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 TRANSPORT ECONOMICS OR TRANSPORT AND LOGISTICS LECTURE
NOTE

TORIOLA, Keshiro. Anu

Department of Economics, Hallmark University, Ijebu-Itele, Ogun State, Nigeria

Correspondence: Tel: +2348050350418 E-mail: [email protected]

ʺ Copyright © 2021 by Toriola Anu

All rights reserved. This book which is yet to be published and ongoing project or any portion thereof

may not be reproduced or used in any manner whatsoever without the express written permission of

correspondence except for the purpose of brief quotations in a book review. Interested Publishers

can contact the correspondence.

1
Course Description and Objective:
The course provides an introduction to transport economics and policy. It covers the broad spectrum of
the application of the basic topics and concepts of microeconomics in the analysis of transport. It also
describes transport policy and the role and functions of transport regulatory agencies in Nigerian context.
The course is primarily based in microeconomics but also considers the interface of transportation
economics with other disciplines. Although the course does not focuses on any particular mode of
transport, illustrative examples look at specific modal examples such as, e.g., airlines, road networks or
rail freight. Future trends and developments relating to the different modes are also covered.
Recommended Textbook: Button, Kenneth (2010), Transport Economics, 3rd Edition, Edward Elgar,
Cheltenham.

Course outline
1. Introduction
a. Definition, history, scope and importance of transport economics
b. Basic concepts in transport economics and economic characteristics of transport
c. The need for transport services
d. Roles and contributions of transport to national economic development
2. Modes of transport
i. Road Freight Transport: Historical development, economic characteristics, supply and demand of road
freight and passenger services, economics of road transport and its operation
ii. Air Transport: Historical development, economic characteristics, supply and demand of air cargo and
passenger services, economics of air transport and its competitive position
iii. Rail Transport: Historical development, economic characteristics, supply and demand of rail and
passenger services, economics of rail transport and its competitive position of railway and Future options
for effective operation, such as commercialization and rail concessioning, are considered
iv. Maritime Transport: Historical development of ocean shipping, economic characteristics, supply and
demand for shipping and its effect on shipbuilding cycle, Costing and tariff setting, intermodalism, port
economics and current deficiencies in shipping and international trade and maritime law
v. Urban transport: The roles of the major modes of transport and comparison
3. Economic problems and their relevance to transport
a. Basic economic problem in relation to transport

2
b. Basic economic problem of t he society in relation to transport
4. Demand and supply in transport (Price theory)a. Demand for transport or travel demand
b. Supply of transport services
c. Elasticity of transport demand
4. Firm theory in transport
a. Theory of production in transport
b. Theory of cost in transport
5. Market Structure of Transport
a. Perfect market in transport service
b. Imperfect market in transport service
6. Transport regulation and ownership
a. rationale for government regulation in transport sector
b. strategies of government regulation in transport sector
c. Transport management and regulatory agencies in Nigeria (management and organization of air, road,
maritime transport in Nigeria
d. Transport issues and challenges.

3
1. INTRODUCTION
1.1 Definition of Transport Economics
Transport is the movement of persons, goods and services from one point to another, with the aid of fixed
facilities and/or vehicles such as bridges, highway pavements, pipelines, aircraft, etc. It is the movement
of goods and passengers in space and time. In the present form, transport includes all sort of transfer
within plant, factories or buildings as well as between plants and places. From economist’s viewpoint,
transport is defined in terms of either demand (the “desire” of persons or goods to be transported and
ability to pay for it) or supply (the available quantity and quality of the fixed facilities and vehicles). On
the other end, Samuelson (1976) defined economics as the study of how people and society end up
choosing, with or without the use of money, to employ scarce productive resources that could have
alternative uses to produce various commodities and distribute them for consumption, now and in the
future, among various persons and groups in society. It analyzes the costs and benefits of improving
patterns of resource allocation.
Although, there is no general consensus about the definition of transport economics, however according
American economist John Meyer is a branch of economics that deals with the allocation of resources
within the transport sector. It can also be defined as the study of the movement of people and goods over
space and time. It is a branch of economics that deals with the allocation of resources within the
transport sector. It can also be described as the study of how scarce productive resources are used to
produce and distribute various transportation services for consumption by the society. It can also be
defined as a discipline that coordinates the basic economic concept to balance essential transport needs of
the people in terms of demand, supply and consumer satisfaction. It involves the use of basic economics
knowledge to solve transport problem confronting a society.
1.2 History of Transport Economics
Up to the 18th century, the most important commercial cities in the world were maritime cities due to the
relatively low costs of water transportation. However, the invention of the steam engine in the eighteenth
century marked a watershed in the history of transportation by allowing for greater economy in
transportation of goods and passengers, and therefore shifted the balance in favour of land transportation.
After World War II, advancements in road construction technology and mass production of the
automobile led to increasing use of highways for land transportation. The modal shifts that have been
observed over the years arose from improvements in transportation technology, and resulted in the
reductions in transportation costs and time. Reductions in transportation cost and time have in turn led to

4
increased availability of goods, lower prices of goods and services, price stabilization and equalization,
changes in land values, urbanization, and equity (Locklin, 1960).
In recent years, certain developments have greatly influenced the economics of the various modes of
transportation. These include the deregulation of the transportation industry (1977-1980), which enabled
shippers and carriers to negotiate the best mutually beneficial rates and service packages, and Just-in-
Time logistics systems, which reduced the need for inventory and therefore lowered the holding costs of
goods. The other developments are increasing demands of customers for improved quality of service
(which includes ensuring that a product is transported to a destination when it is needed, in the right
quantities and in undamaged condition), and globalization of business, as companies are increasingly
seeking to purchase their production inputs or market their products regardless of global location (Wood
and Johnson, 1996).
1.3 Scope of Transport Economics
The study of economics is divided into macroeconomics and microeconomics. Macroeconomics is
associated with the wealth of society on a regional scale, and deals with the behaviour of aggregate
concepts. On the other hand, microeconomics involves the behaviour of relatively smaller entities such as
firms and individuals. Transport economics, while considered a branch of applied microeconomics, is
associated with certain unique issues (Khisty and Lall, 2002) such as:
• The demand for transport is derived and not direct
• The consumption of each transportation facility (i.e., each trip) is unique in time and space
• Technological differences among different modes and economies of scale
• Governmental interventionist policies and regulations in transportation
Transport economics specifically addresses demand of transport services, supply of transport facilities,
elasticities of demand and supply, price mechanisms, and transportation cost analysis
1.4 Importance of Transport Economics
Transport facilities such highways and bridges increase investment levels. Such investments are in the
form of new construction, rehabilitation and maintenance, and operations. Transport agencies at all levels
of government have the responsibility of effectively managing the performance and usage of their
physical assets so that such assets can be kept in acceptable condition to provide desirable levels of
service with available resources. Managers of transport facilities are now being perceived as stewards of
a vast public asset, and are expected to provide operational and financial accountability of any investment
decision. The management of transportation assets, defined as a systematic process of maintaining,
upgrading, and operating physical assets cost-effectively (FHWA, 1999) that combines engineering
principles with sound business practices and economic theory, has been touted as a means of achieving

5
more organized, logical and integrated approaches to decision making involving transportation systems.
The increasing public expectation and extraordinary advances in technology, have ushered in a new era
of the economics of transportation systems. Furthermore, such new perspectives in the transport
environment underscore the need for transport policy makers, engineers, managers and administrators to
be well trained in formal economics and finance.
1.5 Basic Concepts in Transport Economics
1.6 Economic Characteristics of Transport
1. The most important characteristic of transport is that it is not really demanded in its own right:
People wish, in general, to travel so that some benefit can be obtained at the final destination. The trip
itself is to be short as possible. The demand for transport is therefore a derived demand.
2. Transport demand takes place over space and time: This distinguishes transport economics from
other branches of economics. Transport journeys are made over a particular distance between start and
end points and take a particular amount of time. The reality though is that this demand is not spread
evenly throughout the network. This uneven demand can cause traffic congestion
3. Transport is often divided into fixed and mobile component: The fixed component consist of
infrastructure and the mobile component of vehicles and operations.
4. Transport is a public good
5. The cost of transport influence the price of products sold in the market
6. Transport services has its end in the services provided
1.7 The Need for Transport Services
Most individuals have a basic need to travel from one location to another. Modern life- structured around
accessing goods and services that lie outside of the immediate vicinity of the home. Transport services
required:
1. to gain access to employment, education, leisure activities, personal care/health services as well as
access to retail outlets for household goods such as food, clothing, electrical goods, books, CDs and so
on.
2. The development of the World Wide Web, has not, as yet, succeeded in turning the majority of
individuals into computer geeks that need to get out more! Transport therefore still has a key role to play
in modern society.
1.8 Roles and Contributions of Transport to National Economic Development
Transport plays a vital role in economic development and in the evolution of society to the present day.
Back then people lived in caves, modes of transport simply did not exist. All basic wants and needs,
required for a basic existence, had to be found within walking distance. Whilst shelter was provided by

6
the cave, food had to be hunted. In today’s terms, such a life style is described as self-sufficient, where
there is no division of labour and all basic needs are provided solely by the individual. There was no
separation of production from consumption.
1. The Link between Transport Levels and Economic Wealth
The real driving force behind the increase is that society’s continued evolution and movement away from
a subsistence-based economy towards one with an ever increasing demand for more material goods and
services. These can only be provided through trade, either international or domestic, both of which then
generate a demand for transport. Classic notion of the derived nature of transport demand is based on the
notion that. Higher level of GDP causes a higher level of freight transport. Or put another way, as
incomes rise (GDP), more goods are demanded and these need to be transported from the point of
production to the point of consumption. Advances in freight transport will result in reduced transport
costs and this in turn will lead to more goods being produced (and transported) as the final price in the
market will now be lower and more competitive, i.e. profitable. In this case, therefore, it is advances in
freight transport that lead to increases in GDP
i. Supply led view: This view believe that transport leads to economic development. Under a supply-led
effect the simple act of upgrading existing transport links will increase passenger travel and thereby
increase GDP.
a. Improving the transport infrastructure of an area will automatically stimulate economic activity and
stimulate economic development. Increasing or improving the quality of the supply of transport services
or transport infrastructure will automatically bring about such a change.
b. Widening of markets, increased production and multiplier effects. It is the provision of high quality
transport facilities that leads to the widening of markets, hence rather than being restricted to selling in
local markets that are easily accessible, the range of potential markets will be expanded. This is important
because the potential that these newly accessible markets offer will only be exploited if a profit can be
earned. This will therefore directly increase wealth in the area and almost certainly lead to an increase in
the production of that particular good or service. In order that more be produced, more resources will be
required, in particular labour, and this labour will have to be sought from either other industries or from
those not currently employed. This leads to a general increase in incomes as employees will only change
jobs where it is worth their while to do so, and in most cases such changes of job will be motivated by
higher incomes. will also lead to multiplier effects, as those increased incomes will in the main be spent
on local services, hence the idea of ‘recycling’ increased income back into the local economy. The basic
argument is that markets that were too costly to service in the past now become more cost effective to

7
serve as the transport gap that did exist between producers and consumers is narrowed. The improvement
of transport provisions therefore is the spark that sets the whole process off.
c. Indirect effects on employment in construction and operation. Many such projects will consist of major
infrastructure improvements, such as the building of bridges, the construction of new roads and railway
lines or the installation of light rapid transit systems. These projects will directly create an increase in the
demand for local labour both in the construction of such systems as well as their operation once in place.
This again will lead to an increase in local incomes with all the associated multiplier effects.
ii. Demand led models: Economic development drives demand for transport
Transport provision is invariably a response to a basic demand. The casual relationship is that economic
development leads to a demand for better transport facilities. Without a basic demand for an area’s goods
and services, then irrespective of the quality of the transport infrastructure this will never stimulate that
demand and hence the subsequent economic development that would follow. The basic demand required
arises from one of two sources, revealed and latent demand. In simple terms, if people don’t have a
motivation (i.e. a need) to travel to a particular location, then building a new road won’t make any
difference.
a. Revealed demand: Expressed in the number of journeys that are actually made or the goods that are
transported using the existing infrastructure. If this increases, it may be found that the existing
infrastructure requires upgrading in order to cope with the current level of demand
b. Latent demand: Segment of the demand curve to the right of the equilibrium point. Latent demand
exists where there is a demand but one that cannot be satisfied due to inadequacies in the existing
infrastructure. In other words, individuals may wish to travel to a particular location, hence the basic
demand, but the cost in terms of the time that it would take to actually get there more than offsets any
benefit gained from undertaking the journey. As a consequence, the journey is not made. If however the
current provision is improved, then the cost of the travelling would fall and hence some of those who had
not previously travelled will now make the journey. Under this view of the relationship between transport
and economic development, transport’s role in the process is seen as one of a facilitator
3. Transport and the Local Economy
More specifically, at the level of the local economy an efficient transport system allows: The easier
movement of labour from households to firms
i. The easier movement of goods and services from firms to firms
ii. The easier movement of goods and services from firms to households
iii. The easier switch of labour from one firm to another and the easier switch of goods and services from
firms to households.

8
4. Importance of Transport in Economic Development
Transport by itself is not sufficient condition for development; however, the lack of transport
infrastructure can be seen as a constraining factor on development. The development of transport
increases traveling and trade, especially in agricultural product. This contributed to the development of
cities and ports. It makes economic activity possible and serves as a major economic activity in its own
right, contributing directly and indirectly to the economy. Transportation indirectly contributes to the
economy by enabling the production of goods and services (e.g., by connecting producers to the raw
materials for baking bread, etc.) and employing workers in transportation occupations in both the
transportation industry and non-transportation industries. Public (government) and private expenditures
on transportation facilities, infrastructure, and systems contribute to the economy by enabling the
movement of both people and goods domestically and internationally. Transportation not only enables
international trade but also is a major good and service traded.
a. Role in Production: It enables the entrepreneur to assemble more easily the raw material and labour
input needed to make a specific product. The same transportation system moves intermediate goods to
other producers for subsequent use in their production process, and it moves finished goods to the
consumers. An efficient transport system enables Just in Time (JIT) production techniques. Components
are delivered when needed reducing a firms stock levels hence unit costs
b. Employment Opportunities: Transport also contributes to economic development through job
creation. This can either be direct or indirect. Direct employment will be created in the industry itself ,
such as drivers , logistics managers and pilots. Indirectly, jobs are created in for example the insurance
and financing industry, related to the assets of transport companies.
c. Geographical Specialization: The development of transportation system has enabled regions to
specialise in producing its most efficient output. Production and consumption of products can take place
in two different locations. The bulk of the electronic products we use daily, such as television sets, is
manufactured in the east and transported through ship to Africa. •Substantial economies of scale have
been achieved and these have resulted in reduced per unit production costs.
d. Trade: Transportation has enabled countries to trade with other countries throughout the world.
International transportation has led the way to more world trade, and it has enabled nations or regions to
specialise in producing whatever it can do best (comparative advantage)

9
e. Tourism: The airline industry has specifically contributed to the growth in the tourism industry, due to
airline being fast, safe and relatively cheap. The car rental industry, likewise has also played a major role
in tourism development. Currently tourism industry is the fastest growing industry in Namibia.
f. Others: Time Utility: efficient transportation creates time utility by ensuring that products are at the
proper locations when needed. Place Utility: the reduction in transportation cost between points A and B
gives a commodity a place utility. This place utility will encourage market areas to purchase products
from distant suppliers that might be locally produced. Quantity Utility: Transportation gives goods a
quantity utility through the assurance that the goods will arrive without damage. This helps assure that
the quantity demanded is the same as quantity delivered

10
2. MODES OF TRANSPORT
2.1 Road Transport
1. Definition
Road transport or road transportation is a type of transport by using roads. Transport on roads can be
roughly grouped into the transportation of goods and transportation of people. In many countries
licensing requirements and safety regulations ensure a separation of the two industries. Movement along
roads may be by bike or automobile, truck, or by animal such as horse or oxen. Standard networks of
roads were adopted by Romans, Persians, Aztec, and other early empires, and may be regarded as a
feature of empires. Cargo may be transported by trucking companies, while passengers may be
transported via mass transit. Commonly defined features of modern roads include defined lanes and
signage. Within the United States, roads between regions are connected via the Interstate Highway
System.
2. Historical development
The first methods of road transport were horses, oxen or even humans carrying goods over dirt tracks that
often followed game trail. The Persians later built a network of Royal Roads across their empire.
With the advent of the Roman Empire, there was a need for armies to be able to travel quickly from one
region to another, and the roads that existed were often muddy, which greatly delayed the movement of
large masses of troops. To resolve this issue, the Romans built solid and lasting roads. The Roman roads
used deep roadbeds of crushed stone as an underlying layer to ensure that they kept dry, as the water
would flow out from the crushed stone, instead of becoming mud in clay soils. The Islamic Caliphate
later built tar-paved roads in Baghdad.
Early roads

Road construction, depicted on Trajan's Column.

11
New road networks
As states developed and became richer, especially with the Renaissance, new roads and bridges began to
be built, often based on Roman designs. Although there were attempts to rediscover Roman methods,
there was little useful innovation in road building before the 18th century.

The Great North Road near High gate on the approach to London before turnpiking. The highway was
deeply rutted and spread onto adjoining land.
Starting in the early 18th century, the British Parliament began to pass a series of acts that gave the local
justices powers to erect toll-gates on the roads, in exchange for professional upkeep. The toll-gate erected
at Wade's Mill became the first effective toll-gate in England. The first scheme that had trustees who
were not justices was established through a Turnpike Act in 1707, for a section of the London-Chester
road between Foothill and Stony Stafford. The quality of early turnpike roads was varied. Although
turnpiking did result in some improvement to each highway, the technologies used to deal with
geological features, drainage, and the effects of weather were all in their infancy. Road construction
improved slowly, initially through the efforts of individual surveyors such as John Metcalf in Yorkshire
in the 1760s. British turnpike builders began to realize the importance of selecting clean stones for
surfacing while excluding vegetable material and clay, resulting in more durable roads.
Industrial civil engineering

Thomas Telford, the "Colossus of the Roads" in early 19th century Britain.

12
By the late 18th and early 19th centuries, new methods of highway construction had been pioneered by
the work of three British engineers, John Metcalf, Thomas Telford and John Loudon McAdam, and by
the French road engineer Pierre-Marie-Jérôme Trésaguet.
The first professional road builder to emerge during the Industrial Revolution was John Metcalf, who
constructed about 180 miles (290 km) of turnpike road, mainly in the north of England, from 1765. He
believed a good road should have good foundations, be well drained and have a smooth convex surface to
allow rainwater to drain quickly into ditches at the side. He understood the importance of good drainage,
knowing it was rain that caused most problems on the roads. Pierre-Marie-Jérôme Trésaguet established
the first scientific approach to road building in France at the same time. He wrote a memorandum on his
method in 1775, which became general practice in France. It involved a layer of large rocks, covered by a
layer of smaller gravel. The lower layer improved on Roman practice in that it was based on the
understanding that the purpose of this layer (the sub-base or base course) is to transfer the weight of the
road and its traffic to the ground, while protecting the ground from deformation by spreading the weight
evenly. Therefore, the sub-base did not have to be a self-supporting structure. The upper running surface
provided a smooth surface for vehicles while protecting the large stones of the sub-base.
The surveyor and engineer Thomas Telford also made substantial advances in the engineering of new
roads and the construction of bridges. His method of road building involved the digging of a large trench
in which a foundation of heavy rock was set. He also designed his roads so that they sloped downwards
from the centre, allowing drainage to take place, a major improvement on the work of Trésaguet. The
surface of his roads consisted of broken stone. He also improved on methods for the building of roads by
improving the selection of stone based on thickness, taking into account traffic, alignment and slopes.
During his later years, Telford was responsible for rebuilding sections of the London to Holyhead road, a
task completed by his assistant of ten years, John MacNeill.

Construction of the first macadamized road in the United States (1823). In the foreground, workers are
breaking stones "so as not to exceed 6 ounces in weight or to pass a two-inch ring"
It was another Scottish engineer, John Loudon McAdam, who designed the first modern roads. He
developed an inexpensive paving material of soil and stone aggregate (known as macadam). His road

13
building method was simpler than Telford's, yet more effective at protecting roadways: he discovered that
massive foundations of rock upon rock were unnecessary, and asserted that native soil alone would
support the road and traffic upon it, as long as it was covered by a road crust that would protect the soil
underneath from water and wear.
Also unlike Telford and other road builders, McAdam laid his roads as level as possible. His 30-foot-
wide (9 m) road required only a rise of three inches from the edges to the center. Cambering and
elevation of the road above the water table enabled rainwater to run off into ditches on either side.[11] Size
of stones was central to the McAdam's road building theory. The lower 200-millimetre (8 in) road
thickness was restricted to stones no larger than 75 millimetres (3.0 in). The upper 50-millimetre (2 in)
layer of stones was limited to 20 millimetres (1 in) size and stones were checked by supervisors who
carried scales. A workman could check the stone size himself by seeing if the stone would fit into his
mouth. The importance of the 20 mm stone size was that the stones needed to be much smaller than the
100 mm width of the iron carriage tyres that traveled on the road. Macadam roads were being built
widely in the United States and Australia in the 1820s and in Europe in the 1830s and 1840s.[12]
20th century

Edgar Purnell Hooley, inventor of tarmac.

