Business Studies Form 2 Notes : TRANSPORT

TRANSPORT

TOPIC OBJECTIVES

By the end of the lesson, the learner should be able to:

1. Explain the meaning and importance of transport to business.
2. Explain the essential elements of transport.
3. Describe the modes and means of transport.
4. Discuss the advantages and disadvantages of each means of transport.
5. Discuss the factors that influence choice of appropriate means of transport.
6. Discuss trends of transport.

MEANING OF TRANSPORT

Transport is the physical movement of people and goods from one place to another. It helps bridge the gap between producers and consumers, hence creating place utility.

Importance of Transport to Business

1. Bridging the gap between producers and consumers/linking consumers to producers: Transport links consumers to producers, enabling consumers to obtain the goods they need.
2. Employment creation: Transport helps solve unemployment by creating job opportunities, for example, as drivers, pilots, mechanics, and road constructors.
3. Promotes specialization: Transport enables people to specialize in jobs they are best at. For example, producers concentrate on production while others carry out distribution.
4. Making goods and services more useful: Through transport, goods are moved from places where they are least required to places where they are most required, thereby making them more useful.
5. Improving people’s standard of living: It enables consumers to get a variety of goods and services, improving standards of living.
6. Availing a wide market for products: It helps producers widen markets by enabling access to areas they would otherwise not reach.
7. Increased production/facilitates mass production: Due to wider markets created through transport, producers can increase the volume of goods produced.
8. Avoiding wastage: Transport allows surplus goods to be taken to areas where they are required. Perishable goods such as flowers, fruits, and vegetables can be transported quickly, minimizing wastage.
9. Promoting development of industries: Transport facilitates movement of raw materials to manufacturing industries and finished goods to markets. It also promotes service industries such as tourism.
10. Adds value to goods and services: Transport creates utility by moving goods from production points to where they are needed, adding value.
11. Leads to the opening of new markets: Goods and services can be taken to new areas with ease.
12. Facilitates the movement of labour: People can easily move from where they stay to where they work.

ESSENTIAL ELEMENTS OF TRANSPORT

For a transport system to function efficiently, it should have certain basic elements. These elements are:

• Unit(s) of carriage
• Methods of propulsion
• Ways
• Terminals (terminus)

Unit(s) of carriage

This refers to anything used to transport goods and people from one place to another. Units of carriage include ships, trains, aeroplanes, motor vehicles, bicycles, and carts. Units of carriage are also referred to as means of transport.

Methods of propulsion

This is the driving force (source of power) that makes a unit of carriage move. The power for most vessels may be petroleum products, electricity, human force, or animal power.

Ways

This refers to the route or path passed by the vessel. The route can be on land, water, or through air. Examples include roads, railways, paths, canals, seaways, and airways. Ways can be classified as natural or man-made.

Natural ways: Provided by nature and free to acquire, such as airways and seaways.

Man-made ways: Constructed by humans, including roads, canals, and railways. These are usually expensive to build and maintain.

Terminals (terminuses)

The vessel starts from one destination and ends at another. Loading and off-loading take place at these destinations, called terminals or terminuses. Examples include bus stations, airports, and seaports.

MODES OF TRANSPORT

Mode refers to the manner in which transport is carried out. There are three modes of transport:

1. Land transport
2. Water transport
3. Air transport

Land transport

This mode involves movement of goods and people using units of carriage that move on dry land. The various means under this mode include:

Human Porterage

This involves humans carrying goods on their heads, shoulders, or backs. It is the oldest form of transport and still common. Suitable for light luggage over short distances and where other means are unavailable or inconvenient.

Advantages of Human Porterage

• Could be the only means of transport available.
• Complements other means of transport.
• Flexible with no fixed timetable or routes.
• May be cheaper compared to other means.
• Readily available when required.
• Convenient over short distances.

Disadvantages of Human Porterage

• Not suitable for long distances.
• Contributes to congestion on roads.
• Not suitable for heavy and bulky goods.
• Relatively slow.
• Relies on human energy which is exhaustible.

Carts

Carts are open vessels usually on two or four wheels, pushed or pulled by humans or animals such as oxen and donkeys. Human-pulled carts are called hand carts or mikokoteni; animal-driven carts are pulled by animals. Carts carry larger quantities than human porterage but are not suitable for long distances. Commonly transport agricultural produce, water, and animal feeds.

Advantages of Carts

• Complements other means of transport.
• Relatively cheap to hire.
• Low initial buying and maintenance cost.
• Appropriate in remote areas where other means are unavailable.
• Readily available for hire.
• Can carry fairly heavy and bulky goods.
• Convenient for short distances.

