Role of Each Mode of Transportation in USA and Global Transportation Market - Term Paper Example

Transportation Management – Role of Each Mode of Transportation in US & Global Transportation Market Introduction The US transportation market in thelast few decades has undergone radical transformations in terms of infrastructural developments; commitment to promoting green initiatives; exploration of various novel ways of passenger safety and comfort; installation of high-speed freight corridors; amalgamation of alternative energy resources with existing fuel economy to cut down on expenses and so on. Studies on transportation management have laid firm emphasis on mobilizing the dynamics of operational and commercial coefficients latent in further boosting the transportation sector worldwide. But there are certain inhibitory factors as well, throttling the desired outcomes to a great extent. One of the major challenges the global transportation system faces is lack of modal areas that might put the smaller elements together, in view of creating an integrated and well coordinated network of spatial communication. The idea of integration is embedded in corporate cultures – a key addition to the economy of management in the late 20th and early 21st centuries. It may be noted that the operational features of modern day transportation system are based largely on effective logistics management. In order to curtail the additional expenses involving shipment and freight transportation, many agencies worldwide has adopted several holistic measures to align their objectives with the economic tenets of globalization. The transportation industries across the world share a common objective, i.e., infrastructural development to accommodate for cargo, logistics support, shipment and storage. This objective has as of now a wider reach in terms of fulfilling the requirements of all the related financial domains, including employment, micro and macro level capital investments, business, and maritime operations. Each of these financial areas is sustained by a set of primary transportation modes, including road transportation, railroad transportation, maritime transportation, and air transportation. Thesis & Methodology of Research This paper is going to critically analyse the role of each of these modes in the context of US and global transportation system. The paper will first of all define each mode with relevant discussion on respective cost analysis, fleet, infrastructural aspects along with operational and commercial determinants. Next, the paper will briefly touch upon the management issues prevailing in the transportation industries in various countries. Modes of Transportation The civil transportation sector in the US and other developed countries is served by four primary modes: road, railways, maritime and air. Depending on the nature of travel and time constraints, passengers determine what mode suits them best. It may be mentioned that the public transit system refers to domestic transportation network, which connects interstate cities, towns and suburbs. Both in the USA and in many European and Asian countries, metro links, operating both underground and on the ground, feature prominently as one of the most reliable and time saving mode of public transit. The United States Department of Transportation oversees all the four modes under federal, state or local jurisdictions. However, there are some privately owned systems designed to cater to mass commutation. Infrastructural aspects such as building and maintenance of state highways, airports, and ports fall under the jurisdiction of both state administrations and the federal department. Each state administration has its own department of transportation to provide a number of services for maintaining smooth and seamless operation. The aviation sector being a prioritized one in terms of security and importance enjoys the privileges of federal provisions, while road and railway links are looked after by local or state governments. Maritime operation, on the other hand, is under the watchful surveillance of the United States Coast Guard. Public Transit Fleets of the public transit system comprises primarily of passenger cars, light rail services, intercity railways and motor buses. Usage of public transportation means has grown exponentially since the last decade, surpassing domestic air travel and highway commutation. By 2005, the number of passengers using public transportation everyday scaled 14 million, which implies a 21 percent increase from 1995 (Wortman & Yee, 2005, p.2). Subsidization: An Economic Approach Subsidized services have gained more prominence in Europe than in America. Now with America’s ever increasing reliance on public transport, lack of subsidy has led to operational depletions in many parts of the country. This, however, is not the case commonly found in many European countries. Serving people with people’s money is the mantra of colonial governance systems whereas the federal government in the US has historically been reluctant to shoe off the taxes paid by its citizens. As a result of this fundamental discrepancy, both sides of the Atlantic adopt different policies for inducting ways to popularize public