Macadam roads were adequate for use by horses and carriages or coaches, but they were very dusty and
subject to erosion with heavy rain. The Good Roads Movement occurred in the United States between the
late 1870s and the 1920s. Advocates for improved roads led by bicyclists turned local agitation into a
national political movement.
Outside cities, roads were dirt or gravel; mud in the winter and dust in the summer. Early organizers cited
Europe where road construction and maintenance was supported by national and local governments. In its
early years, the main goal of the movement was education for road building in rural areas between cities
and to help rural populations gain the social and economic benefits enjoyed by cities where citizens
benefited from railroads, trolleys and paved streets. Even more than traditional vehicles, the newly
invented bicycles could benefit from good country roads.Later on, they did not hold up to higher-speed
motor vehicle use. Methods to stabilise macadam roads with tar date back to at least 1834 when John
Henry Cassell, operating from Cassell's Patent Lava Stone Works in Millwall, patented "Pitch
14
Macadam". This method involved spreading tar on the subgrade, placing a typical macadam layer, and
finally sealing the macadam with a mixture of tar and sand. Tar-grouted macadam was in use well before
1900 and involved scarifying the surface of an existing macadam pavement, spreading tar, and re-
compacting. Although the use of tar in road construction was known in the 19th century, it was little used
and was not introduced on a large scale until the motorcar arrived on the scene in the early 20th century.
Modern tarmac was patented by British civil engineer Edgar Purnell Hooley, who noticed that spilled tar
on the roadway kept the dust down and created a smooth surface. He took out a patent in 1901 for
tarmac.
3. Nature and Characteristics of Road Transport
The nature of road transport depends, apart from the degree of development of the local infrastructure, on
the distance the goods are transported by road, the weight and volume of an individual shipment, and the
type of goods transported. For short distances and light, small shipments a van or pickup truck may be
used. For large shipments even if less than a full truckload a truck is more appropriate. In some countries
cargo is transported by road in horse-drawn carriages, donkey carts or other non-motorized mode.
Delivery services are sometimes considered a separate category from cargo transport. In many places fast
food is transported on roads by various types of vehicles. For inner city delivery of small packages and
documents bike couriers are quite common. People are transported on roads. Special modes of individual
transport by road such as cycle rickshaws may also be locally available. There are also specialist modes
of road transport for particular situations, such as ambulances.
2.2 Air or Aviation Transport
1. Definition
The air transport industry is defined as those activities that relate directly to transporting people and
goods by air from one location to another. The industry comprises various activities, including airline and
transport operations, scheduled and chartered flights for passengers and freight, general aviation aircraft
maintenance, as well as air traffic control and regulation (Igbatayo and Igbinedion, 2007). Airports are
the main component of the air transport.The ports provides the place for landing and takeoff of aircraft
and also enable various services and facilities for airlines, passengers and other allied including
government bodies and concessionaires (Oyesiku, Somuyiwa and Oduwole, 2016). Airport is the
terminal that acts as the interchange or interface between road and other transport modes. According to
International Civil Aviation Organization (ICAO), an airport otherwise known as aerodrome is an area on
land or water (including any buildings, installations and equipment) intended to be used either wholly or
in part for the arrival, departure and surface movement of aircraft (Adeniran and Gbadamosi, 2017).
According to Oyesiku, Somuyiwa and Oduwole (2016) the basic functions of an airport are to provide

15
access for aircraft to the national airspace, to permit easy interchange between aircraft and to facilitate the
consolidation of traffic. To effectively deliver these functions, an airport must have several basic
infrastructure elements present such as runway, taxiways, aprons (airside infrastructure) and airport
ground resources for passengers or cargo.
According to Crockatt and Ogston, (2000) the two most important components of airport infrastructure
are the actual airfield facilities and the access facilities.
1. The airfield facilities: These facilities include runways, aprons, taxiways and main buildings, such as
the passenger terminal and cargo buildings.
2. The access facilities: These facilities are primarily the roadways (and rail lines, where applicable) that
lead into the airport terminal and cargo areas.
3. Other Components: Another important airport infrastructure is the municipal infrastructure, such as
water and sewer service. Industrial quality water and sewage systems must be complemented by wide,
multi-lane divided roadways with grade-separation for rail crossings.
Another alternative approach to classify air transport infrastructure are:
a. Municipal infrastructure: such as water and sewer service;
b. Rail infrastructure: in the form of an updated intermodal facility;
c. Airside infrastructure: in the form of runways, taxiways, aprons and warehouses; and
d. Ground access: This look at roads and highway connections in terms of the freeways surround the
airport with direct links to the central urban and most of the smaller cities that make up the metropolitan
area. One freeway, International Parkway, runs through the middle of the airport with aircraft taxiways
crossing overhead.
2. Characteristics of Air transport
The peculiar characteristic of air transport is that is does not need a specific surface track for its operations. It has
no physical barriers as in the case of other mode of transport. Political boundaries are also immaterial although it
has to observe the requirements of the International Law.

1. Unbroken Journey: Air transport provides unbroken journey over land and sea. It is the fastest and
quickest means of transport.
2. Rapidity: Air transport had the highest speed among all the modes of transport.
3. Expensive: Air transport is the most expensive means of transport. There is huge investment in
purchasing aero planes and constructing of aerodromes.
4. Special Preparations: Air transport requires special preparations like wheelers links, meteorological
stations, flood lights, searchlights etc. Fastest Mode of Transport:
3. Advantages and Disadvantages of Air transport

16
The supreme advantage of air transport lies in its quickness. It is the fastest mode of transport. But the cost of its
operation is very high and thus it is suitable for only rich passengers, mails and light and costly cargo. However, in
advanced countries like U.S.A., Germany, etc. it offers a tough competition to the railways.

1. High Speed: The supreme advantage of air transport is its high speed. It is the fastest mode of transport
and thus it is the most suitable mean where time is an important factor.
2. Comfortable and Quick Services: It provides a regular, comfortable, efficient and quick service.
3. No Investment in Construction of Track: It does not require huge capital investment in the construction
and maintenance of surface track.
4. No Physical Barriers: It follows the shortest and direct route as seas, mountains or forestsnot come in
the way of air transport.
5. Easy Access: Air transport can be used to carry goods and people to the areas
which are not accessible by other means of transport.
6. Emergency Services: It can operate even when all other means of transport cannot be operated due to
the floods or other natural calamities. Thus, at that time, it is the only mode of transport which can be
employed to do the relief work and provide the essential commodities of life.
7. Quick Clearance: In air transport, custom formalities can be very quickly complied with and thus it
avoids delay in obtaining clearance.
8. Most Suitable for Carrying Light Goods of High Value: It is most suitable for carrying goods of
perishable nature which require quick delivery and light goods of high value such as diamonds, bullion
etc. over long distances.
9. National Defence: Air transport plays a very important role in the defence of a country.Modern wars
have been fought mainly by aeroplanes. It has upper hand in destroying the enemy in a very short period
of time. It also supports over wings of defence of a country.
10. Space Exploration: Air transport has helped the world in the exploration of space.
Disadvantages of Air transport
In spite of many advantages, air transport has the following limitations:
1. Very Costly: It is the costliest means of transport. The fares of air transport are so high that it is beyond
the reach of the common man.
2. Small Carrying Capacity: Its carrying capacity is very small and hence it is not suitable to carry cheap
and bulky goods.
3. Uncertain and Unreliable: Air transport is uncertain and unreliable as it is controlled to a great extent
by weather conditions. Unfavourable weather such as fog, snow or heavy rain etc. may cause cancellation
of scheduled flights and suspension of air service.

17
4. Breakdowns and Accidents: The chances of breakdowns and accidents are high as compared to other
modes of transport. Hence, it involves comparatively greater risk.
5. Large Investment: It requires a large amount of capital investment in the construction and maintenance
of aeroplanes. Further, very trained and skilled persons are required for operating air service.
6. Specialised Skill: Air transport requires a specialised skill and high degree of training for its operation.
7. Unsuitable for Cheap and Bulky Goods: Air transport is unsuitable for carrying cheap, bulky and
heavy goods because of its limited capacity and high cost.
8. Legal Restrictions:There are many legal restrictions imposed by various countries in the interest of
their own national unity and peace.
3. Historical Development
The dream of flying is as old as mankind. In all civilizations (old and new like Greek, Chinese, Roman,
Inca, Celt et al.) there is the believe that Gods have certain capabilities to fly and pass easily between
earth and heaven. Some courageous people tried to copy this capability by intensively watching the flight
of birds and adapting certain mechanisms from them. These group of people, countries and religion group
include
1. Daedalus: a Greek mythology who is an excellent artist and innovator constructed and build a flying
vehicle to escape from King Minos that want to keep his capabilities as architect for his selfish interest
which consisted of feathers, “fixed by thread and wax, thus constructing the wings with a certain camber
just like the birds.” (Nao, 1958)
2. China: People in China constructed kites to serve some mystic role as element between heaven and
earth
3. Christians: in Christianity some persons were known with flying capabilities, angels and devils, who
can—with the help of wings—travel between heaven and earth and underworld/hell. This is the first
attempt and the basis upon which human believe about flying across culture is built. These ideas and
legends of flying are part of cultural or religious habits.
4. Leonardo da Vinci: He postulated “that human beings would be capable to depart into the air with the
help of machines with large wings, which had to be designed to overcome the air resistance” with his
drawings showing different principles of his flying vehicles: some show a human being, lying
horizontally in his apparatus and hands and feet are fixed or controlling some cables or bars; others are
showing a person controlling a flapping mechanisms to move the wings up and down; others show a sort
of screw, which can be rotated by a filament movement and which will be lifting off vertically when
sufficiently accelerated. Also a parachute system can be found in his archive of drawings (Galluzzi,
1987).

18
Drawings about flying vehicles from Leonardo da Vinci
5. Montgolfier brothers: this brothers by some chance and luck developed the hot air balloon when
they discovered the principle of hot air balloons which fly in front of the King in Versailles in 1783 is
reported as a sensation and huge spectacle, having seen the first three passengers being lifted up, a coq, a
sheep and a dog but the ballon just followed the wind without the possibility to give him a specific
direction of flight since it is uncontrollable and this makes people loose interest in the discovery.
6. Sir George Cayley (1773-1857): He defined and developed some elementary principles
fundamentally important for future success of flight vehicles (Cayley, 1810). He postulated the principles
of flight in his paper “The art of flying, or Aerial Navigation”.
• Separation of forces acting on the wing in lift and drag (vertically lifting and horizontally drag forces)
• Stability and controllability as basic principles for a flying vehicle
• Lift to compensate the mass; leading to light weight structures
• Independent thrust to compensate the aerodynamic drag.
His effort was limited just to only the constructing models which were quite successfully demonstrating
these postulated principles but he had not yet the final idea about the right propulsive force which some
historians believed he cannot be created as the father of modern aircraft as argued by some.

The Montgolfiere hot air balloon

8. Early 19th Century: during this period some scientist makes a lot of efforts to try to develop the steam
engine as a propulsive system, but all efforts, to use steam engines for the flying vehicles failed (Gibbs-
Smith, 1965). Their clear statement was, it would be physically impossible to have flying

19
organisms/vehicles, which are bigger than eagles and vulture (Cahan, 1994). Nevertheless there were still
continuous efforts and a lot of passion to develop a real flying vehicle, which was controllable.
7. Middle 19th Century: During this period a lot of efforts were still underway to overcome all the
pessimistic view from the scientists about the “dream of flying”. There can be seen two different and
competing philosophies in the nineteenth century: Flying following the principle “Lighter than air” and
flying following the principle “Heavier than air”. The principle of flying “Heavier than air” was seen as
more problematic. The scientific community classified this principle as impossible for mankind and was
providing no support and help. All persons, who still were convinced that flying with machines “heavier
than air” was possible, were seen as “fools” and hopeless utopists. The enthusiasts working on the
concept of “heavier than air” were following two different principles:
• a sort of flapping wing like the flight of birds or
• a fixed wing but with a strong propulsive unit to accelerate the vehicle.
Some encouragement was seen, when the big steam motors appeared, developed for the railway and the
big steamships. But the steam engines were too heavy to be used in the flying vehicle
8 Graf Zeppelin: This principle “Lighter than air” that ended in the development of airships, which had
a propulsive unit and could be controlled first being successfully tested by the Montgolfier brothers,
culminated later on in the development of big airships by Graf Zeppelin. The airship called Zeppelins
finally managed to cross the Atlantic between 1931 and 1937 with quite an impressive passenger load of
*50 persons. However, with the disaster of the Zeppelin ZL 129 on 7 May 1937 in Lakehurst, the
commercial transport with airships ended immediately.
9. Alphonse Penaud (1876) and Clement Ader (1841–1926): In 1876, Penaud patented a design for a
large amphibious aircraft with such innovative features as retractable wheels, a glass-enclosed cockpit, a
single-lever control for both the rudders and the elevators, and twin propellers driven by an engine
concealed in the fuselage. The design was amazingly ahead of its time, but no engine existed that was
light enough and could make such an aircraft fly. Clément Ader (1841–1926) focused on the problem of
heavier-than-air flying machines and in 1890 built a steam-powered, bat-winged monoplane, which he
named the Eole. It is reported that he flew it a distance of 50 m. The steam engine was unsuitable for
sustained and controlled flight, which required the gasoline engine; nevertheless Between 1894 and 1897
Clément Ader built a larger but still ‘Eole-like’ twin screw machine which he named the Avion.
Interrupted after an accident in 1897, the work was not continued due to a lack of financial resources.
During this time period between 1850 and 1900, a lot of important developments have been made, not
only in France but also all over the wor, in Brazil, Australia, UK and USA

20
10. Otto Lilienthal: He and his brother Gustav were fascinated from storks. They discovered that young
storks—when trying to take off—were always starting against the wind, a very important lesson learnt
which is still in use today in daily air operations. All his systematic approach and research about wing
profiles was finally published by him in a book in 1989 with the title “Der Vogelflug als Grundlage der
Fliegekunst” (Lilienthal, 1889). It is the first time, that an inventor published his own knowledge openly,
which was financed privately and therefore, helped other inventors and competitors in the race for the
first successful flight. In 1890, Otto Lilienthal started to develop his first “gliding vehicle”, with
cambered wings. The practical gliding tests started 1891 from a hill close to Berlin (see Fig. 2.3).

Fig. 2.3 Lilienthal’s “Sturmhügel” Flying base 1894 and a gliding flight
In total Lilienthal developed 18 different gliding vehicles, did close to 300 gliding flights, the longest
flight was more than 250 m. He also tried to integrate a light engine, but the right engine did not exist for
him. His sudden death after a flight accident stopped his approach. But all his knowledge and discussion
with important persons like Langley, Joukowsky and others inspired other inventors like Ader and the
Wright Brothers to continue and use the experience, developed by Otto Lilienthal. Also, he was the first
real pilot of his gliding vehicles. He took the risk to enter as a pilot and get the feeling for the lift and
wind forces and also experienced the basic principles of flight control including stability. With all his
contributions, his openness of publishing and communicating his experience and his ability to finance all
his research and test efforts, Otto Lilienthal can be seen as one of the central engineers, who had prepared
the flight of man.
11. Wright brothers: Orville (1871–1948) and Wilbur (1867–1912) in Virginia: The Wright brothers
successfully managed to develop a flying vehicle, capable to lift off and land with a pilot onboard and as
such they were accredited as the developer or inventor of Aeroplanne. They were two Americans who
were inventing and building the world’s first successful airplane and making the first controlled, powered
and sustained heavier-than-air human flight, on December 17th, 1903. In the two following years, the

21
brothers developed their flying machine into the first practical fixed wing aircraft. The brothers’
fundamental breakthrough was their further development of three-axis control, which enabled the pilot to
steer the aircraft effectively and to maintain its equilibrium. Their first U.S. patent, 821,393, did not
claim invention of a flying machine, but rather, the invention of a system of aerodynamic control that
manipulated a flying machine’s surfaces (Roeder, 1991). With the news, that the Wright brothers had
demonstrated the first autonomous flight with a machine heavier than air, a new impulse was given to all
enthusiasts in all countries.
12. Louis Bleriot (1909): The French aviator made the first airplane crossing of the English Channel.
Within only 10 years, a lot of new flying machines were developed, very different concepts, different tail
configurations, multiple wings, different propulsive engines and engine integrations. Also the national
bodies/governments started to get interest in these flying vehicles. National research started and national
military sponsors appeared on the scene.
14. World War I (1914–1918): The civil air transport started after WW I parallel in different areas.
During his period over 80 000 flying vehicles have been constructed and have been used. The flying
vehicles have not been a decisive element during this war despite this enormous investment in air
vehicles and despite the big progress within 13 years from the first flight in 1903 to the end of the 1st
World war. The biggest bomber aircraft of WW1 (Gotha bomber and Handley Page bomber) had a
takeoff mass of more than 5 tons (Aircraft of World War 1, 2014). The Junkers F 13 was the world’s first
all-metal transport aircraft, developed in Germany by Hugo Junkers at the end of World War I. It was an
advanced cantilever-wing monoplane, which could accommodate four passengers. The Junkers F 13 is
one attempt to use the experience of all the military vehicles and develop out of this knowledge a
commercial transport. Hugo Junkers, the creator of F 13, had the vision that there is a big chance to use
the aircraft as transportation means. Surprisingly, the F 13 has all the typical characteristics of today’s
aircraft. It has already a single cantilever wing, a classical tail, two engines with propellers, and a
reasonable fuselage cabin. So only 16 years after the first flight by the Wright brothers, a nearly perfect
configuration for air transport has already been developed with all the typical characteristics of a
transport aircraft, as we know them today:
• an unobstructed cabin,
• a front cockpit,
• a fuselage to accommodate the payload (not yet pressurized!) a classical tailplane for control and
stability,
• one engine mounted in front of the fuselage (certification rules were not yet invented!). The F13 has
been only slightly successful, as the market was not yet ready and the acceptance and infrastructure for

22
air transport had still to be developed. Nevertheless 360 units from the F13 were built. Other aircraft
constructors like Anthony Fokker (Dierikx, 1997) also started to develop commercial aircraft (Fokker
F.VII trimotor), but were also not very successful. A big push for air transport started in 1925 in the US
where the government withdraw the air mail from the official “post office” and outsourced it to private
competitors in order to reduce cost. This was a first push to reduce mail travel time. A next step followed
in 1926, with the US “Air Commerce Act”, which put air navigation, licensing of pilots and air vehicles
as well as the investigation of air accidents under governmental control. This was a first step in pushing a
“safety system” in place. New engine concepts (air charger for piston engines) and better and more
reliable instrumentation to fly through clouds were developed and helped this purpose. Around 1935 the
first long range aircraft appeared on the market. In 1939, World War II started in Europe and all
engineering efforts were related to military air vehicles. Speed and range increase and better
maneuverability were the dominating factors for aircraft development. The first jet engines appeared in
Germany with the ME 262.The first swept wing concepts for high speed flights were developed in 1937
by DVFLR (A. Busemann), allowing higher speeds up to Mach Numbers of 1, the speed of sound!
(Hirschel, Prem, Madelung, 2001). The military aircraft became the dominant factor in the superiority of
World War II, with speed and maneuverability as dominating performance characteristics.
14 The Jet Age: The civil air transport with jet engines started with a big failure, the Comet disaster! The
courage of European/British excellent engineering talents was not rewarded by a successful market
acceptance. After the failure from Comet, the American manufacturers Boeing and McDonald-Douglas
developed their jet engine powered aircraft, the B-707 and the DC-8 about in parallel and both became
fairly successful on the market. Both were designed for about 175 passengers, thus increasing the payload
by roughly 75 % compared to the older long range aircraft like DC-7 and Lockheed L-1049, better
known as “Super constellation”. Jet aircraft were however more noisy during takeoff and landing. But
this was not seen as a major drawback as this was also representing the new dynamic optimism and new
positive economic push after WW II. With the bigger cabin, direct operating cost went down by about 15
% in comparison to the older aircraft like DC-7 and DC-6. The air transport across the Atlantic Ocean
became faster and within 6-8 h east coast of US and west coast of Europe (London, Paris) could be
reached which meant a travel between North America and Europe could be done within one day! Already
in 1956 the American airlines transported more passengers than the railway.
15. Development of Civil Transport Opeeration (Airlines and Airports): Airlines: At the beginning
of air transport, the airship was used for civil transport operation. The first company, who started with
regular air transport was DELAG (Deutsche Luftschiffahrts-Aktiengesellschaft). It was founded in 1909
with government assistance, and operated airships, manufactured by the Zeppelin Corporation. Its

23
headquarters were in Frankfurt. The idea was to establish regular air transport between major cities in
Germany. In 1914—before the beginning of the 1st World War—DELAG operated seven airships on
roughly *1500 routes with a total range of 175.000 km and transported 18.500 passengers without major
fatalities (Treibel, 19992). Transportation of Mail stands at the beginning of the fixed wing commercial
aircraft operation. In the US the Post-office started the first regular post transport between Philadelphia
and New York. Also in Europe transport of mail started the commercial operation after WW 1. In 1920,
the first transcontinental airmail service began and the first night flights started a year later. However,
accident rates were still high and normal passengers did not yet rely on and believe in air transport. The
four oldest airlines that still exist but using fixed wing aircraft are Netherlands’ KLM, Colombia’s
Avianca, Australia’s Qantas, and the Czech Republic’s Czech Airlines. KLM first flew in May 1920,
while Qantas (which stands for Queensland and Northern Territory Aerial Services Limited) was founded
in Queensland, Australia, in late 1920 (Airline history, 2014).
2.3 Rail Transport
1. Definition
Rail transport is a means of transferring of passengers and goods on wheeled vehicles running on rails,
also known as tracks. It is also commonly referred to as train transport. In contrast to road transport,
where vehicles run on a prepared flat surface, rail vehicles (rolling stock) are directionally guided by the
tracks on which they run. Tracks usually consist of steel rails, installed on ties (sleepers) and ballast, on
which the rolling stock, usually fitted with metal wheels, moves. Other variations are also possible, such
as slab track, where the rails are fastened to a concrete foundation resting on a prepared subsurface.

