure an efficient and safe carrier traffic flow along the travel ways. A smooth
movement of traffic at reasonable speeds and minimum delays characterizes efficiency in traffic flow.
This will contribute to adequacy and reliability of transport service operations. Safety, on the other
hand, is characterized by less carrier traffic accidents so that passengers and other people affected by
the services will be physically unharmed.
 In the road transport sector, traffic regulation is operationalized, through road traffic management,
which is discussed in an earlier chapter of this handout.

In railway services, the train operator does control in the movement of the trains along the tracks.
The system is integrated into its train operations system. Modern train operations make use of latest
technology in operation and control, such as the use of electricity and electronics. In water transport,
traffic control is made through the use of water navigation facilities consisting of vessel detection and
communication equipment, safety devices in vessels, on-shore facilities (such as lighthouses), travel way
facilities such as buoys, as well as harbor pilotage (which guides vessels in entry and exit to and from a
port).

In air transport, traffic control is more sophisticated using high technology. This is in the form of air
navigation facilities consisting of aircraft equipment for aircraft detection, locator, communication,
ground facilities and equipment (such as air traffic control system, landing guide facilities, runway
lighting system and others).

 Goods Movement Management

This aspect addresses the management of the flow of goods or commodities from suppliers to
customers (buyers). The process involves several stages of preparing the delivery and actual delivery of
goods. Suppliers of goods include raw material suppliers, producers, distribution centers and others. On
the other hand, customers, or buyers, called consignees, include producers, wholesalers, distributors,
retailers, and others. Goods movement management is usually called logistics management.

One of the main objectives of transportation is the movement of goods from place to another. It
has been discussed earlier that this objective is made possible by the provision of carrier services. A
closer look at the situation will point out that before the carrier services are used for the purpose, there
must be some activities to be undertaken so that the actual transport or carriage may be undertaken.
These activities refer to the arrangements that have to be made between the producers (or suppliers)
and the customers (or receivers) of the goods. These activities are part of what is known as the logistics
process. Logistics, in general, is a business activity, which deals with the flow and storage of goods. The
transportation part of logistics involves the flow of goods. This flow is of two types, namely, the flow of
raw materials from the source to the producer and the flow of finished products from the producer to
the customer. The arrangements made in making possible the flow of goods between the supplier and
the receiver is what goods movement management is all about. Another term for this is arrangement
for the distribution of goods. There are business entities, which specialize in this type of service. These
are called freight forwarders.

The things to be considered this operational activity include the determination of the following:
o type and volume of goods to be transported
o the supplier and the customer of the goods
o supplier’s schedule of goods availability and the customer’s expected receiving schedule
o the location of the origin and destination areas
o the mode (s) of transport to be used in the delivery of the goods
o the transport and handling costs involved; and
 o the route to be taken from origin to destination

It is the responsibility of the goods movement arranger to make all the necessary preparations
concerning the above items so that transportation arrangements can be made so that the goods can be
transported to the satisfaction of the customer, at the least cost involved.

Another type of cargo movement operational activity is the goods delivery service. This is a kind of
service wherein people send goods, usually in parcels or packages, to other people. The service provider
has to handle the activity by receiving the goods at a consolidation center and distribute these to the
various consignees. This is another form of logistics activity. Transportation management definitely
plays an important role in handling this activity.

 Passenger Travel Arrangement

Passengers travel for various purposes, such as work, business, shopping, leisure, personal and
other. As a general rule, most passengers travel by making arrangements on their own, i.e., they plan
their scheduled travel, buy their tickets, make reservations in hotels, etc. In fact, most urban
commuters who travel everyday don’t make travel arrangements at all. They just go to bus terminals,
bus stops, railway terminals or stations and board the carriers as soon as they find one.

However, there are passengers with specific trip purposes, which need the services of a travel
arranger. For example, tourists going to tourist spots, business executives attending a convention,
employees attending a seminar abroad, etc. This type of travelers more often needs the services of
travel arrangers, commonly known as travel agencies. Handling passenger travel arrangements is
another type of transportation management activity. Often, tourism specialists handle this, but the
truth of the matter is, the arrangements to be made deal more on passenger transportation thus,
transportation management plays a major role in this activity.

The main items to be considered in this operational activity include the determination of the
following:
o travel itinerary of the travelers
o mode(s) of transport to be used and the route(s) to be taken
o transport costs involved.

Based on the above information, the travel arranger will make the necessary arrangements,
reservations, bookings and/or ticket purchasing for the travel to be realized. In addition to the above
transport-related arrangements, the travel arranger, will also make arrangements for the traveler’s
accommodation bookings, travel documents (in case of the travelers going abroad), local trips at the
places to be visited.

Another type of passenger travel arrangement is the organization and guiding of group tours. Again,
this activity is tourism-related, but transportation management is also important in handling this activity
since the main task involved is the provision of transportation services for the tourists.

 Basic Traffic Management Tools

 In managing transportation operational activities, as in any other type of activities, there are tools to
be used for an effective management performance. These tools take the form of: (a) knowledge and
understanding of the operation to be managed, (b) skill in supervising, controlling, and monitoring the
operations, (c) understanding of the factors affecting the operations and (d) the use of latest technology
to aid management.

 Stages in Transportation Management

For an effective management performance, the basic stages involved in transportation management
are: (a) formulation of an operational plan, (b) implementation of supplementary facilities, (c)
operationalization of the plan, (d) supervision and control and (e) monitoring.

o Formulation of an Operational Plan

Efficient management starts with the formulation of an operational plan. An operational plan
consists of courses of actions or measures to be done in undertaking the required tasks and functions.
The plan should identify what facilities, equipment, materials are to be used and what operational
schemes are to be employed. To illustrate, below are examples of items to be considered in formulating
an operational plan.
 Type of Transport Operational Activity Items to be Considered in the Opera tiona l Plan
1. Operation of a Road Facility a. Traffic management facilities to be put up
b. Specific traffic flow and tra ffic control schemes and
corresponding guidelines for motorists and
enforcers to follow
c. Information campaign
d. Resources needed
e. Organizational scheme
f. Schedule of implementation and operation
2. Maintenance of a Road Facility a. Da ta collection on actual road conditions
b. Identification of road maintenance works to be done
c. Scheduling of road maintenance works or drawing
up of a road maintenance program
d. Resources needed
e. Organizational scheme
3. Operation of a Port Facility a. Identification of supplementary facilities, materials,
equipment needed in the operation
b. Drawing up of operational systems and procedures,
e.g., flow of pa ssengers, flow of cargoes, flow of
vehicles in the port area
c. Organizational scheme
d. Resources needed
e. Security measures
4. Operation of Carrier Services a. Identification of route deta ils and area of operations
b. Drawing up of guidelines, systems and procedures
in carrier dispatching and scheduling
c. Identification of supplementary facilities, materials,
equipment needed at terminals, stops, sta tions
d. Drawing up of guidelines in passenger handling
e. Fa re collection system
f. Monitoring of carrier operation and crew
performance
g. Ca rrier maintena nce system
h. Sa fety measures in operation
i. Information campaign and advertisements
j. Security measures at terminals
k. Resources needed

It should be noted that in formulating the operational plan, a careful study must be undertaken
using updated data and information relevant to the type of operational activity being studied. The
operational plan should also take into consideration existing laws, rules and regulations pertaining to the
subject operation. The courses of action included in the plan should be able to appropriately satisfy the
needs of the users or clientele within reasonable time at reasonable costs both to management and the
users and clientele. Said courses of action should be able to generate results within established
standards.

