Transportation Management

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Transportation
Transport or transportation is the movement of people, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations. Transport is important since it enables trade between people, which in turn establishes civilizations. Transport infrastructure consists of the fixed installations necessary for transport, including roads, railways, airways, waterways, canals and pipelines and terminals such as airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuel stations), and seaports. Terminals may be used both for interchange of passengers and cargo and for maintenance. Vehicles traveling on these networks may include automobiles, bicycles, buses, trains, trucks, people, helicopters, and aircraft. Operations deal with the way the vehicles are operated, and the procedures set for this purpose including financing, legalities and policies. In the transport industry, operations and ownership of infrastructure can be either public or private, depending on the country and mode. Passenger transport may be public, where operators provide scheduled services, or private. Freight transport has become focused on containerization, although bulk transport is used for large volumes of durable items. Transport plays an important part in economic growth and globalization, but most types cause air pollution and use large amounts of land. While it is heavily subsidized by governments, good planning of transport is essential to make traffic flow, and restrain urban sprawl.

Economics of transportation
Transport is a key necessity for specialization—allowing production and consumption of products to occur at different locations. Transport has throughout history been a spur to expansion; better transport allows more trade and a greater spread of people. Economic growth has always been dependent on increasing the capacity and rationality of transport. But the infrastructure and operation of transport has a great impact on the land and is the largest drainer of energy, making transport sustainability a major issue. Modern society dictates a physical distinction between home and work, forcing people to transport themselves to places of work or study, as well as to temporarily relocate for other daily activities. Passenger transport is also the essence of tourism, a major part of recreational transport. Commerce requires the transport of people to conduct business, either to allow face-to-face communication for important decisions or to move specialists from their regular place of work to sites where they are needed. Transportation as a Derived Demand

In economic systems what takes place in one sector has impacts on another; demand for a good or service in one sector is derived from another. For instance, a consumer buying a good in a store will likely trigger the replacement of this product, which will generate demands for activities such as manufacturing, resource extraction and, of course, transport. What is different about transport is that it cannot exist alone and a movement cannot be stored. An unsold product can remain on the shelf of a store until bought (often with discount incentives), but an unsold seat on a flight or unused cargo capacity in the same flight remain unsold and cannot be brought back as additional capacity later. In this case an opportunity has been missed since the amount of transport being offered has exceeded the demand for it. The derived demand of transportation is often very difficult to reconcile with an equivalent supply and actually transport companies would prefer to have some additional capacity to accommodate unforeseen demand (often at much higher prices). There are two major types of derived transport demand: Direct derived demand. This refers to movements that are directly the outcome of economic...
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