Share this:


means the process whereby the passengers and goods are moved from one place to another place.
Transport is one of the aids to which assets in moving or goods from the place where they are produced to where they are consumed.
Is actual movement of passengers and goods physically from one place to another? Units of carriage such as trains, lorries, tankers, ships an aero planes are needed for caring passengers and goods.
There are three main forms of transport i.e. Land, water, and air.
Water transport may be sea, canal , lakes and livers
Land transport may be rail, road , pipeline
Railway , road , pipeline , canal are man made where as water i.e. sea ,lakes ,oceans are natural ways
Are those things which make transport to be smooth.
These factors are as follows
The way.
Goods must be move on something, on water , on land , or in air. This can be natural like sea , the air, or lakes or man-made like roads, railway tracks or bridge.
Unit of carriage.
Goods do not move themselves. They must be carried in some vehicle, may it be a truck , a lorry , a train, a ship or an aero plane.
Method of propulsion
A unit of carriage must be driven by some force or power. Common methods of propulsion are petrol engine, jet engine, and electric motor. To choice depends on the size of the vehicle, speed desired and the fuel available.
Goods must be loaded and off-loaded somewhere. These places of one unit of carriage is the
starting point of another vehicle example railway station, bus stands, airport , and harbors, this are very important factor to be in mind when deciding the means of transport.
There are three main forms of transport , These include
A. Land transport – This type of transport consist the following form
I. Road transport
II. Railways transport
III. Pipeline transport
B. Water transport
C. Air transport
D. Containerization
This involves the movement of goods and passengers by vehicle on road e.g. lories, business trucks ,pick-ups and tankers are the main units of carriage in road transport.

Fig 2. Transportation of goods from one area to another

Road transport route are connected to nearly all the co
nsumer where motor vehicle cannot reach motor bicycle and pick –ups are used.
When considering short distance road transport in relatively fast, the loading and off loading can be effected any where unlike railway and sea transport where this is line under special designated station.
The transport cost passengers and cargo is relatively cheaper comparing with air transport.
The are no fixed time table in road transport thus making it convenient to travel at ay time you need it affords the transport of any size of load at any time it also allows passengers and goods to board, load ,disembark ,and off loaded at any price.
-Low construction and maintenance cost
Initial and operating cost is relatively low compared to other modes of transport.
I. Road transport can handle limited quantities of bulk and heavy materials like coal, timber , iron , cement etc.
II. Road transport is expensive in congested areas e.g. urban centre and industrial areas.
III. Weather conditions tend to disrupt road transport more easily than air.
IV. Compared to air transport road transport is slow to cover up expected distance.
V. Is too risky especially for delicate goods this can cause breakage or destruction goods like computers and glass materials causing a great loss.
VI. Transport facilities contribute air and water pollution in the world.
VII. Construction of roads encourage land degradation.
Involving the carrying of goods and passengers by train. railway transport is the means of transport which transport bulky goods.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It is convenience to the businessmen in industries linked to railway tracks.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It is less effected by whether than the other form of transport.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION Route are more direct and there is a specific timetable of railway services.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It is suitable and quite cheap for carriage of bulky goods over long distance.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION Rail services can be provided to greater number of person and more load can be carried as compared to road or air transport.
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION Passenger trains charge relatively cheap compared to other forms of transport especially air transport.
I. Railway transport is not flexible because routes are fixed.
II. Its speed its low over short distances i.e. it is a slow form of transport compared to road transport.
III. Its expensive for short runs and small cargoes.
IV. Initial cost of setting are quite higher i.e. its expensive to constructs railway lines.
V. It has fixed schedule i.e. trains are time tables so users are limited by these schedules.
Is the type of transport where by goods are transported by using water i.e. on seas, canals, lakes and rives
Advantages of water transport
?Little time is wasted in traffic control.
?The way is natural. i.e. don’t need construction or maintenance expenses/expenditure.
?It is cheapest for bulk and low quality goods.
-Breakable goods like glass can be carried without the danger of damage in the absence of shaking and jolting on inland water ways.
