- Discuss the Concept of Demand for Transport

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UNIVERSITY MALAYSIA SABAH
BC31203
TRANSPORTATION ECONOMY
DR.REMALI YUSOFF
GROUP ASSIGNMENT- DISCUSS THE CONCEPT OF DEMAND FOR TRANSPORT

NAME| MATRIC NUMBER| COURSE CODE|
DARVINDRAN RAMANATHAN| BB10110119| HE08|
SWAROOPARANI SURENDRAN| BB10110649| HE11|
SHALANI KANDASAMY| BB10110586| HE09|

1.0 - Introduction
The term “transportation” refers to part of the activity intended to satisfy human needs by means of geographic change position of people or things. Transportation tries to remove the obstacles due to distance. The transportation industry is very much crucial in a country for economic and social functioning, so an adequate transport system is necessary. The need of transportation is also to meet the problems associated with increasing mobility, government interval with a number of policy measures. Besides that, transportation is also a part of the productive activity such as phase of production process, as a production process and goods distribution. The transportation industry has the capacity to affect economic development in many ways, for example influencing consumer expenditures, affecting land use development location and intensity, as an input to economic activities such as shipping, business travel, and delivery of service which affects production and distribution cost. Furthermore, the means of transport can be divided into three main components which are: a) Routes- roads, train rails, air routes, sea routes b) Terminals- stations, train stations, airport, harbor c) Means- road transport, railway transport, Air transport, sea transport On the other hand, transportation also increases efficiency that provides productivity gains that filter through the economy in various ways. For example reduce shipping costs may increase in business profits, reduce retail prices, improve service quality (more frequent deliveries) allow tax increase, or a combination of these. Efficiency in transportation increases if transport resource cost which are time, land, risk and energy are reduced or if the value provided by transport activity increases. This proves that when transport system is efficient, they provide economic and social opportunities and benefits that result in positive multiplier effects such as better accessibility to the market, employment and additional investment.

2.0 – Factors that influence travel demand
Travel demand refers to the amount and type of travel people would choose under specific conditions by taking account many factors. Understanding travel demand is important for transport planning in general and is particularly important for transportation demand management, which includes strategies that influence travel behavior. Travel demand is multi-faceted. So, there is a need to analyze the demand within a long-term framework because changes in society and economy may cause fundamental changes in the demand for travel. There are many types of factors that affect the demand for travel.

One of them is the shifting demographic and migration trends. There are certain aspects in this factor that can affect travel demand. One of them is the world population that keeps increasing. For example, according to the U.S Census Bureau, current trends suggest that the U.S population is anticipated to increase to 438 million by 2050. This can be shown through table 1 below:

This population will more ethnically diverse; a significant percentage of the projected population increase is attributed to immigration. The population also will be substantially older; it is estimated that more than 19% of the U.S population will be 65 years or older by 2050 as shown above. Such sizeable increase in population will create the need for more housing, employment and services which may lead to substantial impacts on travel patterns and demands particularly among the elderly. The people of working age will continue to...
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