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THE NON-ECONOMIC ROLE AND FUNCTION OF TRANSPORT

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DIFFERENCE BETWEEN ECONOMIC AND NON ECONOMIC ROLE OF TRANSPORT IN THE ECONOMY

Economic Role A good  transport  system can broaden the market for goods.  It can also make the movement of raw materials, fuel, equipment, etc. to the places of production easy.  T ransport  facilities increase, the demand for motor vehicles, locomotives, ships,  etc Transport  infrastructure encourages  economic growth , cuts in commodity prices, offers access to global producers and customer markets and making global manufacturing more cost- effective by decreasing costs of  transport  and increasing accessibility

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allows easier movement of  labour  from households to firms Moves  goods and services between firms and from firms to households.  Additionally, it allows  labour  to easily move between firms, and products and services from firms to households T hen the higher the level of economic activity, the greater the need is for efficient transport to ensure goods are in the right place.  This creates a demand for improved logistics and transport infrastructure. This leads to demand growing, followed by GDP growth. If greater demand means a country has exceeded their available factors of production, they start to trade with other countries to obtain the scarce resources they need.

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3 FACTORS TO EFFICIENT TRANSPORT ON PRODUCTION

Lowering of production cost Increased producer prices Encouragement of investment

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Efficient transport reduce costs because of 3 main factors Decreases the delivery cost of raw products to the producer( eg:Cheaper  delivery) Allow continuous delivery of input material Improved transport can provide access to a broader  labour  pool

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For many business, the cost of transport makes up a larger proportion of their product cost(between 10% and 30% of final product cost) Frequency and reliability of transport have very significant impact on the producer price Irregular or infrequent transport forces producers to hold high level of stock  to ensure continuous supply to customers This results in increased in inventory cost increased producer prices Spoilage of perishable products

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Good quality and support service transport service attracts more foreign investments

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Improvement in transport sector create continuous circle of economic development Reduction in input cost and improved producer price leads to improved profitability of agricultural and industrial production This create incentive to increase output and productivity Greater access to investment funds Which helps with business growth needed to expand and diversify product range Makes upgrading of technology possible

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Higher level of production lead to a greater demand of transport services Improved profitability Encourages further investment in the transport itself This therefore allows improved service frequency and better services

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Transport ensures economic development of communities Allows communities to fully participate in variety of economic activities – which then reduce poverty and for  personal welfare

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ROLE OF TRANSPORT  IN NON ECONOMIC DEVELOPMENTS

Health   Provide basic health services at community level 2. Education People rely on transport to take them to learning facilities. Reliable, efficient and affordable transport service will ensure educational opportunities for everyone 3. Employment Most employment are opportunities are in urban areas Improved transport service can help better access while staying at home 4. Social, Cultural and Sport Development Access is possible if transport is accessible and affordable

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REASON FOR THE NON ECONOMIC ROLE OF TRANSPORT

POVERTY  Often causes social isolation Prevent personal development Further increases  and reinforce the burden of poverty  Improved mobility can reduce poverty in many different ways Mobility Requires appropriate transport infrastructure Requires improved transport services and affordable Transport is neglected in area with low demand and people don’t have financial means

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Mobility Access to efficient, affordable transport Access to goods and services such as  education,healthcare  and employment Innovative and integrated plan is needed to help members of rural areas and poor communities to take part in the economy

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IMPACT OF TRASPORT PROVISION ON SOCIAL DEVELOPMENT AND POVERTY ALLEVATION IS BECOMING MORE IMPORTANT IN GOVERNMENT TRASPORT POLICY, PLANNING, PROCUREMENT AND MONITORING AND EVALUATION

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IMPORTANT NON – ECONOMOC REASONS FOR TRANSPORT AND GOVERNMENT INVESTMENT IN TRANSPORT ARE:

Improved access to transport for all south African Improved transport systems and equipment to cater for children and special needs Develop new modes and means of transport – to prevent social isolation Share social, economic and cultural benefits Ensure all citizens have equal share and importance and are well represented in decision making and transport planning Reduce negative effects of transport on communities(Pollution) Increase opportunities that transport present(Market, education and jobs) Reduce social and health  riskd  and danger associated with transport)

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IMPORTANCE OF TRANSPORT FOR SOCIAL DEVELOPMENT

Transport   mobilises  a society and enables them to partake in economic activities which lead to economic  growth  and  social development , and greatly influences society's interaction with their environment.  Access to  transport  can lead to improved quality of life. Transportation  role by meeting travel requirement of people and  transport  requirement of goods.  Such movement has changed the way people live and travel. But  transport  also consumes a lot of resources like time, fuel, materials and land.

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HISTORICAL DEVELOPMENT OF TRANSPORT INFRUSTRUCTURE IN SA

Pre 1994 Transport infrastructure developments Before 1994 the use of different modes of transport  in SA was influenced by race Poor communities were located away from economic opportunities Poor communities depended on public transport such as buses and taxis During apartheid years, private and luxury transport modes were reserved for richer communities Investment in infrastructure was aimed at providing for citizens who are able to pay for these services

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Pre 1994 Transport infrastructure developments Rural areas had little or no  accessto  basic transport infrastructure There was less national and international investment in transport infrastructure Political uncertainty also affected investment decisions We had high inflation rate This resulted into aging  roads,decrease  in  maintenance,employment  opportunities and investments

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Unbalanced transport sector Road and railway networks primarily serviced former white areas and neglected black people and rural areas 2.  Marginalised  rural transport Trasport  in rural areas was almost non-existent Very poor roads and restricted access to transport infrastructure 3. Fragmented transport infrastructure Allocation of resources for new developments and maintenance for different modes of transport  favoured  south  africans  who could pay more for services in all government sectors Local,provincial  and national government department

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4. Weak public transportation Pre-1994 Public transport sector (Rail and bus services)was very weak and inefficient Despite these facts, majority of the  pupolation  heavily relied on public transport in both urban and rural areas 5. Limited private ownership There was very little private ownership in transport industry State had majority of ownership in transport sector and controlled access into the industry by private individuals or companies

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6. Isolated communities Black communities were isolated from transport developments  And from opportunities to contribute to new interventions

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Problems Rural poverty Inaccessibility to public transport Reservation of luxury transport for privileged citizens only Patterns of uneven development between developed and under developed areas Under investment in rural transport Lack of capacity and commitment within government Lack of community participation Resulted in poor project planning and implementation

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NDOT  – Responsible for development and maintenance of transport operations and infrastructure NDOT  – Has to implement the plan of 1996 white paper on provincial transport policy and national land transport framework Government today is more committed than before to ensure  safe,efficient,reliable,and  affordable public transport for all south Africans Multi-billion rand investment from government in transport infrastructure development has changed the way south  africans  travel

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Sa’s national road network  improved drastically with establishment of SANRAL OR Tambo international airport is the best airport in Africa and top3 in the world 97 billion rail upgrade over 18 years More money is available to PRASA for replacing and  impoving   signalling  infrastructure and refurbishing rail coaches BRT is described as far better than of new York Gautrain – convenient and safe travelling between Pretoria and JHB Billions of rand have been spent on the improvement of rural road infrastructure

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NDOT – secured funding for road maintenance with  S’hamba   Sonke To address road maintenance  E.g.  potholes