OBJECTIVES

1. Discuss the importance of transportation safety and economics in modern

transportation systems.
2. Highlight the risks associated with inefficient and unsafe transportation systems,
including economic losses and fatalities.
3. Identify measures that can be taken to improve transportation safety, including
infrastructure investments, vehicle safety technologies, and awareness campaigns.
4. Explain the economic benefits of investing in transportation safety, including
increased productivity, reduced costs, and improved competitiveness.
5. Emphasize the importance of prioritizing transportation safety and investing in
measures that can help improve it.

LEARNING OUTCOMES

1. Understanding the importance of transportation safety and economics in modern

transportation systems.
2. Identifying the risks associated with inefficient and unsafe transportation systems,
including economic losses and fatalities.
3. Understanding the measures that can be taken to improve transportation safety,
including infrastructure investments, vehicle safety technologies, and awareness
campaigns.
4. Understanding the economic benefits of investing in transportation safety, including
increased productivity, reduced costs, and improved competitiveness.
5. Recognizing the importance of prioritizing transportation safety and investing in
measures that can help improve it.

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 INTRODUCTION
TO TRANSPORTATION SAFETY

Safety planning aims to decrease fatalities and serious injuries on all public routes. A
collaborative and integrated approach to safety planning brings together safety partners
to utilize resources for a single safety goal. A data-driven safety planning method can
discover possibilities to improve a roadway's safety performance.

Transportation safety is an important consideration in the planning process, and

transportation planners play an important role in ensuring that safety is included into all
planning processes. Transportation planners with expertise and awareness of safety
and safety planning may improve cooperation, communication, and coordination with
their safety specialist partners to achieve the aim of minimizing serious injuries and
fatalities.

Transportation Safety Elements

● Roadway Design
● Traffic Law Enforcement
● Road user behavior
● Emergency response time

States must address five primary safety initiatives when designing a safety
management program:

1. Coordination and integration of multifaceted safety programs

2. Identifying and researching dangerous highway safety issues, roadway locations, and
characteristics.

3. Making safety a priority in all highway building programs and projects.

4. Identifying the safety needs of unique user groups in highway system planning,
design, construction, and operation.

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5. Maintaining and updating safety hardware, roadway components, and operational
features on a regular basis.

There are several elements that might impact transportation safety. There are various
aspects to consider when it comes to transportation safety.

ISSUES INVOLVED IN THE TRANSPORTATION SAFETY

There are many issues involved in transportation safety, including:

Human error - this is one of the biggest causes of accidents in transportation. Drivers
or operators may make mistakes due to fatigue, distraction, or poor training.

Infrastructure-poor Road conditions, inadequate traffic control systems, and lack of

proper signage can contribute to accidents.

Vehicle maintenance - poorly maintained vehicles can lead to mechanical failures and
accidents.

Weather conditions - inclement weather such as rain, snow, fog, or high winds can
increase the risk of accidents.

Driver behavior - aggressive driving, speeding, and impaired driving can all lead to
accidents.

Pedestrian and cyclist safety - ensuring the safety of pedestrians and cyclists is also
an important aspect of transportation safety.

Cybersecurity - With the increasing use of technology in transportation, cybersecurity

has emerged as a significant concern that needs to be addressed to avoid any potential
hacking attempts on critical systems.

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FACTORS INVOLVED IN TRANSPORTATION CRASHES

● Human factors

● Environmental factors

● Vehicle factors

● Infrastructure factors

● Pedestrian and cyclist factors

● Cyber Security factors

While the causes of highway crashes are usually complex and involve several factors,
they can be divided into four categories: human factors (the diver's or operator's
actions), mechanical factors (the vehicle's mechanical condition), geometric factors (the
geometric characteristics of the roadway), and environmental factors (the physical or
climatic environment in which the vehicle operates).

● Human factors (drivers or operation action) - driver mistake is a primary

contributing cause of many traffic accidents. The intricate interaction of the
driver's psychological and physiological circumstances, the system design, and
the current environmental factors causes human error in highway collisions.