o Implementation of the Plan - This aspect refers to the putting up of the needed supplementary
facilities and materials as well as installation of equipment. These are the physical tools needed
to operationalize the plan.
o Operationalization of the Plan - This refers to the actual performance of the tasks and functions
in accordance with the operational plan. During operations, existing laws, rules and regulations
should be followed.
o Supervision and Control - Management performs this during operation. It means directing and
controlling the performance of the required tasks and functions in accordance with the
operational plan seeing to it that resources are properly utilized and the performance of each
operational unit is within specified standards.
o Monitoring - Management simultaneously with supervision and control also does this during
operation. It involves the collection of up-to-date information on actual performance of the
required tasks and functions with the purpose of finding out whether such performance is
within specified standards and expected outputs are satisfactorily achieved. Otherwise,
corrective actions should be undertaken.
Week 14-15
Topics to be discussed: At the end of the discussion, the learners are
 Tourism and Transport expected to:
 A Modal Approach to Tourist Travel  Determine the relationship between
tourism and transportation.
 Identify the different modal approach to
travel.

The travel and tourism industry are reliant on transportation service providers on a global basis.
Across business and leisure travel sectors alike, getting people from point A to point B is not as
straightforward as it seems. As part of a wider travel product or package, customers expect and demand
the highest quality transportation for the lowest possible price. Catering to all budgets while maintaining
consistently high transportation standards represents an ongoing challenge for tour operators. Strategic
transportation management in tourism helps ensure the right method of transport is provided at the
right time and for the right price.

Transport is a hugely complex activity, impacting on every one of us in our daily lives. In a sense,
we are all transport stakeholders-we all have an involvement with the transport industry in some way or
another. Whether it means travelling to your job every day or flying to your holiday spot, transportation
is essential to each of us in many different ways.

Transport is the cause and the effect of the growth of tourism. To start with, the improved
facilities have incited tourism, and the expansion of tourism has incited the development of transport
infrastructure. Accessibility is the main function behind the basics of tourism transport. In order to
access sought after destinations, tourists have a range of transportation modes that are often used in a
sequence. Air transport is the main mode for international tourism, which normally entails travel over
long distances. Growth rates of international air traffic are pegged with growth rates of international
tourism.

Transport policies and national regulations can influence destinations available to tourists. One
dimension concerns the openness to tourism through travel visa restrictions, which vary substantially
depending on the countries of origin of tourists. Unsurprisingly, travelers from developed countries,
particularly Europe, are facing the least restrictions while travelers from developing countries are facing
a much more stringent array of restrictions. Another dimension concerns the provision of
infrastructures. If the public sector does not cope with the demand in terms of transport infrastructures,
the tourist industry might be impaired in its development. However, land transport networks in various
countries are designed to meet the needs of commercial movements that tourism requires.

What is Tourism Transport?

Tourism and transportation clearly have a crucial, symbiotic relationship. Tourism affects local,
regional and international transportation in terms of travel flows and passenger volume, transit modes,
travel behaviors, transportation economy, access to new developments, etc. We have ascertained that
transport is an inherent part of tourism. Now it must be noted that either it can play a functional or
utilitarian role, such as the transport between origin and destination (flight on a leisure carrier, for
example) or within the destination (such as an itinerary trip on a local bus) where the travel is merely a
means to an end; or it can play a key role in the holiday experience itself.

These roles can range from the transportation type as a tourist attraction (such as historic
railways, steam trains or steam ships, for example); part of a recreational experience (such as biking,
hiking or hot-air ballooning, for example); to providing the essential component of the tourism product
where the transportation type is the actual holiday setting (such as in a cruise vacation or travelling
along
scenic and/or historic routes) (Lumsdon and Page, 2004; Page, 2009; Lohmann and Duval, 2011).

Furthermore, Lumsdon and Page (2004) address the different tourism transport experiences
based on their level of intrinsic value. They describe a tourism transport continuum in terms of its level
of
intrinsic value as a tourism experience, where travel using a taxi, urban bus or metro system is classified
as having low intrinsic value compared with a walking or cycling holiday or a heritage railway vacation
which is classified as having high intrinsic value. A similar differentiation is made by Page (2009):

Transport within the Tourism Industry

The key task for the tourism sector is to comprehend and present the vital importance of
adequate transport links to destinations – recognising the appropriate modes of travel for the different
types of journeys – and to advocate a proper understanding of those links and the value that they have
to local economies among the transport policy and planning community. A better understanding of the
tourism sector must be built with those public bodies (government, local authorities, and relevant
agencies) responsible for transport policy and planning, and for maintaining and developing transport
infrastructure. This is imperative to ensure sustainable tourism management.

Likewise, the tourism sector must understand how the transport sector operates and to what
extent it is able to influence decisions and planning. This can become rather complex when you take into
consideration different transport infrastructures, rules, and regulations across different geographical
contexts. Some countries, for example, will rely heavily on train infrastructure, others may be reachable
only by boat and some may require private charter transport for tourists to get around.

Tourism, as an economic activity, is characterized by a high demand level of elasticity. As

transport costs are significant for international transportation, demand is strongly influenced by cost
fluctuations. Therefore, transport is a key element in the tourism industry. The demand in international
and even national transport infrastructures implies a large number of people to be transported in an
efficient, fast and inexpensive manner. It requires heavy investments and complex organization. Well
organized terminals and planned schedules are essential in promoting effective transportation facilities
for tourists, notably since the industry is growing at a fast rate.

Transport is the cause and the effect of the growth of tourism. To start with, the improved
facilities have incited tourism, and the expansion of tourism has incited the development of transport
infrastructure. Accessibility is the main function behind the basics of tourism transport. In order to
access sought after destinations, tourists have a range of transportation modes that are often used in a
sequence. Air transport is the main mode for international tourism, which normally entails travel over
long distances. Growth rates of international air traffic are pegged with growth rates of international
tourism.
Transport policies and national regulations can influence destinations available to tourists. One
dimension concerns the openness to tourism through travel visa restrictions, which vary substantially
depending on the countries of origin of tourists. Unsurprisingly, travelers from developed countries,
particularly Europe, are facing the least restrictions while travelers from developing countries are facing
a much more stringent array of restrictions. Another dimension concerns the provision of
infrastructures. If the public sector does not cope with the demand in terms of transport infrastructures,
the tourist industry might be impaired in its development. However, land transport networks in various
countries are designed to meet the needs of commercial movements that tourism requires.

Means of transport for tourism

 Water
o (Open sea/river) cruise ships
o (Inland, open sea) ferries
o Excursion boats
o Cargo boats with tourist significance
o Sailing boats, sport boats, yachts,
o houseboats, gondolas
o Rafts, canoes/kayaks, rowing boats,
o surfboards
o Submarines
 Air
o (Passenger) aircraft
o Helicopters
o Sports aircraft and sailplanes
o Balloons, airships
o Spacecraft
o Seaplanes
o Hang gliders and paragliders
 Land
o Cars, bicycles, segways
o Motorcycles, mopeds, quad, trikes
o (Mini, public service, travel) coaches
o Caravans, campervans
o Local public rail traffic (subways, city
o trains, trams)
o Long-distance public rail traffic (ICE, TGV, Renfe)
o Luxury trains
o Museum railways
o (Air, cable) railways, ski and chair lifts,
o mountain and rack-railways
 o Overhead railways
o Leisure railways (Shweeb, rollercoaster, ghost trains, toy trains)
o Cable cars
o Rail trolleys
o Rickshaws
o Horse-drawn carriages/sleighs

The different means of transport are used to different degrees by both tourists and non-tourist
consumers. Hence, usually tourists use leisure flights to holiday regions, sightseeing buses, and cruise
ships, while city buses, trams and scheduled flights are more likely to be used to different extents by
both tourists and local residents (Page, 2009).

