Several options are available for businesses that are involved in the transport industry. This options might include railway transport and motor transport. While there are many reasons that may lead one to choose one mode of transport over the other most of the cases the reason is cost. An organization would choose the less expensive option as the mode of transport. Cost analysis is a business concept that measures the relationship between cost and output of an organization. As such the stakeholders in a business can be able to effectively make decisions plan for the future and reduce cost of production.
The main reason why the provider in the case study shifted from rail to motor mode because of economic advantage. It is economical to use motor to ship small volumes of merchandises over short distances as compared to rail. (Levinson, 2016). Besides rail transport is not as flexible as motor transport. For instance motor transport can carry goods from a precise location to another specific location. Nevertheless when it comes to rail transport this is not possible as goods can only be carried from one terminal to another and not where the goods might be required. The process is further complicated when the terminal is far from the working site. Another reason that might have led to the change in the mode of transportation is time. Rail offers slower mode of transport as compared to motor especially when it is over short distances.
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Since many business and individual prefer motor transport to rail transport, there has been an increase in the number of vehicles and therefore jamming in the roads. With such condition individuals using the roads are at a higher risk of being involved in an accident. Apart from congestion, other factors that might have contributed to an increase in the road accidents are overspending, driver fatigue unfamiliar roads and inadequate surveillance (Oggero, 2006).
References
Ggero, A., Darbra, R. M., Munoz, M., Planas, E., & Casal, J. (2006). A survey of accidents occurring during the transport of hazardous substances by road and rail. Journal of hazardous materials , 133 (1), 1-7.
Levinson, M. (2016). The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger-with a new chapter by the author . Princeton University Press.