● Mechanical Factors (The vehicle condition)- The mechanical condition of an

automobile might be the cause of a highway collision. Crashes have occurred as
a result of faulty brakes on huge vehicles. Failure of the electrical system, worn
tires, and the placement of the vehicle's center of gravity are all examples of
vehicle circumstances. Many car manufacturers, however, are now incorporating
in-vehicle equipment that helps to lessen the likelihood of the vehicle being
engaged in an accident and/or the severity of a crash if it is involved in one.

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 ● Infrastructure Factors (The roadway condition)- A accident can be caused by
the state and quality of the highway, which includes the pavement, shoulders,
junctions, and traffic-control system. The roadway must be constructed to offer
sufficient stopping sight distance at the design point, otherwise motorists will be
unable to take corrective action to avoid a collision.

● Environmental Factors (the physical or climatic environment in which the

vehicle operates)- Weather conditions such as rain, snow, fog, ice, and high
winds can increase the risk of accidents. Poor lighting, visibility, and road
conditions can also contribute to accidents.

Guidelines

● Priority: signs should be positioned according to the importance of the

information they carry. Avoid putting up signs in places where they aren't
absolutely necessary.

● Spreading: When the essential information cannot be presented on a single sign

or multiple signs at a single site, it should be provided in segments along the
road to lessen the information burden.

● Coding: numerous little pieces of information should be grouped together. To do

this, use color and form coding. Warning signs, for example, are yellow, whereas
regulatory signs are white; stop signs are octagonal, while yield signs are
triangular.

● Redundancy: is the repetition of the same information in multiple ways. For

example, a "no passing zone" can be indicated by both pavement marking and
ad signage.

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 ● Environment: The physical and clinical environment around a car can also have
a role in the likelihood of highway accidents; one of the most prominent
environmental elements is weather.

INCREASING RATE OF FATALITIES

According to the most recent WHO data published in 2020, road traffic accidents killed
13, 017 people in the Philippines, accounting for 1.93% of all fatalities. The Philippines
ranks #109 in the world with an age-adjusted mortality rate of 13.42 per 100,000
inhabitants.

According to figures from the Philippines Statistic Authority (PSA), 6.440 people died in
transportation accidents between January and September 2021. This was a 4.2 percent
rise over the 6,179 fatalities reported in the same time in 2020.

Between January and September 2021, transportation accidents accounted for 1.3
percent of overall deaths in the country, up from 1.4 percent in the same period in 2020.
Transport accidents were ranked as the 15th leading cause of mortality among Filipinos
in both years.

The causes of road traffic accidents in the Philippines are multifactorial and include poor
road infrastructure, inadequate law enforcement, driver behavior, and vehicle defects.
Some of the most common risk factors for road accidents in the Philippines include
speeding, drunk driving, distracted driving (such as using mobile phones while driving),
and non-use of seat belts or helmets.

Efforts to improve road safety in the Philippines have been ongoing, including the
implementation of stricter laws and regulations related to road safety, such as the
mandatory use of helmets for motorcycle riders and the implementation of speed limits

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on
highways. However, more work needs to be done to address this growing problem and
reduce the number of fatalities caused by road traffic accidents in the Philippines.

The 4 Es of Safety

To plan for and shape a safer transportation system, agencies typically consider
strategies from engineering, education, enforcement, and emergency medical services
(EMS) to improve safety outcomes.

Engineering: This involves designing and implementing safety features and systems
within the workplace. This can include things like installing safety guards on machinery,
using non-slip flooring, or improving lighting to prevent accidents.

Education: This involves providing employees with the necessary training and
education to identify hazards and understand how to mitigate them. This can include
training programs, safety meetings, and communication of best practices.

Enforcement: This involves creating and enforcing rules, policies, and procedures that
promote safe behavior. This can include disciplinary action for violating safety protocols,
and regularly conducting safety audits to ensure compliance.

Empowerment: This involves creating a culture where employees feel empowered to

speak up about potential hazards and suggest ways to improve safety. This can be
achieved through encouraging open communication, providing employees with a
platform to voice their concerns, and recognizing and rewarding safe behavior.

