Chapter 6, Problem 6SQ

There is a lot of talk about the need to restore and upgrade the Interstate Highway System at the city, national, and federal levels. Give an explanation for why this is necessary.

The pipeline has approximately 100 companies, as compared to the motor carrier industry with more than 50,000. How does your account for this difference, given the fact that they both carry approximately the same volume of intercity ton miles?

How do you think an intermodal transport system can make freight transport more efficient?

The typical pipeline company has high fixed costs. What economic factors account for this situation? What special problems does this present?

Pipelines account for more than 20 percent of the intercity ton-miles but less than5 percent of the revenue paid by shippers to transportation companies. What factorsaccount for this contrast? Is this situation likely to change? Why or why not?

Although better transit networks have economic benefits, there could be certain environmental costs associated with them. What are the big environmental costs of shipping, and what are the future harmful consequences?

In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?

While improved transportation systems provide economic benefits, there may be some associated environmental costs. What are the major environmental costs associated with transportation and what are their potential negative impacts?

Study the scenario below and answer the question that follow. Transcard– an integrated travel card for Johannesburg Metro The Big 5 (South African Black Business Consortium) won ZAR400 Million contract to build and operate the Transcard system in 2013 and have it operating by 2015. The parent corporation of Affirmative Action Group (AAG) International Inc., is a software engineering application maintenance, program management and consulting services company that had extensive experience in overseeing and project managing transport and technology companies to produce integrated system, and had implemented similar systems in In Capetown and Durban.  Big 5 supervised four technology and infrastructure companies and their sub-contractors, and provided back-end financial system. The Big 5 companies provided the terminal management system and fare collection equipment; communication systems installation and maintenance; automated fare collection systems; and smart cards and related card…