A look at the historical development of transportation modes shows that the proliferation of many
new forms of passenger transport also spurred the leisure demand. Examples include bicycles or
motorcycles as recreational equipment, or the encouragement of early tourism development in the Alps
through rack/cog railways and cable cars. However, recreation and tourism are not only pioneers of
new transportation forms, but also prevent some transportation forms from dying out. For example,
many historical modes of transport, including horses, horse-drawn carriages, balloons, canoes, sailboats,
trolleys, or even rafts, have survived as recreational pastimes or are utilized as a tourism product
although
they are no longer used as an everyday or regular mode of passenger transport. Moreover, through
technological advances and innovations some recreational forms of transport have in fact enjoyed a
revived interest and use. Examples include powered sailboats or mountain bikes (Heinze and Kill, 1997).
Tourism transportation means can be classified using several criteria: domestic or international, public
or private, or whether they are land, water or air based.

Both transit activities (arrivals and departures) and tourist activities in the target area require a
safe and reliable transportation infrastructure. Particularly walking, cycling, hiking and horseback riding
are hard to imagine without extensive and well-marked trails. However, there are many tourism
products (such as river cruises, canoe tourism, houseboat tourism) which heavily rely on good
transportation routes and infrastructure (Gross, 2005).

Transportation for Tourism

Where transportation is construed as a utilitarian or functional act that comprises travel on a
mode or modes of transportation to achieve the goal of moving from origin to destination. It also serves
a valuable facilitation role for tourist travel within the destination. Consequently, as a means of
facilitating international tourist travel, as Lumsdon and Page (2004a: 5) show using UN World Tourism
Organization (UNWTO) data, the various modes of transportation impact upon tourism in the following
way:
 international air travel accounts for 43% of inter-national tourist trips
 road transportation accounts for 42% of trips
 rail travel comprises 8% of trips
 sea transportation account for 7% of trips.
 These global estimates of the importance of transportation in tourist travel will, of course, vary
by region of the world. Land-based travel is extremely important in Europe due to the large geographic
areas served by road and rail there. Air travel is growing rapidly in Asia due to the vast land mass,
difficult terrain to be traversed, and large distances involved. As the above noted statistics show, in an
inter-national context, air is not necessarily as dominant as many commentators would lead us to
believe, with road-based travel accounting for almost as many trips.

Transportation as Tourism
Transportation as tourism occurs where the form of transportation is integral to the over-all
experience of tourism such as cruising or taking a scenic railway journey. This is reflected in T.S. Eliot’s
famous quotation “the journey, not the arrival, matters,” epitomized in the nostalgic marketing being
used by Cunard Line, a major cruise ship line in 2006 in the UK market for journeys on the Queen Mary II
ship: “in an age when travel is measured in hours, we are still proud to measure it in luxury.” Some of
the luxurious tourist products available, such as the Orient Express in Europe, the Rocky Mountaineer
train tour through the Canadian Rockies, and a multitude of exclusive cruises utilize the elegance,
opulence and quality service attributes of the mode of travel. Page (2007) outlines the growing
significance of luxury travel in the evolving tourist markets for travel, as transportation providers have
recognized this niche and seek to meet the demand.

A Modal Approach to Tourist Travel

 Car
What the car has done is transform the tourists’ ability to organize and develop their own itineraries
and activity patterns without being dependent upon existing transportation provision. An itinerary is a
method of analyzing how a tourist travels from an origin to a destination, including the routes they
travel along, the stopping points, and activity patterns. By modeling such travel behavior, the use of
transportation modes, such as the car, can be more fully understood in relation to the destinations
visited, tourist resources consumed en route and likely impact of such activity in time and space.
 Coach and Bus
In contrast to the car, the evolution of bus and coach transportation since the 1930s was a
technological advance on rail travel, making destinations not on rail routes more accessible. These
modes of travel also played a major role up until the 1960s in access to areas within countries for
domestic travel, by offering a low cost and competing mass transportation mode.
 Cycling
The bicycle is arguably the most sustainable form of tourist transportation (Lumsdon and Tolley,
2004; Lumsdon et al., 2004): it is non-motorized and it does not require fuel while having a minimal
impact on the built and physical environment, with the exception of mountain biking, where it
constitutes a recreational activity with resource impacts. As Lumsdon and Tolley (2004) argue, after
walking, cycling is the most important form of transportation globally, given its significance for leisure
use in developing countries. Up until the 1990s, cycling symbolized many of the key principles of
sustainable tourism, with minimal environmental impacts and limited infrastructure requirements. Since
the late 1990s, cycling has become part of a wider renaissance of interest in walking and cycling in North
America, Australasia, and in Eastern Europe where the issue of quality of life is moving higher up the
political agenda (Lumsdon and Tolley, 2004: 147) in contrast to developing countries seeking to emulate
symbols of modernization and affluence such as car ownership. Yet the major change, in recreational
terms, in the late 1990s has been the demand for purpose-built infrastructure such as dedicated bike
lanes, marked cycling routes, multiuse pathways to accommodate local commuters and urban visitors,
as well as cycle tourism in scenic rural, coastal, and mountain landscapes.
 Rail Travel
Train transportation for tourism takes two forms: combined leisure and business travel, which is
scheduled, and predominantly leisure-based services “where train travel becomes the focus of the
tourist experience” (Prideaux, 1999: 73). Yet, for rail transportation to operate effectively, a vastly
expensive capital investment is needed in fixed infrastructure, and many current day rail networks were
built by private investment in Victorian times, and further developed under state ownership. Yet some
of the most profound changes in rail travel have occurred with the “transportation and tourism” luxury
market, such as the Orient Express train journey, an innovative tourism product based on luxury,
nostalgia, class, and opulent consumption.
 Cruising
Cruising is among the most high-profile sectors of the sea-based travel market, having seen a market
renaissance in the 1990s (Wood, 2000, 2004). The cruise product can take many forms; small-scale,
specialist ships exist to take niche market clients to locations such as the Galapagos Islands; and, at the
other end of the spectrum, there are massive mass entertainment ships, which are them-selves the
destination. As tour operators have expanded the market for these products to a mass market, a budget
product has emerged where new luxury ships have a higher capacity. The product base for cruising
comprises both transportation and accommodation—and a number of cruises out of Asia go “nowhere”
since they are provided for the gambling market.
 Ferries
Ferries are used to cross water where it constitutes a barrier to travel. One of the busiest waterways
in the world is the English Channel and a ferry service has been recorded in history between Dover and
Calais since Roman times, meeting the need for tourist travel. Ferries tend to operate on strategic trade
routes with a mix of passenger and freight. The recognition that a ferry could be a “product” is
combined with the increasing size of ships in order to provide more of an “experience” for travelers and
a major business activity onboard the vessels for the ferry operators.
 Air Transportation
Travel by air, compared to other modes of tourist transportation is the most recent innovation that
has provided access to international locations, previously only possible by long-distance sea travel. The
evolution of air travel is a complex area that is historically determined by international bodies such as
the International Civil Aviation Organization (ICAO) and the International Air Transport Association
(IATA). The regulations they established have, combined with bilateral agreements, established the
framework for international air travel up until the deregulation era in the late 1970s. One of the most
complex areas is the political regulation of air travel that dates to the 1930s, and the 1944 Chicago
Convention. Current day aviation is regulated by international aviation law and this pro-vides the
context in which national and global carriers operate. At the national level, different countries have
varying approaches to aviation competition and regulation.
o Globalization and Airline Alliances - Aviation is one of the clear examples of globalization in
the tourism sector as national carriers have sought to collaborate to reduce investment
costs in operating international networks while seeking to enter protected markets.
Week 16-17
Topics to be discussed:
 National Transport Policy in the
Philippines
- Philippine Transportation System
Master Plan (PTSMP)
- National EST Program
- Administrative order no. 254
- Philippine Clean Air Act of 1999
- Biofuels Acts of 2006
- Philippine Standardization Law
- Investment Priorities Plan
- E.O. nos. 290, 396
- Philippine National Railway Act of
2008
At the end of the discussion, the learners are
expected to:
 Recognize the transport policies and
observe the rules and regulations in
transportation and its services.
 Practice the implementing transport
rules and regulations to achieve its
objectives.
 Realize the importance of effective and
efficient transportation policies.