-Where the port of dispatch and delivery are in the waterside, there are no added costs of collection and delivery .
-The water transport is relative free from weather conditions compared to road and air transport.
-Special ships like oil tankers may be constructed to carry special type of goods . this is a great advantages that s
ea transport has over other forms of transport used for long distance
Disadvantages of water transport
? Maintenance charges of canal are high
? Providing facilities at ports may be very expensive. not every country is blessed with natural habours
? Perishable or urgent required goods cannot be transported by canal since their speed is low.
? canals serve a limited area where water exist. The same applied for sea, lake and river transport
? Canal an d river suffer from drought in dry seasons and are liable to be frozen in very cold seasons
-Port congestion may lead to delay in delivery . this is particularly true to east Africa ports which don’t have enough facilities to handle the great volume of cargo off loaded everyday
a) Cargo ship
These carry bulk freight such as coffee, , cotton , sisal, food- stuff, machinery and a few passengers. They operate on the fixed routes. Also They carry particular class of cargo of every route on which they sail.
b) Lash ship /tramp steamers
These do not have set routes but operate like taxis going wherever they can get cargo. These tramp steamers are owned by individual, companies and partnership and carry low grade goods sent in bulk such as coal and another minerals and raw materials
These are ship which do not follow a regular route or timetable but are available at the demand of the customer therefore speedy than liners. They resemble to the taxes in road transport. They are best for those customer in need of maximum speed/urgency.
c) Passenger liners /liner
These are ships which carry people, tourist , and small cargo of travelers/ passengers. They sail on fixed routes at regular intervals.
d) Tankers /oil tanks
These are owned by oils companies and tank owners and carry oil, oil product and other liquids.
I. charter party
a) This is an agreement between the person owning the ship and the person hiring entire ship or a number of voyage. Is the agreement between ship owner and the person who want his goods to be carried in the ship for the charge.
A charter party constitute an agreement between the shipper and the chartering businessman and gives the businessman who hires absolute control over the vessel for the period of contract.
Contents of charter party
-Place where the ship will go.
?The type of goods to be carried in the ship hired.
?The amount /charge to be paid by one who hire the ship.
-Time of loading the goods and time of unloading the goods.
-Right of the ship owner to hold goods because of failure to pay the bill.
b) Bill of lading
A bill of lading is issued by the ship owner to the exporter a copy
is sent to the importer and copy is retained by the ship owner. Its saves the following duties
a) It is official receipt for the goods shipped in one of the owner’s vessels
b) It is agreement between the exporter and ship owner to carry cargo up to destination.
air transport this is movement of goods and passengers by the aero plane.
?It provides regular, convenience ,efficiency and quick services.
?There is greater security and protection in transit since there is a shorter traveling time
?Air transport is particular suitable for the carrying of items here speed is essential e.g. drugs for saving life, mails , perishable and fashion goods.
?Its suitable for transport valuable items like gold copper, glass etc. .
?Air transport helps in transporting goods to areas un accessible by any other means of transport.
i. The cost of operation of the air transport is higher as compared to ocean ,road or rail transport
ii. Can be affected by bad weather conditions e.g. heavy storms etc.
iii. Dangerous articles like those which can be easily catch fire and alike are not accepted on planes. E.g. fuel
iv. Air crafts have limited carrying capacity compared to railway and water transport
v. It is not flexible i.e. airport are allocated outside city centers
I. Airway bill, this documenty issued by an airline company to act as a contract between the airline company and the sender of the goods. Twelve copies are issued but of those three are originals, one copy is given to the carrier of the goods, second to consignee and the third to the sender of the goods. However, the remaining copies are retained by the air line company for the administrative purposes.
These are type of pipes constructed to carry liquid materials such as oil. For example of these pipeline is the TAZAMA pipeline which is jointly owned by TANZANIA and ZAMBIA carries oil from Dar es salaam to Ndola in zambia.
Pipeline can be constructed under or on the earth surface.
Some time pipeline include small pipes inside which transport more than one kind of liquid goods e.g. one pipe can be used to transport petroleum , another kerosene, and another diesel and so on
Example shown below is one type of pipeline which constructed on the earth surface.
