| Transport Infrastructure | | | | transport employs 2 types of vessels. Deep-water |
| Transportation infrastructure normally consists of the | | | | vessels, which are generally designed for Ocean and |
| rights-of-ways, vehicles, and carrier organizations that | | | | Great Lakes use, & are restricted to deep-water |
| offer transportation services on a for-hire or internal | | | | ports for access. In contrast, diesel-towed barges, |
| basis. The nature of the infrastructure also determines | | | | which generally operate on rivers and canals, have |
| a variety of legal and economic characteristics for | | | | considerably more flexibility. Water transport ranks |
| each mode or multimodal system. A mode identifies | | | | between rail and motor carrier in the fixed cost aspect. |
| the basic transportation method or form. | | | | Although water carriers must develop and operate |
| | | | their own terminals, the right-of-way is developed and |
| Since olden times, railroads have handled the largest | | | | maintained by the government and results in moderate |
| number of ton-miles. As a result of the early | | | | fixed costs as compared to railways and highways. |
| establishment of a comprehensive rail network | | | | The main disadvantage of water transport is the |
| connecting almost all the cities and towns, railways | | | | limited range of operation and speed. Unless the origin |
| dominated the intercity freight tonnage till World War II | | | | and destination are adjacent, supplement haul by rail or |
| and in some cases of Europe, Asia and Africa they | | | | truck is required. The capability to carry very high |
| even connected the countries. This early superiority | | | | cargo at an extremely low variable cost places this |
| enabled railways to transport large shipments very | | | | mode of transport in demand when low freight rates |
| economically. | | | | are desired and speed of transit is a secondary |
| MOTOR CARRIERS | | | | consideration. |
| Highway transportation has increased rapidly since the | | | | AIR TRANSPORT |
| end of World War II. This is because Motor carrier | | | | Air transport is the newest and the least utilized mode |
| industry results from door-to-door operating flexibility | | | | of transport. Its major advantage being its speed, |
| and speed of intercity movement. They are even | | | | which is accompanied by high costs. A coast-to-coast |
| flexible because they can operate on each and every | | | | shipment via air requires only a few hours contrast to |
| kind of roadways. In comparison to railroads, motor | | | | days taken by other mean of transportation. The high |
| carriers have relatively small fixed investments in | | | | cost of transport can be traded off for high speed, |
| terminal facilities and operate on publicly maintained | | | | which allows other elements of logistical design, such |
| highways. Although the cost of license fees, user fees, | | | | as warehousing, inventory to be reduced or eliminated. |
| and tolls are considerable, these expenses are directly | | | | But still air transport remains more of a potential |
| related to the number of over-the-road units and miles | | | | opportunity than a reality because it is very much |
| operated. The variable cost per mile for motor | | | | underutilized. |
| carriers is high because a separate power unit and | | | | The high cost of jet aircraft, coupled with erratic nature |
| driver are required for each trailer or combination of | | | | of freight demand, has limited the assignment of |
| tandem trailers. Labor requirements are also high | | | | dedicated planes to all-freight operations. However |
| because of driver safety restrictions and the need for | | | | premium carriers provide planes dedicated for freight |
| substantial dock labor. Motor carriers are best suited to | | | | operations. This premium service started off with |
| handle small shipments moving short distances. | | | | documents and has moved onto large parcels, which is |
| WATER TRANSPORT | | | | an ideal service for firms with a large number of |
| It is the oldest mode of transportation. First it was the | | | | high-value products and time-sensitive service |
| sailing vessels, which was replaced by steamboats in | | | | requirements. |
| early 1800's and by diesel power in the 1920's. | | | | |
| Domestic water transportation – involves the Great | | | | Air Freight |
| Lakes, canals, and navigable rivers. In every country, | | | | Air & Ocean offers a range of fast and |
| fewer system miles exist for inland water than any | | | | cost-effective airfreight services for your most |
| other transportation mode. | | | | time-sensitive freight with door-to-door or |
| The main advantage of water transportation is the | | | | airport-to-airport services, fixed schedules on all main |
| capacity to move extremely large shipments. Water | | | | routes and reliable connections to all other destinations. |