Chapter 1 - Introduction of Transport

Definition of Transport

• Transport involves the movement of goods or passengers from an origin point to a consumption point, encompassing both public and private transport.
• Private Transport refers to transport owned and operated by a single person or unit.
• Public Transport represents transport used by the general population for commuting.
• Transport increases satisfaction by moving goods and passengers
• Transport enables inaccessible goods to reach consumers
• Transport enables consumers to access services they would not otherwise be able to use

Movement of People and Goods

• Transport facilitates the movement of people from their current location to a preferred one.
• Transport moves goods to locations where they gain greater value for both producers and consumers.
• Transport is not demanded for its own sake, rather it is derived from the need or demand for other purposes

Transportation System

• A transportation system makes sure the safe operation of transport, regardless of its mode
• Public transport, despite its variations, relies on a common system
• Systems comprise vehicles, pathways, terminals, and necessary infrastructure based on the nature of transport

Public Transportation Examples

• Public transport systems include stage buses, ferry services, taxis, commuter trains, trams, light rail transit (LRT), monorails and aircraft carriers.
• Road transport can offer door-to-door service.
• A comprehensive public transport system is key to encourage a shift from private to public transport.
• Seamless journey is a smooth trip from origin to destination without interruption.

Role of Transport in Society

• Transport generates business through the supply of goods and movement of people, both locally and internationally.
• Transport initiatives help to expand and explore markets.
• The governments around the world have taken initiatives to expand and explore the market for their products.
• The World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the Association of South East Asian Nations (ASEAN) and South America's Mercosur will expand our global reach and provide additional opportunities for trade liberalization and investments.
• WTO has 153 members worldwide

Employment

• Transport allows people to commute and go to work
• Transport can shorten travel distances for work

Reduce Travel Time

• Highways reduced traveling times faster than traveling on old roads by foot or animals
• Traveling time: Journey time taken to travel from one point to another

Generate Income

• Commuter, LRT and monorail systems are effective investments for the Malaysian government and its population
• Public transport systems over 100 per cent utilized, primarily for passenger movement in city centres.
• A complete feeder system, on-time services, increase in frequencies and less waiting times will enable passengers to travel using public transport and thus generate income for their households
• Transport impacts economic activities, employment, travel time, income and accessibility. This involves local people and goods as well as people and goods from outside of the country.

Accessibility

• Transport bridges consumer gaps, ensuring commodities are available throughout the consumption period.

Transport as a Derived Demand

• Transport demand is derived from the demand for a particular product
• Demand includes education, work, business, buying materials and buying products.
• Increased demand for goods leads to increased demand for transport.
• Globalization easily connects customers to products via transport.
• Demand is desire supported by purchasing power

Utility concept

• Defintition: the process of increasing or improving value worth, functionality or usefulness
• Production activities with providing FORM utility, logistics activities with TIME and PLACE utility and marketing activities with POSSESSION utility.
• Time Utility: the condition where the product of goods is demanded for a certain period of time.
• Place Utility: Added value that transport brings to a product, like large scale production, increased competition + increase in the value of the land in certain areas.

Types of Utility

• Form Utility, Possession Utility, Time Utility, and Place Utility
• Form and Possession Utility are not related to transport
• Both time and place utility are related to transport

Utility – Examples

• Form Utility refers to the value added to goods through manufacturing, production, or assembly. A bottling firm combining syrup, water, and carbonation to make soft drink
• Possession Utility (PU) is created through marketing activities related to the promotion of products or services.
• Time Utility (TU) ensures goods and services are available when customers demand them.
• Place Utility involves logistics adding value by moving goods from surplus production points to areas of demand.