FSAO TRE12A2

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FACULTY/COLLEGE College of Business and Economics

SCHOOL Johannesburg Business School
DEPARTMENT Transport and Supply Chain Management
CAMPUS(ES) APK
MODULE NAME Transport Economics 2A
MODULE CODE TRE12A2
SEMESTER First
ASSESSMENT OPPORTUNITY, Final Summative Assessment Opportunity
MONTH AND YEAR May 2019

ASSESSMENT DATE 25 May 2019 SESSION 12:30 – 15:30

ASSESSOR(S) Mrs E Kriel and Ms S Nabee
MODERATOR(S) Ms S Thaba
DURATION 3 hours (180 min) TOTAL MARKS 180

NUMBER OF PAGES OF QUESTION PAPER (Including cover page) 8

INFORMATION/INSTRUCTIONS:
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• This is a closed-book assessment.
• Answer Section B and Section C in separate books.
• Read the questions carefully and answer only what is required.
• Number your answers clearly and correctly as per the question paper.
• Write neatly and legibly on both sides of the paper in the answer book, starting on the
first page.
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SECTION A - MULTI-CHOICE QUESTIONS [40 MARKS]

1. The migration of a population from rural areas to more densely populated areas.
a) Urbanisation
b) Suburbanisation
c) Moving
d) Immigrating

2. Public transport characterised by fixed routes and stops and fixed schedules are known
as:
a) Informal public transport
b) Formal public transport
c) Air transport
d) Maritime transport

3. Public transport that do not follow fixed routes, do not have a schedule and do not issue
tickets are known as:
a) Informal public transport
b) Formal public transport
c) Air transport
d) Maritime transport

4. This category of separation accommodates the ultimate in systems, both in terms of

carrying capacity and safety, in that an exclusive right-of-way is given along its total length
with no pedestrian or vehicle conflict. It may be either elevated, at surface level, or
underground, depending on availability of space and land values.
a) Right-of-way: Category A
b) Right-of-way: Category B
c) Right-of-way: Category C
d) Right-of-way: Category D

5. By longitudinally separating the right-of-way from other traffic by devices such as kerbs,
barriers and fences, the capacity of the system can be dramatically increased and
pedestrian vehicle conflict limited to intersections where it can be minimised by orderly
control of using traffic signal systems.
a) Right-of-way: Category A
b) Right-of-way: Category B
c) Right-of-way: Category C
d) Right-of-way: Category D

6. Systems that fall into this category are predominantly at-grade with sections of the right-
of-way shared with other users. The operational safety of the system is entirely the
responsibility of the driver; consequently vehicles must have braking characteristics similar
to those of ordinary road vehicles. Nevertheless, some degree of priority can be given at
traffic signal controlled intersections to give preference over normal vehicular traffic.
a) Right-of-way: Category A
b) Right-of-way: Category B
c) Right-of-way: Category C
d) Right-of-way: Category D

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7. The term applied to small passenger transport which operates informally on a fare paying
basis. They have become very popular and fill the gap where growing demand has not
been satisfied by organised public transport services.
a) Heavy rail transport
b) Light rail transport
c) Para-transit
d) Bus transport

8. Commuter services of long-distance railways and often share the tracks with freight
(goods) trains.
a) Heavy rail transport
b) Light rail transport
c) Para-transit
d) Bus transport

9. A flexible mode that fits between the bus and the conventional railway
a) Heavy rail transport
b) Light rail transport
c) Para-transit
d) Bus transport

10. “Competition for the route not on the route”

a) Deregulated competition
b) Managed competition
c) Regulated competition
d) Liberalised competition

11. The authority to operate a route or network with no subsidy

a) Contract
b) Concession
c) Grant
d) Operating licence

12. The authority to operate a route or network at a tendered contract price

a) Contract
b) Concession
c) Grant
d) Operating licence

13. The authority to operate a rail line or network at an agreed price

a) Contract
b) Concession
c) Grant
d) Operating licence

14. A full cost contract between the transport authority and the operator, where the operator
receives full payment no matter how many passengers are carried.
a) Net contract
b) Full contract
c) Gross contract
d) Subsidy contract

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15. A contract between the transport authority and the operator, where the operator keeps
the fares and is merely paid a “top up” amount which can be fixed or based on ticket
sales
a) Net contract
b) Full contract
c) Gross contract
d) Subsidy contract

