Transport refers to the activity that facilitates physical movement of goods and individuals from one place to another. In business, it is considered as an auxiliary to trade, that means it supports trade and industry in carrying raw materials to the place of production and distributing finished products for final consumption.
Individuals or business firms that engage themselves in such activities are called transporters. Generally, transporters carry raw materials, finished products, individuals, etc. from one place to another.
The Following are the points of importance of transport:
(i) Makes raw materials available to manufacturers or producers: Transport makes it possible to carry raw materials from places where they are available to places where they are to be processed and assembled into semi-finished or finished goods.
(ii) Makes goods available to customers: Transport makes movement of finished goods possible from one place to another with great ease and speed. Thus, consumers spread in different locations of the country have the advantage of consuming goods produced at distant places.
(iii) Enhances standard of living: Transport gives consumers the choice to make use of different qualities of goods of different prices. So it raises the standard of living of the people.
(iv) Facilitates large-scale production at low costs: We know, large scale production is not always possible at the place of our choice since it needs huge infrastructure particularly land which is not easily available everywhere. But, transport makes large scale production possible by making all required materials and manpower available at the place finally selected for manufacturing. Large scale production lowers down cost per unit.
(v) Helps during emergencies and natural calamities: In times of national crisis, due to war or internal disturbance, transport helps in quick movement of troops and the supplies needed in the operation.
(vi) Helps in creation of employment: Transport provides employment opportunities to individuals as drivers, conductors, pilots, cabin crew, captain of the ship, etc. who are directly engaged in transport business.
(vii) Helps in labour mobility: Transport helps a lot in providing mobility to workers. You may be aware that people from our country go to foreign countries to work in different industries and factories. Foreigners also come to India to work.
(viii) Helps in bringing nations together: Transport facilitates movement of people and goods from one country to another. It helps in exchange of cultures, views and practices among the people of different countries. This brings about better understanding among people and awareness about different countries.
