4.6.

TRANSPORT (REF 6th edition Page 216)

- Transport is another aid to trader.
- Transport refers to any medium or means by which goods and people are carried from one place to
the other in order for production to take place.

THE IMPORTANCE OF TRANSPORT ON THE ECONOMY

i. Raw materials and components of raw materials can be transported from where they occur to where
they are needed for production to take place.

ii. Workers can safely be transported from where they live to where they are needed for production.

iii. Transport helps to carry finished goods from factories to the marketplaces for sale.

iv. Enables the businessperson to deliver goods they bought to reduce storage and handling costs.

v. You may advertise your business or product on the company vehicle by way of company logo or
picture

MODES OF TRANSPORT USED IN HOME AND FOREIGN TRADE

Road
Air
Rail
Pipelines
Sea
Inland water ways

FACTORS AFFECTING THE CHOICE OF MODE OF TRANSPORT

Before deciding which method of transport to use for transporting a particular consignment a
businessman needs to consider the following factors:
a. Cost
- Cost of transporting goods depends on the type distance and volume.

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 - Transport cost forms part of the price at which goods are finally sold.
- Generally expensive means like air transport is suitable for high value, low bulk goods like diamonds
and jewelry.
- Cheaper form is suitable for cheap and bulky goods such as coal and timber.

b. The nature of the goods

- Fragile and perishable goods cannot be transported in the same way as bricks.
-Choose mode of transport that will carry goods in a safe way.

c. Size and weight of the goods

- It may be impossible to send certain types of goods by some types of transport because of their
weight and width.
- They choose a mode of transport that will be suitable for the product so that it arrives in good
conditions.

d. Distance over which the goods must be transported

- When sending goods over a short distance, road transport is preferable as it offers door to door.
- The time saved by a faster means of transport on a short journey is less significant than a long
journey.

e. Quantity of the consignment

f. How urgently the goods are needed

g. Safety

h. Terminal or Destination

1. ROAD TRANSPORT IN BOTSWANA

- Is a form of land transport
- Roads are made that are constructed with bitumen or gravel or just untarred roads.

Types of Road Vehicles

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 Refrigerated lorry
Delivery van
Container lorry
Heavy goods vehicles
Earth moving vehicles

Advantages of road transport

 It is fast over short distances
 It provides door to door delivery of goods hence reducing chances of damage and theft.
 The generating costs are lower compared to some other types of the business.
 Goods may be better protected as they are under the control most of the time.
 Can reach places which are not easy to reach by other forms of transport.
 Firms can buy their own vehicles for greater convenience.

Disadvantages

 It is slow over long distances

 They may be delays due to traffic regulations and congestion.
 It is unsuitable for bulky goods.
 Cause noise pollution to the environment
 It may have to return empty after delivery, and this makes it economical.

a. HIRING TRANSPORT
- A businessperson may have to hire transport companies such as Unitrans Truck Africa,
Seabelo carriers etc. to carry his/her goods from one place to another.
- The businessperson hires transport because she/he may not own one or because of the volume
of the goods to be delivered.

Advantages to the hirer

 The businessperson only hires the transport when he/she needs it.
 She is not responsible for the repair and maintenance of the vehicle.
 She may hire different size of vehicles to match the load she/he has to transport.
 His/her working capital will last longer because he/she does not have to pay for petrol,
repair, and maintenance of the vehicle.
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 Disadvantages of hiring transport

 The hirer may not feel free to use transport which does not belong to him/her.

 The owner of the vehicle too may not feel comfortable to hire his vehicle to somebody.

 The hirer may not excess great care in the vehicle because it is not his.

 If your competitors have their own transport, they will be able to reach the market first
to the goods.

b. USING OWN TRANSPORT

Advantages

 Flexibility in the time of delivering goods.

 Less handling of the goods therefore less warehousing cost.

 The business name or product can be advertised on the truck.

 The businessman can be sure that his/her goods may not be mixed up to their people’s
goods.

Disadvantages

 Expensive to operate and own vehicle as it must be bought, licensed, maintained,

fueled, and insured.
 Drivers must be paid regularly, and transport manager must be employed, and this is
costly.
 It may not be economical to have own fleet if output is too small.
 Traffic congestion limited carrying capacity and the fact that trucks may have to return
empty from delivery trips.

