INTERMODAL TRANSPORT 4
Intermodaltransport involves different traffic models that encompass multipleactors, resources, and activities. The expansion of Europeanintermodal railroad freight transportation serves significantbenefits to the business operators and public (Konings, Priemus, &Nijkamp, 2008). Regulation and deregulation have positive effects onthe growth of intermodal transportation in the US and Europe.Essentially, the governments in the two regions have sought toenhance economic growth through the development of intermodaltransportation policies. In the contemporary world, it has becomevital for authorities to develop the capacity that meets the newrequirements brought about by globalization. It is noteworthy thatthe global economy is changing by the day. Business operators areprompted to develop better strategies for product distribution,sourcing, and production. The significance of the transport industryin the movement of finished goods and raw materials cannot beunderestimated. In the US, for instance, the changes in transport andlogistics emanated due to the trucking deregulation after the passageof the MotorCarrier Act. Manynew trucking firms emerged after the policy was implemented. Onebenefit of the act was that it reduced the cost of maintaining andholding inventories (Konings, Priemus, & Nijkamp, 2008).
Inanother example, the US introduced rail deregulation through theStaggers Rail Act. The move resulted in considerable reduction in thetrucking rates thus, leading to the creation of a better truckingindustry. Further, railroads and trucking firms created a reliablenetwork that eased delivery services. Companies also benefit due tothe consolidation of suppliers, in particular, firms that havemultiple distributors. There is an increase in efficiency in thedelivery of goods as well as competitiveness among companies.Intermodal transportation in the US has improved following theenactment of the Railroad Act and Motor Carrier Act (Konings,Priemus, & Nijkamp, 2008).
Nonetheless,the move has brought some negative implications that continue tobother the industry. The Federal law, for instance, demands the newoperators to obtain and file documents on public convenience andnecessity rates. Further, strict price controls on the players affectthe business sustainability in the long run. Deregulation andregulation have led to the increased uptake of technology andinnovation within the transportation industry. In Europe, theintermodal system is known to solve many challenges affecting roadfreight transport. The region experiences financial problems in themanagement of rail carriage. Thus, the intermodal system allowsbusiness operators to move their goods with minimal costs andefficiency. An intermodal system also reduces congestion experiencedin most transport platforms. In Netherlands, for instance, lorryoperators lose about 10 percent of their time due to trafficcongestion.
Boththe US and European regions cover a large area. As such, the movementof goods to the domestic and global markets is difficult and costly,sometimes causing delays. With the introduction of intermodalapproach, the flow of goods across regions has been eased. It isnoteworthy that regions’ economy has significantly moved from massmanufacturing to services-oriented. Creating regional and globalnetworks has been instrumental in helping in the distribution ofgoods (Button, 2016).
Inconclusion, the future growth of intermodal system faces variouschallenges, including, missing infrastructural links, inefficientadministrative procedures, interoperability, and lack ofstandardization units among others. We recognize that regulation andderegulation of intermodal transport has more benefits thandisadvantages to the global economy. It is appropriate for thepolicymakers to develop the right plans that recognize the futurechallenges in the industry of carriage.
Button,K. (2016). Theeconomics and political economy of transportation security.Cheltenham, UK: Edward Elgar Publishing.
Konings,R., Priemus, H., & Nijkamp, P. (2008). Transport economics,management and policy series: The future of intermodal freighttransport: Operations, design and policy. Cheltenham,Gloucestershire, UK: Edward Elgar Publishing, ProQuest ebrary. Web.15 June 2016.