STRATEGIC HIGHWAY SAFETY PLANS

The HSIP (23 U.S.C. 148) has a SHSP as a key element and necessity. A
comprehensive foundation for lowering traffic deaths and serious injuries on all public

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roads is provided
by this data-driven, state-wide coordinated safety strategy. An SHSP identifies the most
important safety requirements for a State and directs investment choices toward tactics
and countermeasures that have the best chance of preventing fatalities and serious
injuries. SAFETEA-LU, which made the HSIP a fundamental Federal program, initially

made SHSPs mandatory. In accordance with the FAST Act, States must continue to
establish, implement, review, and update a SHSP that identifies and analyzes highway
safety issues and opportunities on all public roadways. The HSIP remains a key Federal
assistance program.

The State DOT collaborates with Local, State, Federal, Tribal, and other public and
commercial sector safety stakeholders to construct a SHSP. It is a multi-year,
data-driven comprehensive plan that incorporates the 4 Es of highway
safety—engineering, education, enforcement, and emergency medical services—and
specifies Statewide goals, targets, and major priority areas. The SHSP enables partners
and highway safety initiatives in the State to collaborate in an effort to harmonize
objectives, make the most of available resources, and jointly solve the safety concerns
facing the State.

23 U.S.C. 148 details the Federal SHSP requirements, and the SHSP Final Guidance,
The Champion's Guide to Saving Lives, the Implementation Process Model (IPM), the
Evaluation Process Model (EPM), and other pertinent supplementary guidance
documents and tools provide additional information on SHSP development,
implementation, and evaluation practices. Visit the Strategic Highway Safety Plan
Community of Practice to view State SHSPs and notable practices.

The purpose of this plan is to develop a process through which each state would identify
its key safety needs such that investment decisions can be made that will result in
significant reductions in highway fatalities and serious injuries on public roads.

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Introduction to the Road Safety Management Process

In many aspects, AASHTO's Highway Safety Manual 2010 (HSM) (download user
guide) is a critical resource for understanding how road safety analysis is undertaken.
As a result, many transportation experts in North America utilize it. Today, I'd want to go
over one of the manual's primary themes, the Road Safety Management Process
(RSMP), which was introduced in HSM Part B. The RSMP is made up of six processes,
each of which is addressed in detail in HSM chapters 4 through 9. Even if you do not
practice road safety analysis in North America or use HSM methodology formally, the
six steps of the RSMP are universal concepts that apply to a global road safety
audience, regardless of technology or quantitative methodology used, and are borne out
of recurring road infrastructure life cycle management requirements.

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Step by Step Process

Step 1: Network screening - Through an assessment of the transportation network,

locations with the potential to reduce average crash frequency are identified and ranked
in this stage.

Step 2: Diagnose- The crash pattern is determined by collecting and analyzing

historical data as well as evaluating site factors.

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Step 3: Countermeasure Selection- This process entails identifying likely
crash-related characteristics at a location and selecting remedies that will be helpful in
lowering crash frequency.

Step 4: Economical appraisal- This stage entails doing a proper economic analysis in
order to identify specific initiatives that are financially justifiable.

Step 5: Prioritize projects- This stage prioritizes initiatives that are economically
justifiable at individual sites and across many sites based on their potential to achieve

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safety
objectives within the given budget. Prioritization criteria may include low-cost mobility
improvement potential or lower negative environmental effect.

Step 6: Safety effectiveness evaluation- The selected countermeasures are

examined at a single or numerous sites to see how effective they are or might be in
lowering yearly crash frequency or severity.

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Give a schematic presentation of the roadway safety management process and
indicates its dynamic nature. Note that an in-depth description of the tasks involved in
each of these steps is beyond the scope of this book. However, adequate materials are
included to give the reader an overview of each step and to provide a full understanding
of the whole process. Additional information can be obtained from the HSM. In order to
facilitate comprehension of the steps involved in a roadway safety management
process, the definitions of several terms as provided in the HSM are as follows:

Crash: the occurrence or presence of a series of events that result in death, injury, or
property damage as a result of an accident involving one or more motorized vehicles.

Crash frequency: The number of accidents that occur at a location, facility, or network
over the course of a year, commonly expressed as the number of crashes per year.