An Acela Express high-speed train passing Old Saybrook station and a British Rail Class 802
Rolling stock in a rail transport system generally encounters lower frictional resistance than road
vehicles, so passenger and freight cars (carriages and wagons) can be coupled into longer trains. The
operation is carried out by a railway company, providing transport between train stations or freight
customer facilities. Power is provided by locomotives which either draw electric power from a railway
electrification system or produce their own power, usually by diesel engines. Most tracks are
accompanied by a signalling system. Railways are a safe land transport system when compared to other
forms of transport. Railway transport is capable of high levels of passenger and cargo utilization and
24
energy efficiency, but is often less flexible and more capital-intensive than road transport, when lower
traffic levels are considered.
2. Historical development
The oldest known, man/animal-hauled railways date back to the 6th century BC in Corinth, Greece. Rail
transport then commenced in mid 16th century in Germany in the form of horse-powered funiculars and
wagonways. Modern rail transport commenced with the British development of the steam locomotives in
the early 19th century. Thus the railway system in Great Britain is the oldest in the world. Built by
George Stephenson and his son Robert's company Robert Stephenson and Company, the Locomotion No.
1 is the first steam locomotive to carry passengers on a public rail line, the Stockton and Darlington
Railway in 1825. George Stephenson also built the first public inter-city railway line in the world to use
only the steam locomotives all the time, the Liverpool and Manchester Railway which opened in 1830.
With steam engines, one could construct mainline railways, which were a key component of the
Industrial Revolution. Also, railways reduced the costs of shipping, and allowed for fewer lost goods,
compared with water transport, which faced occasional sinking of ships. The change from canals to
railways allowed for "national markets" in which prices varied very little from city to city. The spread of
the railway network and the use of railway timetables, led to the standardisation of time (railway time) in
Britain based on Greenwich Mean Time. Prior to this, major towns and cities varied their local time
relative to GMT. The invention and development of the railway in the United Kingdom was one of the
most important technological inventions of the 19th century. The world's first underground railway, the
Metropolitan Railway (part of the London Underground), opened in 1863.
In the 1880s, electrified trains were introduced, leading to electrification of tramways and rapid transit
systems. Starting during the 1940s, the non-electrified railways in most countries had their steam
locomotives replaced by diesel-electric locomotives, with the process being almost complete by the
2000s. During the 1960s, electrified high-speed railway systems were introduced in Japan and later in
some other countries. Many countries are in the process of replacing diesel locomotives with electric
locomotives, mainly due to environmental concerns, a notable example being Switzerland, which has
completely electrified its network. Other forms of guided ground transport outside the traditional railway
definitions, such as monorail or maglev, have been tried but have seen limited use.
Following a decline after World War II due to competition from cars, rail transport has had a
revival in recent decades due to road congestion and rising fuel prices, as well as governments investing
in rail as a means of reducing CO2 emissions in the context of concerns about global warming

25
i. Wooden rails introduced: Reisszug, as it appears today

In 1515, Cardinal Matthäus Lang wrote a description of the Reisszug, a funicular railway at the
Hohensalzburg Castle in Austria. The line originally used wooden rails and a hemp haulage rope and was
operated by human or animal power, through a treadwheel. The line still exists and is operational,
although in updated form and is possibly the oldest operational railway.

Minecart shown in De Re Metallica (1556).

The guide pin fits in a groove between two wooden planks. Wagonways (or tramways) using wooden
rails, hauled by horses, started appearing in the 1550s to facilitate the transport of ore tubs to and from
mines, and soon became popular in Europe. Such an operation was illustrated in Germany in 1556 by
Georgius Agricola (image right) in his work De re metallica. This line used "Hund" carts with unflanged
wheels running on wooden planks and a vertical pin on the truck fitting into the gap between the planks
to keep it going the right way. The miners called the wagons Hunde ("dogs") from the noise they made
on the tracks.

26
ii. Metal rails introduced
In the late 1760s, the Coalbrookdale Company began to fix plates of cast iron to the upper surface of the
wooden rails. This allowed a variation of gauge to be used. At first only balloon loops could be used for
turning, but later, movable points were taken into use that allowed for switching.[17]

A replica of a "Little Eaton Tramway" wagon, the tracks are plateways

A system was introduced in which unflanged wheels ran on L-shaped metal plates – these became known
as plateways. John Curr, a Sheffield colliery manager, invented this flanged rail in 1787, though the exact
date of this is disputed. The plate rail was taken up by Benjamin Outram for wagonways serving his
canals, manufacturing them at his Butterley ironworks. In 1803, William Jessop opened the Surrey Iron
Railway, a double track plateway, erroneously sometimes cited as world's first public railway, in south
London.

Cast iron fishbelly edge rail manufactured by Outram at the Butterley Company ironworks for the
Cromford and High Peak Railway (1831). These are smooth edgerails for wheels with flanges.
Meanwhile, William Jessop had earlier used a form of all-iron edge rail and flanged wheels successfully
for an extension to the Charnwood Forest Canal at Nanpantan, Loughborough, Leicestershire in 1789. In
1790, Jessop and his partner Outram began to manufacture edge-rails. Jessop became a partner in the
Butterley Company in 1790. The first public edgeway (thus also first public railway) built was Lake Lock
Rail Road in 1796. Although the primary purpose of the line was to carry coal, it also carried passengers.
These two systems of constructing iron railways, the "L" plate-rail and the smooth edge-rail, continued to
exist side by side until well into the early 19th century. The flanged wheel and edge-rail eventually
proved its superiority and became the standard for railways.

27
Cast iron used in rails proved unsatisfactory because it was brittle and broke under heavy loads. The
wrought iron invented by John Birkinshaw in 1820 replaced cast iron. Wrought iron (usually simply
referred to as "iron") was a ductile material that could undergo considerable deformation before breaking,
making it more suitable for iron rails. But iron was expensive to produce until Henry Cort patented the
puddling process in 1784. In 1783 Cort also patented the rolling process, which was 15 times faster at
consolidating and shaping iron than hammering.[19] These processes greatly lowered the cost of
producing iron and rails. The next important development in iron production was hot blast developed by
James Beaumont Neilson (patented 1828), which considerably reduced the amount of coke (fuel) or
charcoal needed to produce pig iron.[20] Wrought iron was a soft material that contained slag or dross.
The softness and dross tended to make iron rails distort and delaminate and they lasted less than 10 years.
Sometimes they lasted as little as one year under high traffic. All these developments in the production of
iron eventually led to replacement of composite wood/iron rails with superior all iron rails.
iii. Steam power introduced
James Watt, a Scottish inventor and mechanical engineer, greatly improved the steam engine of Thomas
Newcomen, hitherto used to pump water out of mines. Watt developed a reciprocating engine in 1769,
capable of powering a wheel. Although the Watt engine powered cotton mills and a variety of machinery,
it was a large stationary engine. It could not be otherwise: the state of boiler technology necessitated the
use of low pressure steam acting upon a vacuum in the cylinder; this required a separate condenser and an
air pump. Nevertheless, as the construction of boilers improved, Watt investigated the use of high-
pressure steam acting directly upon a piston. This raised the possibility of a smaller engine, that might be
used to power a vehicle and he patented a design for a steam locomotive in 1784. His employee William
Murdoch produced a working model of a self-propelled steam carriage in that year.[26]

A replica of Trevithick's engine at the National Waterfront Museum, Swansea

28
The Salamanca locomotive
The first commercially successful steam locomotive was Matthew Murray's rack locomotive Salamanca
built for the Middleton Railway in Leeds in 1812. This twin-cylinder locomotive was not heavy enough
to break the edge-rails track and solved the problem of adhesion by a cog-wheel using teeth cast on the
side of one of the rails. Thus it was also the first rack railway.
This was followed in 1813 by the locomotive Puffing Billy built by Christopher Blackett and William
Hedley for the Wylam Colliery Railway, the first successful locomotive running by adhesion only. This
was accomplished by the distribution of weight between a number of wheels. Puffing Billy is now on
display in the Science Museum in London, making it the oldest locomotive in existence.[30]

The Locomotion at Darlington Railway Centre and Museum

In 1814 George Stephenson, inspired by the early locomotives of Trevithick, Murray and Hedley,
persuaded the manager of the Killingworth colliery where he worked to allow him to build a steam-
powered machine. Stephenson played a pivotal role in the development and widespread adoption of the
steam locomotive. His designs considerably improved on the work of the earlier pioneers. He built the
locomotive Blücher, also a successful flanged-wheel adhesion locomotive. In 1825 he built the
locomotive Locomotion for the Stockton and Darlington Railway in the north east of England, which
became the first public steam railway in the world in 1825, although it used both horse power and steam
power on different runs. In 1829, he built the locomotive Rocket, which entered in and won the Rainhill
Trials. This success led to Stephenson establishing his company as the pre-eminent builder of steam
locomotives for railways in Great Britain and Ireland, the United States, and much of Europe.[31]:24–30 The
29
first public railway which used only steam locomotives, all the time, was Liverpool and Manchester
Railway, built in 1830.
iv. Electric power introduced
The first known electric locomotive was built in 1837 by chemist Robert Davidson of Aberdeen in
Scotland, and it was powered by galvanic cells (batteries). Thus it was also the earliest battery electric
locomotive. Davidson later built a larger locomotive named Galvani, exhibited at the Royal Scottish
Society of Arts Exhibition in 1841. The seven-ton vehicle had two direct-drive reluctance motors, with
fixed electromagnets acting on iron bars attached to a wooden cylinder on each axle, and simple
commutators. It hauled a load of six tons at four miles per hour (6 kilometers per hour) for a distance of
one and a half miles (2.4 kilometres). It was tested on the Edinburgh and Glasgow Railway in September
of the following year, but the limited power from batteries prevented its general use. It was destroyed by
railway workers, who saw it as a threat to their job security.

Lichterfelde tram, 1882

Werner von Siemens demonstrated an electric railway in 1879 in Berlin. The world's first electric tram
line, Gross-Lichterfelde Tramway, opened in Lichterfelde near Berlin, Germany, in 1881. It was built by
Siemens. The tram ran on 180 Volt DC, which was supplied by running rails. In 1891 the track was
equipped with an overhead wire and the line was extended to Berlin-Lichterfelde West station. The
Volk's Electric Railway opened in 1883 in Brighton, England. The railway is still operational, thus
making it the oldest operational electric railway in the world. Also in 1883, Mödling and Hinterbrühl
Tram opened near Vienna in Austria. It was the first tram line in the world in regular service powered
from an overhead line. Five years later, in the U.S. electric trolleys were pioneered in 1888 on the
Richmond Union Passenger Railway, using equipment designed by Frank J. Sprague.[35]

Baltimore & Ohio electric engine

30
The first use of electrification on a main line was on a four-mile section of the Baltimore Belt Line of the
Baltimore and Ohio Railroad (B&O) in 1895 connecting the main portion of the B&O to the new line to
New York through a series of tunnels around the edges of Baltimore's downtown. Electricity quickly
became the power supply of choice for subways, abetted by the Sprague's invention of multiple-unit train
control in 1897. By the early 1900s most street railways were electrified.
v. Diesel power introduced
See also: Diesel locomotive and Dieselisation § Rail_transport

Diagram of Priestman Oil Engine from The Steam engine and gas and oil engines (1900) by John Perry
Earliest recorded examples of an internal combustion engine for railway use included a prototype
designed by William Dent Priestman, which was examined by Sir William Thomson in 1888 who
described it as a "[Priestman oil engine] mounted upon a truck which is worked on a temporary line of
rails to show the adaptation of a petroleum engine for locomotive purposes.".[48][49] In 1894, a 20 hp
(15 kW) two axle machine built by Priestman Brothers was used on the Hull Docks.[50]
In 1906, Rudolf Diesel, Adolf Klose and the steam and diesel engine manufacturer Gebrüder Sulzer
founded Diesel-Sulzer-Klose GmbH to manufacture diesel-powered locomotives. Sulzer had been
manufacturing diesel engines since 1898. The Prussian State Railways ordered a diesel locomotive from
the company in 1909. The world's first diesel-powered locomotive was operated in the summer of 1912
on the Winterthur–Romanshorn railway in Switzerland, but was not a commercial success.[51] The
locomotive weight was 95 tonnes and the power was 883 kW with a maximum speed of 100 km/h.[52]
Small numbers of prototype diesel locomotives were produced in a number of countries through the mid-
1920s.

Swiss & German co-production: world's first functional diesel–electric railcar 1914

31
A significant breakthrough occurred in 1914, when Hermann Lemp, a General Electric electrical
engineer, developed and patented a reliable direct current electrical control system (subsequent
improvements were also patented by Lemp). Lemp's design used a single lever to control both engine and
generator in a coordinated fashion, and was the prototype for all diesel–electric locomotive control
systems. In 1914, world's first functional diesel–electric railcars were produced for the Königlich-
Sächsische Staatseisenbahnen (Royal Saxon State Railways) by Waggonfabrik Rastatt with electric
equipment from Brown, Boveri & Cie and diesel engines from Swiss Sulzer AG. They were classified as
DET 1 and DET 2 (de.wiki). The first regular use of diesel–electric locomotives was in switching
(shunter) applications. General Electric produced several small switching locomotives in the 1930s (the
famous "44-tonner" switcher was introduced in 1940) Westinghouse Electric and Baldwin collaborated to
build switching locomotives starting in 1929.
In 1929, the Canadian National Railways became the first North American railway to use diesels in
mainline service with two units, 9000 and 9001, from Westinghouse.[54]
vi. High-speed rail
High-speed rail: Although high-speed steam and diesel services were started before the 1960s in Europe,
they were not very successful.

0-Series Shinkansen, introduced in 1964, triggered the intercity train travel boom.
The first electrified high-speed rail Tōkaidō Shinkansen was introduced in 1964 between Tokyo and
Osaka in Japan. Since then high-speed rail transport, functioning at speeds up to and above 300 km/h, has
been built in Japan, Spain, France, Germany, Italy, the People's Republic of China, Taiwan (Republic of
China), the United Kingdom, South Korea, Scandinavia, Belgium and the Netherlands. The construction
of many of these lines has resulted in the dramatic decline of short haul flights and automotive traffic
between connected cities, such as the London–Paris–Brussels corridor, Madrid–Barcelona, Milan–
Rome–Naples, as well as many other major lines.
High-speed trains normally operate on standard gauge tracks of continuously welded rail on grade-
separated right-of-way that incorporates a large turning radius in its design. While high-speed rail is most
often designed for passenger travel, some high-speed systems also offer freight service.
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3. Trains: A train is a connected series of rail vehicles that move along the track. Propulsion for the train
is provided by a separate locomotive or from individual motors in self-propelled multiple units. Most
trains carry a revenue load, although non-revenue cars exist for the railway's own use, such as for
maintenance-of-way purposes. The engine driver (engineer in North America) controls the locomotive or
other power cars, although people movers and some rapid transits are under automatic control.
Traditionally, trains are pulled using a locomotive. This involves one or more powered vehicles being
located at the front of the train, providing sufficient tractive force to haul the weight of the full train. This
arrangement remains dominant for freight trains and is often used for passenger trains

Russian 2TE10U Diesel-electric locomotive

Motive power: Steam locomotives are locomotives with a steam engine that provides adhesion. Coal,
petroleum, or wood is burned in a firebox, boiling water in the boiler to create pressurized steam.

A RegioSwinger multiple unit of the Croatian Railways

i. Passenger trains: A passenger train travels between stations where passengers may embark and
disembark. The oversight of the train is the duty of a guard/train manager/conductor. Passenger trains are
part of public transport and often make up the stem of the service, with buses feeding to stations.
Passenger trains provide long-distance intercity travel, daily commuter trips, or local urban transit se

33
Interior view of the top deck of a VR InterCity2 double-deck carriage
ii. Freight train: A freight train hauls cargo using freight cars specialized for the type of goods. Freight
trains are very efficient, with economy of scale and high energy efficiency. However, their use can be
reduced by lack of flexibility, if there is need of transshipment at both ends of the trip due to lack of
tracks to the points of pick-up and delivery. Authorities often encourage the use of cargo rail transport
due to its fame

Bulk cargo of minerals

Right of way or Railway: Railway tracks are laid upon land owned or leased by the railway company.
Owing to the desirability of maintaining modest grades, rails will often be laid in circuitous routes in
hilly or mountainous terrain. Route length and grade requirements can be reduced by the use of
alternating cuttings, bridges and tunnels – all of which can greatly increase the capital expenditures
required to develop a right of way, while significantly reducing operating costs and allowing higher
speeds on longer radius curves. In densely urbanized areas, railways are sometimes laid in tunnels to
minimize the effects on existing properties.
iii. Track

Map of railways in Europe with main operational lines shown in black, heritage railway lines in green
and former routes in light blue

34
iv. Electrification: The electrification system provides electrical energy to the trains, so they can operate
without a prime mover on board. This allows lower operating costs, but requires large capital investments
along the lines. Mainline and tram systems normally have overhead wires, which hang from poles along
the line. Grade-separated rapid transit sometimes use a ground third rail.
v. Train station: A railway station serves as an area where passengers can board and alight from trains.
A goods station is a yard which is exclusively used for loading and unloading cargo. Large passenger
stations have at least one building providing conveniences for passengers, such as purchasing tickets and
food. Smaller stations typically only consist of a platform. Early stations were sometimes built with both
passenger and goods facilities
vi. Ownership: In the United States, railroads such as the Union Pacific traditionally own and operate
both their rolling stock and infrastructure, with the company itself typically being privately owned.
Since the 1980s, there has been an increasing trend to split up railway companies, with companies
owning the rolling stock separated from those owning the infrastructure. This is particularly true in
Europe, where this arrangement is required by the European Union. This has allowed open access by any
train operator to any portion of the European railway network. In the UK, the railway track is state
owned, with a public controlled body (Network Rail) running, maintaining and developing the track,
while Train Operating Companies have run the trains since privatization in the 1990s.
vii. Financing: The main source of income for railway companies is from ticket revenue (for passenger
transport) and shipment fees for cargo. Discounts and monthly passes are sometimes available for
frequent travellers (e.g. season ticket and rail pass). Freight revenue may be sold per container slot or for
a whole train. Sometimes, the shipper owns the cars and only rents the haulage. For passenger transport,
advertisement income can be significant.
Governments may choose to give subsidies to rail operation, since rail transport has fewer externalities
than other dominant modes of transport. If the railway company is state-owned, the state may simply
provide direct subsidies in exchange for increased production. If operations have been privatized, several
options are available. Some countries have a system where the infrastructure is owned by a government
agency or company – with open access to the tracks for any company that meets safety requirements. In
such cases, the state may choose to provide the tracks free of charge, or for a fee that does not cover all
costs. This is seen as analogous to the government providing free access to roads. For passenger
operations, a direct subsidy may be paid to a public-owned operator, or public service obligation tender
may be helt, and a time-limited contract awarded to the lowest bidder.
4. Safety and Maintenance

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Trains can travel at very high speed, but they are heavy, are unable to deviate from the track and require a
great distance to stop. Possible accidents include derailment (jumping the track), a collision with another
train or collision with automobiles, other vehicles or pedestrians at level crossings. The last accounts for
the majority of rail accidents and casualties. The most important safety measures to prevent accidents are
strict operating rules, e.g. railway signalling and gates or grade separation at crossings. Train whistles,
bells or horns warn of the presence of a train, while trackside signals maintain the distances between
trains. An important element in the safety of many high-speed inter-city networks such as Japan's
Shinkansen is the fact that trains only run on dedicated railway lines, without level crossings. This
effectively eliminates the potential for collision with automobiles, other vehicles or pedestrians, vastly
reduces the likelihood of collision with other trains and helps ensure services remain timely.
As in any infrastructure asset, railways must keep up with periodic inspection and maintenance in order
to minimize effect of infrastructure failures that can disrupt freight revenue operations and passenger
services. Because passengers are considered the most crucial cargo and usually operate at higher speeds,
steeper grades, and higher capacity/frequency, their lines are especially important. Inspection practices
include track geometry cars or walking inspection. Curve maintenance especially for transit services
includes gauging, fastener tightening, and rail replacement.
Rail corrugation is a common issue with transit systems due to the high number of light-axle, wheel
passages which result in grinding of the wheel/rail interface. Since maintenance may overlap with
operations, maintenance windows (nighttime hours, off-peak hours, altering train schedules or routes)
must be closely followed. In addition, passenger safety during maintenance work (inter-track fencing,
proper storage of materials, track work notices, hazards of equipment near states) must be regarded at all
times. At times, maintenance access problems can emerge due to tunnels, elevated structures, and
congested cityscapes. Here, specialized equipment or smaller versions of conventional maintenance gear
are used.
Unlike highways or road networks where capacity is disaggregated into unlinked trips over individual
route segments, railway capacity is fundamentally considered a network system. As a result, many
components are causes and effects of system disruptions. Maintenance must acknowledge the vast array
of a route's performance (type of train service, origination/destination, seasonal impacts), line's capacity
(length, terrain, number of tracks, types of train control), trains throughput (max speeds,
acceleration/deceleration rates), and service features with shared passenger-freight tracks (sidings,
terminal capacities, switching routes, and design type).

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2.4 Maritime transport
Maritime transport is the transport by water of people (passengers) or goods (cargo). Freight transport by
sea has been widely used throughout recorded history. The advent of aviation has diminished the
importance of sea travel for passengers, though it is still popular for short trips and pleasure cruises.
Transport by water is cheaper than transport by air, despite fluctuating exchange rates and a fee placed on
top of freighting charges for carrier companies known as the currency adjustment factor (CAF).
Maritime transport can be realized over any distance by boat, ship, sailboat or barge, over oceans and
lakes, through canals or along rivers. Shipping may be for commerce, recreation, or for military purposes.
While extensive inland shipping is less critical today, the major waterways of the world including many
canals are still very important and are integral parts of worldwide economies. Virtually any material can
be moved by water; however, water transport becomes impractical when material delivery is time-critical
such as various types of perishable produce. Still, water transport is highly cost effective with regular
schedulable cargoes, such as trans-oceanic shipping of consumer products – and especially for heavy
loads or bulk cargos, such as coal, coke, ores or grains. Arguably, the industrial revolution took place
best where cheap water transport by canal, navigations, or shipping by all types of watercraft on natural
waterways supported cost effective bulk transport. Containerization revolutionized maritime transport
starting in the 1970s. "General cargo" includes goods packaged in boxes, cases, pallets, and barrels.
When a cargo is carried in more than one mode, it is intermodal or co-modal.

