Impact of government policy in transport provision Question Answer 2022

SCM TASK 1
Supply chain
Student
Course
University
Date

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Q1. Relationship between transport attributes and their strategic
relevance in terms of economic
In developed countries, a well-structured transport network is key to development. A
transport network is a structure that connects different transport modes, which include roads, air,
water, and pipeline transport, therefore, facilitating movement 1 . The attributes that are
commonly used to gauge the performance and quality of different modes of transportation are;
frequency, travel time, accessibility, comfort, cost, reliability, customer services, service
information, and safety. Economic policy is a measure that the government uses to influence
economic activities in the country, such as setting the level of taxation, government budgets, the
supply of money, and distribution of income.
The relationship between transport attribute and their strategic relevance in terms of
economic policy is that transport industry is among the income-generating and therefore
contribute to the economic growth of the country2. This is because most modes of transportation
are made easily accessible, reliable comfortability to users and at an affordable cost. Customer
services offered by these modes also promote their usage, and hence, government gains through
taxation. The economic policy set by the government towards the transport sector is the key to its
infrastructure development. Therefore, transport development depends on economic policy.
1 D. Berlyne, Fleet management. In Washington, D.C., ICMA, 2002.
2 , Button & D Hensher, Handbook of transport strategy, policy and institutions. In,
Amsterdam, Elsevier, 2005.

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Q2 impact of government policy in transport provision
Government policy concerning transportation is a plan or course of action used as a basis
for decision making concerning the transportation sector 3 . This policy has an impact on the
transport sector, whereby regulating the rate of both local and foreign investment and eventually
having an impact on economic development. The keys areas where the government policy has a
role in the transportation industry are; environment, infrastructure development, safety and
security, trade regulations and investment.
Environmental role of the government policy is that it set the standard on engine emission
on locomotives such as trucks marine engines and aircraft, all this are done to achieve favourable
emission to the environment the aim is to conserve the environment by reducing gases emitted to
the air by vehicles that consume large quantities of energy especially oil4. The government's role
in safety and security in the transport industry is very much important, for instance, the rules set
for drivers, hours of operation on the roads, the standard of vehicle required on roads. The safety
measures put in place and monitored closely, such as vehicles, must have adequate working
safety belts and encourages their use to reduce death when an accident occurs.
3 P. Baere, & E Voorde, Transport economics. In, Berchem, de Boeck, 2016.
4 T, Moschovou, "Freight transport impacts from the economic crisis in Greece.". in
Transport Policy, 57, 2017, 51-58.

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Infrastructure development is one of the most vital requirements of the government to
improve its transport industry and the economy as a whole. Income gained from the transport
system is then used by the government to build and maintain infrastructures such as roads,
railways, bridges improving highway systems, ports, and lighting at the terminals. The
government also involves the transport industry through the trade regulation role. This affects the
movement of goods in and across the borders of the country, such as the trade regulations that
bar some Chinese goods in the USA5. The government plays a significant role in regulating both
local and foreign investment in the transport industry through imposing taxes on fuel and
financial aids provided to encourage investment in the industry.
5 L, Biagi, F Grec, & M Negretti, "Low-Cost GNSS Receivers for Local Monitoring:
Experimental Simulation, and Analysis of Displacements.". in Sensors, 16, 2016, 2140.

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marine operators to comply with such as environmental regulations regarding water usage, also
safety measures requirements besides other regulations on competition that monitors competitive
nature of the players in the industry
Q5. Current methods of preventing anti-competitive practices
Competition is an act of striving to outperform or gain something by establishing
supremacy over others. Competition improves the quality of products and services offered to the
customers and establish stability in prices, among others. Anti-competition practices are
practices that aim to reduce, restrict or remove competition in the market, and these practices
include; price-fixing and price limiting, bid-rigging, boycotts, disparagement, dividing territories,
dumping, among others.
The anti-competitive practices have no one cap fits all solution to combat the problem,
except the case of unlawful and unethical practices such as spying and theft, which are security
issues and can be handled through the administration of law on security11.
The government has antitrust laws that are generated for competition within the domestic service
industries. These rules often stretch beyond borders, and their implementation requires countries
to cooperate application of these laws will reduce anti-competition within and among the
collaborating countries. Having a transition economy-based business will help create a conducive
and fair competitive environment. Companies in the industry can also be whist blowers in case of
26.
11 M. Sahu "Anti-Competitive Practices in Oil and Gas Downstream Sector
(Presentation Slides).". in SSRN Electronic Journal, , 2014.

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any anti-competitive practices. Political reforms can be used whereby ensuring this reform
considers the most pressing need, such as tackling anti-competitive issues in the country.
Q6. External bodies that influence transport policy
The government makes policies in an attempt to regulate transport industry, and this
process must involve external bodies or stakeholders in the industry whose views are often
considered during the policymaking process, the external bodies include environment
conservation agencies, human rights agency and international transport organizations 12 . The
environmental agency has a role in ensuring that the policies formed to adhere to environment
conservation standards. The policies should aim at reducing level pollution in the environment,
such as noise, air, and water pollution.
Human right agency is a body with fundamental protection of human dignity, needs, and
freedom. Transport industry is one of the major employers and plays a crucial role in the
international trade, this poses challenges to human and requires human rights agency
involvement, the risks involved that require the agency intervention during policymaking are;
human trafficking during movement of goods and passengers, forced labour, working conditions,
discrimination, security forces employed should avoid security abuses on passengers bribery and
corruption.
International transport organizations are institutions established and governed by international
law such as international freight forwarders association, IATA(International Air Transport
Association) , ICOS( International Chambers Of Shipping), IRTU (International Road Transport
12 C. Kamala Essays in the Economics of Transportation Policy. In Berkeley, CA, 2011.