Crash estimation: a procedure for determining the projected crash frequency for an
existing or new route in the past or future.

Crash rate: The number of crashes per exposure data set.

Performance measure: a process or instrument used to assess the possibility of or

reduce the frequency of collisions at an area.

Safety Performance Function (SPF): A regression equation that properly links the
number of collisions per unit of time, road length, or junction severity to one or more

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independent variables, such as Average Annual Daily Traffic (AADT) for a certain type
of roadway.

Predictive Method: a method or instrument for estimating average collision frequency

at a given site, highway portion, or facility for a given set of geometric design and traffic
volume.

Expected Crash Frequency: the long-term average crash frequency at a location,

facility, or network over time given a certain set of geometric design and traffic volume. It

should be noted that the projected crash frequency is an estimate, as highway

conditions and traffic levels do not always remain consistent over long periods of time.

Crash Severity: This is the quantity of bodily harm or property damage sustained as a
result of an accident, where bodily harm is defined as bodily hurt to a person. There are
numerous techniques for ranking severity. The HSM, on the other hand, use the
KABCO scale. This scale has five levels, which are as follows:

● (K) Fatal injury: an injury that results in death within a specified period of time
(typically 30 days)
● (A) Incapacitating injury: An injury that does not result in death, but causes the
injured to be incapable of walking, driving, or performing activities that he/she
could before the occurrence of the injury.
● (B) Evident injury: An injury that is neither a fatal nor an incapacitating injury
and that is visible to observes at the site at which the crash occurred.
● (C)Possible injury: any injury that is neither incapacitating nor a
non-incapacitating evident injury, including a claim of injury that is not evident.
● (O)No injury: that is property damage only (PDO).

Equivalent Property Damage Only (EPDO): The number of collisions in terms of

property damage only. This is accomplished by allocating weights to injury and fatal
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crashes in
relation to PDO accidents, and it is meant to address the range of severity levels in a
collection of crash data.

Crash Evaluation: the process of establishing the effectiveness of a certain safety

countermeasure or treatment program in lowering average crash frequency or severity
at a site or project.

Countermeasure: When implemented on a roadway, a strategy is anticipated to reduce

crash frequency and/or severity.

Regression to the Mean: Because crash incidence fluctuates naturally, average crash
frequencies over a short time are frequently either greater or lower than the mean over
a long period. As a result, if a site has a pretty high collision frequency for a few years, it
is extremely probable that this period will be followed by a brief period of relatively low
crash frequency. This is referred to as regression to the mean (RTM).

Suggested activities that could be included in this plan are:

● Obtain Leadership Assistance and Initiative

● Determine a Champion

● Begin the Development Process

● Collect Information

● Data Analysis

● Form a Working Group

● Bring Partners Together Safely

● Adopt a Strategic Objective

● Form Task Groups Identify Key Emphasis Areas

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 ● Determine Key Emphasis Area Performance-Based Objectives

● Determine Strategy and Countermeasures

● Determine Implementation Priorities Creating SHSP

STRATEGIC HIGHWAY SAFETY PLANS AT THE PROCESS LEVEL

Strategic Highway Safety Plans (SHSPs) are comprehensive, data-driven plans created
by state departments of transportation and other safety stakeholders to reduce highway
fatalities and serious injuries. At the process level, SHSPs involve a series of steps
aimed at identifying safety problems and developing effective strategies to address
them. Here are some key considerations for creating SHSPs at the process level:

1. Data Collection: The first step in developing an SHSP is to collect and

analyze data related to crashes, traffic volumes, and roadway characteristics. This
information can help identify high-risk locations, behaviors, and vehicle types that
are contributing to crashes.

2. Stakeholder Engagement: SHSPs require collaboration among a variety of

stakeholders, including transportation agencies, law enforcement, emergency
responders, health officials, and community groups. Engaging these partners early
and often can ensure that the plan is comprehensive and reflects input from diverse
perspectives.
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 3. Goal Setting: Once the data has been analyzed and stakeholder input has
been gathered, the next step is to set goals and objectives for reducing crashes and
fatalities. Goals should be specific, measurable, achievable, relevant, and
time-bound (SMART), and should reflect the priorities identified through the data
analysis and stakeholder engagement processes.