Nyk Aphrodite carrying up to 6500 containers

A container ship belonging to the French shipping line CMA CGM.

37
Harbour cranes.
A nation's shipping fleet (merchant navy, merchant marine, merchant fleet) consists of the ships operated
by civilian crews to transport passengers or cargo from one place to another. Merchant shipping also
includes water transport over the river and canal systems connecting inland destinations, large and small.
Professional mariners are merchant seaman, merchant sailor, and merchant mariner, or simply seaman,
sailor, or mariners. The terms "seaman" or "sailor" may refer to a member of a country's navy.
• Life at sea
-Mariners spend much of their life beyond the reach of land. They sometimes face dangerous
conditions at sea or on Lakes – the fishing port of Gloucester, Massachusetts has a seaside memorial
listing over 10,000 fishermen that lost their lives to the sea, and the Great Lakes have seen over 10,000
lost vessels since the 1800s, yet men and women still go to sea. For some, the attraction is a life
unencumbered with the restraints of life ashore. Seagoing adventure and a chance to see the world also
appeal to many seafarers. Whatever the calling, those who live and work at sea invariably confront social
isolation. Findings by the Seafarer's International Research Center indicate a leading cause of mariners
leaving the industry is "almost invariably because they want to be with their families.
-Ocean voyages are steeped in routine. Maritime tradition dictates that each day be divided into six
four-hour periods. Three groups of watch keepers from the engine and deck departments work four hours
on then have eight hours off watch keeping. However, there are many overtime jobs to be done daily.
This cycle repeats endlessly, 24 hours a day while the ship is at sea. Members of the steward department
typically are day workers who put in at least eight-hour shifts. Operations at sea, including repairs,
safeguarding against piracy, securing cargo, underway replenishment, and other duties provide
opportunities for overtime work. Service aboard ships typically extends for months at a time, followed by
protracted shore leave. However, some seamen secure jobs on ships they like and stay aboard for years.
The quick turnaround of many modern ships, spending only a few hours in port, limits a seafarer's free-
time ashore.
• Ships and watercraft

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Ships and other watercraft are used for maritime transport. Types can be distinguished by propulsion, size
or cargo type. Recreational or educational craft still use wind power, while some smaller craft use
internal combustion engines to drive one or more propellers, or in the case of jet boats, an inboard water
jet. In shallow draft areas, such as the Everglades, some craft, such as the hovercraft, are propelled by
large pusher-prop fans. Most modern merchant ships can be placed in one of a few categories, such as:

Bulk carriers, such as the Sabrina I (seen here), are cargo ships used
to transport bulk cargo items such as ore or food staples (rice, grain,
etc.) and similar cargo. Most lakes are too small to accommodate bulk
ships, but a large fleet of lake freighters has been plying the Great
Lakes and St. Lawrence Seaway of North America for over a century.

Container ships are cargo ships that carry their entire load in truck-
size containers, in a technique called containerization. They form a
common means of commercial intermodal freight transport.
Informally known as "box boats," they carry the majority of the
world's dry cargo. Most container ships are propelled by diesel
engines, and have crews of between 10 and 30 people. They generally
have a large accommodation block at the stern, directly above the
engine room.
Tankers are cargo ships for the transport of fluids, such as crude oil,
petroleum products, liquefied petroleum gas (LPG), liquefied natural
gas (LNG) and chemicals, also vegetable oils, wine and other food -
the tanker sector comprises one third of the world tonnage.
Refrigerated ships (usually called Reefers) are cargo ships typically
used to transport perishable commodities which require temperature-
controlled transportation, mostly fruits, meat, fish, vegetables, dairy
products and other foodstuffs.

Roll-on/roll-off ships, such as the Chi-Cheemaun, are cargo ships

designed to carry wheeled cargo such as automobiles, trailers or
railway carriages. RORO (or ro/ro) vessels have built-in ramps which
allow the cargo to be efficiently "rolled on" and "rolled off" the vessel
when in port.

39
Coastal trading vessels, also known as coasters, ships used for trade
between locations on the same island or continent. They are often
small and of shallow draft, and sometimes set up as self-dischargers.

Ferries are a form of transport, usually a boat or ship, but also other
forms, carrying (or ferrying) passengers and sometimes their vehicles.
Ferries are also used to transport freight (in lorries and sometimes
unpowered freight containers) and even railroad cars. Most ferries
operate on regular, frequent, return services.

Cruise ships are passenger ships used for pleasure voyages, where the
voyage itself and the ship's amenities are considered an essential part
of the experience. Cruising has become a major part of the tourism
industry, with millions of passengers each year as of 2006.

Ocean liner is a passenger ship designed to transport people from one

seaport to another along regular long-distance maritime routes
according to a schedule. Ocean liners may also carry cargo or mail,
and may sometimes be used for other purposes.
Ocean liners are usually strongly built with a high freeboard to
withstand rough seas and adverse conditions encountered in the open
ocean, having large capacities for fuel, food and other consumables on
long voyages..

Cable layer is a deep-sea vessel designed and used to lay underwater

cables for telecommunications, electricity, and such. A large
superstructure, and one or more spools that feed off the transom
distinguish it.

40
 A tugboat is a boat used to manoeuvre, primarily by towing or
pushing other vessels (see shipping) in harbours, over the open sea or
through rivers and canals. They are also used to tow barges, disabled
ships, or other equipment like towboats.

A dredger (sometimes also called a dredge) is a ship used to excavate

in shallow seas or fresh water areas with the purpose of gathering up
bottom sediments and disposing of them at a different location.

A barge is a flat-bottomed boat, built mainly for river and canal

transport of heavy goods. Most barges are not self-propelled and need
to be moved by tugboats towing or towboats pushing them.

A Multi-purpose ship (sometimes called a general cargo ship) is used

to transport a variety of goods from bulk commodities to break bulk
and heavy cargoes. To provide maximum trading flexibility they are
usually geared and modern examples are fitted for the carriage of
containers and grains.

Ships that fall outside these categories include Semi-submersible heavy-lift ships or OHGC.
• Liners and tramps
A ship may also be categorized as to how it is operated.
A liner will have a regular run and operate to a schedule. The scheduled operation requires that such
ships are better equipped to deal with causes of potential delay such as bad weather. They are generally
higher powered than tramp ships with better seakeeping qualities, thus they are significantly more
expensive to build. Liners are typically built for passenger and container operation though past common
uses also included mail and general cargo.
A tramp has no fixed run but will go wherever a suitable cargo takes it. Thus a ship and crew may be
chartered from the ship owner to fetch a cargo of grain from Canada to Latvia, the ship may then be
41
required to carry a cargo of coal from Britain to Melanesia. Bulk carriers and some cruise ships are
examples of ships built to operate in this manner.
Typical in-transit times
A cargo ship sailing from a European port to a US one will typically take 10–12 days depending on water
currents and other factors. In order to make container ship transport more economical in the face of
declining demand for intercontinental shipping, ship operators sometimes reduce cruising speed, thereby
increasing transit time, to reduce fuel consumption, a strategy referred to as "slow steaming". There are
researches, that gives overview on the scope of data and it's quality (including timeliness and punctuality)
related to vessels that is available on the Web, which can be freely used in the maritime domain.
2.4 Other Modes of Transport
Pipeline Transport: this is the movement of liquid e.g water from water works, movement of fuels from
refinery to the depot etc. Telecommunication: this mode of transportation is seem by some schools of
thought as an integral part of transport while other school of thought believe it is only an aid or extension
to transport . The movement is through telegram, telephones, fax, postage, internet of majorly.
Water Transport: this mode of transportation makes use of inland navigation and maritine water-ways
through the use of inland navigation canoes, steam boat etc

3. ECONOMIC PROBLEMS AND THEIR RELEVANCE TO TRANSPORT

3.1 Basic economic problem in relation to transport
Scarcity, Choice and Opportunity Cost: Scarcity is defined as the main economic problem and apply
both to the Third world economies or advanced economies. In simple terms individuals cannot have
everything that they want because there is a finite limit on the resources that can be used to satisfy these
‘wants’. Any resource is therefore scarce. If individuals cannot have all that they want, then choices need
to be made, put simply every choice involves a cost. This will always be the next best alternative that
could have had been selected when that choice was made. This is known as the opportunity cost of that

42
decision. Thus if a particular society does not have sufficient resources to build both a new stretch of
motorway and a new airport, it must make a choice between the two. If it chooses to build the motorway
then the opportunity cost of the motorway is the airport that was not built. Opportunity cost therefore can
be formally defined as the next best alternative forgone and is consequently not assessed using financial
criteria. These three concepts of scarcity, choice and opportunity cost can all be illustrated on what is
known as a production possibility frontier

3.2 Basic economic problem of t he society in relation to transport

Generally, a society is faced with the basic economic problem of what to produce, efficient allocation of
resources in any society. The type of economic system that is in operation determines how these
problems are solved. The three major types of economic system are: capitalism, socialism and mixed
economic systems.
1. Capitalists Economy: This system is based on free market philosophy term “laissez faire”. It believes
in the application of demand and supply forces in the determination of price and allocation of resources.
Thus, a producer is allowed to operate freely without any hindrance. This pre-supposes that he can
determine the price that he wants to sells his product but he cannot force the consumer to buy from him
neither can he dictate the price for other producers. In the same vein, he can determine the quantity of his
supply i.e the quantity to produce though he cannot force this supply on the consumer neither can he
determine the quantity of supply of other suppliers. In all, the price and allocation of resources at
equilibrium level is determined by the interaction of the forces of supply of different suppliers. In
capitalist, economy, the aim of the suppliers of goods or service is to maximize profits or minimize loss.
43
This implies that the supplier want to get as much profit as could be available within his limited
resources. In order to attain this level the supplier must strive to give the consumer maximum satisfaction
bearing in minds the fact that the market is free of competition. This commercial or orientation gives
room for innovation and creativity in such system. In such economy, private individuals are the major
suppliers of transport services and there is a complete liberalization in their operations. This implies that
there is no (external) control) over the pricing of the services or any other of such control that may derail
the operation of forces of demand and supply. However, since there is no society without a supervisory
authority in the form of government, it follows that government too has a role to play in this type of
economy but it’s role is principally to provide enabling or conducive environment for the private
individual to operate. There is basic freedom of a free market economy in the provision of transport
service in a capitalist economy. Such freedom include-: competition, free choice, freedom of entry and
exists from and to the transport services.
2. Socialist Economy: It is an economy that is controlled by the state or government. Thus, in such
economy, the provision of all economic infrastructures is a sole state responsibility of the government. In
addition, the government also coordinates the distribution of goods and services and the allocation of
resources through price fixing or price control and sometimes in the determination of resources. In a
socialist economy, it is the public sector that undertakes the provision of the roads and other transport
facilities. The provision of transport services as a whole is being controlled largely by the government
through its agencies like public corporations. The aim here is to promote stability efficiency and
reliability by fixing timetable or schedules for different routes in order to meet the yearnings and
aspirations of the citizens in term of transport needs. However, experience has shown that these aim are
hardly achieved under a socialist economy.
3. Mixed Economy: It is a short midway between the other two extreme systems of the economy. Thus,
it combines features of the two systems. The public sector works hand-in-hand with the private sector in
the provision of transport services. Transport infrastructure facilities are jointly provided by both the
public and the private sector. While the government provides roads, bridges, airports, clockyards and
even vehicles for transportation, the private sector can also provides roads and other basic infrastructures
are provided by the government. In such, an economy there is some level of competition in a regulated
manner
4. DEMAND AND SUPPLY IN TRANSPORT (PRICE THEORY)
4.1 Demand for transport or travel demand
In economic theory generally, Demand for a commodity is the amount of such commodity that a
consumer willing and able to buy at a given price during a given period of time. This definition applies to

44
the demand for services like transport. In general, the demand for a commodity or services is influenced
or determined by it’s price, the prices of other goods or services, the level of the consumer income etc
Dy=F(py, px, Tx…..paY e.t.c) the factors affecting general demand is also applicable to the demand for
transport services.

Li ke all other goods and services, the demand for any specific transportation facility demands on factors
pertaining to the consumer such as income, and characteristics of the facility such as the cost associated
with its use (in terms of time and price) relative to rival facilities. A typical example of such demand is
that for auto travel: lower incomes of consumers, coupled with lower costs and travel times associated
with transit are expected to lead to reduced demand for auto travel. Transportation demand analysis
involves demand functions (which represents the willingness of consumers to purchase the transportation
“product” at various alternative prices, i.e., the demand-price curve, and demand models (which estimate
the probability that an individual (or fraction of a set of individuals) will choose a particular product over
the other. This section focuses on demand functions, while the concept of demand modeling is discussed
briefly in a later section of this chapter. A hypothetical example of an aggregate transportation demand
function is provided as Figure 5-1. This represents the amount of travel people are willing to make by
transit at various transit fare (price) levels. Transportation demand functions, either in the form of a graph
or an equation, are useful in transportation planning because they enable the determination of expected
demand at any price. A specific demand curve represents the demand-price relationship given a set of
conditions specific to the transportation product in question (referred to as alternative-specific attributes,
such as travel time, comfort, convenience), and also specific to the users (income levels and other socio-
economic characteristics). Changes in such conditions often result in changes in the levels of
transportation demand, even at fixed price of that product. For example, increased unemployment would
likely lead to reduced demand for travel. Also, an increase in costs associated with auto use is likely to
result in increased transit demand, even if transit fares remain the same. When such changes in conditions
(other than price) occur, they are represented as a shift in the demand curve shown as Figure 5-2 (upward
shift for increased demand, D1 → D2; and downward shift for decreased demand, D1 → D3).
Transportation Demand Functions
A basic feature of transportation systems analysis is the prediction of transportation demand or changes
thereof. The level of transportation demand (D) may be expressed as a function of activity system
attributes (A), and the prevailing level of service (S), as shown as Equation 5.1.
D = f(A, S) (5.1)

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Transportation demand models, such as that shown as Equation 5.1, are used to determine the volume of
travel demanded, at various levels of service and have been described as “a representation of human
behavior which can be used to predict how individuals or firms [or groups thereof] will change
transportation choices in response to changes in future conditions” (Manheim, 1979). Within the context
of transportation economic, a trip maker is defined as a consumer, in the economics meaning of the word,
as the trip maker, by planning a trip, seeks to consume the service offered by transportation facilities.
There are two types of demand functions:
1. Disaggregate demand functions: these predict the behavior of a single consumer in response to
changes in future conditions,
2. Aggregate demand functions: these predict the behavior of a group of consumers such s a household,
in response to changes in future conditions.
Compared to the latter, disaggregate demand functions are relatively young, and recent work in this area
include those by McFadden, 1985, and Ben-Akiva, 1988. For aggregate demand functions, aggregation
transportation demand into market segments is typically done on the basis of geographic region called
traffic analysis zones (TAZs). Manheim (1979) provides examples of transportation demand models as
shown below:
Price (p)
a) The Gravity Model: This is described as a classic transportation demand model which is analogous to
Newton’s law of universal gravitation. The general equation of a gravity model is as follows (Manheim,
1979):
V12 = Y1 × Z2 × L12 (5.2)
Where
Y1 = some measure of intensity of activity at zone 1, such as population or employment.
Z2 = some measure of intensity of activity at zone 2, such as population or employment.
L12 = effect of transportation service attributes on demand for travel between zones 1 and 2.
It has commonly been assumed that L12 is directly related to the travel time between zones 1 and 2.
where
Vkdm = volume of travel between zones k and d by mode m
Pk = population in zone k
Ik = median income in zone k
tkdm = travel time between zones k and d
ckdm = travel fare between zone
tkbd = travel time by fastest mode

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ckbd = fare by cheapest mode
φ, θ, δ = parameters of the model

THE LAW OF DEMAND

The demand for a good is the ‘number of units per unit of time that consumers purchase at any given
price’
In the demand for transport services, the decision as to whether to travel or not is based solely upon the
price of that journey.
As the price of transport services rises, the quantity demanded will fall. In simple terms, less people will
travel.
Determinants of Demand
Income: all things being equal a general increase in incomes would enable more people to afford the use
of transport services and hence increase demand.
A decrease in incomes on the other hand would be expected to have the opposite effect.
Effect: increase in income shift the demand curve to the right
A decrease in income will shift the demand curve to the left rising incomes may not be expected to have
a uniform impact across all transport modes.
•the demand for some may actually be expected to fall.
•Whereas the demand for private transport, rail services, freight services and air services for example
may all be expected to rise with an increase in income, the demand for bus services may be expected to
fall.
•This is because some individuals, with an increased income, will ‘trade up’ to a perceived better quality
of transport -some for example will buy a car and hence no longer need or use public transport
normal and inferior goods
•A normal good is where demand increases with increases in income,
• an inferior good is one that falls with increases in income.
2. The price of other goods and services
Substitute goods can either be inter modal, e.g. the bus verses the train, the car verses the bus and so on,
or intra modal, such as the red bus versus the blue bus, the no frills ‘low cost’ airline versus the
traditional airline.
Substitute transport services therefore are those that can be used to fulfil the same basic transport need.
Thus the closeness of the substitute goods will determine the actual size of the impact on the market.

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Complementary goods are goods or services that are consumed at the same time. The price of petrol, for
example, may be expected to impact upon the use of the car

3. Fashions or trends
A move towards the good or service will cause an increase in demand and shift the demand curve to the
right, while a move away will have the opposite effect. Fashion has had a massive impact upon transport
markets. Over the last thirty or so years, for example, there has been a big swing towards more fuel-
efficient vehicles and less environmental harmful fuels, e.g. unleaded petrol. A rise in environmental
awareness, for example, may cause a decrease in demand for transport services or a switch to less
environmentally harmful modes of transport
4. Expectations of future price rises
how the price of transport services will change in the future will affect what is purchased today.
For example, an individual may delay purchasing a motor vehicle if the situation regarding the future
price of oil is unknown.
On the other hand, a daily commuter may purchase a one-year season ticket if fares are expected to rise in
the foreseeable future.
Thus individuals may pull forward purchases where prices are expected to rise in the future, thereby
increasing demand, whilst they will delay purchases where prices are expected to fall in the future, hence
decreasing demand
4. Expectations of future price rises
how the price of transport services will change in the future will affect what is purchased today.
For example, an individual may delay purchasing a motor vehicle if the situation regarding the future
price of oil is unknown.
On the other hand, a daily commuter may purchase a one-year season ticket if fares are expected to rise in
the foreseeable future.
Thus individuals may pull forward purchases where prices are expected to rise in the future, thereby
increasing demand, whilst they will delay purchases where prices are expected to fall in the future, hence
decreasing demand
Other factors specifically relating to the demand for trans
5. Demand for transport is a derived demand
an individual’s demand for transport is instigated through their demand for something else
Hence the need to work in order to earn an income generates a demand for transport.
Few individuals demand transport services purely for their own merit.

48
Even those with flashy cars only have a flashy car for some other purpose, i.e. to impress others!
6. Demand for transport is time specific
when transport services are demanded they are demanded NOW.
Unlike say a chocolate bar that can be purchased and consumed later,
on the whole the demand for transport is required at an exact, or near exact, time.
Another way of putting this is that the demand for transport has a very short expiry date, and due to the
derived nature of demand, once that expiry date has passed then the need to make that particular journey
will almost certainly no longer exist.
Even where the ticket is purchased in advance, the actual journey that is purchased is made at a fairly
specific time period in the future. Demand for transport is therefore time specific
7. Demand for transport follows peaks and troughs
The demand for most goods and services follows some kind of cyclical pattern, whether that be
throughout the year, throughout the month, week or day.
For example, the demand for the chocolate bar will be higher in the winter than in the summer and will
also vary at certain points over the day.
With transport services, however, this particular issue is a major factor and especially acute. Most if not
all will be familiar with the terms ‘the morning rush hour’ and ‘the evening rush hour’, and it is this very
factor that these relate to.
Basically a substantially higher number of people need to travel (because demand is derived and time
specific) to and from work between certain hours of the day.

Determinant Demand For Transport Services (travel demand)

Specific factors that influence travel demand includes-: Price (fees/charges), taste and preferences,
income level of the consumer, price of substitutes, expectation of future changes in price and the range of
services available to the consumers.
1) Price (fees/charges) -: The demand for transport services is largely influenced by the price or fare that
is charged for the trip. Thus, if the fare charges in a mode of transport service is too exorbitant, the
demand for such transport service may fall. In the same vein, the mode of transport that charges a
relatively low prices is more likely to attract travelers to it’s own side.
2.) Taste and preferences-: The taste and preferences of individual may also influence travel demand.
Some people are so used to a mode of transport to the extent that a like in the price/charges of such mode
may not deter them from demanding it’s services.

49
3.) Income level of the consumer-:
4.) price of substitutes -: A fall in the fare charges of an alternate mode of of transport may lead to a fall
in the demand for the other mode because when the fare charge of a mode of transport reduces, people
are generally likely to shift to that mode and thereby causing a shift away or inward from other modes of
transport. This generalization is however, applies with caution because the demand for some mode of
transport are inelastic for instance, the demand for cargo shipping may not be quickly influenced by
reduction in the fare charge of other modes of transport because those other modes may not able to
provide an effective substitute to cargo shipping.
6) Expectation of future changes
Price-: an expectation that price will increase in the future away compel travelers to embark in a journey
that is meant for future purpose now, thereby increasing travel rate at the present.
7) The range of service available to the consumer -: This has to do with the different types of mode of
transport that are available for customer services. This may include road, rail, water, pipeline etc. the
nature of the market making the supplies will also affects travel demand price the nature of the market
affects fare charges.
In summary-: Demand for transport service is determine mathematically as:
DDx =(Px, P1, P2, P3.......Pn, Y, T, W,)
Where-:
DDx = demand for mode x services

b. Supply of transport services

As most individuals have a basic need to travel from one location to another, in a market based economy
this presents an opportunity for other individuals to profit from that basic need.
•Trade is never a zero sum game, hence both parties should benefit otherwise the trade would never take
place.
•In this example the first individual benefits by getting to where they want to go, whilst the second
benefits from a financial reward for transporting that person to that location.
•Where a basic need exists, therefore, there will always be individuals willing to provide a good or
service to meet that need at a given price.
basic assumption-in this case, the level of transport services provided to the market is only dependent
upon the price of the service.
•this raises the question of the relationship between price and the quantity supplied.
•common sense would suggest that as the price rises the quantity supplied to the market will increase.

