OVERVIEW OF SALIENT ECONOMIC FEATURES OF THE MODES OF FREIGHT TRANSPORT FOR USE IN THE FORMULATION OF NATIONAL TRANSPORT POLICY IN SOUTH AFRICA

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Abstract

Defining the economic role of the various modes of freight transport should be one of the basic ingredients of both an economically rational transport policy and the effective functioning of the existing free freight transport market in South Africa. In the interest of the national economy and in the commercial interest of freight carriers, national policy on freight transport should take cognisance of (1) why governments involve themselves in transport, (2) the policy instruments of governments that affect the performance of the freight transport sector, and (3) the salient economic features of the freight transport market that should be considered in the formulation of transport policy. The goal of the research was to compile an overview of these three aspects. The research approach and methodology combine (1) a literature survey; (2) an analysis of the cost structures of freight transport modes; and (3) interviews conducted with specialists in the freight transport industry.

Keywords: Cost Structure, Economic Regulation, Economies of Density, Economies of Scale, Economies of Scope, Modes of Freight Transport

How to cite this paper: Pienaar, W. J., (2012). Overview of salient economic features of the modes of freight transport for use in the formulation of national transport policy in South Africa. Risk Governance and Control: Financial Markets & Institutions, 2(2), 33-47. https://doi.org/10.22495/rgcv2i2art2