PART 1
1.0 INTRODUCTION 3
2.0 SIGNIFICANCE OF TRANSPORT……………………………………………………………………………………………………………2
2.1 ECONOMIC SIGNIFICANCE OF TRANSPORT 5
2.1.1TRANSPORT AND TRADE: 5
2.1.2 TRANSPORT AND PRODUCTION 6
2.1.3 TRANSPORT AND CONSUMPTION 6
2.1.4 TRANSPORT AND UTILITY 7
2.1.5 TRANSPORT AND DISTRIBUTION 7
2.1.6 TRANSPORT AND GEOGRAPHICAL SPECIALIZATION 7
2.1.7 TRANSPORT AND LAND UTILIZATION 8
2.1.8 TRANSPORT AND AGRICULTURE 8
2.1.9 TRANSPORT AND INDUSTRIES 8
2.1.10 TRANSPORT AND EMPLOYMENT 9
2.1.11 TRANSPORT AND PLANNED ECONOMY 9
2.1.12 TRANSPORT AS PUBLIC UTILITY CONCERN 10
2.1.13 TRANSPORT AND EXCHANGE 10
2.2 POLITICAL SIGNIFICANCE OF TRANSPORT 11
2.3 SOCIAL AND CULTURAL SIGNIFICANCE OF TRANSPORT 12
PART 2
3.0 FINANCING MASS TRANSIT CORPORATIONS IN NIGERIA 13
3.1 THE SOURCES OF BORROWED OR DEBT FINANCE FOR MASS TRANSIT BUSINESS ENTERPRISES 14
3.2 OTHER SOURCES OF BORROWED OR DEBT FINANCE: 16
3.3 THE PROPRIETORS OR UNBORROWED FINANCE 17
3.3.1 The Nature and Concept of the Proprietors’ Finance 17
3.3.2 Direct Provision of Capital by the Proprietors in Financing Mass Transit Activities. 18
3.3.3 Retention or Ploughing-back of Profits in Financing Mass Transit Activities. 19
3.4 OPTIMAL FINANCING STRUCTURE: APPROPRIATE MIX BETWEEN BORROWED AND UNBORROWED FINANCE 21
3.4.1 Combination of Borrowed and Unborrowed funds 21
4.0 SUMMARY AND CONCLUSION 22
BIBLIOGRAPHY……………………………………………………………………………………………………………………………………….25
PART 1
1.0 INTRODUCTION
Transport is the cornerstone of civilization. As the society and economic organizations become complex, the relevance of transport grows. Also, the demand for transport is a derived one, because it depends on the demand for the commodities carried or the benefit of personal travel and each travel is unique in time and space. Hence, the demand for transport services increases with the extension of the input-output relationships of an economy. In Nigeria, transport’s contribution to the Gross Domestic Product (GDP) is relatively low. For example, in developed countries, transportation’s contribution varies between 11 and 16 percent of the GDP, whereas in Nigeria it varies between 3 and 12 percent.
The elasticity of demand for transport depends on the elasticity of demand for the commodity being transported as well as on the proportion of transport costs in the value of the delivered product. Also, studies in Nigeria’s economies suggest that transportation costs form a significant proportion of the final price of most goods - agricultural, manufactured and mining products. On the average, transport accounts for more than 30% of the value of the delivered product. This high cost is attributable to the inadequacy and inefficiency in Nigeria’s transport infrastructure.
Transport costs on the feeder roads to the trunk road or the railway to the port often cost as much as between 55 and 60 percent of the receipts from these commodities. Also, price elasticity of demand for transport is very high in Nigeria’s transport system. The more efficient the transportation network is, the lower the transport costs but presently, large productions of the economically important movements are bulky, low-value agricultural and mineral products
2.0 SIGNIFICANCE OF TRANSPORT
It is almost universally accepted that transport has played a predominant role in the economic development of all modern civilizations. Production and consumption on the scale and tempo of today would be inconceivable without a well-developed and operated transport system forming a vital link in supply chain management logistics ("Transport and the Economy" www.rra.co.za).
The modern civilization is an offspring of modern transportation. It is a mirror which reflects the progress of a nation, and a link between