50
The cost of production
Cost is a large determinant of the supply of transport services.
Production costs are one half of the profit equation (profit = revenue − cost), and hence a change in the
cost of transport operations will impact upon profits and thus the supply of services to the market.
In simple terms, an increase in costs will reduce the level supplied.
As all operators are assumed to be profit maximisers, an increase in costs reduces profits and hence some,
but not all, operators will leave the market to seek better profit opportunities elsewhere Conversely, a
reduction in costs will bring about an increase in supply.
A change in costs therefore will impact upon the basic price/quantity supplied relationship.
An increase in costs is shown by a shift in the supply curve to the left, whilst a reduction in costs is
shown by a shift in the supply curve to the right

At price P, the quantity supplied is given by Q. If costs increase, less transport services would be supplied
at each and every price. This would be illustrated by a shift in the supply curve to the left to Sdec. Thus at
price P, the quantity supplied would fall to Qdec. Conversely, if costs were to fall this would be shown
by a shift in the supply curve to the right. At price P, supply would increase to Qinc.

2. Government policy
Governments intervene in transport markets to ‘guide’ the market to meeting its policy objectives.
Government policy as such, particularly in public transport markets, has a very large impact on the
supply of transport services, for instance in Namibia, Windhoek is growing at a fast speed of
approximately 4,3% per year.
Within twenty years Windhoek will have to cater for the mobility needs of 1 million residents.
A key task for the City of Windhoek and the Government of Namibia is to plan for future transport needs
and to cater for the growing population.
Making the right land-use and transport planning decisions now will make Windhoek a lead example in
sustainable development in Africa. And ensure that the mobility needs of current and future generations
are satisfied.

At the most basic level government policy can be implemented through one of three general policy tools.
Firstly by direct provision, where the state takes on the full responsibility for providing transport
services through public ownership of the means of production.

51
A second approach is where services may be provided by private sector companies however the state
‘steers’ the market to its desired objectives through the imposition of taxes and the provision of state
subsidies.
The third and final general policy tool is through regulatory/legislative measures, where the state
directly commands or prevents by law certain actions in order to achieve policy aims.

•All three forms of measures can impact directly upon the supply of transport services.
•A change to direct provision, i.e. nationalisation, may result in an increase in supply,
• Taxes and subsidies - the effects of these policy tools on supply are very similar to the impact of the
costs of production,
• An increase in a tax on a good or service will decrease supply, as the cost of providing such services
would rise. For

3. The price of other goods and services that can be produced using the same factors of production
Given that producers are assumed to profit maximise,
then if the price of any good or service that could be produced using the same factors of production was
to rise, producers are likely to switch production to that particular market.

This would cause a reduction in the level of supply at each and every price for the current good or
service. Within transport markets opportunities for such changes are limited - a bus and a bus driver can
only produce bus services. There may however be some movement between different transport market
segments.
4. The price of goods in joint supply
the price of goods that are produced at the same time and best illustrated by an example from aviation.
The last twenty years or so have seen a massive increase in the level of air freight services. The reason
for this is due to the increase in passenger travel, as most air freight, around 60 per cent, goes via the
cargo hold of passenger aircraft. Hence rising passenger demand has been met by large increases in the
supply of passenger planes, and with that increase has come more cargo holds within which freight can
be carried. Consequently, the increase in the available supply of passenger aircraft has automatically
resulted in the increase of air freight capacity as these two products are goods in joint supply.
5. Natural shocks
•Natural shocks simply relate to natural events and disasters such as the weather, flood, drought, pests
etc, or abnormal circumstances arising from war, fire, political events etc. The oil crisis in the mid-

52
1970s, for example, when the price of oil quadrupled in the space of six months, was origin-ally sparked
off by the Yom Kippur Israeli-Egyptian war that affected world supplies of crude oil.
6. Aims of the producer
Highly relevant to the supply of transport services to the market are the aims of the producer.
Although the underlying assumption is that profit maximisation drives producers’ market actions, this
may be considered to be a long-term aim that may be pursued in the short term in a number of different
ways. A switch in the emphasis of the aims of producers may result in a change in the level of supply to
the market.
If for example a bus operator decided that in order to maximise profits in the long run it needed to expand
its market share in the present, this would almost certainly lead to an increase in supply at each and every
price.

The supply of a transportation product represents the quantity of that product a producer is willing to
offer at a given price. However, transportation supply may also be associated with the quality of the
product. At a given time, transportation facility supply depends on price: higher prices are an incentive
for producers to make more profits who therefore increase supply levels. A hypothetical example of a
transportation supply function is provided as Figure 5-3. This represents the amount of transportation
products that suppliers are willing to make available at various prices. Transportation supply functions
are useful in transportation planning because they enable the determination of expected supply at any
future price. A specific supply curve represents the supply-price relationship given a set of conditions
specific to the transportation product in question (referred to as alternative-specific attributes, such as
travel time, comfort, convenience), and also specific to the producers (such as technology, policy and
governmental intervention through policies and regulation. Changes in such conditions often result in
changes in the levels of transportation supply, even at fixed price of that product. For example, improved
increased unemployment would likely lead to reduced demand for travel. Also, an increase in costs
associated with auto use is likely to result in increased transit demand, even if transit fares remain the
same. When such changes in conditions (other than price) occur, they are represented as a shift in the
supply curve shown as Figure 5-4 (upward shift for increased demand, S1 → S2; and downward shift for
decreased demand, S1 → S3) (Manheim, 1979).
Increases in transportation supply may be traditionally thought of in terms of increasing the fleet size of
a transit company or building new roads or increasing the number of lanes for existing roads. However, it
is possible to increase supply without such physical capital-intensive investments (Manheim, 1979). For

53
instance, the use of intelligent transportation systems could lead to increased supply without any physical
enlargements of the road network.
Determinants Of supply Of Transport Services
Specific factors that influence the supply of travels demands are-: cost of production, government
policies, level of technology, availability of funds, topographic/ weather condition, political situation of a
country and provision of infrastructures:
SSx = F( c,cost Ggovernment Tlevel of tech Pprovision Iinfastructure Aavailable)
1.) Government policies-: various policies has been put in place by different government in order to
influence the supply of transport services. This may be to increase the transport services available or
sometimes to reduce the influence of a particular mode of transport. This usually depends on a micro
economic policies and goals of the government. Varrious instrument available at government to influence
the supply of transport services include-:
(a) fiscal policies
(b) monetary policies
Some of which one tariff import licensing ban on importation of specific vehicles etc. Thus, if
government want to revive a particular mode of transport it will institute policies that will make both
capital operational costs of such a mode be reduced. Example of such policies in Nigeria include the mass
transit programme, the proposed jubilee line in lagos state e.t.c.
(2) cost of production-: the cost of producing transport services also influence the supply of the services
in a situation where the capital requirement for operating a transport outfit is to exorbitant, the supply of
the transport service may also be relatively low. Not only the capital outlay is considered in the provision
of transport service, the operating costs are also equally important.
(3) Level of technology-: the level of technology attained in a country will determine to a large extent the
of transport services to be supplies in such a country. Technology makes room for improvement,
efficiency and effectiveness in the supply of transport services. For instance the high technology
available in Great Britain particularly in terms of rails services has made the supply or rail services to be
inqb and by extension transport services.
(4) Availability of funds-: in a situation where funds are not readily available for transport services, the
supply of transport may be negatively affected. For instance Nigeria, a typical transport outfit may find it
a bit difficult to secure fund from outside since his business is assumed to carry a very high level of risk,
easy loan from banks may be unobtainable and there share a note quickly % subscribed for on the floor of
the stock exchange.

54
(5) Political situation of a country-: political unrest/crises has always brought a stalwant in the provision
of transport services.
(5) Provision of infrastructures-: where there are no good roads, good aerodromes the supply of transport
services will be low.
Equilibrium of Transportation Demand and Supply
Demand is shown by the line labelled D and supply by the line labelled S.
•These two lines intersect and this intersection produces a market price of Pe with the quantity traded
shown by Qe. •This is known as the equilibrium price and quantity, i.e. the point at which the market is in
balance.

\This is the same diagram of the market as before, except in order to help focus thoughts a second price,
PXS, has been added. •This price is above the market clearing price of Pe, and would result in an
imbalance in the quantity supplied, shown by QS, and the quantity demanded, shown by QD. •Such a
situation would be known as excess supply, as the quantity supplied exceeds the quantity demanded

In this case the second price that has been added to the graph, PXD, is set below the market clearing price
and would result in the quantity demanded, QD, far exceeding the quantity supplied, QS. •This would be
known as excess demand, shown by QD - QS.
•In this case there exists a consumer demand that is not being met by producers. •Again using bus
services as an example, this would be most vividly illustrated by overcrowding on buses and long queues

55
at bus stops. •In order to meet this excess demand, some suppliers will increase the quantity being
supplied

the market for bus services in equilibrium at point a (demand = supply) with price Pe and quantity traded
Qe. •Following an increase in rail fares, some rail consumers will change to a substitute service, in this
case the bus. •This change in the conditions of demand for bus services is illustrated by a shift of the
demand curve to the right from D to D1. •At the existing equilibrium price of Pe, therefore, there is now
excess demand, as shown by Qxd minus Qe. •This would result to the excess demand being eradicated
through an increase in the price/fare by suppliers. This would cause a reduction in the quantity
demanded, as shown by a movement along the new demand curve D1 from point c towards point b. •The
increased price however will also cause an increase in the quantity supplied, and hence a movement
along the existing supply curve S from point a towards point b.

Effect of an increase in the price of rail services on the market for bus services.
Demonstrate Effect of an increase in the level of subsidy paid to bus operators on the market price and
quantity traded of bus services.
Like the supply function, the transportation demand function is a relation between quantities of goods
and price. The general forms of the demand and supply functions (Figures 5-3 and 5-4) suggest that there

56
could exist a point at which the demand of a transportation commodity is equal to its supply. Such a state
is indicative of equilibrium.

Example 1 (Khisty and Lall, 2002)

A company determines the price of a seat on a particular rote to be p = 200 + 0.02n. The demand for
this route by air has been found to be n = 5000 – 20p, where p is the price in dollars, and n is the number
of seats
sold per day. Determine the equilibrium price charged and the number of seats sold per day.
Solution:
p = 200 + 0.02n
n = 5000 – 20p
Example 2 (Khisty and Lall, 2002)
The travel time on a stretch of highway lane connecting two activity centers has been observed to
follow the equation representing the service function:
t = 15 + 0.02v
where t and v are measured in minutes and vehicle per hour respectively. The demand function for
travel connecting the two activity centers is v = 4000 – 120t.
a) Sketch these two equations and determine the equilibrium time and speed of travel.
b) If the length of the highway lane is 20 miles, what is the average speed of vehicles traversing this
length?
Solution:
t = 15 + 0.02v
v = 4000 – 120t
Solving these two equations simultaneously yields:
v = 647 vehicle/hr
t = 27.94 minutes
Therefore speed = (20 × 60)/27.94 = 42.95 mph
Figure 5-5: Static Equilibrium of Demand and Supply
Example 3 (Salvatore, 1982)
The following structural equations represent a simple demand-supply model:
Demand: Qt = a0 + a1Pt + a2Yt + u1t a1 < 0 and a2 >0
Supply: Qt = b0 + b1Pt + u2t b1 > 0
•

57
t = 15 + 0.02v
(647, 27.94)
v = 4000 - 120t
25
15
v (vph)
t (min)
150 Transportation Economics
Where Qt is the quantity demand, P is the price, and Y is consumer’s income. It is assumed that the
market is cleared in every year so that Qt represents both quantity bought and sold in year t.
(a) Why is this a simultaneous-equations model?
(b) Why would the estimation of demand and supply function by OLS give biased and inconsistent
parameter estimates?
Solution:
(a) The given demand-supply model represents a simple simultaneous-equations market system, as Q and
P
are mutually or jointly determined. If the prevailing price is less than equilibrium price, the quantity
demanded would exceed the quantity supplied, and vice versa. At equilibrium, the demand curve meets
the supply curve, thereby jointly (or simultaneously) determining the equilibrium conditions Q and P.
(b) The endogenous variables of the model are Q and P. These are the variables determined within the
model. Y is the only exogenous variable of the model because it is the only variable determined outside
the model.
(c) The endogenous variable P is also an explanatory variable in both the demand and supply equations.
Therefore P is correlated with u1t in the demand equation and also with u2t in the supply equation. This
violates a key OLS assumption that the explanatory variable should not be correlated with the error term.
As a result, estimating the demand and supply functions by OLS would yield estimates that are not only
biased but also inconsistent.

c. Elasticity of transport demand

INTRODUCTION
•As a general rule, when the price of any good or service rises the quantity demanded will fall. What is
important is not the fact that demand will fall (as that is given by the basic law of demand) but rather by

58
how much the quantity demanded will fall, and thus how price sensitive are consumers in the market?
For example, how sensitive are people to purchasing train tickets if the fare was to rise by 2 per cent, 5
per cent or even 20 per cent? The answer lies in the concept of price elasticity of demand, as this
indicates the responsiveness of passengers or potential passengers to changes in the prices on offer
A general definition of elasticity of transport demand is the responsiveness of demand for a transport
mode to a change in one of its determinants. Changes doesn’t just occur in price but as well as Income
and Cross-price elasticity of demand ; of which all would be discussed in this unit

(OWN) PRICE ELASTICITY OF DEMAND FOR TRANSPORT SERVICES

Definition: is the consumers’ demand responsiveness to changes in the price Percentage change in
Quantity Demanded Price Elasticity of Demand = -----------------------------------------------------------
Percentage change in Price %ΔD that is; PED = ------------- %ΔP
A rise in price (a positive figure) will cause a fall in the quantity demanded (a negative figure) asides
from `Giffen`good
Where the price elasticity is greater than negative one (-1) ; is known as Elastic Demand
Where PED is less than negative one (-1); is known as Inelastic Demand in the case of elastic demand
this would indicate that consumers are relativity price sensitive, whilst inelastic demand that consumers
in the market have a relatively low level of price sensitivity.

Perfectly price elastic demand A substantial increase in price would result to demand fall to zero PED =
∞

Perfectly price inelastic demand

59
consumer behaviour is completely unaffected by changes in the price.
PED = 0
i.e. %ΔD/%ΔP =0%/25% = 0
Perfectly price inelastic demand
A change in price would produce absolutely no change in the quantity demanded, i.e. consumer
behaviour is completely unaffected by changes in the price. They will purchase exactly the same quantity
of the good whether the price rises or decreases. This extreme case is known as perfectly price inelastic,
as shown by the figure above.
Where demand is perfectly inelastic, then no matter the price, consumers will purchase exactly the same
quantity of the good or service, i.e. the demand curve is vertical e.g an increase in fare of transport from
N$8 to N$10 would result in no change in quantity demanded
Price Elasticity of Demand is equal to zero

Unitary Price Elastic Demand

demand falls in direct proportion to the change in price
PED = -1
Determinants of price elasticity of transport demand
The number and closeness of alternative modes of travel (substitutes)
The proportion (and timing) of disposable income purchased on the mode of travel
The time dimension.
The number and closeness of alternative modes of travel (substitutes)
The higher the number of alternative modes available and the closer they are in meeting the same basic
travel need, the higher will be the price elasticity for a particular transport service. If I use the Intercape
Bus service to travel to oshakati, and “Intercape” should increase its price then I am far more likely to
switch to an alternative mode if that alternative is readily available. If “Silas Ndapuka bus service” left
from the same stop one minute later and took the same journey time, then for this particular trip that
would be an almost perfect substitute for “Intercape” I could easily make the switch to “Silas Ndapuka
bus service”.

60
The proportion (and timing) of disposable income purchased on the mode of travel
We have seen income already as a determinant of demand, i.e. the quantity purchased.
The proportion of income spent, however, is also a determinant of price elasticity of demand
It refers the proportion of disposable income as opposed to net income, i.e. income after tax has been
paid.
In simple terms, the higher the proportion of disposable income spent on the mode of travel, then
the higher the price elasticity of demand.

Time dimension
In the short term individuals are tied in to using a certain company’s products or services; however, time
may bring about a change in behaviour.
To use Yellow Bus Company example, while this was the only service in the short term one would have
little choice but to use their service,
hence price elasticity of demand would be relatively inelastic.
In the longer term, however, one may decide to purchase a car or alternatively another bus company, such
as Intercape, may decide to start up a competing service.
In this case demand would be more elastic.
Time therefore is an important dimension in determining price elasticity of demand as elasticity can vary
between the short and long run.

Sensitivity of Travel Demand

Price elasticity, total revenue and demand curves

61
The preceding section has shown it to be a mechanism for assessing the extent to which consumers will
react to changes in the price or other demand determinants of transport service.
In order to throw more lights to elasticity of demand lets analyse the following implications.
A company’s total revenue from selling a good or service can be found by multiplying the quantity sold
by the price of each unit sold.
If for example 100 units are sold at N$5 each, then total revenue would simply be N$500. In a more
generic form, this could be written as P * Q, where P is the price (N$5) and Q is the quantity sold (100
units),as shown on the diagram below the area of the rectangle outlined by points 0, Pa, a and Qa shown
in light grey in Figure is the total revenue received from selling at price Pa ($5 x 100 = $500)
Price elasticity, total revenue and demand curves Illustrating total revenue using demand curves
Revenue = Price X quantity sold
If the price was to increase to Pb, then we could show the gain and loss in revenue such a price change
would bring about.
•If the firm was to increase price, it would sell less units (basic law of demand), but would receive more
per unit sold, hence the overall impact this would have upon total revenue would not be known. This is
illustrated by the following Figure.

Illustrating changes in total revenue using demand curves

if the firm was to sell at price Pb, it would sell quantity Qb and the total revenue would be given by the
rectangle outlined by 0, Pb, b, Qb.
•What you should be able to see is that there is a common area shared by these two different scenarios.
•That is the cross-hatched area above and labelled unimaginatively as the ‘Common Area’.
•In effect, that proportion of revenue will accrue to the firm if it applies price Pa or price Pb.

62
The effect on revenue of price changes of a relatively elastic good

Relatively elastic demand

In this example, a rise in price from Pa to Pb will reduce demand from Qa to Qb, with the loss in revenue
given by the area Qb, c, a, Qa and the gain shown by the area outlined by Pa, Pb, b, c.
In this case, therefore, the increase in price has led to a decrease in total revenue.
Note again that if the price change had been the other way around, then total revenue would have
increased
CROSS PRICE ELASTICITY
Definition: a measure of the effect of a change in the fares or rates of one mode of transport or transport
operator on the demand for the services of another mode/transport operator. Percentage change in
quantity demanded of service A Cross price Elasticity= ------------------------------------------------------------
------------ Percentage change in price of service B %ΔDA CPED =--------------- %ΔPB
Examination of cross price elasticity of demand therefore involves examining two goods or services
CPED could be examined at different levels : two different modes of transport e.g car and bus and lastly
a single operator with variety fare structure for the same journey but different standards of service
For example a train operator could examine the quantity demanded of their standard service versus the
first class fare charge

Cross price elasticity of demand also allows a distinction to be made between substitute goods and
services and complementary goods and services
•If the effect of a price increase in one good has a positive effect in terms of the demand for another, then
these two goods or services would be considered to be substitutes For example, say a ↓in the subsidy
paid to rail operators caused an ↑ in the price of rail services

63
Cross price elasticity of demand, substitutes

Note: For substitute transport services, cross price elasticity will always be positive. As the price of one
service rises, demand for the alternative service also rises and vice-versa.
•The cross price elasticity of demand will be negative for goods and services that are complements.
•the higher the negative value, the more the two goods are interdependent
•the value is around zero however, this indicates that the two goods are completely independent, i.e.
neither substitutes nor complements.
• for example lets consider a case of complementary goods in transport i.e cars and petrol

Substitutes leads to a positive change while complementary would lead to negative change
INCOME ELASTICITY Definition: Income elasticity of demand is a measure of the responsiveness of
demand to changes in income percentage change in quantity demanded Income elasticity = ------------
--------------------------------------------- percentage change in income %ΔD YED = ----------- %ΔY
When income elasticity is measured, it is not the total income of consumers that is used in the assessment
but rather disposable income, i.e. net of income tax
64
In the short term, income elasticity for bus travel is negative, and hence as real incomes increase
consumers will use other forms of transport, most notably the private car
In the longer term the income elasticity of demand for bus services is likely to become less negative due
to social effects like congestion, pollution and land use

In the planning and evaluation of transportation systems and associated investments, it is often useful to
have knowledge of the changes in transportation demand caused by changes in attributes of the
transportation system or its environment. A particular instance is the change in demand for a given mode
in response to changes in price of that mode. Given the functional form of the travel demand function, it
is possible to derive a marginal effects model that estimates any one of the following:
• Change in demand in response to unit change in attribute
• Change in demand in response to unit percent change in attribute
• Percent change in demand in response to unit percent change in attribute
The following table presents some standard functional form of demand functions, as well as their
marginal effects models (specifically, their point elasticities).
Transportation demand elasticity may be defined as the degree of responsiveness of transportation
demand in response to a unit change in demand-related or attributes such as price or income. This is
typically expressed as follows:
= (5.7)
Interpretation of Price Elasticities
Values of price elasticities with respect to demand make it possible for transportation operators to
predict the impact of changing transportation prices on total revenue.
Table 5-2: Impact of Changing Prices ion Transportation Demand
Nature of
Demand
Nature of Relation between
Price and Revenue
Impact of Price
Increase
e > 1 elastic negatively related reduce revenue
e < 1 inelastic positively related increase revenue
e = 1 Unit elasticity none remain the same

65
Example 4: Point Elasticity (Khisty and Lall, 2002)
An aggregate demand function is represented by the equation
q = 200 – 10p
where q is the quantity of a good, and p is the price per unit. Find the price elasticity of demand when
q = 0, q = 50, q = 100, q = 150, q = 200 units
corresponding to
p = 20, p = 15, p = 10, p = 5, p = 0 cents
Solution:
Figure 5-6(a): Demand function showing elasticities at various quantities.
When the elasticity is less than –1 (i.e., more negative than –1), the demand is described as being elastic,
meaning that the resulting percentage change in quantity will be larger than the percentage change in
price. In this case, demand is relatively sensitive to price change. However, when elasticity is between 0
and –1, the demand is described as being inelastic or relatively insensitive. These ranges are shown in
Figure 5-6(b). Figure 5-6(b): General case of a linear demand function showing elasticities.
Discussion: From Figure 5-6(a), it is obvious that when the price per unit is 20 cents, no units are bought.
Also, when nothing is charged per unit, 200 units are bought. Notice that the price elasticity for this
system varies from 0 to -∞, with unit elasticity when p = 10.