Disadvantages of Carts

• May not be suitable for very heavy and bulky goods.
• Can cause traffic jams leading to congestion and accidents.
• Not suitable for long distances.

Vehicles

Vehicles are units of carriage that ferry goods and people on roads. They are the most commonly used means of transport. Vehicles include passenger carriers (buses, matatus, taxis, private cars) and goods carriers (lorries, pick-ups, tankers, trailers). Vehicles are expensive to acquire and maintain. Their convenience depends on road conditions; some roads are impassable during rains, while others are all-weather roads.

Matatus are privately owned passenger vehicles introduced to supplement mainstream transport. They got their name from the original fare charged (“mapeni matatu”). Operators must obtain relevant documents such as insurance. Owners may form associations to manage interests along routes or areas.

Advantages of Matatus

• Supplement regular bus companies, especially in remote areas.
• Fill up faster than buses, saving time.
• Flexible routes depending on demand.
• Reach rural interiors inaccessible to big buses.
• Flexible fares.
• Readily available for hire.
• Cheaper to acquire than buses.

Disadvantages of Matatus

• Some are poorly maintained and unroadworthy.
• Drivers can be reckless, competing for customers and picking/dropping passengers anywhere.
• Touts may use impolite language with passengers.
• Cause noise pollution (unnecessary hooting, loud music).
• Cause congestion in towns due to careless driving and parking.
• Unjustified fare increases at peak hours, nights, and public holidays.
• Operations concentrated at peak hours, rarely at night.
• Sometimes change routes unexpectedly, causing breach of contract.

Advantages of Vehicles

• Most readily available means of transport.
• Relatively fast compared to carts and human porterage.
• Relatively cheaper over short distances.
• Flexible, offering door-to-door service.
• Available for transporting special goods.
• Roads are widely spread, making many areas accessible.

Disadvantages of Vehicles

• High acquisition and maintenance costs.
• Not suitable for heavy and bulky goods over long distances compared to railways.
• Traffic jams may cause delays.
• Prone to accidents causing loss of goods and life.
• Some roads may be impassable during rainy seasons.

Trains

Trains transport goods and people on rails (railways). Their terminuses are railway stations. Goods must be taken to the railway station for transport. Railway transport is suitable for heavy and bulky goods and passengers. There are cargo and passenger trains.

Advantages of Trains

• Relatively secure; theft and accidents are rare.
• Allows planning as trains follow fixed timetables.
• Economical for heavy and bulky goods over long distances.
• Facilities for special goods (gas, petrol, vehicles).
• Where shunting facilities exist, trains may deliver goods to/from owner’s premises.

Disadvantages of Trains

• Not flexible; follow strict timetables.
• Railway lines are expensive to construct and maintain.
• Not all areas are served by railways.
• Not suitable for urgent or perishable goods as trains are slow.
• Unsuitable for short distances.
• Expensive to acquire and maintain.

Pipeline Transport

This involves moving liquids and gases through pipes. Products transported include water, gases, petrol, and diesel. Some solids that cannot dissolve or be damaged by water may be transported as suspensions (e.g., coffee berries). The pipeline acts as both vessel and way.

Products flow by gravity or pressure. If the originating terminal is higher than the receiving terminal, gravity suffices; otherwise, power is needed to pump uphill (e.g., petroleum from Mombasa).

Advantages of Pipeline Transport

• Labour-saving; requires minimal manpower.
• Environmentally friendly; free of noise and smoke.
• Can be constructed in difficult terrains.
• Allows continuous flow of goods.
• Reduces road damage by decreasing tanker traffic.
• Helps reduce road accidents caused by tankers.
• Reduces delays from road congestion.
• Lower maintenance costs due to gravitational force and booster stations.
• Less affected by adverse weather.

Disadvantages of Pipeline Transport

• Leakages not detected timely may cause high losses.
• High initial construction cost.
• Leakages may cause environmental pollution.
• Unidirectional; flows only one way.
• Can transport only one product at a time.
• Not flexible; once laid, cannot be adjusted easily.
• Capital intensive; generates fewer jobs.
• Vulnerable to sabotage.
• Difficult to reroute or relocate once laid.

Water Transport

This mode uses vessels to transport goods and people on water bodies such as rivers, lakes, seas, and oceans. Units of carriage include ships, dhows, boats, steamers, and ferries. Water transport divides into inland waterways and sea transport.