transport. Since economy of choice is the basic motto of people in the European countries, healthy subsidies and allowances are given by the controlling agencies to allow them have a cost-effective ride. On the other hand, only low and moderate income commuters use public transport in America – a data that can be substantiated by the fact that European travelers commonly prefer public transport over private modes. It may be noted that passenger rail services in Europe are also subsidized by respective authorities, which is a lot to do with maintaining the cultural affinity toward heritage (Lynch, 1998, p.127). Road Transportation Roadways transportation is considered to be the most popular and handy for everyday commutation purposes. In most American states, people use personal automobiles as the primary mode of mass transport. This mode has operational flexibility and it does not entail any fringe hazards as far as passenger safety is concerned. Unlike the aviation and railway sectors, roadways do not pose severe security threats to impede operational continuity. As it is, safety concerns for passengers have multiplied following the events of 9/11, and many commercial transportation authorities worldwide have been striving to arrive at a common consensus over mending the likely shortcomings in system integration and numerous other technical aspects of transportation safety. More number of security personnel is being deployed in airports and busy railway corridors in the US and other parts of the world to prevent subversive activities. But the very nature of roadway transportation rules out the possibility of sabotage and other security threats. Be it public buses or personal automobiles, the chain of command within a very small domain and under tight schedules. This makes it difficult for terror outfits to plan and execute their attack beforehand. Infrastructural aspects of road transportation are of a contradictory nature. On one hand, the spatial occupation for setting up the required infrastructure for roadways is quite enormous. The network of highways in the US alone measures 3.9 million miles (RITA, n.d.). What it also implies that maintaining such an expansive network also takes its heavy toll on national economy. On the other hand, having such a structured system of interconnectivity makes it very difficult to dismantle the infrastructure, should any act of terrorism occur. So what is apparent is that having a large network of programs calls for close monitoring of devices and human actions, failing which the network itself may collapse. On the other hand, roadway transport does not entail as much physical maneuvering techniques and mental involvement as in aviation, maritime or railways industries. Notwithstanding the strategic benefits provided by roadway operations, its economic liabilities are worth taking into account as well. Raising and maintaining infrastructures require additional expenses when such setups need to be erected by dodging natural obstacles (Slack, Rodrigue, & Comtois, 2010). Now, the economic aspects of transportation are very important to consider because the more money is spent behind operations, the cost of sustaining the operations increases. As a result, passengers need to pay more out of their pockets – a proposition not very promising for organizational profit. Eco-friendliness of the accepted means is another crucial parameter for growth and futuristic developments in road transport. Following the resolutions adopted in the Geneva Convention, state heads of the developed nations unanimously agreed upon the clauses involving energy conservation and usage of alternative fuel as prospective means to avert the adverse effects of global warming and stabilize the rate of greenhouse gas emissions into the earth’s atmosphere. Hence, it is quite apparent that fleets plying on the roadways of the United States and other countries have the all-important role to play in ensuring minimal level of carbon emission. As argued by Weiner (2008), the concept of Advanced Transportation Systems and Electric Vehicles was introduced in compliance with the agenda for clean and efficient operations. Subsequently, the existing transport fleet was added with futuristic vehicles such as electric trolley buses and alternative fuel buses (p.182). Freight transportation is also a major source of national revenue in the US and other countries around the world. Unlike mass transit, freight transport mostly involves long-haul carriages covering a few states or even cross-country transportation. As of now, the United States of America is connected via roadways with Mexico, Canada, and Alaska. Exchange of raw materials, retail products, raw and finished food products and various types of construction materials is frequently done both within the State and with the neighboring countries. Trucking is the commonest mode of cargo carriage on road. This industry contributes handsomely to the overall economic gain of the country by carrying out routine transportation of freights mentioned above. The critical issues associated with consignment carriage include traffic congestion due to plying of heavy vehicles, necessary amendments in safety and infrastructure directives, logistics