4. Strategy Development: Strategies are the specific actions that will be taken
to achieve the SHSP's goals and objectives. Effective strategies should be
evidence-based, feasible, and aligned with stakeholder priorities. Strategies may
include engineering improvements, targeted enforcement efforts, education
campaigns, and policy changes.

5. Implementation and Evaluation: After the SHSP is developed, it must be

implemented and evaluated over time to determine its effectiveness in reducing
crashes and fatalities. Implementation requires ongoing coordination among
stakeholders, while evaluation involves monitoring progress toward goals and
making adjustments to the plan as needed.

Overall, the process of developing an SHSP requires a commitment to data-driven

decision-making, collaboration among diverse stakeholders, and ongoing
communication and evaluation. By following these key steps, states can develop
comprehensive and effective plans to improve highway safety and save lives.

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DESIGN FEATURES TO BE CONSIDERED

There are several design features that should be considered when developing highway
safety improvement projects as part of the HSIP. Some of these include:

1. Roadway geometry: The geometry of the roadway can have a significant impact
on safety. Features such as lane width, sight distance, and curvature can all
influence crash risk. Roadway geometry should be designed to minimize
potential conflicts between vehicles and other road users.

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2. Intersection design: Intersections are often high-risk areas for crashes.
Intersection design features such as signalization, turn lanes, and roundabouts
can all help to reduce the risk of collisions.

3. Pedestrian and bicycle accommodations: Pedestrians and bicyclists are

vulnerable road users who require special accommodations to ensure their
safety. Design features such as sidewalks, crosswalks, bike lanes, and
shared-use paths can help to improve safety for these users.

4. Lighting and visibility: good lighting and visibility can help to reduce the risk of
crashes, particularly at night or in low-light conditions. Design features such as
streetlights, reflective signage, and pavement markings can help to improve
visibility for drivers and other road users.

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5. Access management: Limiting points of access to the roadway can help to
reduce the risk of collisions. Design features such as median barriers, driveway
spacing, and acceleration/deceleration lanes can all help to manage access to
the roadway.

6. Intelligent Transportation Systems (ITS): ITS technologies such as traffic

signal coordination, variable message signs, and speed warning systems can

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 help to
improve safety by providing real-time information to drivers and improving traffic
flow.

These are just a few examples of the many design features that should be considered
when developing highway safety improvement projects as part of the HSIP. The specific
design features chosen will depend on the particular safety problem being addressed
and the available funding and resources.

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 INTRODUCTION

IN TRANSPORTATION ECONOMIC

Transportation economics is the study of the allocation of transportation resources in

order to meet the need of a society. Transportation engineering is crucial to the
economic growth of cities and countries. Transportation networks that are efficient are
critical for the movement of people and products, which is critical for economic
progress.

The cost-benefit analysis of transportation projects is a critical economic aspect in

transportation engineering. This entails weighing the costs of constructing and
maintaining transportation infrastructure against the advantages it delivers, such as
decreased travel time, enhanced accessibility, and increased safety.

Another critical consideration is the effect of transportation on land usage and property
prices. Transportation infrastructure may either increase or decrease the value of
neighboring properties, and transportation planners must consider this while developing

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and
executing projects. The environment and public health are also significantly impacted by
transportation engineering. Vehicle emissions contribute to air pollution and climate
change, which have economic effects such as increased healthcare expenses and
agricultural and other natural resource degradation.

Overall, transportation engineering is critical for developing sustainable and efficient

transportation networks that promote economic growth while reducing negative
environmental and public health implications.

The economic importance of the transportation industry can thus be assessed

from a macroeconomic and microeconomic perspective:

At the macroeconomic level (the importance of transportation for a whole economy),

transportation and related mobility are linked to a level of output, employment, and
income within a national economy. In many developed economies, transportation
accounts for between 6% and 12% of the GDP. Further, logistics costs can account for
between 6%

and 25% of the GDP. The value of all transportation assets, including infrastructures
and vehicles, can easily account for half the GDP of an advanced economy.

