Importance of Transportation is Transportation provides some unique advantages. The usual benefits available from transportation are as follows:
Importance of Transportation
Shortening the distance: Transportation removes the difficulty of distance. Distant places can be communicated quickly.
Expansion of the market: By transport facility, commodities can be distributed in wide areas. Thus transportation helps in widening the markets for a commodity.
Assistance in specialization: Transportation helps wide distribution of production facilities or factors of production also. Thus, it collects and distributes resources and encourages specialization and division of labour and helps in better use of labour and capital in a distant area.
Assistance in extended competition: Transportation helps national, regional or global distribution of products. Consequently efficient producer can compete in wide area. Thus, transportation protects the consumer from the exploitation of the local monopolies.
Assistance to localization of industry: Localization of industry depends on a number of factors. Sometimes all factors do not exist in one location. Than industry established near to one factor, say place of raw material, is connected to other factors through transportation. Thus transportation helps the localization and the size of industry.
Maintaining equilibrium between demand and supply: On the basis of production area, demand and supply differ in different region. Some products are produced in one or some areas, but are used widely or globally. Transportation collects products from wide area for demand in one or some areas or distributes products of one or some areas in different regions. Thus, transportation ensures equilibrium between demand and supply.
Contribution to improvement of international relationship: Transportation helped foreign tread or international business historically. Thus it improves the international business and business and economic relationships among the countries of the world. So, effective and low-cost transportation is essential for the economic growth of a country.