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CHAPTER V TRANSPORT and ECONOMIC DEVELOPMENT in A

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CHAPTER V TRANSPORT and ECONOMIC DEVELOPMENT in A CHAPTER V TRANSPORT AND ECONOMIC DEVELOPMENT In a large country like India Transport plays a vital role in the economic development. The word transport is derived from the Latin word comparises of two expressions namely trans which means across and portion which means to carry. In short transport means carrying things or persons from one place to another place. In a wider sense, the term transport includes all the clerical, mental and manual occupations involved in the operation of road, rail, canal, sea and air transport.1 Transport may be defined as a service of facility which creates utilities, turn or place, through the physical transfer of goods and persons from one place to another place. Transportation is the conveyance of persons or property from one place to another place. The need for the conveyance of goods arises from the fact that they are often produced in one place and required in another place. The transportation of person arises from the need of individuals to go from one place to another to satisfy some needs connected with business, social, cultural and recreational interests. Transportation is the vital factor in the advancement of civilization and economic development. The means of Transport collectively constitute a large portion of our wealth, which gives employment directly or indirectly to lakhs of people. It also contributes substantially to the national income. Labour is the transport field which has been recognized as a separate factor of production. It is a human factor, and therefore, not only economic but moral and special consideration should also be taken into account in the discussion of problems connected with labour. People also are required to go from one place to another to meet personal, social or business needs. Transportation was the first step towards civilization and a principal element 1 Saxena, K.D., Economic Reform, The Indian Experience Serial Publication, New Delhi, 2005. p. 6. 191 in its advancement. The transportation began on the banks of rivers and hence all great cities of the early period were situated on the banks of river or near the sea. The second great advancement in transportation developed after the expansion of construction of roads and bridges. The regular system of roads making began at a period when water transport was already highly organized. The progress of transportation from the earliest times to the present consists largely of development and exploitation of new methods and technique. Importance of Transport Transportation is one of the major factors which strengthened the economic as well as the commercial progress of a place and without transportation it is not possible to construct factories and mills wherever the raw materials are not available. 2 Therefore, transportation of goods becomes inevitable. The transportation plays a vital role for transporting the raw materials from the places where they are available to the factories or mills where they are needed. It is an important means of communication. Even now 40 per cent of the postal communications in India is done through automobile transportation. A speedy vehicle can take a policeman to the place of crime within moments of being notified. The fire service is rushed to the area where the houses are gutted very soon after the news is relayed. In the time of disaster transportation can rush to help persons in areas affected by floods, famine and earthquakes. So without transportation our society and the state can‟t function. The importance of transport service to the development of economy is too well known. The speed and scope of transport work also had beneficial effects of factor mobility allowing human and material resources to be transferred more readily to place where they can be employed most productivity. Consequently, transport helps to attain preferred regional distribution of population in industrial 2 Ibid., p.4. 192 centres. 3 It is a major industry providing employment for millions of people, throughout the world. Though the demand for transport is not as fundamental in human nature as the demand for essential commodities, it is an indispensable part of civilisation. In fact, the whole structure of industry and commerce rests on the well laid fundamental of transport.4 Transport plays an important role in improving the standard of living and life style. Efficient transportation is vital to capitalize on production economics, geographic specialization and competition. These benefits together reduce cost per unit, increase the purchasing power and make it possible for the people to consume a wider range of goods. Transport was seen as a driving force behind economic development. For example, transport innovations such as canals and metal led road were perceived to be major pillars upon which industrial revolution was built.5 Transport helps in reducing the cost of production of goods. Territorial division of labour or regional specialization is not all possible without an excellent network of transport system. Without efficient transport, each community would be required to be self-sufficient and to produce everything locally. This may result in high cost of production and the consequent by increases the prices. Further all regions of a country of the world are not equally gifted with the endowments of nature and hence certain raw materials may not be produced and hence the exchange of raw materials and finished product is possible only if the transport system is well developed. Transport facilitates the location of the industry and factories. Transportation helps the growth of large cities and urbanization of the country-side. Efficient and quick transportation stimulates concentration of population in cities which would encourage mass production and specialization of large scale production, in turn, increases other associated activities related to trade 3 Garyfromm, Transport Investment and Economy Development, Bombay, 1965, p 47. 4 Census of India, 1921, p.7. 5 Button, K.J. and Gilling Water, D., Future Transport Policy, Croan Helm, Great Britain , 1986, p.156. 193 and commerce, warehousing, advertising, packaging, insurance, banking, financing and mercantile agencies. Due to these activities urbanization of surrounding villages would be taken place. Besides these economic effects, the transport system leads to certain social and political effects. It raises the standard of living, gives opportunity for better education, and helps in the spread and integration of different cultures. The transport helps in the expansion of market. It increases the scope for marketing of goods which are produced at faraway places. Besides the transport imposes new ideas and methods of production into practice, and hence high cost methods has to face competition from the low cost methods. Transport plays a crucial role in localization of industries. Numerous factors like climate, raw material and labour supply, apart from transport facilities to determine the localization of industries. The availability of means of transport is the most important consideration for the simple reason that all the other factors put together would not ensure localization in a particular area until the entrepreneur is absolutely certain that the finished goods can be transported cheaply and quickly to distant consumer markets.6 Presence of transport is vital for the distribution of wealth. It increases both the supply and demand for capital and also it raises the productivity and real wages of labour but its relation to economic rent is most direct. Transport has the effect of increasing the rewards for the factors of production, rent on land, interest on capital, wages and salaries for labour and profits for the enterprises. The rent of land and the rent of urban sites are mostly determined by the presence of transport. 7 The transport is an agent of social transformation. It breaks the barriers of distance of remote isolation, brings new ideas, dissects ignorance and buries age old customs and traditions. Transport is the vehicle for knowledge explosion and removal of prejudices. It facilitates quite social interaction and brings in changes of 6 John, G., “A Study on Model Preference of Rail and Road Passenger”,(Unpublished Ph.D.Thesis, Department of Commerce), Bharthidasan Universith,Tiruchirappalli,1985, p.15. 7 Ibid., p.32. 194 far-reaching consequence. Fashions and styles get conveyed from one place to another very quickly through the means of transport. Agriculture demands services of transport from two directions. Input must move from urban areas to the farm and output from farm to places of consumption. This involves very large additions to rural road networks, extensive investment in trucks, the expansion of storage and processing facilities and new institutional arrangement for managing and financing to the total system. 8 Lack of transport hampers the effort to produce more goods, because it prevents farmers from specializing the crops that yield the best return. In the absence of proper transport facility each grower produces according to his needs and retains more food than he needs to meet any future shortages. Transport by facilitating the movement of agricultural input increases the area of cultivation and yield 9 . An efficient transport system is essential to protect a nation‟s sovereignty, territorial integrity and natural defence. Almost all nations face the threat of either external aggression or internal disturbance or both. Hence, a good transport system facilitates easy and quick movement of military and police forces in times of emergency. It is one of the decisive factors which determines success or failure of war10. Situated in the heart of Tamil Nadu, Tiruchirappalli district consists mostly of undulating plains and is divided into two main parts namely the northern part and the southern part by the Valley of the river Cauvery. But, for a sparse mass of crystalline rocks, this is entirely a land locked district depending mainly on land transport for the movement of passengers and goods as well. The district has fairly a good system of road.
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