Background of the National Transport Policy (NTP) and its Implementing Rules and Regulations (IRR)

The absence of single encompassing policy document for the transport sector has manifested
recurring challenges, including, among others, (a) the lack of integrated and coordinated transport
network; (b) overlapping and conflicting functions of transport agencies; (c) transport safety and
security concerns; and (d) inadequate transport facilities particularly in conflict-affected and
underdeveloped areas. Pending the passage of policies requiring legislative action, it was deemed
necessary that policy changes and reforms that can be administratively undertaken under existing laws
be adopted and implemented to respond to the urgent transport demands and requirements of the
national economy.

A product of an extensive study and consultation process, the NTP was formulated to help
achieve the Transport Vision of a “safe, secure, reliable, efficient, integrated, intermodal, affordable,
cost-effective, environmentally sustainable, and people-oriented national transport system that
ensures improved quality of life of the people”. The NTP, as embodied in NEDA Board Resolution No. 5
s. 2017, “Approving the National Transport Policy”, was adopted by the NEDA Board on 27 June 2017. It
was published in general circulation on 14 February 2018.

Pursuant to Section 11 of the NEDA Board Resolution No. 5 s. 2017, the the NEDA Board
Committee on Infrastructure (INFRACOM), through the Inter-Agency Technical Committee on Transport
Planning (IATCTP), was tasked to formulate and issue the accompanying IRR to effectively carry out the
provisions of the NTP. The IRR contains the guidelines and methodologies in the operationalization of
the strategies and intended policy reforms in the transport sector towards the realization of the
Transport Vision. The INFRACOM, during its 14 December 2018 meeting, approved and adopted the NTP
IRR (INFRACOM Resolution No. 01-2018, “Approving the Implementing Rules and Regulations of the
National Transport Policy”). The IRR was published in general circulation on 30 December 2019.

National Transport Policy

Section 8. Support to Other Economic Sectors Implementing Rules and Regulations
• Establishment of a seamless, intermodal tourism, agro-industry and trade and logistics transport
network through Convergence Programs;
• Development of a single transport document and one-stop procedures; and
• Strict enforcement of laws, rules and regulations on the levy of local taxes, fees, charges and other
impositions on the transport of goods and passengers.

Philippine Transportation Systems Master Plan (PTSMP)

A master plan formulated based on a detailed assessment of the existing national transport
network and the results of a comprehensive analysis of the gaps therein, to:
o Guide the rational development of an intermodal transport network in the country
through coordinated planning and operation of projects and programs as an integrated
network of intermodal sub-systems
o Promote sub-regional economic cooperation/agglomeration and utilization of
multimodal transport system for more efficient connectivity between
industrial/production areas, major cities, and rural areas
Enhance concerned agencies/institutions’ capacity on the various transport planning tools and
techniques.

Administrative Order No. 254, s. 2009 (Signed on January 30, 2009 MALACAÑANG, MANILA BY THE
PRESIDENT OF THE PHILIPPINES MANDATING THE DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS TO LEAD IN FORMULATING A NATIONAL ENVIRONMENTALLY SUSTAINABLE
TRANSPORT (EST) FOR THE PHILIPPINES

(attachments)
WHEREAS, Executive Order (EO) No. 774 dated 26 December 2008 reorganized the Presidential Task
Force on Climate Change;
WHEREAS, Section 9 of EO No. 774 provided that to reduce the consumption of fossil fuels, the
Department of Transportation and Communications (DOTC) shall lead a Task Group on Fossil Fuels
(TGFF) to reform the transportation sector;
WHEREAS, officials of the DOTC attended the Ministerial Conference on Global Environment and Energy
in Transport in Japan on 14-16 January 2009, wherein the ministers responsible for environment and
energy in the transport sector committed to combating climate change.
NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by the powers vested in me by
law, do hereby order:
SECTION 1. Mandating the Task Group on Fossil Fuels (TGFF) to formulate a National Environmentally
Sustainable Transport Strategy for the Philippines — The TGFF shall be primarily responsible for the
effective coordination by various agencies of the government, international organizations and the
private sector pertaining to the formulation of the National Environmentally Sustainable Transport (EST)
Strategy, including all activities related thereto.

SECTION 4. Functions of the TGFF — In addition to the functions provided in EO 774, the TGFF shall
initiate and pursue the formulation of the National EST Strategy for the Philippines.

Republic Act No. 8749 (June 23, 1999)

(AN ACT PROVIDING FOR A COMPREHENSIVE AIR POLLUTION CONTROL POLICY AND FOR OTHER
PURPOSES)

(attachments)
Section 1. Short Title. - This Act shall be known as the "Philippine Clean Air Act of 1999."
Section 2. Declaration of Principles. - The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of nature.

The State shall promote and protect the global environment to attain sustainable development while
recognizing the primary responsibility of local government units to deal with environmental problems.
The State recognizes that the responsibility of cleaning the habitat and environment is primarily area-
based.
The State also recognizes the principle that "polluters must pay".
Finally, the State recognizes that a clean and healthy environment is for the good of all and should,
therefore, be the concern of all.

Other Transportation Policies and Stakeholders:

 National Environmentally Sustainable Transport (National EST Strategy)
 Biofuels Acts of 2206
 Philippine Standardization Law
 Investment Priorities Plan
 E.O. nos. 290, 396
 Philippine National Railway Act of 2008
Week 18
Topics to be discussed: At the end of the discussion, the learners are
 Philippine Transport and Infrastructure expected to:
 Sustainable Transportation  Recognize the programs in transportation
industry implemented by both the public
and private sectors.
 Analyze the impacts of transportation-
related programs and projects of the
government.
 Understand what sustainable
transportation means.