Inland waterways

Transport on lakes, rivers, and canals. Lake Victoria facilitates transport among Kenya, Uganda, and Tanzania. Ferries connect mainland to islands like Rusinga Island. Water hyacinth threatens transport on the lake. Most Kenyan rivers are not navigable due to:

• Being too small
• Presence of rapids and waterfalls
• Being too shallow
• Seasonality
• High gradient

Sea Transport

Transport on seas and oceans using water vessels. Important for connecting continents and facilitating international trade. Kilindini harbor in Mombasa is a natural harbor facilitating sea transport between Kenya and other countries. Ferries connect Mombasa Island and the mainland.

Types of Water Vessels

Ships

Large vessels transporting people or goods through water. Sizes vary by cargo and passengers. Ships connect countries bordering the sea and load/offload at harbors (e.g., Kilindini harbor). Passenger ships carry people; cargo ships carry goods, especially heavy and bulky items.

Ships are classified as liners or tramps.

Liners

• Owned and operated by shipping companies (conferences).
• Have fixed routes and timetables.
• Fixed charges.
• Call at specified ports at specified intervals.
• Travel regularly.

Tramps

• Do not follow fixed routes or timetables; routes depend on demand.
• Fares vary with demand.
• Travel irregularly and cannot be relied upon.
• Owned by individuals or firms.

Note: Liners and tramps compete; liners are more popular due to reliability.

When a trader hires an entire ship, a charter party document is signed, detailing terms, destination, goods nature, and freight charges. A voyage charter is for a single journey; a time charter is for a period.

Special ships include tankers for liquids and refrigerated ships for perishables.

Boats and Ferries

Used for short distances in inland and sea transport (e.g., Likoni ferry in Mombasa). They transport goods and people.

Advantages of Water Transport

• Economical; fewer employees per volume compared to road transport.
• Suitable for heavy and bulky goods.
• Cheap as the way is natural and free.
• Connects countries bordering the sea.
• Special ships available for different goods.
• Large volumes can be carried, reducing cost per unit.
• Not affected by traffic congestion.
• Some ships are luxurious with amenities.
• Ports have depots for storage.

Disadvantages of Water Transport

• Sea sickness, pirates, and storms may occur.
• Slow; unsuitable for perishable and urgent goods.
• Expensive to construct and maintain artificial harbors.
• Weather conditions may affect transport.
• Not accessible to landlocked countries.
• Lack of loading/offloading facilities may cause delays.
• High cost of acquiring and maintaining ships.
• Theft during loading and offloading.

Air Transport

Movement of goods, people, and documents by aircraft. Aircraft are units of carriage; air is the way. Terminals include airports and airstrips.

Aeroplanes are the fastest means of transport, suitable for urgent and perishable goods like drugs and flowers over long distances.

Aircraft are classified as passenger or cargo planes. Passenger planes transport people; cargo planes transport light cargo. Aeroplanes may have special facilities for special goods. They are expensive to acquire and maintain and affected by weather.

Advantages of Air Transport

• Less handling of goods; may move directly to final destinations.
• Way is natural and free; no construction or maintenance needed.
• Can fly over physical barriers like poles and mountains.
• Efficient interconnections between airlines worldwide.
• Suitable for long-distance travel, especially intercontinental.
• Very fast; suitable for perishable and urgent goods.
• Chartered planes can reach remote areas.
• Smooth movement; suitable for fragile goods.
• High comfort and personal attention for passengers.

Disadvantages of Air Transport

• Causes noise pollution.
• Airfields not available everywhere.
• Not suitable for heavy and bulky goods.
• Expensive to acquire and maintain aircraft.
• Requires highly trained manpower.
• Weather conditions may cause delays.
• Expensive freight charges.
• Not suitable for inflammable goods.
• Accidents are rare but catastrophic.
• Limited carrying capacity.
• Not flexible.
• Airfields often far from city centers, requiring transport links that may cause delays.
• Hijackings have made air transport insecure for valuables.

Containerization

Recent development involving packaging goods in standardized metal (sometimes wood) containers for cargo transport. Containers can be hired or bought and are sealed after packing to protect goods from theft and weather. They are transported to the final destination where the seal is broken.

Goods can be transported as Full Container Load (F.C.L.) (one consignor) or Less Container Load (L.C.L.) (multiple consignors). Special handling facilities exist for loading and offloading containers.

Kenya Ports Authority has inland container depots (dry ports) like Embakasi in Nairobi to ease congestion at sea ports and improve cargo handling. Containers offloaded at Mombasa are transported by rail (railtainer) or special trucks to inland depots or consumer destinations.