NEW DEVELOPMENTS IN ROAD TRANSPORT

a. North-south truck road
In a gateway to Zimbabwe, Zambia, and other countries to the north
The road has improved the movement of both people and goods between the north and south of
the country.

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 The road also made Botswana a major link for goods from South Africa to countries north of
Botswana.

b. The trans-Kalahari highway

It links Botswana to Namibia to the west and South Africa to the south
The highway has improved the movement to people and goods among these countries.

c. The intra-city and Urban Development

These are roads constructed between the big cities like Gaborone, F/town, Lobatse and big
villages.
They have been widening to improve the flow of traffic.

d. The Introduction of container carrying trucks.

e. The increasing concern about pollution resulting to the introduction of cleaner fuel like
unleaded petrol.

f. The growth of private transport (or individual ownership occur)

g. Development of roads and motorways bypassing towns and villages

EFFECTS OF ROAD DEVELOPMENT ON THE ECONOMY OF BOTSWANA

Positive Effects
i. More places can now be reached (accessibility)
ii. Easier & faster to travel to neighboring countries.
iii. Both domestic and international tourism have increased
iv. More trade is taking place both locally and internationally.
v. Increased employment in the road construction industry.
vi. Good roads have helped to support the growth of the mining industry.

Negative Effects
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 i. Roads have made it possible and easier for people to move and settle in the large, towns and cities
(rural to urban migration)
ii. More lives and property are lost on the roads through accidents.
iii. Noise and other environmental pollution in the cities and other places.
iv. Destructing of the environmental due to road construction.

2. RAIL TRANSPORT IN BOTSWANA

Rail transport is a form of land transport in which metal bars are fixed to the ground for a train to move on.
These metal bars are known as rail lines or trucks.

Advantages of rail transport

 Is suitable for carrying bulk goods.

 It is cheaper than road transport in long distances.
 Traffic congestion is avoided since rail lines pass outside city centre.
 Rail transport is not usual affected by poor weather conditions.
 It is suitable for carrying dangerous hazardous goods.

Disadvantages

 It does not provide door to door delivery

 It is slower than roads transport over short distances. It is therefore not suitable for
emergency situation.
 It is expensive to build
 It follows rigid time table and follows a definite vote.
 High risks of these and damage to goods because of needed transfer of goods to another
carrier (transport ship)

IMPORTANCE OF THE NEW TRENDS IN RAIL TRANSPORT

a. Expansion of internal railway network has alleviated problems of commuters.

b. Increase in rolling stock

- New locomotive engines and wagons have been bought to boost rail travel.
- New rail workshops built for repair of railway equipment in order to improve efficiency.
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 c. Computerization
- The railway system is computerized and these computers are connected to those of
neighboring countries.

- This enables Botswana railways to track trains or even individual coaches along a journey.

EFFECTS OF NEW TRENT IN RAIL TRANSPORT ON THE ECONOMY OF BOTSWANA

a. The extension of the rail network to Morupule and Sowa town has promoted the mining and
effective use of coal and salts.
b. Jobs are created for Batswana by the Botswana railways.
c. Rail network provides ready and cheap means of transport both domestically and
internationally for the salt and soda ash produced. The economy earns foreign currency from
the export of minerals and the money is used to develop the country.
d. The establishment of a railway workshop in Mahalapye will ensure quick repair of broken
equipment instead of having to send the equipment to other countries which may cause delay.

3. AIR TRANSPORT
Is the movement of passengers and goods by means of an airplane or aircraft.

Advantages

 It is a very fast means of transport.

 There is less risk of theft or damaging of goods because they are well protected in the
air craft.
 Insurance costs are low because of the safety of goods and the speed at which goods
are transported.
 Less affected by topography and other relief features e.g. lakes, rivers
 Suitable for carrying valuable goods such as diamonds which are not heavy but have to
be protected.

Disadvantages

 Not suitable for carrying certain types of goods e.g. explosives

 The weight of goods to be carried is limited.

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  It does not provide door to door delivery, that is another carrier has to be used for
delivery and this increases cost.

 It may be limited to only a few areas of the country because it is expensive to build.