At the microeconomic level (the importance of transportation for specific parts of the
economy), transportation is linked to producer, consumer, and distribution costs. The
importance of specific transport activities and infrastructure can thus be assessed for
each sector of the economy. Usually, higher income levels are associated with a greater
share of transportation in consumption expenses. On average, transportation accounts
for between 10% and 15% of household expenditures. In comparison, it accounts for
around 4% of the costs of each unit of output in manufacturing, but this figure varies
greatly according to sub-sectors.

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Transportation Economics

Transportation economics is a branch of applied microeconomics that deals with the

economic aspects of transportation. It is concerned with the study of how resources are
allocated in transportation markets, the efficiency and effectiveness of transportation
systems, and the impact of transportation on the economy.

There are two main branches of transportation economics:

Infrastructure economics: This branch focuses on the supply side of transportation,

including the financing, pricing, and regulation of transportation infrastructure projects. It
involves analyzing the costs and benefits of different types of infrastructure investments,
such as roads, railways, airports, and seaports, and assessing their impact on economic
growth, trade, and employment.

Urban transportation economics: This branch is concerned with the demand side of
transportation, including the travel behavior of individuals and households, the provision
of public transit services, and the pricing and regulation of urban transportation modes.
It involves studying the factors that affect travel demand, such as income,
demographics,

land use patterns, and transportation policies, and evaluating the effectiveness of
different policy interventions, such as congestion pricing, road tolls, and transit
subsidies.

Transportation’s role in strengthen the economy

Transportation plays a crucial role in strengthening the economy in several ways:

Access to markets: Transportation provides access to markets, allowing businesses to

reach customers, suppliers, and resources that might otherwise be out of reach. This
facilitates trade and commerce, leading to increased economic activity and growth.

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Job
creation: The transportation sector itself is a significant source of employment,
providing jobs in areas such as logistics, shipping, construction, and maintenance.
Additionally, transportation infrastructure projects can create jobs and stimulate
economic growth in other sectors, such as manufacturing and retail.

Increased productivity: Efficient transportation systems reduce travel times and costs,
making it easier for businesses to move goods and people. This leads to increased
productivity, as businesses can allocate their resources more effectively and respond
quickly to market demands.

Improved competitiveness: Countries and regions with efficient transportation

systems are better able to compete globally, attracting investment and fostering
innovation. This can lead to improved standards of living and increased economic
stability.

Access to education and healthcare: Reliable transportation enables people to

access education and healthcare services, which are essential for human capital
development and economic growth.

Overall, transportation is a critical component of a strong and resilient economy,

facilitating trade, job creation, productivity, competitiveness, and access to essential
services.

Transportation plays a vital role in the economy, and its economic importance can
be summarized as follows:

1. Facilitating trade: Transportation enables the movement of goods and services

from producers to consumers, facilitating trade and commerce. Without efficient
transportation systems, businesses would struggle to access markets, leading to
reduced economic activity.

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2. Supporting job creation: The transportation sector is a significant source of
employment, providing jobs in areas such as logistics, shipping, construction, and
maintenance. Additionally, transportation infrastructure projects can create jobs and
stimulate economic growth in other sectors, such as manufacturing and retail.

3. Lowering production costs: Efficient transportation systems reduce the costs of

moving goods and people, making it easier for businesses to allocate their resources
more effectively. This leads to lower production costs and increased competitiveness.

4. Increasing productivity: Time spent traveling reduces productivity, and efficient

transportation systems reduce travel times and costs, making it easier for businesses to
move goods and people. This leads to increased productivity, as businesses can
allocate their resources more effectively and respond quickly to market demands.

5. Fostering innovation: Efficient transportation systems foster innovation by

enabling the movement of ideas and people, which promotes the diffusion of knowledge
and technology across regions and countries.

6. Enabling access to essential services: Reliable transportation enables people to

access education and healthcare services, which are essential for human capital
development and economic growth.

In summary, transportation is crucial to a strong and resilient economy, facilitating trade,

job creation, lower production costs, increased productivity, fostering innovation, and
enabling access to essential services.

