Opportunities for the achievement of economies of scale in freight transport.

Abstract

In the interest of both the national economy and the commercial freight industry, government freight transport policy formulators and freight transport industry decision makers should take cognisance of (a) the opportunities that exist for the achievement of economies in freight transport; (b) the subgroups of economies that can enhance efficiency attainment in the freight transport industry; (c) prevailing cost levels and structures within the five modes of freight transport; and (d) the salient economic features of the freight transport market. This paper presents an overview of these four aspects. The research approach and methodology combine (a) a literature survey; (b) an analysis of the cost structures of freight transport modes; and (c) interviews conducted with specialists in the freight transport industry.