Strategic Role of Transport in the Economy

It is almost universally accepted that transport has played a predominant role in the economic development of all modern civilizations. Production and consumption on the scale and tempo of today would be inconceivable without a well-developed and operated transport system forming a vital link in supply chain management logistics ("Transport and the Economy" www.rra.co.za).

Transport plays a critical part in the success of any city's economy. Since the purpose of an effective transport system is to promote the growth of the economy, transport services are of strategic importance in bringing together supply and demand. Transport is the means for distributing and utilizing the city's products ("Transport and the Economy" www.rra.co.za). Engaging in trade requires the movement of goods from one place to another, and if that movement is slow, obstructed, or otherwise ineffective, the progress of the economy is impacted. For this reason, most of today's largest cities were originally established next to seaports or navigable rivers where immediate access to transport for shipping goods was available. Transport by water is no longer the only option for the movement of goods, however. Cargo plane is also a viable option for transoceanic/ transcontinental transport. Within a continent, rail transport, cargo plane, and truck can be employed instead of or in addition to water transport.

The globalization of today's markets brings with i