Transport and Infrastructure

On the back of the government’s Build, Build, Build initiative, various infrastructure projects
have been implemented across the country to ease the flow of goods and people, as well as make the
country an attractive place to live and work. Dubbed “Dutertenomics”, President Rodrigo Duterte’s
prioritisation of infrastructure is intended to usher in a golden age of development for the Philippines.
Indeed, infrastructure was a cornerstone of the election campaign that brought him into office in 2016.
The administration is holding true to its promise, and in a bid to foster economic growth and alleviate
congestion, the state is making major strides towards an efficient transport ecosystem.

Transport operations and infrastructure development in the Philippines were acutely impacted
by the Covid-19 pandemic as lockdowns stalled construction projects, movement restrictions prohibited
travel even within communities, and a ban on international arrivals in March limited aviation services for
the rest of 2020. As the country’s response to Covid-19 began to take shape in the first half of 2020, it
soon became clear that transport and infrastructure spending would be protected as a key driver of
economic continuity and recovery. In an April outline of the socio-economic response, Carlos
Dominguez, the secretary of finance, stated that the government would press on with President Rodrigo
Duterte’s flagship Build, Build, Build infrastructure programme to generate economic activity and create
employment. As early as May 2020 the Department of Transportation announced that, despite ongoing
lockdowns in Luzon, it would resume work on 13 big-ticket projects – albeit with certain limitations.

While congestion in the country has been a concern in recent years, strong economic expansion
has led to matching investment in transport-related infrastructure. Given the shift in the political agenda
since 2016 and the subsequent rise in infrastructure funding, government bodies, development
organisations and private investors are working towards a well-connected and accessible Philippines,
with new airports, roads, bridges and rail networks springing up across the archipelago. Nevertheless,
the infrastructure gap remains a key bottleneck to achieving sustainable growth, requiring the
continuation of current projects and the further development of a long-term transport and logistics
strategy.

 Sector Structure
Established in 1899, the Department of Transportation (DOTr) is responsible for the sector’s
oversight and policy implementation, as well as the maintenance and expansion of the country’s
transport network. While the DOTr has an important role to play in terms of project management, the
Department of Public Works and Highways (DPWH) is the primary agency in charge of infrastructure
development. The National Economic and Development Authority (NEDA), for its part, is an independent
Cabinet-level agency headed by the president that serves as a key driver of flagship infrastructure
projects under the BBB programme. The current policy roadmaps guiding the sector are the Philippine
Development Plan 2017-22 and the National Logistics Management Plan 2017-22.

Under the Duterte administration, the national infrastructure budget has increased significantly,
with around P8trn ($148.8bn) of public funds set to be injected into infrastructure projects from 2017
through to 2022. In 2017 the government budgeted 5.4% of GDP, or P858.1bn ($16bn), for
infrastructure development, which is more than double the 2.5% average allocated by the past six
administrations. In 2018 the budget was increased to P1.1trn ($19.9bn) and again in 2019 to P1.3trn
($24.1bn). The DPWH has also witnessed a steady increase in its budget, which totalled P467.7bn
($8.7bn) in 2017 and rose by 39% to P650.9bn ($12.1bn) in 2018. The department spent P611.8bn
($11.4bn) of its 2018 budget on infrastructure works, of which 55% was used to maintain or upgrade the
country’s highways, while 21% was used for flood-control measures. In terms of geographic distribution,
infrastructure work in Mindanao accounted for the lion’s share of the 2018 budget, at 33.19%; followed
by Northern Luzon (21.75%); Southern Luzon (21.08%); Visayas (16.52%); and the National Capital
Region (7.46%).

Increased spending on infrastructure is central to promoting sustainable and inclusive growth across
the country. “Building infrastructure is the first step towards boosting economic activity,” Stefan
Schmitz, CEO of local Antrak Logistics, a division of French company Bolloré Logistics, told OBG. “The
BBB initiative and the state’s commitment to projects with official development assistance (ODA) have
generated a positive economic impact.” As of February 2019, 37 projects worth a total P1.56trn ($29bn)
had been approved by NEDA since President Duterte took office. According to NEDA estimates, 25 of the
75 big ticket projects under the BBB plan – valued at P263.2bn ($4.9bn) – will be finished by 2022, while
the remaining 50, worth a total of P1.9trn ($35.3bn), are expected to commence before the end of
President Duterte’s term in June 2022. As of April 2019, 46 projects valued at P1.56trn ($29bn) were in
the implementation stage; 24 projects for a total of P528bn ($9.8bn) were under development; and the
remaining five projects, worth an estimated P84.3bn ($1.6bn), were still under review. Of the 75
projects, 53 totalling P2.04trn ($37.9bn) are transport related, including 34 road projects, nine railways,
six air transport projects and four for water transport.

 Roads
While the total coverage area of the Philippine road network is fairly high for South-east Asia, at a
km-to-sq-km density of 0.68 in 2018, the overall ratio of paved roads is low, at 0.31. Roads are also
heavily congested, particularly in the densely populated National Capital Region, also known as Metro
Manila. According to the Land Transportation Office, there was a total of nearly 11.6m registered
vehicles in the country in 2018, with one in every four registered in the National Capital Region.

According to the “Global Competitiveness Report 2018” by the World Economic Forum, the
Philippines ranked 88th out of 140 countries for road quality, with a score of 3.5 out of 7. However, the
country’s road connectivity scored particularly low at 22 out of 100, placing it 129th. The road network
has suffered inadequate maintenance, which is the result of an insufficient budget and institutional
capacity under previous regimes. Ineffective enforcement of traffic regulations has also contributed to
the unsatisfactory status of road transport in the Philippines.

According to a December 2018 performance report published by the DPWH, the country’s overall
road network comprised 210,528 km at the end of the year. Of this total, 32,933 km were categorised as
national roads that connect major cities, the majority of which are single and dual carriageways. The
department has set a number of goals to reduce travel time along these links. Road infrastructure
improvements, both within the capital and elsewhere across the archipelago, have remained at the
heart of the administration’s BBB programme and were highlighted in the country’s pandemic response
strategy. Mark Villar, secretary of the DPWH, revealed in July 2020 that almost 24,000 km of roads had
been built or improved since 2017, complemented by the construction, upgrade or rehabilitation of
almost 5000 bridges. Villar also stated that the government intended to spend P802bn ($16bn) to lay a
further 1066 km of highways in Luzon, Cebu and Davao. Key to improving Luzon’s highway network is
the DPWH’s flagship P633bn ($12.6bn), 905-km Luzon Spine Expressway Network, which will more than
double the length of expressway on the country’s most populous island. The network should halve the
travel time between Ilocos and Bicol from 20 hours to nine, with multiple components including the 89-
km Tarlac-Pangasinan-La Union Expressway (TPLEX), the 67-km South Luzon Expressway (SLEX) Toll Road
4 and the 45-km Cavite-Laguna Expressway (CALAX).

Another NCR-based project with the potential to galvanise development is the 80-km NLEX-SLEX
Connector Road. Initiated in 2015, the Manila North Tollways project aims to reduce the journey time
between Luzon’s two busiest expressways from two hours to 20 minutes. The 8-km link will also be
connected to Skyway Stage 3, and should therefore aid trade and logistics operations along the
Calabarzon corridor upon its completion, expected in December 2021.