The following questions 16-20 relate to the video “African Freight train”

16. The train between Addis Ababa and Djibouti travels:

a) 3 times per day
b) 3 days a week
c) Once per week
d) 3 days in the month

17. In Eastern Ethiopia, rail transport replaced:

a) Campers
b) Caravans
c) Cars and trucks
d) Pipeline transport

18. Large quantities and trade of Ethiopian Khat is carried mainly by:
a) Rail transport
b) Air transport
c) Road transport
d) Maritime transport

19. Most traders using the train are:

a) Smugglers who bring back other commodities into Ethiopia
b) Smugglers who take coffee beans out of the country
c) Smugglers who escalate the price of Khat outside of Ethiopia
d) Both A and C

20. On the train route from Adidas Ababa to Djibouti, it is common for officers to:
a) Accept bribes from traders
b) Confiscate goods
c) Arrest traders without a permit
d) Both A and B

21. Elon Musk is developing a high-speed passenger transport system. This system is
known as:
a) Hyperloop
b) Hydroloop
c) Hyped-up loop
d) Highloop

22. The current South African minister of transport is:

a) Jeff Radebe
b) Nomsa Nene
c) Blade Nzimande
d) Popo Molefe

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23. Railroad freight transport in South Africa is a dying industry.

a) True, the road transport sector is much more competitive.
b) False, the potential for rail is evident and interventions are being made to move
freight from road to rail
c) True, rail transport is an outdated concept.
d) False, passenger rail transport will be more important to South Africa in the future

24. In 2013, the percentage split between road transport and rail transport was:
a) 76%/10%
b) 13%/10%
c) 70%/30%
d) 80%/20%

25. Intermodal has become popular because

a) It offers one-stop shopping for freight customers
b) It means shippers do not have to worry about making changes between transport
modes
c) Freight companies can offer transport services in modes outside of their core
competencies.
d) All of the above

26. In 1994, the custom built Phelophepa Healthcare Train was developed with purpose to:
a) ensure increase the usage of rail transport in South Africa
b) supply quality healthcare to communities where health services and infrastructure
were not yet fully in place
c) supply quality healthcare although it has not been successful in its operation
d) market the quality of healthcare professionals in South Africa

27. The Gautrain operates as a separate network from the existing rail network. Reasons for
this strategy are:
a) It may impact service delivery
b) It increases the operation costs
c) It may tarnish the Gautrain’s image
d) All of the above

28. Transnet’s Market Development Strategy in terms of the Durban-Gauteng corridor aims
to rejuvenate the country’s:
a) Road, rail and port infrastructure
b) Road, rail and pipeline infrastructure
c) Road, port and pipeline infrastructure
d) Rail, port and pipeline infrastructure

29. Freight trains can be broadly divided into two classes namely:
a) Unit trains and wagon-load trains
b) Unit trains and bulk trains
c) Bulk trains and Wagon-load trains
d) Bulk trains and passenger trains

30. Non-unit trains are also referred to as:

a) Individual trains
b) Freight trains
c) Consignment trains
d) Wagon load trains

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31. Which of the following areas need intervention to improve rail transport?
a) Performance of the rail system
b) Customs and border management
c) Network inter connectivity
d) All of the above

32. When improving the performance of the rail system, one should look at
a) Commodities that have a distinct advantage
b) Concessioning to improve performance
c) Bilateral and multilateral agreement
a) Only a and b

33. Which of the following are not advantages of joint passenger and freight rail transport?
a) high start-up costs
b) maintenance costs are balanced
c) separate traction sources for passenger and rail
d) all of the above

34. Beside railway transport, which other alternative modes of freight transport are available
in South Africa for inland transport?
a) Road transport and inland waterways
b) Road transport, air transport and pipeline transport
c) Road transport and pipeline transport
d) Road transport, inland waterways, maritime transport, pipeline transport and air
transport

35. Rail transport uniquely offers the following advantages:

a) Environmentally friendly, energy efficiency and speed
b) Environmentally friendly, energy efficiency and door-to-door services
c) Environmentally friendly and low labour requirements
d) Environmentally friendly and reliability

36. Elon Musk is developing a high-speed passenger transport system. This system is
known as:
a) Hyperloop
b) Hydroloop
c) Hyped-up loop
d) Highloop