Example 5: Arc Elasticity (Khisty and Lall, 2002)

When admission rate to an amusement park was $5 per visit, the average number of visits per person was
20 per year. Since the rate has risen to $6, the demand has fallen to 16 per year. What is the elasticity of
demand over this range of prices?
Note that there are problems connected with arc price elasticity because it will differ from point
elasticity, the difference increasing as ΔP or ΔQ increase. Also note that elasticity is a unit-free measure
of the percent change in quantity demanded (or supplied) for a 1 percent change in price.
5.4 FACTORS AFFECTING ELASTICITY
As stated earlier, elasticity is the change in demand in response to a unit change in levels of attributes of
the transportation system or its environment. Such attributes include characteristics of the transportation
system such as price and level of service associated with a given mode, price and level of service of
competing modes, and characteristics of the socio-economic system such as income, level of
employment, household size, car ownership, etc. Of these factors, of particular interest are price and
income. The elasticities of demand in response to price and income are known as price elasticity and
income elasticity, respectively.

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Income Elasticities
The elasticity of demand with respect to income, or income elasticity, is the change in demand for a good
in response to a unit change in income of the consumer of that good. Income elasticities have a special
significance in travel demand modeling. Often, the transportation planner seeks to evaluate the impact of
changing socio-economic trends on the demand for or share of various modes of transportation. A major
indicator of economic trends is income. In disaggregate demand modeling, it is sought to determine the
sensitivity of changing income on the demand for a particular mode. Income elasticity is generally
defined as the change in demand in response to a unit change in income. In transportation economics, a
good service is considered normal if there is a direct relationship between the demand for that commodity
and the income of the consumer. Besides increased demand, if the share of the demand for that good (in
the consumer’s total income) also increases, then the good is described as a superior good. If the demand
of a good decreases with increasing income then the good is described as inferior. In developed countries,
automobile travel is considered superior while mass transit is considered an inferior good.
Price Elasticities
The elasticity of demand with respect to price, or price elasticity, is the change in demand for a good in
response to a unit change in the price of the good. A study of price elasticities is important because it is
often sought to assess the impacts of changing prices of a good or rival goods (due to past supply and
demand conditions) on the demand of that good. The level of price elasticity depends on factors such as
price of rival goods, income-share of the good, the scope of definition of the good, and whether the good
is considered a luxury or a necessity.
Price of rival goods: A consumer who spends a substantial percentage of income on a particular good is
more likely to seek a substitute good when the price of the good increases. Scope of definition: Goods
that have narrow definitions are more likely to have more substitutes, and are therefore expected to have
a more elastic demand.
Price an availability of rival goods: The lower the price and greater availability of substitutes, the greater
the elasticity of demand of the good with respect to price. Luxury vs. substitute goods: Goods that are
considered necessities typically have price inelasticities, while luxury goods are relatively elastic.
Example 6 (Khisty and Lall, 2002)
A bus company’s linear demand curve is P = 10 – 0.05Q, where P is the price of a one-way ticket, and
Q is the number of tickets sold per hour. Determine the total revenue along the curve.
Figure 5-7: Total Revenue Curve.
Price
Elastic

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200
Inelastic
0 Q (Tickets)
P = 10 - 0.05Q
Total revenue
$500
R = 10Q - 0.05Q2
0 200
155 Transportation Economics
Solution:
P = 10 – 0.05Q
R = Q(10 – 0.05Q) where R = total revenue
R = 10Q – 0.05Q2
dR/dQ = 10 – (0.05 × 2)Q
and this is equal to zero when R is maximum
Therefore, Q = 100 when R is 500 (maximum).
Discussion:
Starting from a price of $10 at near zero tickets sold and decreasing the price eventually to half ($5), the
revenue steadily increases to a maximum of 4500/hour (over the elastic portion). After that, the revenue
decreases as the price further decreases and finally approaches near zero, when the demand approaches
200 (over the inelastic portion).
Direct and Cross Elasticities
Direct elasticity is the effect of a change in the price of a good on the demand for the same good, while
cross elasticity refers to the degree of responsiveness of the demand for a good in response to a unit
change in price of another good.
Substitute goods: When consumers buy more of good A when good B’s price increases, good A is
typically described as a good substitute of good A. An example of such goods is auto use and transit:
When the price of auto-use goes up, the demand for transit increases. In this case, cross elasticity is
positive. Complementary goods: When an increased price of B results in increased demand for B, goods
A and B are typically described as complementary. In this case, cross elasticity is negative.
Example 7 (Khisty and Lall, 2002)
A 15% increase in gasoline costs has resulted in a 7% increase in bus patronage and a 9% decrease in
gasoline consumption in a mid-sized city Calculate the implied direct and cross elasticities of demand.

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Solution:
Let
Po = initial price of gas
P1 = price of gas after the hike
Q0 = quantity of gas consumed before
Q1 = quantity of gas consumed after
156 Transportation Economics
For direct elasticity:
Q0(gas) × 0.91 = Q1(gas)
P0(gas) × 1.15 = P1(gas)
From the elasticity formula,
4. FIRM THEORY IN TRANSPORT
Introduction
In retrospect to elasticity of demand which concentrates on the demand side of the market, cost of
production concentrate on the supply side of the market.
Definition of Transport cost: the expenses involved in moving products or assets to a different place,
which are often passed on to consumers.
Classes or Types of cost
private costs - costs that impact on the individual user of a particular mode of transport who directly
benefits from undertaking a journey E.g. financial costs involved, such as the fare in the case of public
transport, as well as non financial costs, such as the time involved in undertaking the journey (generalised
cost)
public costs - costs of transport that fall on non users of the transport service who do not benefit from
that transport service. E.g. polluted air, the congested road, noise and visual intrusions.
Production costs - costs that fall on the operators of a transport service or in the case of private transport
the financial costs incurred when undertaking the activity.
In many ways these are essentially private costs, as the individual that incurs the cost (the operator/road
user) is the one that benefits from the provision of that service
Public transport costs have received a large amount of attention over the years, as these services are a
vital component of the economy and society and have been to a greater or lesser extent subsidised by
national and local governments
•Attempting to reduce and maintain downward pressure on public transport costs has therefore been a
main concern of government policy

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THE EFFICIENT PRODUCTION OF TRANSPORT SERVICES
The costs of transport operations are primarily dependent upon a combination of the production processes
used and the efficiency of the management of that production process
It may be difficult to reconcile transport operators with the idea of the traditional firm, where inputs are
fed in at one end of the factory and finished goods emerge from the other
The focal point of transport is that it’s a form of “service” and therefore in order to achieve optimal
production, the ‘’service unit’’ should be taken into consideration
In order to get transport efficiency how, therefore, should the output of the transport firm be measured,
by journeys or by vehicle - kilometres produced?

Not all of the output of the combination process is sold for an economic return, as the process also
results in the output of other factors such as wastage or pollution
Land is an important factor in the production process, but of the three it is the one that is least under the
control of transport operators
Labour relates to all staff involved in the production of transport services, whether that be operational or
administrative staff.
Capital relates to any goods that have been manufactured in order to be put into the production process.
This includes the vehicle stock, but also any other physically made equipment, e.g. terminal buildings,
infrastructure, bridges, tunnels, handling equipment, depots and IT facilities.
production function; this is formally specified as: Q = f(A, L, K)
Where; Q = quantity of output produced f= ‘some function of’ A = quantity of land and raw materials
used in the production process L = quantity of labour used in the production process K = quantity of
capital used in the production process
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Finding out if production process is efficient or not is dependent on the input/output ratio of the bases of
production
•‘Efficiency’ however is an often over-used term and has different meanings to different people.
•Three basic types of efficiency :
•Technical efficiency :this relates to the outputs to inputs ratio, with a technically efficient operator being
one that uses the minimum level of inputs to produce the maximum level of outputs.
•Cost efficiency or productive efficiency: arises because there may be several different ways to produce
the output, all of which would be technically efficient. For example, a high level of capital and a low
level of labour could be employed, or alternatively a high level of labour and a low level of capital
employed. Both production processes may be technically efficient
•Allocative efficiency : it relates to usage; allocative efficiency is therefore said to exist where goods and
services are produced cost efficiently and in the ‘right’ quantities

Assuming that all firms within the industry face identical cost conditions, added to the figure are budget
lines which are linear combinations of the costs of employing labour and capital and are drawn as straight
lines out from the origin
•Firm B has the lowest cost combination of inputs, as it lies both on the technical efficiency frontier and
the lowest budget cost line
firm C is on a higher budget line and hence would have a higher cost combination, and point A would lie
on a higher budget line again.
The economist’s definition of time
Time is defined in terms of the extent to which the factors of production can be varied in order to produce
a different level of output. The following are seen as “Economist Time” The short run : at least one
factor of production is fixed (capital)
The long run : all factors of production are varied including capital

71
The very long run: that period of time where all factors of production are variable, including the level of
technology
COSTS AND PRODUCTION IN THE SHORT RUN We determine the Average Product, Total
product, Marginal product

Short run production, total, average and marginal product

The total output produced is known as the total product.

•The average product - the total product divided by the number of units of the variable factor.
•The marginal product - is the change in the total product that results from adding one more unit of the
variable factor into the production process.
The main issue to consider
Firstly, the total product curve - is in the form of an ‘S’ shape, meaning as more units of labour are added
to the fixed amount of capital, production will increase, reach a maximum and then decline .
At he point at which the outputs start falling is, this tailing off effect is known as the law of diminishing
marginal returns.
A second point to note is that the marginal product curve cuts the average product curve at the latter’s
highest point
Points b and c in the Figure can be used to break down the production process into three stages: Stage 1
production, the marginal product is always increasing, hence total product is increasing at a rising rate.
This would be up to point b
Stage 2 production, diminishing marginal returns set in. Thus although the marginal product is positive
it is falling in value, and thus total product is increasing at a declining rate; point b to point c.
Stage 3 production the marginal product becomes negative and total product is decreasing, as shown by
all points beyond point c.
Costs in short run production
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costs in economics include profit, or to be more exact, what is known as normal or economic profit.
A simplified definition of normal profit would be the opportunity cost of being in business plus some
form of risk premium in recognition of the risks that the investor is taking.
Normal profit is therefore the cost to the firm of the investor’s outlay, and this is normally paid in the
form of a dividend.
Anything earned above the level of normal profit would be termed abnormal or supernormal profits, as
these are rewards in excess of the risks of being in business
Transport classification of costs
1.Fixed Cost - cost that does not vary with the level of output, e.g. cost of purchasing an aeroplane, rent
for bus station etc.
2.Variable cost – vary with the level of production, e.g. wage, fuel etc.
3.Semi-variable – fall between fixed and variable cost
4.Depreciation - reduction in economic value to the firm of using an asset in the production process.

Short run average and marginal cost curves

average cost curve is ‘U’ shaped
As total productivity increases (Stage 1 production), then average costs fall
when total productivity decrease (Stages 2 and 3 production), average costs increase.
cost curve is “U” shaped because of the law of diminishing returns
COST AND PRODUCTION IN THE LONG RUN
in the long run because all input factors are variable there is no division between fixed and variable costs.
As with the short run, the long run production function is S shaped in nature.
At first there are large gains when firm size increases - the relative percentage gain in output is greater
than the relative percentage increase in inputs. Note also that this effect increases as firm size increases.
These gains in total productivity, or increasing returns to scale, continue up to point b.
Once firm size (as measured by the level of inputs) rises past point b, however, the proportionate gains
from adding more inputs are not as large as before, hence the firm experiences decreasing returns to scale

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The long run production function
Sources of increasing returns to scale
Specialisation of labour - As firm size increases, more labour can be employed in specialised tasks and
thus become more proficient at those tasks. Leading to increase in productivity.
•Scheduling of inputs ; As firm size increases, there exists greater flexibility in how the inputs can be
combined and hence better utilisation of all of the inputs may be expected –E.g. scheduling of drivers to
ensure that the vehicle stock is operated over the longest possible number of hours
•Capital inputs ; purchasing capital inputs to increase efficiency –E.g. increasing a railway line from
single to double track increases capacity by a factor of four, hence potentially significantly increasing the
productivity of rail services.
•Indivisibilities – e.g. a telephone line, When setting up in business, a company will need to install and
rent a phone line. With small expansions in size, there will probably be no need to install a second phone
line, hence this ‘input’ is spread over a larger output.
Sources of decreasing returns to scale
Loss of control ; (‘X-inefficiency’) as firm size increases, there is a loss of control over the whole
organisation. This loss of control decreases overall productivity.
Geographical location - when a firm initially sets up in business it will probably be on or near to the
optimal location. Increasing size in the longer term means building other production facilities, such as
depots, and these will not necessarily be at the best location.
This can result in fairly long distances between the depot and the market served, hence a significant
proportion of time is spent in driving vehicles between the two and not actually providing transport
services. As a result, productivity decreases.
Administration procedures large firms often require many more layers of middle and upper
management, plus administration procedures, in order to control costs and processes within the
organisation.

74
This is commonly known as ‘bureaucracy’.
Average and marginal costs in the long run
As can be seen from Figure below,

– average costs at first fall as firm size (as measured by output) increases.
–This continues up to the point where average costs are minimised at the optimum level of production,
known as the minimum efficiency scale (MES).
–After this point the trend is reversed and average costs rise as firm size increases.
–Along the part of the curve where the average cost is falling the firm would be said to be experiencing
economies of scale.
–Along the part of the curve where average costs are rising the firm would be said to be experiencing
diseconomies of scale.
Sources of economies of scale
Increasing returns to scale : relatively lower levels of the inputs need to be employed to produce higher
levels of output, hence the average costs per unit of output falls
Bulk buying ; discount for buying capital equipment and supplies in larger numbers, and hence average
costs would be expected to be lower for larger firms.
High cost inputs ; advertising
Financial economies ; - larger firms are normally better placed to secure additional finance as they can
offer greater security
Sources of Diseconomies of scale
Decreasing returns to scale
Red tape ; the need for greater office space and more IT facilities and so on result in diseconomies of
scale

Long and short run average and marginal cost curves

75
The long run average cost curve is a summation of a series of short run average cost curves.
Beginning at an output level of Q1, the firm is operating at point a on both the short run and long run
average cost curves
If the firm was to increase production from Q1 to Q2 in the short run, however, i.e. where at least one of
the inputs is fixed, average costs would increase to point c on the short run average cost curve
This would be considerably higher than if production was increased to Q2 in the long run
This is because in the short run the firm would encounter the law of diminishing marginal returns while
in long run experiences economies of scale till MES
Exercise 1. Total, average and marginal products and costs
This exercise concerns the provision of rail services, and the task is comparatively straightforward if
slightly involved. Quite simply, you have to fill in all the blanks, for which you will need the following
information:
Fixed Costs: 100000
Price of a variable factor: 50000
You should round all figures to two decimal places.

Table 5.2a Labour Output(000s) Costs Units TP AP MP TFC TVC TC ATC MC 0 0 1 50 2 110 3 180 4
260 5 350 6 420 7 480 8 530 9 570 10 590 TP = total product AP = average product MP = marginal
product TFC = total fixed costs TVC = total variable costs TC = total costs ATC = average total costs
MC = marginal

Once you have completed this table, you should use your calculations to answer the following questions:
a) At what level of output should the firm operate at?
b) What is the most ‘efficient’ level of output in terms of:
i Technical efficiency?
ii Cost efficiency?
iii In terms of measuring the firm’s ‘efficiency’, which of these two measures should be used and why?
c) What units is the level of output measured in?
a. Theory of production in transport
Costs and Production
In general, a private company will continue to produce and market a good or service as long as it is
returning a profit. The net profit (P) is equal to the total revenue (R) minus the total costs (C).
P = R – C = pq –cq

76
Where p is the selling price of one unit of product q, and c is the production cost of one unit.
The necessary condition for profit maximization is:

COST ANALYSIS IN THE EVALUATION OF TRANSPORTATION SYSTEMS

A complete and balanced evaluation of alternative investment options is possible only by giving due
consideration to both benefits and costs associated with each alternative. For this reason, it is essential to
have knowledge of the costs of each aspect of the provision of a transportation good or service. This way,
he future costs of such aspects can be determined using average cost values or better still, cost models
that estimate cost as
a function of investment and facility attributes.
In economic theory, three types of costs are encountered: fixed costs (which are independent of the
volume of goods produced), variable costs (which depend on the volume of good produced), and total
costs (the sum of fixed and variable costs). For each of these costs, it is possible to find the average cost
(dividing the total production cost by the number of goods produced) and marginal cost (the incremental
cost of producing an additional unit). It is therefore possible to determine average fixed costs, marginal
fixed costs, average total costs, etc.
Economic Laws Related to Costs
Two cost-related concepts are encountered in costs analysis of transportation systems evaluation:
Law of Diminishing Returns: States that an increase in input of one unit of a factor of production
generally causes an increase in output, but only up to a point, after which increasing inputs of that factor
will result in progressively less increase in output.
Law of Increasing Returns to Scale: States that in practice, the production of units is often likely to
increase at a faster rate than the increase in the factors of production. This may be due to technological
features, specialization.
Average Cost
The total cost of a product can be expressed mathematically as follows:
C = cq = α + β(q) (5.8)
Where
C = total cost of a product
c = unit cost
q = magnitude of the output
α = fixed cost of production
β = variable cost of production

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The average cost of each tem produced is equal to:
c C cq (q) (q)
qqqqq
α +β α β
= = = = + (5.9)
The relationships of the total and average cost functions are shown the Figure 5-10. It can be seen tat as
output q increases, the average cost of production decreases and then increase at higher levels of
production. When the production level reaches q′ , the average cost is a minimum ( c ). The decrease in
average cost with increasing output is referred to as economies of scale. In the figure, there is obviously
there is economy of scale for production levels between 0 and q′ . However, there is no economy of scale
beyond q′ because the average cost increases. This concept is useful to engineers in deciding whether
additional capacity or growth would yield higher profits, and is important in the economic evaluation of
transportation system improvements.
Marginal Costs
The marginal costs of a transportation good or service is the additional cost associated with the
production of an additional unit of output. The following example (Khisty and Lall, 2002) illustrates the
concepts of average and marginal costs.
Table 5-3 presents the cost of running a train system with variable number of wagons. For each system
size, the fixed and variable costs are provided in the first three columns. The total, average and marginal
costs are then computed and presented in the next three columns.
The various costs are computed as follows:
Total Cost = TC(x) = FC =VC(x) (5.10)
Average Total Cost = AC(x) TC(x) FC VC(x)
xxx
= = + (5.11)
Marginal Total Cost = MC(x) = TC(x) −TC(x −1)
When the output is a continuous function, the differential form of the marginal cost is used, in which
the marginal cost is the rate of change of total cost with respect to a change in output. In this form the
equation
is:
MC(x) dTC(x) dVC(x)
dx dx
= = (5.13)

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From the geometry of the AC and MC curves, it is also seen that the average costs is proportional to the
slope of a line connecting the origin of the total cost curve with a point on that curve corresponding to he
total output. In our example, the slope of such a line begins at infinity at zero output and then decreases
to its lowest point, when x = 4. Beyond this point, the slope increases again. On the other hand, the
marginal cost curve is the slope of the tangent drawn at any point on the total cost curve.

5. Market Structure of Transport

a. Perfect market in transport service
b. Imperfect market in transport servic
Perfect competition in transport markets
PROFIT MAXIMISATION
Profit maximisation is said to occur at that level of output where: Marginal Cost (MC) = Marginal
Revenue (MR)
marginal cost is defined as the ‘rate of increase in costs with respect to output’ (the cost of the last unit
produced). E.g. for a bus company the cost of the last person carried.
Marginal revenue - additional total revenue gained by selling one more unit(per time period). E.g. how
much the last person on the bus paid for their journey?
Marginal revenue is the difference in total revenue per time period as a result of cutting the price in
order to carry one extra passenger, and thus includes the possibility of a negative value when market
demand is inelastic
Marginal revenue will always be lower than average revenue as the firm must reduce the fare in order to
increase patronage, even if this is only by one

Marginal and average revenue curves

79
the demand curve has also been labelled as the average revenue curve (AR), because if the firm sells say
100 units at £5 each the average revenue gained for each unit is simply the price of £5.
Notice also that the marginal revenue curve is twice as steep as the average revenue curve and thus at all
levels of output, as explained above, marginal revenue is always less than average revenue.
Basic profit maximisation

As output rises marginal costs rise and marginal revenue falls

This is because if the firm wants to sell more it needs to always lower its price, hence falling marginal
revenue, whilst increasing output will have rising marginal costs over most of the range of output
For output level Q1 marginal revenue is greater than marginal cost.
in order to increase total profit the firm should actually increase production
Moving to point b, however, at the level of production Q2 marginal cost is greater than marginal revenue.
In this case, the last unit sold cost more to produce than the revenue which it generated,
The firm should reduce production and not produce that last unit, as this will increase total profit but
reduce MR
It should continue to reduce production until marginal cost equals marginal revenue
Because marginal costs and marginal revenue move in opposite directions with the level of output there
will always be a point of convergence and it is at that point where profits are maximised which is at point
C
In order to determine the actual level of profits (or indeed losses) incurred by the firm at the profit
maximising position, the demand and average cost curves need to be added to the figure

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Profit maximising position for the firm
The prevailing market conditions allow a fare of P to be charged, as shown by point c
The average cost of each passenger carried is found at point b
Total revenue is therefore given by the area outlined by 0, P, c, Q and total costs by the area outlined by
0, AC, b, Q
The net difference, i.e. the area AC, P, c, b, is the profit, or to be more exact the abnormal profit

It is also useful, certainly in the context of transport operations, to consider that the profit maximising
position need not necessarily produce a profit Transport service often prevails in this diagram below.

