11 Jun 2022

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Regulation and Deregulation and its Impacts on Intermodal Transportation

Format: APA

Academic level: College

Paper type: Case Study

Words: 505

Pages: 2

Downloads: 0

I agree with the author that the US government should be the catalyst for innovations in intermodal transportation and that in a free market economy, the intermodal transportation industry has been limited in their ability to deliver these innovations. The reason attributed to this assertion is that the adoption and implementation of intermodal transportation are entirely dependent on the capacity, organization, and political will. The availability of the infrastructure does not determine the success of intermodal transport but also the presence of the right legislation ( Zografos & Regan, 2004) . The intermodal transportation industry has apparently not been able to meet this by itself. This is because the government of the United States is the only driving forces that can catalyze the intermodal transportation. Therefore, the government of the United States should take up the role to enable the implementation of intermodal transportation in the country as a strategic economic investment. 

Several factors justify the standpoint that the government of the United States should take up the role to enable the implementation of intermodal transportation in the country. First, for this vision to be fully realized, robust transportation infrastructure should be put in place. Specifically, railways lines, roads, and ports should be constructed. The construction of roads, railway lines, and ports require massive resources that the intermodal transportation industry cannot afford on its own. On an additional note, the development of the intermodal transportation industry has traditionally been the role of the government. 

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Another significant factor is that for intermodal transportation to succeed, there is a great need to put enabling legislation in place. In light of this, laws that relate to clearance of goods at ports and other clearance points should be made suitable ( Zografos & Regan, 2004) . The laws should provide for quick clearance of goods for speedy conveyance. The establishment of enabling laws is a political role that can only be done by the government. Particularly, the establishment of enabling laws is the responsibility of the legislative arm of the government (the parliament). 

It is evident that the government has driven most of the massive projects that have succeeded in the United States. Some of the successful massive projects that have received government support include the construction of Denver airport and the nuclear power plants. The reason as to why it was necessary for the government to take the responsibility in the construction of Denver airport and the nuclear power plant is that the intermodal transportation industry could not have handled the requirements as far as resources and logistics are concerned. 

Admittedly, this form of transportation offers various benefits to the economy of United States. In this regard, when the intermodal transportation business prospers, this implies that the economy of the United States also prospers ( Panayides, 2002) . It is through the intermodal transportation that the volume of transportation in the existing transportation network is increased. The logistics cost is also greatly reduced, and the players can enjoy economies of scale associated with the transportation ( Yevdokimov, 2000) . Besides, the accessibility of input and outputs is improved. The overall effect of all these is the increase in the productivity of businesses; hence, increasing returns, which are essential for economic development. 

References 

Panayides, P. M. (2002). The economic organization of intermodal transport.    Transport Reviews ,    22 (4), 401-414. 

Yevdokimov, Y. V. (2000). Measuring economic benefits of intermodal transportation.    Transp. LJ ,    27 , 439. 

Zografos, K., & Regan, A. (2004). Current challenges for intermodal freight transport and logistics in Europe and the United States.    Transportation Research Record: Journal of the Transportation Research Board , (1873), 70-78. 

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StudyBounty. (2023, September 15). Regulation and Deregulation and its Impacts on Intermodal Transportation.
https://studybounty.com/regulation-and-deregulation-and-its-impacts-on-intermodal-transportation-case-study

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