 Priority Corridors
As part of the BBB programme, the body plans to improve and widen 3190 km of national roads
along priority corridors to at least four lanes by the end of 2022. As part of this, the department will
implement 103 bypass and diversion road and grade separation projects, also to be completed by end-
2022. Some 13 corridors have been identified as priorities under the BBB initiative. The largest of these
is National Route 1, which stretches 2826 km from Luzon to Mindanao. The second-longest corridor is
from Manila to Pagudpud, at a length of 552 km, followed by the Manila-Cagayan corridor that spans
467.5 km. Major cities are also set to benefit from additional highways, such as the 1040-km Luzon Spine
Expressway system to decongest Metro Manila and the busiest parts of Luzon. Works will add 18
expressways with a total length of 655 km to the country’s existing 12 expressways that span 385 km.
 Included in the Luzon Spine Expressway system are the North Luzon Expressway Harbour Link
Project, the Central Luzon Link Expressway (CLLEX), the Tarlac-Pangasinan-La Union Expressway (TPLEX),
phase two of the Plaridel bypass road, stage three of the Metro Manila Skyway, and the connector road
between the North Luzon Expressway (NLEX) and the South Luzon Expressway (SLEX). All are expected
to play a significant role in decongestion. According to DPWH estimates, the new expressway system will
reduce travel time between Metro Manila and San Fernando, La Union by more than half, from six hours
and 55 minutes to three hours and 10 minutes. Travel time between La Union and Bicol will also be
significantly reduced, from 19 hours and 40 minutes to an estimated eight hours and 15 minutes.

The Harbour Link project, a 6-km, six-line elevated expressway, was completed in 2018. It traverses
Karuhatan in Valenzuela City, Governor Pascual Avenue in Malabon City and Circumferential Road 3 in
Caloocan City. Other projects completed by the close of that year included the 10.6-km Laguna Lake
Expressway, the 12.8-km Cagayan de Oro Coastal Road, the 8-km Laoag City Bypass and the 4.1-km
Boracay Circumferential Road. About 96% of national roads were paved at the end of 2018, compared to
just 18.85% of local roads, and around 6150 km of roads had either been constructed, rehabilitated or
upgraded between July 2016 and December 2018.

 Bridges
In addition to a number of major road projects, the Duterte administration has plans to connect
islands via bridges. Following financing discussions between the Philippine government and China, there
are a number of such projects in the pipeline, including the Davao-Samal bridge and the Panay-
Guimaras-Negros inter-island bridge. The latter is valued at P27.2bn ($505.9m) and will involve the
construction of a 5.7-km bridge between Panay and Guimaras, and a 12.3-km connection between
Guimaras and Negros. The Davao-Samal bridge, for its part, will see travel time between Samal Island
and Davao City reduced from one hour and 40 minutes to only five minutes. In August 2018 China
agreed to supply a $13.4m grant to help finance the feasibility study process of these two bridges.

The government further stated in July 2020 that the 680-metre Binondo-Intramuros Bridge and the
506-metre Estrella-Pantaleon Bridge, connecting Makati with Mandaluyong’s Barangka Drive, remain on
schedule for conclusion in the first quarter of 2021. These will supplement 30 other bridges in Metro
Manila that span the Pasig River, Marikina River and Manggahan Floodway, further easing traffic on the
capital’s main roads. A total of 2680 bridges were either constructed, widened or otherwise upgraded
between July 2016 and December 2018, according to the DPWH.

 Rail
Major rail investments are also under way as part of the BBB programme. Chinese loans will fund
two railway projects in the Mindanao and Central Luzon areas, following an agreement signed by the
Department of Finance and the Chinese government in March 2019. Known as the Mindanao Railway
Project and the Subic-Clark Railway Project, both initiatives have received approval from NEDA. The
P50bn ($930m) Subic-Clark Railway will extend for 64.2 km between the Subic Bay Freeport Zone and
the Clark Freeport Zone, with construction expected to commence in mid-2020 and end around mid-
2022. The project will also include a 7-km spur line that connects the Subic Bay Port’s new container
terminal to the main line, for a total of 71 km. The first phase of the Mindanao Railway Project, for its
part, will be a non-electrified, single-track rail running 102 km. Connecting Davao, Digos and Tagum, the
cost of this first section is an estimated P35.3bn ($656.6m).

New light rail lines in Metro Manila and the construction of the country’s first underground public
transport vehicle – the long-awaited Metro Manila Subway (MMS) – are set to transform the commutes
of those in the capital. The first phase of the MMS, envisioned to encompass 14 stations covering a
length of 30 km between Mindanao Avenue in Quezon City and the Ninoy Aquino International Airport
(NAIA), will be financed through an ODA agreement between Japan International Cooperation Agency
(JICA) and the DOTr. The first loan of the project’s total P357bn ($6.6bn) cost is for P51.3bn ($954.2m).
The loan agreement includes an annual interest of 0.1% for consulting services, 0.01% for non-consulting
services, and is payable over 40 years inclusive of a 12-year grace period.

The MMS is designed to accommodate 1.5m passengers per day when fully complete, which is
scheduled for 2025, and is expected to serve 370,000 passengers per day in the first year of partial
operation, targeted as 2022. Japan’s Shimizu Corporation, Fujita Corporation, and Takenaka Civil
Engineering and Construction Company are partnering with local EEI Corporation for the design and
construction of the project, which includes a depot in Valenzuela and a new Philippine railway institute.

Meanwhile, the construction of the first phase of the North-South Commuter Railway Project in
Manila, managed by the DOTr and Philippine National Railways (PNR), began in February 2019. Referred
to as the PNR Clark Phase I, it will cover 37.6 km and feature 10 stations. It is expected to reduce the
travel time between Manila and Malolos from one hour and 45 minutes to 35 minutes. The line will be
served by 13 trains, each of which will consist of eight carriages, and have a daily capacity exceeding
300,000 passengers. In January 2019 JICA agreed to provide a $1.5bn loan towards construction.

 Air
While road and rail projects will do much to enhance the lives of locals around the country, the air
segment is tackling inefficiencies to the benefit of international travellers. The Philippines ranked 26th
out of 140 countries in the “Global Competitiveness Report 2018” for airport connectivity and 92nd for
air transport efficiency, with the latter marking a large improvement over its position of 124th in 2017.
There are a number of planned and ongoing projects in the segment that are set to bolster the
Philippines’ position as a travel destination and assist in decongesting existing facilities. One important
development is the planned airport in Bulacan, referred to as the New Manila International Airport,
which is being spearheaded by San Miguel Corporation. The new facility is primarily being built to ease
capacity constraints at Manila’s NAIA and to provide a boost to the economic development of Central
and Northern Luzon. NAIA handled 47.9m passengers in 2019, but was only designed to accommodate
30m. The SMC plan outlines the construction of four runways – potentially rising to six – to
accommodate 100m passengers per year. A franchise bill for SMC subsidiary San Miguel Aerocity to
begin construction was awaiting President Duterte’s signature as of mid-November 2020, after being
approved by the Senate early the previous month. The project is slated for completion within 12 years of
starting construction.

Built to cater 30m visitors per year, NAIA is operating significantly beyond capacity at 43m annual
travellers, and flights are frequently delayed as aircraft await clearance to depart from the airport’s two
runways. While works are ongoing to expand and upgrade NAIA, efforts are also under way to boost the
capacity of the Philippines’ second biggest airport, Mactan-Cebu International Airport. These include a
second international terminal, which was completed in June 2018 and cost P17.5bn ($325.5m), and a
planned P2.5bn (46.5m) second runway. A concurrent P102bn ($2bn) plan to redevelop NAIA was still
being evaluated as of late 2020, after the government rejected revised terms from a group of seven
conglomerates. The consortium, which includes Ayala, Cebu Pacific parent JG Summit Holdings and
Philippine Airlines affiliate LT Group, adjusted its submission as a result of the pandemic’s impact on
demand for air travel and asked the government to reconsider its pledge to hold back from directly
funding major IFPs.