support, and taxation. Besides, in order to improve both qualitative as well as quantitative aspects of freight transportation, the authorities concerned have also addressed issues such as third party logistics, local development, vehicle designing and technology, and staff training (Ihs Global Insight, 2009, p.47). Railway Transportation Powered by Amtrak, the railroad network in the United States bridges the gap between road and air transportation. The inception of National Railroad Passenger Corporation in 1971 marked a new era in the history of US railway services. Amtrak basically connects the major cities, with limited number of trains. Canada and Mexico are also linked with railroad corridors. As mentioned earlier, lack of subsidies given by the Federal government, coupled with the fact that most passengers prefer to take the airborne route to make long distance travels, has contributed to declining popularity of US passenger railways. However, the freight service continues to be one of the most dependable modes of cargo transportation within the country, surpassing airliners and shipping. Services provided by the freight trains in the US can be considered to be the backbone of the country’s economy. Augmented by a network stretching over 200, 000 kilometers, the country draws bulk of its annual GDR from railroad transportation. Air Transportation Governed by the US Federal Aviation Administration, air transportation is the most advanced mode of transportation in America. Unlike any other means of transportation, the civil airline industry faces increasing challenges to adapt to the shifting paradigms of safety, capacity, consumer satisfaction, environmental impacts and last but by no means the least, economic feasibility of various operations (Williams, 2001, p.111). To problematize things furthermore, air traffic congestion exhausts the available airspace very quickly, leading to long halt for approaching or departing flights. When this issue is analyzed in view of increasing number of fliers round the year, it becomes apparent that the authorities need to work out a comprehensive management plan to ensure optimization of logistics support and economy of aviation. Moreover, air traffic congestion leads to loss of fuel and valuable time – both detrimental to generation of revenues. Statistics of passenger carriage shows that nearly 536 million fliers used the tope ten US airports in 2008 (Plunkett, 2007). Accommodating such a huge number poses several operational challenges that would simply mount up if left unattended. The most crucial challenge is to live up to the international expectations of bilateral or multilateral policymaking to facilitate smooth operation of transatlantic airliners. Aviation policies of the United Kingdom, France, Switzerland and many other countries differ greatly from the directives laid down by the FAA. Proportionate blending of innovative technology and existing infrastructure call for thorough consideration of numerous factors, including the current economic recession and its likely impact on the operators’ decision to induct new policies pertaining to infrastructural developments, meeting the demands of cross-nation cargo carriages, utilizing the available technology to the best possible effect for generating competitive edge among different service providers and more. To overcome these areas of concern, the governing authorities have strived to adopt a holistic approach by disbursing the market share equally among all stakeholders. It is a prospective measure to bring in more passengers to the sky and to maximize revenues from freight services. A key responsibility of all the major airliners operating in the US and other countries is to avoid delays and flight cancellations. Following the dreadful events of 9/11, safety measures have been stepped up enormously at all the major airports. While the strengthened security system has ensured passenger safety, it also tends to cause prolonged delays as the security personnel go through a number of mandatory procedures before allowing the passengers to board the aircraft. Resultantly, passengers who are in a hurry to reach their destinations sometimes prefer the railway links to air transportation. Maritime Transportation The United States of America has quite a few busy sea and river channels to facilitate maritime freight transportation. While these channels are mainly used for cargo shipment, cruise ships and ferry services are also in practice to and from popular tourist hideouts. The Mississippi River system and St Lawrence Seaway are two major domestic waterways. Transportation in New York City and the San Francisco Bay area is also dependent on ferry. As for the fleets, the country has in its repertoire 465 ships comprising three business categories – cargo ships, tanker ships, and passenger ships. Heavy cargo ships are mainly used for cross-country carriage, while tanker ships perform technical tasks associated with tapping the national resources. Here again, issues related to safety and security of lives and properties become a prerogative from the viewpoint of academic studies. As per the international maritime policies, there are strict security and shipment regimes to be