UNIT: TRANSPORT ECONOMICS
PRESENTER: JULIUS GIKONYO
REG No: HD211-5143/2011
LEC: EVANS SANDE
Transport and its related services is a catalyst for economic growth, and direct and indirect job creation in South Africa. The provision of affordable, safe and reliable transportation of goods and people is critical to the development of the country. Government boosted transport infrastructure spending to R66 billion in the 2011/12 financial year and is expected to raise it to R80 billion by 2013/14. The improvements are spread across the country, with urban and rural parts expected to benefit from the creation of jobs and tourism opportunities. Abstract
Inland waterways play a vital role in economic development, especially for remote rural areas. While the potential role for this sector depends considerably on the specific regional context, such as geographical conditions, level of road development, and socio-economic conditions, the following highlights some general advantages of inland waterway transport (IWT) noted by contributors (and supported by the International Forum for Rural Transport and Development research): After people learned to build crude small boats, they began using rivers and lakes to carry themselves and their goods. Later, they built larger boats and sailed the ocean in search of new lands and new trade routes. Today, people still depend on water transportation to carry such heavy and bulky products as machinery, coal, grain, and oil. People build most of their recreation areas along lakes, rivers, and seas. They enjoy water sports, such as swimming, fishing, and sailing. Many people also enjoy the beauty of a quiet lake, a thundering waterfall, or roaring surf.
Rural water transport in South Africa is defined as inland water transport that is used by poor people. Mostly, it consists of small family owned boats or canoes which ply river and canal networks. These 'country boats' are used for a wide range of purposes including providing transport services, trading opportunities, employment and food (through fishing and access to markets). Water transport is truly peoples' transport. It is familiar, accessible and it comes to the door, providing a transport system that is under local control, serving local needs. In lowland rainforest areas and wetlands in particular, poor communication is one of the main constraints on development for people living in these areas. Road building, the conventional transport ‘solution’, is extremely expensive and potentially very damaging to these environments. The alternative of water transport has the potential to address isolation while minimising the impact on the environment. Other economic impact of water transport to the South Africa economy is that the,Water transport is a cheap of transportation. Capital goods, heavy machinery and bulk raw and finished goods can easily and cheaply be transported from and out of the country to the foreign countries. Its importance can be judged from the following facts. Increase in Economic Activity,If country has a sufficient and sound infrastructure in the form of ports and waterways, the economic activity increases because many ships with tons of goods move in and out of harbors of the country. Increase in Foreign Exchange, Water transport increases the foreign trade, as it increases the imports and exports of merchandise from one to the other parts of the world. International trade flourishes and trading partners are benefited a lot. Decrease in Transportation Cost Transportation cost reduces too much. Thus goods become cheap which improves the international trade between the various nations of the world. Increase in Government Revenue, When foreign trade increases, it not only benefits general public, but it also becomes a great source of revenue for the government by way of customs duties. Increase in...