Advantages of pipeline
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It is economical since it involves low cost of operation and maintenance
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It is not effected by the unfavorable weather conditions
EcoleBooks | COMMERCE As LEVEL(FORM FIVE) NOTES - TRANSPORT AND COMMUNICATION It can carry large volume of goods
Disadvantages of pipeline
? The risk of destruction are very high
? In case of accidents enormous damage can occur
? It can not be effective in mountainous areas
? Initial cost of construction is very high
? It is not suitable for solid goods
? In case of damage it can cause environmental hazard
It is a recent development that has revolutionized sea transport. It involves parking the cargo in standardized containers which are sealed by the exporter or his agents.
C:thlbcrtzTransport & Communication_filesimage004.jpg
Container Ship
A container ship, the Arlberg, leaves New York Harbor. The ship is part of an interm
odal transport system in which containers can be transferred between ships, lorries, trains, and planes.
a) Use of modern cargo- handling machinery. machines like automatic cranes can handle cargo effectively when the goods are packed in containers.
b) Use of modern machines save time and labour handling costs.
c) Efficient use of space. when goods are packed in containers , it is possible for only small space to use than if could be ordinarily wrapped. This aspect is very important especially in modern transport where terminals handle large volume of goods.
d) Safety containers are sealed at the exporter’s premises and delivered without the seal being broken to the importer which makes them safer from loss/ damage also as containers usually do not bear any marks showing the contents, the risk of theft is minimized. This means insurance premium are lower on containerized cargo and goods arrived in better condition.
e) Transporting containers by road after they have reached the port of destination is also simple than handling a mass of irregularly shaped goods.
f) Special containers may be built to handle special types goods like chemicals and so on.
a) Not suitable for small quantities where the cargo is not enough to fill the whole container then it is impossible to transport the items by this methods
b) Required special machinery. if the terminals don’t have modern tools like cranes ,winches and the likes transporting goods through containers become difficult and sometimes impossible
c) Increasing cost of goods. containerization adds costs to the importer as the containers have to be paid in most cases exporters don’t own containers but borrow them from firms specialization in the services.
d) Unsuitable for some goods. containerization is not suitable for bulky and awkwardly shaped items because of the size.
Various forms of transport have their advantages while choosing a mode of transport. one has to balance variety of advantages and disadvantages. The main factors which determine the mode of transport are
1. The kind of goods /types of the goods
Goods are often classified as manufactured goods , produce ,dry goods and wet goods, fragile goods perishable goods and so forth. Fragile goods should be handled with care to ensure safe delivery to the consumer while perishable goods should be hummed to the consumer to the consumers before they get spoil.
?? Weight of goods
Small and light goods of high value may easily and cheaply be carried by air. Bigger and heavier goods may be carried by road. Very bulk and heavy consignments should be carried by railway or on water.
?? The location of the seller’s premises/warehouse.
It may also influence choice of a transport methods for his/her goods. If the warehouse are near railway station, railway may be preferred .
??The speed and urgency
If the buyer urgently needs the goods the fasten means available should be considered.
?? Goods that are bulky but light.
Require a lot of space permit of weight transported the weight transported. The weight to volume ratio of a consignments may determine the methods of transport chosen .
⌛? The cost of transport.
The cost of transporting an items an item should bear a reasonable proportion to it is value. Only in case of acute urgency can this factor be over looked.
?? The distance
For shorter distance road transport is best , for longer distance the railway may be advisable and for very long distance sea transport may suit , a summing that all the three means are equally available.
?? Flexibility
The a ability of the mode of transport to reach any destination is important. Road transport is more flexible than the rest and variation and diversion can be made.
I. It makes possible mass production because business are able to get supplies from different parts of the world.
II. Transport helps the growth of trade and industry by providing with raw materials and by carrying finished goods to the market.