Advantages of Containerization

• Minimizes risk of loss or damage as containers are sealed at source.
• Containers are lifted with machines, easing handling.
• Saves time and labour in loading and offloading.
• Sealed containers reduce delays.
• Special containers available for sensitive goods.
• Lower insurance costs due to reduced risks.
• Space-saving compared to individual packing.
• Can carry large quantities if packed well.
• Containers offer protection to fragile goods.

Disadvantages of Containerization

• Expensive, increasing transport costs.
• Capital intensive, contributing to unemployment.
• Not suitable for small quantities.
• Requires special handling equipment, which is costly.
• May not suit goods with irregular shapes.
• Training labour is long and expensive.
• May be used to smuggle illegal goods.
• Large trucks increase road damage and accidents.

Factors that Influence the Choice of Appropriate Means of Transport

1. Cost: Transport cost should be reasonable and proportional to the value of goods, unless urgency demands otherwise.
2. Nature of goods: Perishable goods require fast transport; heavy and bulky goods need suitable means like trains or ships.
3. Reliability: The means should deliver goods on time and in good condition.
4. Urgency: Urgently required goods need the fastest means.
5. Safety and Security: Goods should be secure against loss, theft, or damage.
6. Distance: Some means suit long distances (air, sea, rail), others short distances (road).
7. Availability: The means chosen should be available.
8. Flexibility: Ability to adjust routes and schedules; e.g., matatus are more flexible than aeroplanes.
9. Terminals: Accessibility of terminals for loading and offloading.
10. Value of goods: High-value goods require special handling and security.

Trends in Transport

• Pipeline and containerization.
• Electric trains replacing diesel engines.
• Use of underground tunnels for trains to ease surface congestion.
• Development of dual-carriage roads to reduce congestion and accidents.
• Development of planes with larger capacity and speed.
• Use of bicycles (boda boda) in towns and rural areas, often modified with motors, music systems, and comfortable seats.
• Motorcycles used as boda bodas; three-wheeled vehicles (Tuk Tuks) common in cities and towns.
• Private personal vehicles (four-seaters) used as matatus, offering faster filling, accommodating customer interests, and fitted with entertainment systems.

REVISION QUESTIONS ON TRANSPORT

KCSE PAST PAPER 1

1. 1996: State four circumstances under which a businessman would choose to transport goods by air. (4 marks)
2. 1997: Outline four reasons why a school in Kisumu may prefer to transport its sixty students to a music festival in Nairobi by train rather than by bus. (4 marks)
3. 1999: Give five reasons why a manufacturing firm would be located in an area well served by a good road network. (4 marks)
4. 1999: Outline four limitations of containerization. (4 marks)
5. 2000: State four reasons why road transport is popular in Kenya. (4 marks)
6. 2001: State four ways in which the nature of goods would influence the choice of transport.
7. 2002: Outline four reasons why a transporter of goods from Mombasa to Nairobi may prefer rail transport to road transport. (4 marks)
8. 2003: State the unit of carriage for each of the following modes of transport. (5 marks)

   Mode of transport – Units of carriage

   1. Portage
   2. Sea
   3. Road
   4. Cartage
   5. Air
9. 2004: List four ways in which transport promotes growth of trade. (4 marks)
10. 2000: State four reasons why road transport is popular in Kenya. (4 marks)
11. 1995: Give three disadvantages of railway transport in Kenya. (4 marks)
12. 1998: List four disadvantages of using containers to transport goods. (4 marks)

KCSE PAST PAPER 2

1. 1995: Explain five reasons that may account for continued use of hand carts as a mode of transport in Kenya. (12 marks)
2. 1996: The oil pipeline has recently been extended from Nairobi to western Kenya.
3. Explain five benefits that may be accounted to the country from the extension. (10 marks)
4. 1997: Explain five ways in which an efficient road transport system may promote trade within a country. (10 marks)
5. 1998: Discuss five factors that have hindered the expansion of railway transport in Kenya.
6. 1999: Explain five features of an efficient transport system. (8 marks)
7. 2000: Explain the advantages of pipeline as a mode of transporting oil products. (12 marks)
8. 2002: Outline five factors that should be considered when choosing a means of transport.
9. 2003: Explain six advantages of containerization as a mode of transport. (10 marks)
10. 2004: Discuss six factors that may discourage the use of pipeline as a means of transporting petroleum products in a country. (12 marks)
11. 2005: Discuss five circumstances under which a trader may choose to transport goods by rail.