 Flights in and out are timetabled or scheduled and cannot be influenced by business
person.

NEW TRENDS IN AIR TRANSPORT

a. Improvement in services offered to air freight companies such as refueling, warehousing, maintenance
of runaways, security and unloading equipments.
b. The construction of more airports worldwide.
c. The building of larger, much faster and more reliable aircraft.
d. Improved loading through large doors at the nose and tail.
e. Improvement of storage and cargo handling and tracking facilities at airports worldwide.
f. Special light weight containers have been developed for air cargoes.

IMPORTANCE OF NEW TRENDS IN AIR TRANSPORT

a. The recreational facilities provided on the aircrafts in the course of the journey enables business
person to release stress and feel refreshed for business.
b. Increased fuel economy
c. Reduced loading time and increased loading capacity
d. Better aircraft which are more able to overcome the effects of bad weather.

EFFECTS OF NEW DEVELOPMENT IN AIR TRANSPORT ON THE COMMERCIAL

ACTIVITIES
a. New trends have increased volume of trade.
b. Increased demand for banking and other services.
c. The new developments in air transport also mean that more jobs are created in the airline industry
itself and other sectors.

4. PIPELINE TRANSPORT
- Pipelines are hollow tubes that are connected and used to transport liquids and gaseous goods.
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 - These pipes are often laid underground although in some cases, they may be expected in the surface.
- These pipelines may be constructed from metal, fiber-glass, PVC and from concrete.

Products carried by pipelines

Water for domestic and commercial use
Waste material (sewage)
Gas
Oil and petroleum
Concentrates etc.

Advantages of pipeline Transport

 They are fast means of transport.

 They are not usually affected by weather.
 They protect the product being carried from contamination, loss and spillage.
 A regular and continued supply of the product is maintained.
 They are the most suitable means to transport materials like sewage.

Disadvantages

 They are expensive to build.

 They are limited in use compared to roads and other modes of transport.
 Repair work is expensive.
 Supply of product is discontinued during repair.
 Severe accidents occur where pipes with inflammable products are vandalized.

5. CONTAINERISATION
- Containerization refers to the use of containers to carry goods/cargo.
- Containers are standardized strong metal boxes used to pack goods ready for transport.
- Containers are not a separate method of transport. They are only used for placing goods and can be
carried by trucks, rails or ship.

Advantages

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  Goods do not require special packaging because the containers offer protection.
 There is less risk of damage or theft therefore insurance charges are lower.
 A business person may buy or rent a container to pack his/her goods to avoid mixing
them with others.
 Containers may be used for storage or as a tuck shop after their contents have been
removed at the final destination.
 Simplify loading and unloading, thus reducing turnaround time.

Disadvantages

 Container parts are expensive to build.

 Containers may only be delivered to parts that have a facility for loading and off-
loading.
 Containers cannot be carried by all types of trucks, ships and trains.
 They are uneconomical for carrying small loads.
 Certain types of goods e.g. coal, vehicles cannot be carried by containers.

The use of merchandised cargo handling facilities

- In major parts around the world sophisticated container handling cranes are in use.
- Cargo is very efficiently handled by mechanical means, reducing the risks of damage and losses in
transit.
- The use of containers and mechanical handling equipments has therefore provided firms with a fast,
cheap and reliable method of transporting large quantities of goods worldwide.

6. WATER TRANSPORT
- It consists of sea and island waterways transport.

i. Sea Transport
- It is very large water body that is found along the cost.
- It has long been and still remains the backbone of long distances trade between
countries.
- Different kinds of vessels sail on the sea and they include boats and ships.
- Different types of ships are suitable for certain journeys.

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 Main types of ships

a. Passenger liners
- Built primarily for carrying people although they may also carry some cargo.
- They follow fixed routes and keep to a regular timetable.
- Cruise liners are a good example of passenger liners

b. Cargo liners
- Used mainly for delivering goods although they may also carry few passengers.
- Operated on fixed routes and adhere to a regular timetable.
- Charge standard tariff.

c. Tramp ships
- They do not operate on regular routes or at fixed times but sail whenever traders want
their cargo to be taken.
- They do not carry passengers.
- Charter party agreement is signed between the ship owner and the trader who wants a
ship to transport his/her cargo.