III. Division of labour and specialization has been possible because of development means of transport.
IV. It makes goods and services available where they are demanded by consumer
V. It avoids wastages by transferring surpluses of goods to areas where they are shortages hence stabilizing prices.
VI. Transport accelerates the growth of other aids to trade such as were housing, banking, insurance etc.
♓? transport makes goods and services available where they are demanded
♓♓? improve trade relations within economic units
♓♓♓? since transport enables goods and services to reach various markets, it encourage production
♓❖? transportation enables specialization
❖? transportation influence industrial location
❖♓? it makes possible mass production because business are able to draw supplies from and sell goods to all parts of the world
❖♓♓? transportation improves international trade
❖♓♓♓?transportation enables people to move from one place to another e.g. from home production places and vice versa
is an aid to trade which deals with transmitting information and ideals from one place to another OR
is the process that involves sending and receiving message information and ideals between two or more separate locations in the business. communication is of great advantages because before any transaction to made, there must be communication between two parts
The first steps in planning any messages is to determine the purpose of your communication. The following are main purpose of communication
To inquire – this is the situation whereby one is in need to get certain information which is not known before. For example one can ask a questions like when did you learn to use this digital computer
To inform – is the situation of letting someone know something which has not been known before. A good example is to answer the questions of the previous paragraph “ this digital computer is six month old”
To persuade – the situation to influence others in accepting or love something for example “you really will save time and money if you use digital computer.
To develop goodwill – communication is aimed to maintain good relationship between a sender and receiver.
Communication always involves very important element which make up communication to be process. These element includes
a. Source (encoder )
Its where a message originates, this can sometimes be a person, things , materials or condition from which a message is transmitted
b. Message (information )
This comes from a sender / source message is always in form of written verbal talk, song or even in a state or condition
c. Medium /channel
This is the way through which the message from the sender passes so as to reach the intended person or things.
d. Receiver (decoder )
These are the persons or people who receive the message from the sender and respond that message. A receiver receives information and interprets before reacting on it by giving feedback.
e. Feedback
This is the outcome of receiver’s interpretation of the message. It is the reaction of what he has received from the sender. Feedback is important since it makes a cycle. Always feedback is in the form of physical reaction like asking questions laughing and crying.
Mention communication media
Internet technology
Electronic mail
Mobile phone
I. oral communication
this is face to face and telephone communication where by people communicate by words of the mouth OR
Is the kind of communication uses spoken words to exchange ideals and information. this types of communication consist of telephone calls. This vital services is given by Tanzania telecommunication company (TTCL) and other private companies.
Form of Oral communication
– Interview , joint consultations , meeting and conference , conversation.
– Radio call
For people living and working in some remote towns the TTCL provide services called RADIO CALL SERVICES
Advertising through radio and television is also a form of oral communication. message intended for great number of people may be transmitted through radio. Move economically than by ringing to everybody.
II. written communication
Tanzania post corporation provide the main services of carrying written communication. Written communication are usually through letters ,parcel, newspapers , samples, postcards, telegrams and other these may be analyzed as follows
a) letters and printed matter
these may be sent to any destination in or outside of Tanzania by surface or airmail through the post office. Expressed letters are given priority in sorting and reach their destination faster than ordinary letters.
ordinary letter/ordinary post is the kind of letter sent by ordinary post by fixing the necessary postage stamps. These postage stamp can be purchased from any post office sometime postal franking machine can be used.
Ordinary post may be :
a. surface mail- letter sent within the country
b. airmail –letter sent to the other countries
b) Telegrams
This method of communication is used in transmitting information by filling a special from the person to whom the message is sent gets the copy of the message the same day or the following day this message is dictated to the post office over the phone. The charges are higher than those charged on letters and depends on the length of the messages
c) business reply cards
this is the device by which a business can send out a prepaid card for a reply. In this case postage is payable only if the card it actually posted.
A license is to be acquired for the use of special design including the license number of the firm.
d) franking machine
in order to save time in affixing stamps to letters , a franking machine can be obtained this print stamps the firm using this machine does not have to buy postage stamp the machine print the amount of the postage on the envelope with the name of the sender the post office is paid the total shown by the machine at the end of each month or at interval agreed by the two parties.
e) registered letters /registered mail
if the letters are registered and payment made to the post office undertakes to compensate the sender if the letter is lost.