Losses at the ‘profit’ maximising position of the firm

The ‘profit’ maximising position is found at point a where marginal cost equals marginal revenue. The
associated average cost of each passenger carried is again found at point b The fare that can be charged
is found at point c on the demand curve, giving a fare of P
As can be clearly seen, the fare paid by each passenger is less than the cost to the operator of providing
the resources for that journey, thus in this case the company is making a loss. In the short run, as long as

81
the firm is covering its variable costs, in most cases it will continue in operation until the capital is life
expired, at which point it will close down. This is particularly the case where services are provided on
equity grounds, such as those deemed to be social necessities in which the total revenue gained from the
passenger will never cover the costs of providing the service. Subsidy is thus required in order to allow
production of the service and bridge the gap between costs and revenue
PERFECT COMPETITION
perfect competition is one of the major requirements in order to achieve allocative efficiency
perfect competition is seen as a highly competitive market where competition itself ‘regulates’ the market
and ensures economic efficiency is achieved Basic Conditions or Assumptions of Perfect Competition
Freedom of entry and exit
Homogeneous product
High number of buyers and sellers
Perfect information.
Perfect competition is simply a ‘benchmark’ to be used to compare an ideal with reality to allow market
failures to be identified market failure occurs when one of the assumptions of perfect competition is
breached and hence the market does not achieve economic efficiency

Perfect competition, short run position (profits

The demand curve facing the individual firm is perfectly elastic, i.e. horizontal at price PSR, due to
perfect substitutability between rival services . Note: under the conditions of perfect competition, average
revenue equals marginal revenue AR=MR The market sets its price at PSR and due to a high number of
buyers and sellers the firm is a price taker. As normal the firm is assumed to be a profit maximiser,
hence produces where MC = MR, highlighted by QSR for the individual firm The firm is making
abnormal profits, shown by the cross hatched area ACSR, a, b, PSR,

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This effect of new firms entering the market is shown below as a result the supply curve has shifted to the
right. The market price therefore falls to PLR.

Perfect competition, the long run position

The individual firm adjusts its level of output to the new profit maximising position, which is now at
QLR.
Note the firm is producing at the lowest point on the long-run average cost curve, hence productive
efficiency is ensured (MES) which means it is covering all its costs including the cost of capital
the abnormal profits that were being made in the short run have now been ‘transferred’ to the consumer
in the form of lower prices. It is for these reasons that perfect competition is said to be the most
economically efficient market structure
d) As this is perfect competition, new firms may enter the market and compete these profits away.
What price therefore will ensure that only normal profits are made?
𝜋= R – C ,
0 = P x 190,000 -15200 = 15.2/190 = Px190/190 = £0.08
e) The answer to part d should be the same as the answer to c(iv), why? Perfect competition AC= AR =
P and a profit of 0
f)At the lower flat fare, why has market efficiency now been achieved? Bus (firms) are producing at
minimum cost
g) This exercise assumes that the four firms in the market will behave consistent with the perfect
competition model, however is that in their own best interests? What does this tell us about market
structures where only a few firms exist? No, they can collude and fix the price
h) Why in this exercise however would the firms be forced to behave consistent with the perfectly
competitive market? Because of limited demand

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UNIT 7 IMPERFECT COMPETITION
MONOPOLY
Definition--: It is a situation in which a single firm or group, owns all or nearly all of the market for a
given type of product or service.
In theoretical terms, a monopoly in transport services is said to occur where there is only one supplier to
the market, in other words a ‘pure’ monopoly
Transnamib (Rail service) is a good example of a monopolistic firm in Namibia
Note. As there is only one operator supplying the market in a monopoly, then the firm’s individual
demand and supply curves are the market’s demand and supply curves therefore, the monopoly profit
maximising position is shown on a single graph. The monopolist faces a downward sloping demand
curve

Disadvantages of Monopolies
Production inefficiencies - Where costs are not minimised, production resources are not being used in
their best combination. This occurs as a result of the monopolist restricting supply in the market, which in
most cases will mean that it fails to capture all the available economies of scale. 2. Higher prices
charged and lower output produced - The prices charged will be higher and the output level produced
will be lower than a perfectly competitive industry facing exactly the same cost conditions, likewise , the
level of supply would be less and the price charged would be higher than if the market was in perfect
competition . For example

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 Monopoly versus perfect competition
3. Reduces consumer surplus and is regressive
Consumer surplus is defined as the level of demand that would have been willing to pay a higher
price than the market price

4. Net welfare loss

The imbalance in the trade between the consumer and the producer in favour of the producer results in a
reduction of the total benefits that could be accrued from the exchange. In the figure above, notice that
not only has area B ‘transferred’ to the producer, but area C has been lost altogether
What this actually represents are consumers who no longer use the service due to the higher prices
charged under monopoly.

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If the price was to be reduced back to the perfect competition level, they would again use the service.
This therefore is a net welfare loss and society is no longer maximising the uses of its scarce resources. 5.
X-inefficiency
•under certain conditions the average and marginal cost curves would be higher than they should be due
to general management slack.
•Firstly, where there was state ownership, then the lack of incentives created by providing services for the
public interest rather than for profit would create such a situation.
•fear that management under performance would lead to bankruptcy is removed
•no competition to act as a spur to keep management control tight and hence costs slowly drift upwards
Advantages of monopoly
A higher level of expenditure on research and development – investment in R&D due to the size of
the firm, thus in the very long run monopoly can be economically efficient through technical innovations
in production techniques and processes
Market size - a natural monopoly – The basic argument is that the market is of such a (relatively small)
size, that only one firm can operate in the market and achieve all of the economies of scale.
note from the figure is that the market demand curve, DM, cuts the average cost curve AC before the
point of minimum efficiency scale, QMES. At the maximum market size, therefore, average production
costs are still falling.
As a result, in order to take advantage of all of the potential economies of scale only one firm should
supply the market.
If the market was to be divided between a number of different firms, then as the major constraint is the
market size, no firm would be of a significant size to capture most of these economies

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 1. Wasteful competition – It occurs where effectively double or treble the production
resources are used to provide a service. This is as a result of economics of carriage which exist
where the cost per passenger carried can only be minimised where there is a single operator
2. Hotelling’s law (1929) - showed that if there was only one seller who owned and operated two
ice cream vendors on a beach, these would be placed at the optimum locations in order to cover
the entire beach. If on the other hand two different ice cream sellers owned and operated the
outlets, they would be located next to each other in the middle of the beach. Leading to
overcrowding

Hotelling’s Law applied to buses

The theory of contestability (Baumol, 1982) Assumptions
A perfectly contestable market is said to exist where entry to the market is free and exit is costless, hence
no financial barriers to entry exist
There must be no structural barriers to the entry of firms in the long run
There would be no strategic barriers to entry The idea of the contestable market may be seen as one way
in which the advantages of a monopoly can be gained without the drawbacks. According to Baumol, he
argued that it was unnecessary for the market to be in perfect competition in order to produce
economically efficient market behaviour, what really mattered was whether the market was contestable or
not. If a new entrant could enter the market and compete with the incumbent, then the threat of this
potential competition would force the incumbent to act as if under a perfect (or near perfect) market
structure. Rather than pursue super-normal profits therefore (i.e. profit maximise), the firm would only
seek to achieve normal profits in order to deter market entry. Competitive pressures would thus be
supplied by the constant threat of entry that force the firm to behave as if it was in a competitive market
and hence act in an economically efficient manner If the firm (incumbent) failed to do so, it would

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become vulnerable to entry by a lower-cost operator that would eventually take the whole market and
drive it out of business

OLIGOPOLY
The market structure of most transport industries would be broadly classified as either oligopoly or
tending towards monopoly.
oligopoly lies somewhere between perfect competition and monopoly if assessed on the basis of a scale
of competitiveness in the market
Definition: A situation in which a particular market is controlled by a small group of firms. Its just like
monopoly, just that instead of control belonging to one firm it is controlled by at least two firms Basic
assumptions of oligopoly
Few sellers, many buyers
Barriers to entry are significant
Product differentiation - what becomes important under oligopoly is advertising and branding
4. Non price competition

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5. Tacit collusion (cartel)
•Tacit collusion means there is a hidden degree of co-operation.
•This does not mean hidden from regulatory authorities, etc, but rather that under such a market structure
there is a strong incentive for firms, to a certain extent, to co-operate rather than compete with each other.
•Under oligopoly, in an ideal situation firms should fully co-operate and take decisions as a single group
of companies
The market position of the oligopoly firm

The process of competition in oligopolistic markets Transport markets, as most tend to evolve over
time towards an oligopolistic structure even where the ‘design’ had been to attempt to produce a
competitive industry. This aspect of anti-competitive market structures is a major concern in the reform
of public transport markets and one for which there appears to be no answer. This led to: Theory of the
competitive process by (Downie, 1958). This theory examines the competitive process over time and is

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primarily based upon the ethos of the survival of the fittest, the ‘fittest’ in this case being the most
efficient firms.
Note that this is more likely to occur in markets where there is wasteful competition

6. Transport regulation and ownership

a. rationale for government regulation in transport sector
b. strategies of government regulation in transport sector
c. Transport management and regulatory agencies in Nigeria (management and organization of
air, road, maritime transport in Nigeria
d. Transport issues and challenges.
Rationale For Government Intervention In Transport Sector
Government intervention in transport sector was borne out of the need for government to achieve its
stated objective or goals particularly it’s macroeconomic objectives some of which are-: price stability,
economic growth, full employment of resources, balance of payment equilibrium and optimal allocation
of resources.
Other reasons for government interventions in the sector are-:
(1) National defence: the role of transport in national defence particularly since after world war (ii)
cannot be over-emphasized. This is because transport provides major vehicles of launching attack to
opponent enemy. The implication of this is that a country whose transport sector is deficient particularly
in the production of war vehicles is joking with it’s national defence.
(2) Efficient and safety operation of the sector.
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(3) Energy conservation and control of environmental pollution: Government has to step into transport
sectors in order to ensure that the energy of a country is not consumed overnight by moderating the
production of vehicles or it’s importexation such that energy consuming vehicles are not produced or
imported in abundance at the expense of energy conserving vehicles.
In the same vein, government also has to ensure that the operation of transporter is not causing
unnecessary hazard for the populace or at least to minimize such hazards.
(4) self reliance in technological development-: Government is needed in the transport sector to bring
about technological development in the economy because technological progress started in the area of
transport and other other forms of development look forward to transport. It follows that, for government
to be self reliance in it’s technological sector, it must first develop its transport sector to a self reliance
state.
(5) Efficient allocation of resources especially among transport mode/means-: this involves how
government allocate her scarce resources among different competing modes.
(6) Reliability in public transport operation-: For public transport to be reliable particularly in urban area,
there is need for government to come in and ensure reliability through provision of adequate
infrastructures and other needs of the sector.
(7) Land use control and managements-: government has to intervene in the transport sector in order to
see
to the management of land and land resources so as to ensure that land and it’s resources are
appropriately utilized in the construction of carriage ways.
(8) The capital intensive resume of the transport sectors.
Strategies Government Intervene In Transport Sector
Government has used different weapons/instruments at various times to influence the operations in the
transport sector. Some of these instruments could be monetary while others may be in form of fiscal
policies. The strategies in the past includes-: (MARPS)
(1) Mass Transit Programme-: this programme was inaugurated in 1998 due to acute urban transport
problem being witnessed in most major cities of the country. The programme was floated under the
auspices of the federal urban mass transit programme commission. It was expected to tackle the problems
being witnessed in the urban countries through the additional buses, maintenance of transport facilities
nationwide and later the integration of railway and water transportation system into the mass transit
programme.

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2) Arrangement of loan and regulation-: Government encourage financial institutions to give loan and
make leasing arrangements with which would benefit investors in the sector. In addition, different
regulations to encourage investment in transport sector where also put in place.
3) Revitalization of the Rail-way system-: Effort were also made by the government to revitalize the
dying railway system in the country, some of which include-: building of new rail tracks, more coaches
and importation of new technology particularly from china.
(4) provision of infrastructures-: particularly through the effort of dinctorate of food, road and rural
infrastructures (DFRI) and the effort of the FRSC road corps {federal road safety commission}
(5) Safety regulation
Policy Implementation
In any policy, implementation is always a borne of contention because the implementation of policy will
involve more than the number of people who formulated the policy. There are three major areas that have
to be look into the implementation of any policy.
They are-:
1) Requirement for implementation
2) problem arising from implementation
3) solution to implementation problems.
1. Requirement for Implementation
Before any transport policy can be implemented.
a) it must at first receive executive approval
b) Financial estimate of the costs of implementation of the policy should known
c) cost estimates or tenders should be received from different contractor to compare the cost estimate and
make the best choice.
d) Man-power for the prosecution of the policy must be readily available.
2. Problem Arising From Implementation
(a) Monitoring and enforcement
(b) knowledge and training
(c) Bureaucracy
(d) Wrong prioritization
(c) Environments hazards
(f) Technological inadequacies
3. Solution to Transport Implementation Problems

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a) There must be a political will on the part of those in authority to implement transport policies
adequately.
(b) There should be adequate accountability and transparency particularly in the finance of the
implementation of transport policies
(c) There must be constant evaluation and review of transport policies in order to make them up to date.
(d) Government must ensure that programme and projects of the policy are prioritized.
(e) Research and development must be able to go hand-in-hand with the formulation and implementation
of transport policies
(e) Environmental hazards should be promptly attended to when they occur.

Why Policies are Formulated in Transport Sector

1) To control the whole sector because of it’s strategic importance
2) To control speed of different modes of transport for safety
3) to keep transport cost within the range of the people.
4) To ensure the cordination of all the modes of transport in order to achieve maximum efficiency.
Market and Market Structure Equilibrium Under Perfect Market
Under perfect competition we always have an equilibrium.
An industry is said to be at equilibrium where there is no tendency for any firm in the industry to either
leave or for new one to enter.
This situation implies that average cost (AC) curve concides with average revenue (AR) curve of all the
firms which means they are all earning only normal profit. In addition an industry is also said to be in
equilibrium when each

The pricing of transport activities

PRICING IN PUBLIC TRANSPORT SERVICES
The price set by public transport operators, particularly if they are operating under conditions of
monopoly, will depend on ‘what the market will bear’. The reason for this is that the market does not
consist of homogeneous consumers
As such, individuals undertaking work-related journeys during peak times, with inelastic demand, can be
charged a relatively higher fare
Individuals however for whom the journey time is somewhat less important, and therefore where demand
is relatively more elastic, will be charged a lower fare in order to stimulate travel

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price discrimination will therefore be undertaken, in order to maximize revenue
In terms of local public transport, then, passengers tend to purchase their tickets at the ‘point of use’, that
is, at the time of departure and in such a situation it is not possible to segment the market
Figure above refers to a rail operator that is practising price discrimination, charging a different price to
the passengers in market 1 compared to those in market 2. It is assumed that costs are constant, therefore
MC = AC.
a) What does the Figure reveal about the type of passengers using the service and their relative
elasticities?
b) Calculate the abnormal profit earned by the rail operator by price discriminating.
c) Based on the information presented in the Figure sketch out the diagram for the rail operator if it were
not to price discriminate.
d) Are there any beneficiaries from price discrimination and what happens to consumer surplus when
price discrimination is practised?
•Transport operators in oligopolistic markets practise predatory pricing and price fixing from time to
time. Outline what you perceive to be the benefits to transport operators of such practices and the reasons
why they are illegal in many countries world-wide.

Transport in Nigeria
Decaying infrastructure is one of the deficiencies that Nigeria's National Economic Empowerment
Development Strategy (NEEDS) seeks to address. The government has begun to repair the country's
poorly maintained road network. Because Nigeria's railways are in a perilous condition, the government
is trying to rectify the situation by privatizing the Nigerian Railway Corporation.[1][2] Similarly, the
government is pursuing a strategy of partial port privatization by granting concessions to private port
operators so that they can improve the quality of port facilities and operations.[3]
Railways: Railways in Nigeria are operated by the Nigerian Railway Corporation. Nigeria's
railway system has 3,984 kilometers of track, most of which is Cape gauge. The country has two
major rail lines: a western line that connects Lagos to Nguru, and an eastern line that connects
Port Harcourt to Maiduguri. The Lagos–Kano Standard Gauge Railway is being built in segments
to replace the western Cape gauge line. Several metro systems are under construction.
Highways: Nigeria has the largest road network in West Africa and the second largest south of the
Sahara, with roughly 108,000 km of surfaced roads in 1990. However they are poorly maintained and
are often cited as a cause for the country's high rate of road fatalities. In 2004 Nigeria's Federal Roads
Maintenance Agency (FERMA) began to patch the 32,000 kilometre federal roads network, and in 2005

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FERMA initiated a more substantial rehabilitation. The rainy season and poor equipment pose challenges
to road maintenance.[4]
International highways: Nigeria's strategic location and size results in four routes of the Trans-
African Highway network using its national road system:
• The Trans-Sahara Highway to Algeria is almost complete but border security issues may hamper
its use in the short term.
• The Trans-Sahelian Highway to Dakar is substantially complete.
• The Trans–West African Coastal Highway starts in Nigeria, connecting it westwards to Benin,
Togo, Ghana and Ivory Coast with feeder highways to landlocked Burkina Faso and Mali. When
construction in Liberia and Sierra Leone is finished, the highway will continue seven other
Economic Community of West African States (ECOWAS) nations further west.
• The Lagos-Mombasa Highway has been awaited for many decades to kick-start trade across the
continent. It does provide improved highway links to neighbouring Cameroon, but its
continuation across DR Congo to East Africa is lacking, as are highways from Cameroon to
Central Africa and Southern Africa, which could boost trade within the continent.

Waterways
Nigeria has 8,600 km of inland waterways. The longest are the Niger River and its tributary, the Benue
River[4] but the most used, especially by larger powered boats and for commerce, are in the Niger Delta
and all along the coast from Lagos Lagoon to Cross River.
Pipelines
In 2004 Nigeria had 105 kilometers of pipelines for condensates, 1,896 kilometers for natural gas, 3,638
kilometers for oil, and 3,626 kilometers for refined products. Various pipeline projects are planned to
expand the domestic distribution of natural gas and to export natural gas to Benin, Ghana, Togo through
the West African Gas Pipeline, and, potentially, even to Algeria (where Mediterranean export terminals
are located) by proposed Trans-Saharan gas pipeline. Energy pipelines are subject to sabotage by militant
groups or siphoning by thieves.[4]
crude oil 2,042 km; petroleum products 3,000 km; natural gas 500 km
Ports and harbors
The Nigerian Ports Authority (NPA) is responsible for managing Nigeria's ports, some of which have
fallen behind international standards in terms of the quality of facilities and operational efficiency.
Recognizing that the government lacks the funding and expertise to modernize facilities and run the ports
efficiently, the NPA is pursuing partial port privatization by means of granting concessions to private

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port operators. Under the terms of concession agreements, the government would transfer operating
rights to private companies for a finite number of years without forgoing ownership of the port land.
Nigeria's principal container port is the port of Lagos, which handles about 5.75 million tons of cargo
each year. The port, which consists of separate facilities at Apapa and Tin Can Island, has a rail
connection to points inland. Port Harcourt, a transshipment port located 66 kilometers from the Gulf of
Guinea along the Bonny River in the Niger Delta, handles about 815,000 tons of cargo each year and also
has a railway connection. Both ports are not only responsible for Nigeria's seaborne trade but also serve
inland countries such as Niger and Chad. A new port is under construction at Onne about 25 kilometers
south of Port Harcourt. Relatively modern and efficient terminals managed by multinational oil
companies handle most oil and gas exports.[4]
Atlantic Ocean
• Calabar
• Lagos - railhead
• Tin Can Island Port
• Onne - site of Federal Ocean Terminal - railhead under construction
• Port Harcourt - railhead
• Sapele
• Koko
• Warri
The Lekki Port is under construction.[5]
River Ports
• Onitsha river port, Anambra state, located on the Niger River
• Burutu river port, Delta state, located on the Forçados River
• Oguta river port, Imo state, on the ]Oguta Lake along the Njaba River
• Lokoja river port, Kogi state on the Niger River
• Baro river port, Niger State on the Niger River.
The Benin river port on the Benin river in Benin, Edo state;[6] and Makurdi river port on the Benue River
in Benue State[7] are under construction.
Merchant marine
The Nigerian Merchant Navy is not a legally recognized body, but the senior officers are represented by
the Merchant Navy Officers' and Water Transport Senior Staff Association.[8][9] The maritime industry is
regulated by the Nigerian Maritime Administration and Safety Agency (NIMASA), which is responsible

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for regulations related to Nigerian shipping, maritime labor and coastal waters. The agency also
undertakes inspections and provides search and rescue services.[10]
total: 40 ships (1,000 gross tonnage (GT) or over) totaling 360,505 GT/644,471 tonnes deadweight
(DWT)
ships by type: bulk carrier 1, cargo ship 12, chemical tanker 4, petroleum tanker 22, specialized tanker 1
(1999 est.)
Airport and airlines
Main article: Airports in Nigeria
Nigeria's principal airports are Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe
International Airport in Abuja. Three other international airports are Mallam Aminu Kano International
Airport in Kano, Akanu Ibiam International Airport in Enugu and Port Harcourt International Airport in
Port Harcourt. Overall, Nigeria's airports, whether international or regional, suffer from a poor reputation
for operational efficiency and safety. Private domestic air carriers began to win business at the expense of
Nigeria Airways, the former government-owned national airline which was declared bankrupt in 2004.
The former national flag carrier, Air Nigeria, suspended operations in 2012.[11] Arik Air is now a large
airline serving Nigeria and has transported over 10 million passengers.[12]
Nigeria Highway Code: Road Transport rules and regulations (Nigeria Highway Code, 2015-2019)
A road is a path established over land for the passage of vehicles, people, and animals. It provides
dependable pathway for moving people and goods from one place to another.
Roads are typically smooth, paved, or otherwise, prepared to allow easy travel. Historically many roads
were simply traditional or local routes without any formal construction or maintenance.