Ways of hiring a tramp

i. Time charter
- The ship is hired for a specific period of time.
- The trader then takes full control of the ship for the duration of hire.
- At the expiry of the period, the ship goes back to the owner unless the
agreement is renewed.

ii. Voyage charter

- The ship is hired for a particular trip or voyage; whatever duration of
the trip.
- Once the goods have been delivered, the ship goes back to the owner .

d. Specialized vessels and general cargo

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 i. Bulk carriers
- Used mainly for carrying large quantities of unpackaged good s usually
single commodities like fertilizers, iron etc.
- Refrigerated ships (reefers) used for transporting fresh produce are
another examples of bulk carries.

ii. Tankers
- They are type of bulk carrier used to carry liquids especially oil and
gas.

iii. Roll-on-roll-off ferries

- A ship specially designed to allow vehicles (both goods) and
passengers to drive on and off without difficulty.
- Usually used for short sea trips e.g. for crossing big rivers or canal.

iv. Container ship

- Specially designer vessels used to carry large standardized containers
that are stacked both on and below deck.

v. Coastal ships
- It is an alternative to inland transport for bulk trade.
- Used by countries which have long coastlines activities.

Advantages of sea transport

 It is cheap means of transport
 Suitable for bulk goods.
 It provides access to different continent making it suitable for international trade.
 Different types of vessels are available to carry different types of goods.
 Goods may be sent during fixed time or at the business man‘s convenience

Disadvantages
 It is a slow means of transport, goods take time to reach destination.
 Insurance changes are high due to risk and slowness.
 Harbus have to be built for loading and off loading goods. This can be very expensive.
 It does not provide door to door delivery.
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  Bad weather can cause delays and losses at sea.

ii. Inland water ways

- This is transport by lakes, rivers, canals and dams using crafts such as barges, boats
and canoes.

Advantages

 It is cheaper than other forms of transport (especially road and rail) because of low
energy costs.

 It provides smooth carriage suitable fragile goods like glass wares, china ware pottery.

 Barges can efficiently carry large loads and bulky goods such as coal, cement or iron
ore.

 The way (water) is free, all you pay for are the crafts(vessels).

Disadvantages

 It reaches only a limited numbers of locations.

 It is very slow because of the restricted speed barges and the presences of many locks
on some routes.

 Many water ways, especially canals are very narrow and cannot take wide barges.

 In cold climates the water ways may freeze and stop transport completely.

 Labour costs are high in relation to the short distance which can be covered daily.

PORTS
- Are places where transported goods are loaded or off-loaded or disembark.

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- We nave three main types of ports and they are
Dry ports
Sea ports or harbors
Airports

a. Dry ports
- They are terminals for containers carried by rail.
- The rail head is extended to the area designated as a dry port.
- Containers arriving in the country or first delivered at the dry port by train.
- They are later transported from the dry port by road to the premises of the importer of the goods.
- Similarly containers meant for export are taken to the dry ports to await transport by rail to the export
market.
- In Botswana we have GABCON established by Botswana Railway.

b. Sea ports or harbours

- It’s a specially developed area along the coast.
- It is protected from strong waves so that ships can come to rest for loading and off loading.
- At sea ports there are offices for forwarding agents, customs, immigration officials etc.
- There are also ware houses for goods being imported or exported.
- Ships that have mechanical problems can be attended to dry dock attacked to the sea ports.

c. Air ports
- This is where aircrafts start and end their journeys.
- Like the seaports, there are customs immigration and health officials on duty at the airports.
- There are also warehouses at the airport for imported goods.
- Within the terminal building are waiting rooms for departing or arriving passengers.

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THE IMPORTANCE OF THE DEPARTMENT OF CIVIL AVIATION
- It’s a government department that is responsible for the airport.
- The department is also responsible for security at the airport.
- They have security guards who ensure that only bona fide travelers enter the departure lounge.
- It weigh passengers luggage before being loaded to ensure that all passengers adhere to the weight
limit.
- Passengers are provided with trolleys to move their luggage from the car parks to the terminal
building.
- Some civil aviation officials with special communication equipment are able to talk to the pilot of
incoming and outgoing aircrafts from the tower.
- It has fire unit to control or stop fire accidents.

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