Is the letter or parcel can be sent any where within the country or abroad and it insured by registration fee against damage or lost.
This is the services offered by the post office in which letter are registered and posted to the destination place. in case letter lost on the way post office compensate the sender thus way sender must pay registration fee and postage , he will be given receipts to proof that registration fee has been paid so as compensation will be done when the letter lost on the way.
f) telex services
this provides a direct link between subscribes and other uses all over the world messages types at the senders machine are automatically printed at the receiver’s set.
iii. non verbal communication
this is the kind of communication without words. Non- verbal communication is an important from communication. In this communication one express is feeling emotion or ideals by using body language, gesture.
In Tanzania there are several institution which provide communication services. Some are owned by the government and other by the private sector these institution are
This involves transferring and carrying written communication from the person who send letter/parcel (sender ) to the person who is expected to receive the letter/parcel
This corporation offer two services which are
i. Sending and delivering letter and parcel
a. Ordinary posting
This services provided by post office where by written down letter and printed and sent within or out side the country
Feature of services
Letter are placed in envelop
They must have stamps
b. Registered mail
This is the services offered by the post office where by letter are charged registration fee and receipt is issued to sender as evidence when compensation is done to the sender when letter lost on the way.
c. Business reply ser
This services enable member of public to send short replies to the business organization without paying stamp.
d. Recorded delivery services is This is services provides proof that sender has posted a letter and that it was delivered to the intended receiver. There is charge for this services.
e. Poste restate.
This a services provided by the postal office to travelers or business men who are supposed to be in particular town for only short time hence not having number in that town under this circumstances they will advice their friends/traders they are likely to be in on given dates so that their letters can be sent to that particular post office of the town addressed as say,
Ms sakatwa Johnson
Poste restate
Kyela post office Tanzania.
f. Certificate of posting
Post office issue a certificate to the sender proof that you have posted a letter to a particular address.
ii. Remitting / receiving money and making payment
Post office offer the following financial services.
a) Sending of cheque
A cross cheque can be sent through ordinary mail to the payee to be deposited in his bank account.
b) Postal order
A postal order is useful for the transmission of small sums of money by post especially to people who do not posses cheque books. They are issued for any amount for paying a fee or services to be obtained.
c) Money order
This is an order for money paid in at one post office to be payable at another post office as stated on the money order.
d) Telegraphic money order
This services enable money to be sent to a specified person by telegraph.
e) Post office saving bank
A post office operates a saving bank. This bank is intended to promote saving habit among the citizens. It mainly operates saving account.
f) Cash on delivery
This is additional services which is useful to traders. The post office undertakes to collect payment for the goods being delivery before they are actually handed over
This corporation provides the following services.
a) Telephone services
A telephone is an instrument which enable an individual with organization to speak to another person who is in another place the telephone’s immediate advantages is speed. A trader can place an order for goods or get a quotation or them much more rapidly by telephone than by letter.
b) Telegram.
This is a means of sending short written messages which may be very important urgently needed. The receiver of the message will receive the messages on the same day.
c) Telex services.
A telex is a combination of a telephone and a typewriter subscribers to this services have a teleprinter installed in the office and are given number in the same way as telephone users messages can then be sent to other subscribers. The telex operator types the messages out and it is automatically printed at the recipient’s office.
d) Facsimile telegraphy.
This is the transmission of written information like maps drawings and diagrams. Messages to be transmitted are fed into a machine which is connected by a telegraphic or telephone wire similar to a machine else where which produces it in photographic details.
e) Datel services.
Datel services provides a means of transmitting information from one computer to another, using the public telephone network.
f) Teleconferencing.
This is the system that enable people to hold a meeting through a system of videoconference and audio conferencing without meeting in the same location.
I. speed or urgency of the messages
before selecting the means of communication one should consider whether the information is urgently needed or not. Information which requites urgently communication may be transmitted by a quick means of communication e.g. telephone, telex, fax etc hose which are not very urgent may be transmitted by normal letters through the post.