37. Efforts to develop a fairly seamless European freight rail system have been resisted by
the country of ____________________.
a) France
b) Germany
c) Spain
d) Argentina

38. Europeans have attempted to upgrade their freight railroad systems but they are slowed
by bloated ____________________
a) Costs
b) Bureaucracies
c) Intermodal transport systems
d) Land-bridges

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39. A transportation system using more than one mode but which operates under a single
bill of lading is called ____________________.
a) Intermodal
b) Multimodal
c) Efficiency
d) Unit loading

40. A ____________________ is the idea that cargo traveling on ocean liners can cross a
land obstacle by being unloaded in one port, transferred to a train, carried across the
land area by rail, and reloaded onto another ship.
a) Land-bridge
b) Draw-bridge
c) Highway
d) Motorway

SECTION B [65 MARKS]

RAIL TRANSPORT

QUESTION 1 (20 MARKS: 20 MIN)

Read the following case study and answer the questions that follow

With a mounting fuel supply crisis resulting from capacity constraints of existing petroleum
pipelines and refineries, petroleum marketers in several countries are compelled to import
petroleum products and transport them by rail and road to their markets.

Against the background of (a) the substantial variation in the international price of crude oil;
(b) the apparent inability to stabilise the political and economic climate in certain of the largest
oil-producing regions; and (c) the growing demand for petroleum products in large, emerging,
industrial countries (China and India) and in large developed industrial countries (Japan), it is
imperative that the logistical aspects of petroleum product supply chains be arranged as
safely, efficiently and effectively as possible.

During a discussion in late 2016 between the chief executive officer of the national petroleum
pipeline operator and the head of a leading university logistics department, the following
statement was made: “Pipeline transport of crude oil and petroleum products should, subject
to economic assessment, be considered the preferred mode of transport between all ports of
energy refineries and the major downstream tank farms at the wholesale depots.” you are a
teaching and research assistant in the department of logistics at the university and you were
present at the discussion

You are tasked to draft a memorandum to the Minister of Transport on the likely effects that
acceptance of the above mentioned statement will have on the following:

1.1 Freight characteristics of rail in relations to the case study (8 marks)

1.2 Rail traffic conditions on the main Durban-Gauteng corridor with emphasis on the
commodities mentioned (7 marks)

1.3 Initiatives to move freight to rail transport away from road transport related to the case
study (5 marks)

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QUESTION 2 (20 MARKS: 20 MIN)

Outline possible interventions for improving rail transport under the following headings. Your
answer must include a list of the possible questions and corresponding interventions.

2.1 Performance of rail system (10 marks)

2.2 Network inter-connectivity (7 marks)

2.3 Management of containers (3 marks)

QUESTION 3 (10 MARKS: 10 MIN)

Discuss how passenger and freight rail transport are both complementary and in competition.
Your discussion should include advantages and disadvantages of joint-operations.

QUESTION 4 (15 MARKS: 15 MIN)

The Gautrain is a state-of-the-art rapid rail network in Gauteng. Justify the need for a rapid
rail system by discussing the Gautrain and comment on the need to expand the Gautrain
network.

NEW BOOK PLEASE

SECTION C [75 MARKS]

URBAN TRANSPORT

QUESTION 1 (15 MARKS: 15 MIN)

Despite the importance of efficient urban transport in cities, there are a number of factors
which prevent it from playing an optimal role. Efficient cities are vital for economic progress
however various problems are present. (UJ, 2017)

Identify and describe 5 (five) manifestations of urban transport problems.

QUESTION 2 (10 MARKS: 10 MIN)

“The plight of rural people has been highlighted by numerous policy studies and considerable
public awareness has been created via the media.” (Rural Transport Strategy for South Africa,
2007:5)

Summarise the strategic challenges of rural transport as identified in the Rural Transport
Strategy for SA

QUESTION 3 (20 MARKS: 20 MIN)

Briefly explain the steps involved in the evolution of transport systems.

QUESTION 4 (30 MARKS: 30 MIN)

Co-ordination of public transport is essential to create sustainable cities for people. To this
effect administration is also critical.

4.1 Summarise the role of a transport authority in terms of formal public transport (5)
4.2 Define the most common types of urban movements (5)
4.3 Describe the defining principles of a sustainable city for the future (20)

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