followed by the ship owners and operators (Kristiansen, 2004). Transportation in other Countries Most of the European and Asian countries have seamless transport infrastructures that cover thousands of miles. The Trans-Siberian railway link, for example, is the longest railroad in the world, covering more than 9,000 kilometers from Moscow to Vladivostok. Likewise, many roadways both on the European and the Asian soil serve more than just one country. Such spatial continuity of transportation network resolves many problems within a whisker. The commonest of all issues in global transportation networks is passenger and cargo safety. The cross-country railway links in Russia, France and the United Kingdom attach due importance to security measures. There are compulsory allocations set aside in budgets and other economic policies to beef up the safety network. However, adopting innovative strategies does entail additional expenses, which becomes a problem for developing nations in Asia and Africa. As part of a futuristic endeavor to mobilize the global economy, Lithuanian government started a venture aimed at addressing the areas of mutual transport concerns for Asian and European countries. Known as the Asia-Europe Transport Development Forum, it proposed to take a business-driven approach to provide suggestions and work collaboratively across various offshoots of operations and management. The initial effort yielded success as 200 participating organizations from Asia and Europe put forward their invaluable suggestions. The International Road Transport Union and the Community of European Railway and Infrastructure Companies were among the noted companies to take part in the inaugural forum meeting, held in Vilnius in October, 2009 (RIA Novosti, 2009). US transportation system differs from other countries in matters of corporate culture and technological innovations. A major part of Europe, including the United Kingdom, along with Asia and Africa, is culturally affiliated to heritage and its preservation. Subsequently, many heritage trains, cruises and on-road vehicles ply regularly in these countries. Instead of focusing on improving the quality of services by espousing modern technological outputs, South Asian countries like India, Pakistan, Sri Lanka, Myanmar, and Bangladesh are still stuck to indigenous technology. Such impetuosity has often led to inadvertent security breaches due to faulty maintenance and apathy to work tirelessly at a productive goal. A far as green initiative is concerned, it may be noted that the United States, despite being the largest emitter of greenhouse gases in the environment, still plays a leading role in reducing the level of emission. Recommendations & Conclusions In the broader purview of transport management, any linear study of the modes of transportation in the global market is bound to fall short of desired results. This is because the linear methodology of research is inadequate to carry out extensive researches on all areas discussed in the paper. With polarization of social values and economy, it is only fair to say that only business oriented tactics can resolve the issues involving international transport at large. Service management, resource management and staff management form the academic core of this paper, in view of which it is suggested that important global carriers of roadways, airways and waterways should be working together as much as possible under the respective jurisdictional provisions, to mutually table the concerns and arrive at probable resolutions. To this effect, the initiative taken by the Lithuanian government can be termed as a highly feasible step to ensure a better and faster future. References Ihs Global Insight. (2009). Public and private sector interdependence in freight transportation markets. Washington DC: Transportation Research Board. Kristiansen, S. (2004). Maritime transportation: safety management and risk analysis. Burlington, Massachusetts: Butterworth-Heinemann. Lynch, T. (Ed.). (1998). High speed rail in the U.S.: super trains for the millennium. New York: Taylor & Francis. Plunkett, J. W. (2007). Plunketts Airline, Hotel & Travel Industry Almanac 2008: Airline, Hotel & Travel Industry Market Research, Statistics, Trends & Leading Companies. Houston, Texas: Plunkett Research, Ltd. Slack, B., Rodrigue, J-P., & Comtois, C. (2010). Transportation Modes: An Overview. Retrieved February 28, 2010, from http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/ch3c1en.html RIA Novosti. (2009). First Asian-European transport forum opens in Lithuania. Retrieved March 1, 2010, from http://en.rian.ru/business/20091019/156515666.html RITA. (n.d.). Table 1-1: System Mileage Within the United States. Retrieved February 28, 2010, from http://www.bts.gov/publications/national_transportation_statistics/html/table_01_01.html Weiner, E. (2008). Urban Transportation Planning in the United States: History, Policy, and Practice. Westport, Connecticut: Springer. Williams, K. P. (2001). Despite nationalist conflicts: theory and practice of maintaining world peace. London: Greenwood Publishing Group. Wortman, M., & Yee, R. (2005). Public Transportation: On the Move…. New York: Visual Reference Publications. Read More