II. Availability of the medium
in most cases the person who will use the medium of communication which is available of the means of communication available is only a telephone and the person who is to receive the message has got a telephone than the message will be used.
III. The cost of the medium
before deciding what means should be used in transmitting the information one should think of the cost involved
IV. Distance
Consideration should also be taken as to the distance the information is going to be relayed longer distance would require a quick means of communication
V. Confidentiality and security
Confidential matter would need a confidential means of communication while normal information may require any means of communication
VI. Flexibility of the medium
Before choice is made one should think of how flexible the means of communication is to effect any changes in order for information transmitted to reach the person concerned efficiently.
Communication can be oral or written, nowadays businessmen usually communicate through phone, internet etc.
I.Good reputation
When a company communicates with the general public to keep them when informed about its activities and services then more people become interested to deal with that company example Vodacom ltd in Tanzania.
II.Better prospects
Due to good communication, company can attract more customer. The company can increase the sale of its products.
????Choice of customer
A company can get the information about the liking and disliking of the customers. This information helps the company to produce goods according to the choice of customers.
?✞?Greater efficiency
The sound of communication system enable management to instruct the supervisors and subordinates staff about change of policy. As a result, the efficiency of workers increases.
✞?Better understanding
Good material communication improves the understanding between the employer and employees. If the complaints of staff are communicated to the employees in time and in right way then the chances of any misunderstand become minimum.
Summary of importance of communication to the business
♓?It help to create market for goods and services.
♓♓? It makes possible mass production by ensuring market for the goods produced.
♓♓♓? It makes goods available where they are needed for consumption.
♓❖? It bridge the gap between producer and consumer.
❖? It makes easy contract between producers seller and consumer.
❖♓? It increase the mobility of labour.
❖♓♓? It create employment to the people.
❖♓♓♓? Technology can be easily be transferred from one area to another through communication.
Barriers of affective communication
I. Noise, in the absence of noise people cannot communicate well because they bring about misunderstanding between the sender and the receiver of the message.
Break down of the communication channel
Sometimes when people are communicating break down of the communication channel can happen, in such situation people cannot understand each other. This is especially for electronic channel of communication such as phones, radio etc.
III. Semantics, by semantic we mean that the same words may have different meanings for different people e.g. manager may call in a new secretary and ask him or her to “burn” a copy of particular blue print since there is only one copy with correction on it, the manager may want more copies. But the secretary, being unfamiliar with this “technical forgot” may literally put a match to the blue print.
IV. Language used
If language used is complex or not know by the receiver it might be the barrier to effective communication because the parties will to a person who does not know English language.
V. Increase running costs.
VI. Large capital outlays.
VII. Remoteness of some areas makes it difficult to be accessed.
VIII. Bad weather condition destroy means of communication.
  1. discuss the factors to be considered when choosing means of transport of goods.
  2. what are advantages and disadvantages of air transport?
  3. (a)What is production?
(b) Describe the contribution of transport towards production
  1. outline the main advantages of containerization
  2. (a) what is the importance of communication in trade ?
b) explain briefly four (4) barriers to effective communication
  1. what are the factors that determine the effectiveness of transport ?
  2. outline five (5) advantages and five (5) disadvantages of air transport
  3. write short notes on the following

a) charter party.
b) containerization.
c) pipeline.
d) airway bill.
e) registered post.

  1. with the help of a post office guide. make a list of services offered by Tanzania post office and telecommunication corporation.
  2. Differentiate between a written communication and verbal communication.
  3. What are different forms and element of transport?
  4. Discuss the main features , advantages and disadvantages of road transport.
  5. Discuss the main features advantages and disadvantages or rail transport
  6. What do you mean by pipeline ? discuss its advantages and disadvantages
  7. Define containerization. Discuss the advantages and limitation of containerization
  8. What are channel of communication ? explain
  9. What are remittance services provided by the post office ?

Share this:



Leave a Reply

Your email address will not be published. Required fields are marked *

Accept Our Privacy Terms.*