Stakeholders are also pushing ahead with plans to upgrade and expand regional airport facilities,
most notably Clark International Airport (CIA). The rapid growth of Clark City has led to an increase in
the number of domestic and international travellers, with this set to increase further with an ongoing
relocation of government offices to the city. In January 2019 an operations and maintenance agreement
for a new terminal was signed with a consortium comprising Singapore Changi Airport and the domestic
firms Filinvest, JG Summit Holdings and Philippine Airport Ground Support Solutions. The airport is also
being better integrated into the country’s national transportation network, through the North-South
Commuter Railway Project. Scheduled for completion by 2025, the 163-km railway network will link CIA
directly to Clark City, Metro Manila and other major cities. These initiatives have been cited as important
measures to improve the aviation ecosystem of the Philippines and boost regional development (see
analysis).

 New Airport
Another plan to help ease air congestion in the capital is a proposal for the development of an
international airport at Sangley Point in Cavite province, 28 km from NAIA. At the site of a former US
military base, the facility would require land reclamation of 1500 ha and cost some P508.5bn ($9.5bn).
Sangley Point was selected by JICA as the best option out of nine pre-selected locations for a new airport
in the vicinity of the capital.

It would be jointly financed and developed by state-owned Chinese enterprises linked to that
country’s Belt and Road Initiative, and the provincial government of Cavite. In June 2019 President
Duterte ordered that the airport be opened by November 2019, ahead of the original start date of
March 2020 and the revised date of December 2019. The Philippines’ efforts to expand the number and
size of its international gateways are intended to help keep the momentum going from strong tourist
arrivals (see Tourism chapter).

 Ports
In terms of cargo movement, the Philippine Ports Authority (PPA) has made a push in line with the
BBB programme to accelerate the implementation of port infrastructure. As of May 2018 the PPA was
undertaking 45 locally funded port projects in Luzon, of which seven were already complete, 19 were
ongoing and 19 were up for procurement. The body also had 19 locally funded works on the docket in
Visayas, three of which had been completed by May 2018, while eight were ongoing and eight were
waiting for procurement. A further 40 port projects were under the purview of the PPA in Mindanao at
that time, with five completed and 21 ongoing.
 The archipelago’s busiest port, the Port of Manila, has benefitted from increased efficiency and
volume-handling capacity following the introduction of a terminal appointment booking system in 2015.
Between that year and 2018, container traffic in Manila and Northern Luzon rose by 28%, from 3.98m
twenty-foot equivalent units (TEUs) to 5.09m TEUs. However, growing demand at primary facilities has
seen the government explore strategies to draw ships to ports in other regions and on other islands.
“Despite efforts to diversify logistics routes, Luzon still receives more than two-thirds of all imports,”
Daniel Ventanilla, general manager of Japan-headquartered shipping firm NYK Line, told OBG.

While the populous island of Luzon continues to receive the majority of shipments to the
Philippines, a trend is emerging of opting to not dock at the Port of Manila to save on additional
transport costs and improve efficiency. “There is a natural shift of cargo from Manila to other facilities in
Luzon,” William Khoury, executive vice-president of Asian Terminals, told OBG. “As a competitive
alternative to the Port of Manila, Batangas Port is facilitating greater trade activity in southern Luzon,
with a significant number of multinational and local companies now shipping directly through the port.”
All goods coming into the country at seaports and airports require holding space before being
transported to their respective final destinations, and this is an area that needs more attention.

“Convergence among the different components of the logistics chain is occurring, from seaport
management to roads and warehousing,” Roberto R Locsin, CEO of Philippine Growth Terminals for
International Container Terminal Services, told OBG. “Furthermore, the supply of support services –
including warehouses – continues to be a challenge for importers in many of the high demand markets
in Luzon, Visayas and Mindanao.”

For water transport, work began on the P10.1bn ($200.9m) New Cebu International Container Port
in September 2020. The project – funded by an ODA loan from Export-Import Bank of Korea, alongside
the Philippine government and led by Yooshin Engineering Corporation – aims to relieve congestion at
the existing port, which will revert to handling domestic cargo once the new berthing infrastructure is
completed in 2025.

A total of 369 seaport projects had been completed under the Duterte administration as of August
2020, with another 108 ongoing. Of these, 189 completions and 37 ongoing initiatives were commercial
port projects. Expanding port infrastructure is key to improving the Philippines’ attractiveness as a
manufacturing investment destination, as well as to easing the flow of commerce among the country’s
many inhabited islands.

 Public Utility Vehicles

An essential means of transport for many Filipinos is PUVs, although a high number of antiquated
vehicles remain on the road despite plans to replace them. A programme launched in 2017 to phase out
175,000 jeepneys for replacement with 85,000 modern units by July 2020 saw just over 2500 modern
vehicles on the road as of late 2019.

To facilitate a safe, affordable return to work for the country’s labour force, modern jeepneys with
location-monitoring technology such as GPS were permitted to restart operations on selected routes
from June 22, 2020 – three weeks after some public buses resumed operations and concurrent with the
resumption of certain UV Express services, a van-based PUV whose seating arrangement facilitates social
distancing. Traditional jeepneys were permitted a phased return beginning two weeks later. Health
precautions include manual contact tracing and plastic dividers along vehicle seats, and in October 2020
the DOTr partnered with the Land Transportation Franchising and Regulatory Board to offer incentives
for PUV drivers to register online to assist with contract tracing, paving the way for a more
comprehensive reopening of services.

In recognition of the economic impact of Covid-19 restrictions on the country’s numerous PUV
drivers, these workers received designated support in the country’s second stimulus package, the
Bayanihan to Recover as One Bill (also known as Bayanihan 2). President Duterte signed the P165.5bn
($3.3bn) bill into law in September 2020, with a P9.5bn ($188.9m) allocation for the DOTr. The lion’s
share of this allocation, or P5.6bn ($111.4m), was earmarked for assistance to PUV drivers.

 Funding
In February 2019 the total investment required for the 75 large projects outlined in the BBB
programme was estimated at around P2.2trn ($50.4bn). According to NEDA, ODA is expected to
constitute the largest portion of financing, at P2trn ($36.6bn). The national budget is slated to finance 11
projects valued at about P134.5bn ($2.5bn), while public-private partnerships (PPPs) will cover P71.9bn
($1.3bn) worth of projects.

While conventional PPPs were common under the previous Aquino III administration, a negative
perception caused by lengthy project delays has seen a shift towards other financing mechanisms. The
Duterte administration has shown a preference for financing its infrastructure targets through ODA and
public funds; however, unsolicited private sector proposals and hybrid PPP projects have become an
important enabler of the BBB programme. Under hybrid PPPs, projects are financed and often
developed by the government and ODA partners before the operations and maintenance are tendered
to the private sector. “The BBB initiative has encouraged the implementation of infrastructure projects
that bring together Philippine companies and international consultants whose expertise can help
mitigate bankability and delivery challenges,” Joseph Homer Macapagal, country chief executive at the
France-based international certification agency Bureau Veritas, told OBG.

