Passenger and freight transportation systems have a number of similarities in the investment evaluation process, with a few significant differences. The table below offers an initial look at the stakeholders for each and their relative financial interests. As this table illustrates, many of the stakeholders are similar. However, there are significant differences in the asset providers and those entities with a direct financial interest. This variance drives major differences in the evaluation of investment in projects in either area, freight or passenger transportation. In freight operations, most often the assets are provided by private firms with a direct interest in the operation of freight transportation services on the asset. In most passenger transportation systems, the asset provider is a public entity, such as a transit authority. For purposes of the asset provider financial discussion relative to investment, there is a cost and benefit analysis that always takes place. These elements are generally described as, for cost elements, facility capital costs (dictated by site location and design, as well as the partners involved in the planning process), facility maintenance costs (ongoing costs of maintaining a facility to ensure safe operations and upkeep), and operating costs (such as labor costs, fuel costs, equipment costs, and the time lost to congestion or to the breakdown of efficient supply chains). Regarding benefits, other impact factors include capacity
Trains are everywhere in our society, we have jokes, toys, movies, and children’s television shows, but did you know rail transport started in 6th century Greece? The city of San Antonio, Texas is a fast-growing metropolitan city that has a very tremendous amount of people. It has been estimated that the city will grow by another million people in the next ten to twenty years. San Antonio’s traffic is becoming a huge issue and is quickly approaching to be one of the most congested areas in the states. The public transport in San Antonio consists of a very complex bus system, taxicabs, Trolley’s downtown, and the growing market of ridesharing drivers. San Antonio has had many talks and negotiations throughout the last two decades on getting a Light Rail system constructed to help with public transportation. This proposal is for specific businesses, the city of San Antonio and Bexar County to come to a funding agreement.
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
industry by setting the size of track , the size of trains and the price paid for shipping. The
Both examples proved that transportation was an important factor for the decision, but in some counties and states that wasn't the case. Many had transportation development, but due to a lacking of large numbers and percentages within the other factors, they decided to not support the secession. As states as a whole, all of the states that supported the secession had some means of transportation. Due to the fact that states and counties want to be connected to the larger world economy, effective transportation,was very important. If the state decided to secede without that factor, it would have failed to produce enough economical
Transportation financial matters, the investigation of the portion of transportation assets keeping in mind the end goal to address the issues of a general public. In a macroeconomic sense, transportation exercises shape a part of a country's aggregate financial item and assume a part in building or reinforcing a national or local economy and as an impact in the advancement of area and different assets. In a microeconomic sense, transportation includes relations in the middle of firms and individual buyers. The interest for and supply of transportation for both travelers and cargo, transportation evaluating, and the reasons why the transportation framework is both managed and deregulated are among its worries. Reference acquired from :http://www.britannica.com/topic/transportation-economics)
> The cost principle requires that companies record plant assets at cost. Cost consists of all expenditures necessary to acquire an asset and make it
Railroads can be used human passenger traffic, or the transportation of freight and shipments from one destination to another due to the fact that “trains are four times more fuel efficient than trucks” (Association of American Railroads [AAR], 2015), and the fact that railroads also “reduce highway gridlock, lower greenhouse gas emissions, reduce pollution” (AAR, 2015). In fact railroad transportation according to United States Department of Transportation’s Federal Railroad Administration, “rail network accounts for approximately 40 percent of U.S. freight moves by ton-miles (the length freight travels)” (Federal Railroad Administration, 2010). With the reliance on railroads to transport freight and shipments from one place to another also
The lack of growth observed in the state of California with the Hydrail project sparks question as to where the interest in rail rests. Improving rail transportation for logistics purpose also includes the movement of people. In an article by NPR, The author interviews American’s benefiting directly from the freight industry of rail transportation. The focus with the article addresses popularity among high-speed bullet train growth for passenger rail, in addition to how that impacts the infrastructure for freight rail in a negative manner. The article offers nothing short of rewarding insight into the discussion of expanding freight technology, with regards to the popular focus on high-speed commuter rail.
Trains have many advantages over trucks for transporting materials across our nation. Some of these benefits are intuitive while others are much less obvious. And given the evidence that follows, we must consider seriously the current move to displace freight trains in favor of trucks.
The difference in the share of railways in the USA and the EU is due to the geographical distances between cities in the USA and the EU. Railways cost less to operate and have fewer emissions when compared to trucking. Yet, the use of railways is limited for the following reasons: (i) building its infrastructure is very costly; (ii) the long lead time required for developing the infrastructure; (iii) consistent-high-volume of the freight traffic is needed for economic viability; and (iv) the need for trucks for the distribution to the final destinations. Trucks have many advantages over other modes of transportation, especially that they provide last mile delivery. Trucks, as compared to railways, ships, or planes have the most flexibility in reaching a destination, and the upfront
The emphasis given to these priorities and the state of the organization determine the nature and level of investments deemed necessary to implement the operations strategy. These investments in operational practices are expected to lead to better operational performance, as measured and evaluated internally using indicators like reject rates in the manufacturing process, production schedule fulfillment, and others. Through investments firms create and acquire resources that can isolate them from negative market influences and can serve as a source of competitive advantage for them. These investments can be made in tangible assets (e.g., machinery and capital equipment) and intangible assets (e.g., brand names and the skills of individual employees).
Information about competitive transportation services will be gathered. Questionnaires will be distributed to students and faculty of Kent State University in order to gather customer insight. Also, a financial consulting firm will be hired to provide professional assistance.
On the other hand, social infrastructure, such as schools, healthcare and recreation facilities, transportation assets, such as roads, ports and airports, utility and energy assets, such as water, power generation and electricity facilities, are some of the infrastructure investments (Inderst, 2009). These assets have values in their physical characteristics and substances. To a certain extent, both physical assets are known by investors as a hedge against inflation. Moreover, these assets that possess real and tangible properties are immensely affected by the real assets’ location. Often, the performance of cash flow largely depends on where the real estate or infrastructure is located. For example, retail units that are in a remote area or a toll road that is seldom used will not be able to generate desirable returns. The importance of location is recognised by real assets investors. In addition, Martin (2012) noted that cash-on-cash yield forms a significant part of return for both investments. Rent from residential, retail and office, toll and taxes from transportation assets, and bills from utility and energy assets are the essential distribution paid that investors use to value the assets and calculate returns for both type of investments.
The future of transportation will most likely be very different to current transportation systems. Current projections say that the world 's crude oil supply will be gone by 2070. The demand for alternative options of transportation methods is increasing at a rapid rate. These new opportunities are expected to bring new modes of transportation and transportations services in the coming years. Some of these new modes include electric cars, nuclear cars, hydrogen vehicles, and autonomous vehicles. All of these new transportation ideas will make a profound effect of the world as we know it today. All of these new ideas will reduce pollution in the world and lower are dependence on fossil fuels.
This once was to be the capital colony of the Dutch East Indies, as it had a very favorable topography that provided natural defense. The city is in a river basin, with mountains surrounding either side. This volcanic nature of the land has made Bandung very suitable for plantations and the Dutch took advantage of this and used it for rice, fruit, tea, tobacco, and coffee plantations, which is still in use today.