THE CATEGORIZATION OF THE TYPES OF IMPACTS:

The Economic Impacts of Transportation can be categorized into several types,

including:

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Economic impacts: Transportation has significant economic impacts, such as
facilitating trade and commerce, supporting job creation, lowering production costs,
increasing productivity, and fostering innovation.

Social impacts: Transportation can have both positive and negative social impacts,
such as improving access to essential services like healthcare and education,
promoting social cohesion and the exchange of ideas, and creating noise, pollution, and
congestion that can have negative effects on quality of life.

Environmental impacts: Transportation has significant environmental impacts, such as

air and water pollution, greenhouse gas emissions, and habitat fragmentation.

Land use impacts: Transportation infrastructure can have significant impacts on land
use patterns, such as encouraging urban sprawl or compact, transit-oriented
development.

Safety impacts: Transportation safety is an important consideration, as accidents and

fatalities can have significant social and economic costs.

Health impacts: Transportation can impact public health, such as through increased
exposure to air pollution or physical activity levels associated with different modes of
transportation.

Other Type of Impacts

Core: Involves the establishment of pathways that allow for new or existing contacts
between economic organizations.

Operational: Improved time performance, particularly in terms of dependability, as well

as less loss or damage.

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Geographical: Productivity gains from a wider and more diversified input base (raw
materials, components, energy, or labor) and broader markets for various products.

Direct Effect: The result of increased capacity and efficiency when transportation
delivers jobs, added value, wider markets, and time and cost savings.

Indirect impacts: Transportation activities are responsible for a wide range of indirect
value-added and employment impacts due to transportation's links with other economic
sectors.

Induced Impacts: The result of economic multiplier effects in which the price of
commodities, goods, or services falls while their variety rises.

Transportation and Economic Opportunities

Transportation advancements since the beginning of the industrial revolution have been
connected to increased economic prospects. A specific transport technology has been
established or modified at each stage of the global economy, with a variety of
consequences. Economic cycles are linked to a wide range of advances, including
transportation, which influence economic potential for production, distribution, and
consumption. Six main waves of economic development can be identified in history
when a single transportation technology generated new economic, commercial, and
social opportunities:

● Seaports. The historical significance of seaports in trade has endured. The early
stages of European expansion from the 16th through the 18th century, generally
known as the age of exploration, strengthened this significance. Seaports aided the
early growth of international trade via colonial empires, but were limited by interior

access. Many ports later became key industrial platforms during the Industrial
Revolution. Seaports have grown in importance in enabling international trade and

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 global
supply chains as a result of globalization and containerization. The economic
complexity of the hinterlands is reflected in the cargo handled by seaports. Bulk
cargoes are often linked with simple economies, whereas complex economies
generate more containerized flows. Technological and commercial advancements
have increased reliance on the seas as a source of economic and circulation space.

● Rivers and canals. River trade has occurred throughout history, and canals were
created where there was no major altitude shift since lock technology was primitive.
The construction of canal networks with locks in Western Europe and North
America, primarily to convey heavy products, was associated with the first stage of
the industrial revolution in the late 18th and early 19th centuries. This enabled the
creation of crude and limited inland distribution networks, many of which are still in
use today.

● Railways. The invention and construction of rail lines enabled more flexible and
high-capacity inland transportation systems during the second stage of the industrial
revolution in the nineteenth century. This created significant economic and social
potential through resource exploitation, regional settlement, and increased freight
and passenger movement.

● Roads. The 20th century saw the fast growth of extensive road transportation
networks, such as national highway systems, as a major economic sector. Individual
transportation became commonly available to the middle classes, particularly after
WWII. This was accompanied with huge economic prospects to provide dependable
door-to-door delivery to industrial and commercial sectors. The vehicle also opened
up new avenues for social interaction, particularly with suburbanization.

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● Airways and information technologies. Along with economic globalization, the
second part of the 20th century saw the growth of global aviation and
telecommunication networks. New organizational and managerial structures
emerged, particularly in the fast-increasing field of logistics and supply chain
management. Although sea transportation is the physical foundation of
globalization, air transportation and information technology allow the faster mobility
of passengers, specialized goods, and the information flows that accompany them.

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