Fiscal reform measures have also been taken to assist state infrastructure investment. The Tax
Reform for Acceleration and Inclusion (TRAIN) package that came into effect in January 2018 has helped
to generate revenue for the infrastructure pipeline as a result of increased excise duties on fuel,
vehicles, tobacco and sugary drinks, among other items. According to estimates from the Department of
Budget and Management, tax revenues are expected to fund some 25% of the BBB programme. The
TRAIN measure generated P41.9bn ($779.3m) in revenue in the first nine months of 2018, 5.3% below
the government’s target, although total tax collection for 2018 as a whole rose by 10.2%. Furthermore,
in September 2018 the Asian Development Bank (ADB) announced that it was rebalancing its financial
assistance to cover more transport infrastructure projects in the Philippines. Under its new six-year
country partnership strategy (CPS) for 2018-23, the ADB is accelerating infrastructure and long-term
investments in Mindanao and Visayas to promote local economic development. Indeed, the largest
categories of this CPS are transport projects, which will account for 47% of all funding; public sector
management – which provides policy support – at 21%; and 13% to bolster the nation’s financial system
operations. Over the first four years of the new CPS, the ADB will provide $7.8bn in loans to the country.

The Malolos-Clark Railway, the North-South Commuter Rail, Metro Manila bridges, the Bataan-
Cavite long-span bridge and Epifanio de los Santos Avenue Greenways projects are all set to benefit
from the ADB’s rebalancing. Moreover, the CPS is aligned with the government’s long-term
development plan AmBisyon Natin 2040 vision, as well as the medium-term Philippine Development
Plan 2017-22, for greater cohesiveness in pursuing national goals.

Although the pandemic markedly reduced demand for travel and business activity fell across many
sectors, President Duterte doubled down on his administration’s commitment to the BBB initiative as a
principle means to rejuvenate the economy. This was reflected in the proposed 2021 budget: in August
2020 the government outlined a P1.1trn ($21.9bn) allocation for the scheme, up 13% from its 2019
allotment of P976bn ($19.4bn), and posited that related projects could create 140,000-220,000 jobs. In
his August budget message to Congress, President Duterte emphasised that the budget focused on
“shovel-ready projects” to enhance service delivery and mobility.

The 2021 budget was approved by the House of Representatives two months later, with the DPWH
and the DOTr to receive P667.3bn ($13.3bn) and P143.6bn ($2.9bn), respectively. The Senate
subsequently passed the budget on November 26, increasing funding for the repair and upgrade of ports
and airports, and accessibility for those with disabilities by P226m ($4.5m), P1.2trn ($23.9bn) and
P70.3m ($1.4m), respectively.

Projects involving foreign assistance had been set to receive the bulk of funds – a proposed P100bn
($2bn) – in the 2020 transport infrastructure budget. Large-scale undertakings are generally financed by
official development assistance (ODA) from multilateral institutions or bilateral partners. As of October
2019 the Japan International Cooperation Agency (JICA) was backing eight ongoing road and bridge
projects with funding valued at around P69bn ($1.4bn), led by a P20.4bn ($405.7m) project to
reconstruct nine roads and bridges severely damaged by an earthquake along the Bohol Circumferential
Road.

The revised IFP list enveloped several public-private partnership (PPP) projects initiated by the
administration of former President Benigno Aquino III, as well as a raft of new projects inspired by
unsolicited proposals. Of BBB’s total 104 IFPs, 30 are PPPs, with unsolicited proposals in the transport
sector alone valuing P1.39trn ($27.6bn). These are overseen by the PPP Centre of the Philippines, which
manages a revolving fund called the Project Development and Monitoring Facility. The authority also
advises implementing agencies on technical matters, monitors the progress of priority PPP projects,
formulates policy guidelines for PPP transactions – whether they are build-operate-transfer, joint
venture (JV) or sole contractor contracts – and maintains a central database of all PPP projects.

 Outlook
With greater financial resources being made available and a refined focus on timely execution, the
country’s transport network is seeing the completion of some major projects under the BBB initiative.
During the second half of the Duterte administration’s tenure, a mixture of funding mechanisms and
openness to unsolicited proposals from the private sector will continue to enhance connectivity within
Metro Manila and across the regions. While the outlook for the sector is positive, the timely completion
of these projects, coupled with the further development of a strategy to increase urban mobility, will be
necessary to close the infrastructure gap and ensure sustainable growth.

Sustainable Transportation
Transportation, as a core component supporting the interactions and the development of socio-
economic systems, has also been the object of much consideration to what extent it is sustainable.
Sustainable transportation is the capacity to support the mobility needs of a society in a manner that
is the least damageable to the environment and does not impair the mobility needs of future
generations.
Sustainable development applied to transport systems requires the promotion of linkages between
environmental protection, economic efficiency, and social progress. Under the environmental
dimension, the objective consists in understanding the reciprocal influences of the physical environment
and the practices of the industry and that environmental issues are addressed by all aspects of the
transport industry. Under the economic dimension, the objective consists of orienting progress in the
sense of economic efficiency. Transport must be cost-effective and capable of adapting to changing
demands. Under the social dimension, the objective consists in upgrading standards of living and quality
of life.
 The concept of sustainable transportation has become widely accepted as a goal and appears in the
environmental plans of many governments and corporations. Still, sustainable transportation remains
elusive as it does not offer clear guidelines, but mostly a narrative allowing stakeholders to remain
vague in their commitments and endeavors. For instance, in 2015, the United Nations articulated 17
sustainable development goals covering an outstanding range of issues ranging from reducing economic
and gender inequality to eradicating poverty and hunger. Transportation was not identified as a distinct
sustainability goal, even if it accounts for about a quarter of global CO2 emissions. Further, these goals
have no stated priority and are, therefore, subject to interpretation.

A range of contemporary issues impinges upon the area of tourist and transportation as strong
growth is being experienced in many domestic and international travel and tourism destinations.
Predominant among these is concern about environmental impacts and sustainable development.
Tourism impact studies illustrate a wide variety of economic, sociocultural, and environmental impacts
that result through travel and visitation, for example, overcrowded attractions and services (like
restaurants on a big event day), inadequate transportation alternatives and infrastructure (e.g., narrow
roads causing traffic congestion), noise and air pollution, competition for access to scarce resources
between locals and tourists, habitat fragmentation and soil erosion as vegetation is cut for development
of touristic facilities, etc.
 Highly popular tourist destinations experience large numbers of visitors and environmentally
sensitive areas are particularly vulnerable, as are fragile heritage sites and tourist-historic cities
(Ashworth and Tunbridge, 2000). Israeli and Mansfeld conducted a pioneer research on the
transportation accessibility of the Old City of Jerusalem, pointing out a number of problematic issues,
noting that “such syndromes are predominantly a reflection of poor planning and bad management of
the transportation systems, which is supposed to support the influx and movement of tourists in and
around these historic districts”.

Both urban planners and transportation planners tend to neglect the relatively strong effects from
external factors like tourism on the overall urban or regional planning. Variability in travel flows, lack of
information on tourist itineraries and lack of detailed visitation statistics at the local level contribute to
the data collection problem in transportation–tourism research. Managing tourism mobility in urban
destinations such as cities and metropolitan areas is a critical planning issue, but is also crucial for
community, rural, and environmental destinations seeking to develop a viable tourism trade.

Week 19 - FINAL EXAMINATION