Learning and Following this Highway Code will help you stay alive while using the road. It will help you
avoid penalties due to road offences. It will also teach you how to use the road in a safe and civilized
manner.

Complete update of the entire content with latest highway code information and pictures.

- Includes the complete Highway Code with illustrations

- With the rules all road users need to know
- Plus information for learner drivers to make planning your test easy

Section A: THE ROAD

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A road is a path established over land for the passage of vehicles, people, and animals. It provides
dependable pathway for moving people and goods from one place to another.

Roads are typically smooth, paved, or otherwise, prepared to allow easy travel. Historically many roads
were simply traditional or local routes without any formal construction or maintenance. or maintenance.
I. TYPES OF ROAD
Roads may be classified as:
• Private drive pathways
• Two-lane highways
• Dual carriageways
• Expressway

Private Drive Pathways:

These are roads owned, maintained or controlled by an individual, agency or organization.

Two-Lane Highways:
These are the usual single carriageways. Traffic on two-lane highways normally flow in opposite
direction on single lane. Two-lane
highways may be rural, urban, intra or intercity roads.
Dual Carriageway:
This is a road which has multiple lanes with traffic going in opposite direction. They may or may not be
physically separated by non-passable dividers such as concrete barrier.

Expressways:
This is a specially designed and restricted highway divided with barriers which make traffic in opposite
directions completely separated from each other.

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II. INTERCHANGES
An interchange is a special intersection designed to enable road users cross, enter or leave the expressway
without interfering with the flow of traffic.
• Private drive pathways
• Two-lane highways
• Dual carriageways
• Expressway

Clover Leaf
Clover leaf interchange is designed to allow turning movement off or into the expressway from four
directions using loop type connections. It eliminates left turn and traffic conflicts for all movements.

Diamond
A diamond interchange has four ramps, allowing vehicles to enter or leave the main highway while
flowing with the traffic. Left turns are made after leaving the expressway.

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Trumpet
Trumpet interchanges provide access to the expressway at a 'T' intersection.

Directional
Directional interchange are used where high volume traffic desire to transfer off an interchange.

III. ROAD JUNCTIONS

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A junction is the place where two or more roads meet.

A. T -Junction

This is a place where two roads meet in the shape of letter T.

B. Y-Junction
This is a place where two roads meet in the form of letter Y.

C. Cross Road
A cross road is the place where two roads meet and cross each other. It could be in the form of:
• A major road crossing a minor road; or
• Two equal roads crossing each other.
D. Roundabout
A place where two or more roads meet, forming a circle that ensures that all traffic must go around in the
same direction. Rules of Using Round-about
When approaching a roundabout:
• Watch out for traffic already on it
• Take special care to look out for cyclist or motorcyclist ahead or to the side
• Give way to traffic on your left unless road marking indicates otherwise
• Keep moving if the way is clear

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How to Negotiate a Round-about
When turning right:
Approach on the right-hand lane; keep to that lane in the roundabout and leave by the lane. Use the right
turn indicator on approach and through the roundabout.

When going straight:

Approach on the right-hand lane; keep on that lane in the roundabout. Use the right turn indicator at the
exit before the one to be taken.

If conditions dictate (fir example, if the right lane is blocked) aproach in the left hand lane, keep to
thatlane in the roundabout.

You must signal your intention here to turn right. Enter with the left signal on.

When turning left:

Approach in the left hand lane; use the left turn indicator before entering the roundabout and maintain
this signal while keeping to the left-hand lane. On approaching a round-about, maintain it until you leave
the area.

When making a U-turn:

• Enter with the left signal on and keep going
• Before exit, change the signal to right
Leaving the roundabout
When going forward or turning left, always leave the roundabout in the left-hand lane of the exit road,
unless conditions dictate the use of right-hand lane.

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Mind Other Vehicles
When in a roundabout, look out for vehicles crossing in front of you to leave by the next exit.

Going Through Intersection

Give way to traffic on the major road and drive through safely obeying posted signals like STOP or
YIELD. Even if you are on the major road, always drive through the intersection as if other vehicles may
be crossing or approaching.

Hazard lights, also known as Emergency lights or "double trafficators" are not meant to signify going
straight or crossing intersection and should not be used as such. They are STRICTLY for emergencies!
Classification road in Nigeria
In Nigeria, each tier of government has the responsibilities for planning, construction and maintenance of
the network of roads under its jurisdiction. The Nigeria Road system is classified into four broad
categories.
1. The federal Trunk A Roads: these are under the Federal Government Ownership and they are
developed and maintained by the federal government
2. The federal Trunk F Roads: these are formerly under state ownership but were taken over by the
federal government with a view to upgrade them in federal highway standards
3. The state Trunk B Roads: these are under the ownership and management of the component states
4. The local government Trunk C Roads: these are under Local Government ownership and mangment
Section B: CATEGORIES OF ROAD USERS
• The Motorist
• The Pedestrian
• The Cyclist
• The Motorcyclist
• The Child
• Animal
• The Hawker
• The Trader
I. THE MOTORIST

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This class of road user is enclosed in motor vehicles. Because of this enclosure, they feel protected and
often assume absolute immunity from accidents. This is a fatal self delusion for which the Federal Road
Safety Commision has coined expression: Accident Immunity Delusion Syndrome (RAIDS).
Rules for Road Use
Driver's Protection:
• The driver of a vehicle has only the protection guaranteed by his STRICT obedience to traffic
rules.
• The best protection inside the vehicle is the USE OF SEAT BELT
• Always fasten your seatbelt and ensure that everyone in your vehicle belts up. S.10(4)(ee), FRSC
Act, 2007

Alcoholic Drinks and Drugs

• Never drive after consuming alcoholic drinks or while under the influence of drugs
• Maximum blood alcohol level for drivers is 0.5gms per litre or 0.05% of blood alcohol (BAC)
• Alcohol affects your vision, judgement, reduces coordination, and slows down reaction
• Reduce driving stability even when taken below the legal limit. "DO NOT DRINK AND
DRIVE". S.10(4)(K), FRSC Act, 2007

Long distance driving

Driving for long distances tend to make you sleepy. To prevent this, ensure there is plenty of fresh air in
your vehicle.

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 • Stop in a convenient place, rest and then walk around to let blood circulate and feed your brain
adequately.
• Take a break of 15 minutes after every four (4) hours of driving.
• Do not rely on stay-awake drugs like coffee, kola nuts, and even chewing sticks.
• Have co-driver for any journey exceeding 10 hours.
Avoid fatigue
• Fatigue is a deadly, yet silent killer that often goes unnoticed.
• Drivers tend to overestimate their capabilities and thus, do not know when to act on their
tiredness.
• Do not drive if you are unwell, exhausted or tired from over-work, as ability to drive and
coordinate becomes difficult when under stress, be it emotional or physical.
Passenger's Protection/Responsibilities of Drivers
• Drivers hold not only their lives but also that of passengers in their hands.
• Comprehensive insurance policy offers cover both the vehicle and passengers in the event of
injuries or death occurring from road crashes.
• Vehicle owners are therefore required by Road Transportation Safety Standardization Scheme
(RTSSS) to ensure that their vehicles are properly insured.
• Drivers are to ensure that passengers enter and disembark at officially designated places where
provided.
• Drivers are not to overload their vehicles with goods or passengers. Passengers stand very high
risk of severe injury or death in overloaded vehicles.
Vehicle protection
• Keep your vehicle in good working condition, payng particular attention to lights, brakes, steering
mechanism, tyres and tyre pressure, direction indicators and wipers.
• Windscreens and windows should be clean and clear of obstructing materials and ornaments.
S.10(4)(w), FRSC Act, 2007
II. THE PEDESTRIAN
A pedestrian is a person who is walking on the road especially in an area also used by vehicles. Drivers
share the road with many other road users among whom are pedestrians who are part of exposed road
users.

Generally there are three types of pedestrians most often involved in road traffic crashes: children, the
elderly and adults under the influence of alcohol and drugs.

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Pedestrian protection involves
• Use of pavement or suitable foot paths where provided.
• Walk on the left side of the road facing on-coming traffic, where footpaths are not provided.
• While walking in the dark, wear or carry white, bright coloured or reflective clothing as you can
be easily seen in them.
• While walking in a group, keep to the extreme right of the road.
• At night, the person in front should wear a reflective clothing.
Traffic drill
• Before you cross a road, stop, hold hands, look left, right and look left again. When the road is
clear, walk directly and quickly across but keep looking out. Do not run because you may trip
over and fall.
Crossing point
• You are to use pedestrian crossing, central islands, traffic lights, subways, or foot bridges where
provided.
• Where they are not provided, step onto the road slowly, making sure you can see both ways
clearly and that you can be seen.
• Do not cross the road between or in front of parked vehicles because drivers on the road may not
be able to see you.
At a one way street
Before crossing a one-way street with traffic going only in one direction, do your traffic drill.
• Make sure you know which way the traffic is moving.
• Step on the street and quickly cross directly.
Wait on the island
• Where there is an island on the road, cross first to the island.
• Wait there until the second half of the road clears.
• Then finish crossing.
At night
Cross the road near lighted area so that you can be seen especially if there is no convenient pedestrian
crossing.
At Guard Rails
Do not cross the road where there are guardrails or other preventive fences to stop you.
Pedestrian Crossing

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 • You have NO right of way at a pedestrian crossing or Zebra Crossing until you have Stepped on
it.
• Even then ensure no vehicle is coming.
• When you do, traffic should give way to you. Do your traffic drill before you start to cross,
exercise caution.

At Junctions
When you cross at a junction, pay attention to traffic turning corner, especially from behind you.
At Junctions Controlled By Traffic Lights
• Watch the traffic as well as the lights.
• Do not attempt to cross when the lights are green or amber (yellow).
• At traffic light crossings with push buttons, press the button and wait for the signal to cross.
• When it comes, cross with care while watching for approaching traffic.

III. THE CYCLIST

A cyclist is a person that rides a bicycle, motorcycle or tricycle or other such vehicles.
A bicyclist is a person who rides a bicycle by pushing the pedals with his feet.
• Bicycles are considered vehicles and have the same right-of-way as motor vehicles.
• Bicyclists are also expected to obey the same traffic rules and regulations as vehicle drivers.
Parents or Guardian should ensure that their children or wards do not ride bicycle on the
"Highway".
Cycle care
Ensure your cycle is in good condition before riding, paying attention to the brakes, tyres, lamps and rear
reflectors.
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Look Behind
You should first glance behind before starting off, making turns or pulling up.
Turning
Hold out your arm sideways. Left for left turn, right for right turn. Wait until it is safe, and then start
turning. Move into position with your arm held out throughout. Give signal in good time. Exercise
CAUTION, turn quickly.
Ride In A Single File
Do not ride side by side with other cyclists. It is dangerous.
Safety While Riding:
• Always hold on to the handlebar firmly and keep your feet on the pedals
• Do not hold on to another vehicle or another cyclist
• Do not carry a passenger unless your cycle has been built for that purpose
• Do not ride too close behind another vehicle
• Do not carry anything which may affect your balance
• Do not lead an animal
• Where there is a cycle path, you must use it
IV. THE MOTORCYCLIST
A motorcyclist is a person that rides a two wheel vehicle, Motorcycle, Tricycle and Moped powered by
an engine.
Approximately half of fatal motorcycle crashes involve motor vehicles because of motorists failure to see
a motorcycle in traffic until it is too late
Extra Problems
In addition to problems faced by motor vehicles, motorcyclists are faced with extra problems similar to
those faced by pedestrians and bicyclists
• They are exposed. less stable, small in size and not easily seen by motorists.
• Motorists find it difficult tojudge their distance and speed.
Before You Ride
Ensure that your motorcycle is in good working condition, paying attention to the brakes, tyres, clutch
and throttle, trafficators, mirrors, horn, headlamps and rear lights.
Riders Protection
• Wear smart. bright coloured clothing.
• Avoid flowing and flimsy garments, and slippers as they are not particularly protective.

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 • Protect your head with safety helmet, thick gloves and riding boots properly fastened even on
short trips, as it increases your chances of surviving a crash.
S.10(4)(II), FRSC Act, 2007
Body Position and Control
• Sit comfortably on the motorcycle. Hold the handlebars firmly with both hands and keep your feet
on the pedals, with your knees against the petrol tank for stability.
• I You and your motorcycle must move together as a unit by aligning with the motorcycle as you
make turns.
• Do not weave or meander along the roads.
• Do not squeeze between vehicles.
Before Pulling Out
• Glance behind, do not start off, make turns or pull up without first glancing behind to see that it is
safe.
• Give clear signal and in good time, of your intention to pull out.
Overloading
• Do not carry more than one passenger on your motorcycle.
• Never carry outsized objects or people with outsized objects.
S.1D(4)(t).(x) FRSC Act 2007
Turning
• Check traffic on both ways. using your mirror and glancing over your shoulder before you reach
your turn off.
• Signal your intention in good time, and as soon as it is safe, take up position to turn, especially
when making a left turn, a Make sure your trafficator is on, all the time, plus hand signals if
possible. before making a turn.
• Make sure your trafficator is on, all the time, plus hand signals if possible. before making a
turn. S.1D(4)(f), FRSC Act 2007
• Make your left turn when it is safe to do so.
Avoid Blind Areas
• Avoid staying where motorists may not see you.
• Avoid that spot where you cannot make eye contact with the motorist. If you cannot see his eyes,
he may not be able to see you.
• I At bends, blind intersections. emerging between vehicles or from side road, and at the brow of a
hill. always position yourself in a manner that you can see approaching traffic and be seen.

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Keep safe Distance
You must not follow closely, or squeeze in between vehicles.
• Always apply the 'two seconds' rule and when necessary use common sense modifications; the
three or four seconds rule.
• I Do not ride too close to the sides of other vehicles.
• Doors may be opened, extended mirrors may take a swipe, or a vehicle may swerve.
Approaching an Intersection
Slow down at intersections. A vehicle coming from the other side may enter the space in front of you. Be
ready to stop. More motorcycle crashes mostly happen at intersections. Be careful.
Riding in Convoy
Ride in a single file
• I Keep within speed limits for safety. Leave at least "two seconds" gap between you and the next
cyclist.
• Avoid the danger of being over-run or running over other road users.
• Being in a convoy demands alertness and concentration.
• Be focused and alert.
Speed Limit
• Maximum speed limit for motorcycles in built up area is 50km/hr. Motorcycles under 50cc are
not allowed on the highways and expressways.
• emember! Though your motor bike may be more flexible to manoeuver and may speed like motor
cars, you are more vulnerable and unprotected in case of a crash.
3.] n(4)(p), FRSC Act 2007
V. THE CHILD
Child safety: Drivers and Cyclists are urged to be careful near schools, churches, mosques, markets,
snack shops, Ice Cream Stalls, Parks, Fruit trees, or street hawkers, because children are usually found in
such places.
what to do when travelling with children:
Child Seats: This is a special safety seat for a child that is fitted into a car, Make sure that the child is
correctly placed in a child safety seat. This reduces the possibility of an injury or death in the event of a
crash.

Children between the ages of 0-12 months should not ride in the front of the vehicle. This is for their
safety.

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Where children of given age groups are however carried on the front seat, they should ride facing the rear
using child restraint.

The child restraint should be attached, such that the child will face the rear of the seat.
• Children from ages 1 to 7 should ride facing the front of the car in a child seat, strapped properly
to the back seat.
• Do not carry a child on your laps as he or she may be crushed between your body and the dash
board if there is a crash.
• Do not allow children to play with the handle of the doors or locks, use child lock where
available.
• Do not allow children to ride in the luggage area of hatchbacks, station wagons or vans.
• Do not leave a hatchback open when a child is riding in the back seat.
• It is against the law to transport children under age 16 at the back of a pickup van.
• Children from ages 7 and above should ride in a vehicle facing the front but securely restrained
with safety belts.
• When transporting children. the elderly and physically challenged people, the driver must not be
under the influence of alcohol/drugs.
what to do when walking with a child
While walking. face oncoming vehicle; hold the child on your left such that you will be between the child
and the vehicle.
Motorists are to stop for or give way to pedestrians, crossing at a zebra crossing sign. Failure to
obey attracts a penalty.
Children of School Age
• While crossing the road, children should use overhead/foot bridges where they are provided.
• While walking on the road, children should always face traffic.
• Children should always use the pavement where provided.
• Children should not play on the roads!
• While riding bicycle, children should use bicycle paths where provided or ride towards the kerb
facing traffic where t a cycle path is not provided.
• Children should wear reflective clothes during dusk.
VI. ANIMAL
• Animals in the vehicles should be kept under control.

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 • Ensure they cannot disturb you while driving, especially by keeping them at the back.
Leading an Animal
• Do not let your pet animal out on its own.
• While leading an animal on a road that has no foot path, walk on the left hand side of the road,
and keep it close to the edge of the road.
Horse Riding
• When riding a horse, keep to the right side of the road.
• If you are riding a horse while leading another, you should still keep to the right and keep the led
animal on your right side.
Herding Animals
• When herding animals along or across the road and there is someone with you, send him along to
warn drivers at such places like bends, brow of hills where motorists may not be able to see in
good time.
• I Always lead herds of animals in the direction of traffic.

Section C: QUALIFYING FOR DRIVER'S LICENCE

Driver's Licence:
A Driver's Licence is a legal document that confers on a driver the right to drive. Both the driver's licence
and traffic offences are fully computerised to enable law enforcement agencies keep record of multiple
offenders. The scheme commenced on the 5th of February 1990. It was enhance in the 4th quarter of
1997. The enhancement was in the area of security features . the enhancement makes it easy to retrieve
information on drivers from the central data bank (CBD) on request
I. OBTAINING LEARNER'S PERMIT
• Obtain form MVA 15
• Pay prescribed fee
• Attend a driving school approved by FRSC
• You must obtain a pass from driving school with third issue learners permit
• Drive for at least 3 months accompanied by an Instructor who is a licensed driver
• Affix 'L' sign on the front and rear of the vehicle
• Tested by the appropriate authority after the third issue of the learners permit for a period not less
than 3 months.
S.27, National Road Traffic Regulations, 2004

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II. CLASSES OF DRIVER'S LICENCE
A. Motor cycle
B. Motor vehicle of less than 3 tonnes gross weight other than motor cycle, taxi, stage carriage or
omnibus
C. A motor vehicle of less than 3 tonnes gross weight, other than motor cycle
D. Motor vehicle other than motor cycle, taxi, stage carriage or omnibus excluding an articulated vehicle
or vehicle drawing a trailer.
E. Motor vehicle other than a motor cycle or articulated vehicle
F. Agricultural machines and tractors
G. Articulated vehicles
H. Earth moving vehicles
I. Special, for physically handicapped persons
III. HOW TO OBTAIN DRIVERS' LICENCE
• Obtain and complete Form MVA 11 from Motor Licencing Authority (MLA).
• Attend driving test with the appropriate authority for desired category of driver's licence 11 Form
• If successful, a certificate would be issued indicating the class of licence qualified for
• Pay the prescribed fee to the Motor Licencing Authority (MLA).
• MLA sends the Form to FRSC (IPC) for processing
• Driver applicant proceeds to FRSC Information Processing Centre (IPC) for physical capture of
photograph, finger print and signature.
• Processed licence is sent to MLA for distribution to successful applicants
• An experienced driver may in addition obtain trade test certificate Issues (3), (2) and (1) from the
ministry of labour and productivity.
• The minimum age for driving is 18 years
• The terminal age for driving is 70 years
Note: Changing category of drivers' licence requires a new test
IV. RENEWAL OF DRIVER'S LICENCE
• Upon expiration of a drivers' licence, the holder returns to Licensing office to obtain and complete
MVA 12
• Pays the prescribed fee to the MLA
• MLA sends the Form to FRSC (IPC) for processing
• Proceeds to FRSC Information Processing Centre (IPC) for physical capture of photograph, finger
print and signature.

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 • Processed license is sent to MLA for distribution to successful applicants.
V. REPLACEMENT OF DRIVERS LICENCE
• Obtain a police extract, sworn affidavit and photocopy of lost licence and apply as stated above
• Proceed to MLA to obtain and complete Form MVA 12.
• Pay the prescribed fee to the MLA
• MLA sends the Form to FRSC (IPC) for processing
• Proceeds to FRSC Information Processing Centre (IPC) for physical capture of photograph, finger
print and signature.
• Processed license is sent to MLA for distribution to successful applicants.
VI. SUSPENSION/REVOCATION OF DRIVERS LICENCE
• Upon conviction of a licenced driver by a court of law and depending on the natre and gravity of
the offence, the driver may have his licence suspended or revoked.
S.33 National Road Traffic Regulations, 2004

ENDORSEMENT: Traffic offences carry penalty points against offender's licence in addition to the
prescribed fine/prison term. These penalty points are cumulative. 21 cumulative points lead to an
endorsement of the offender's licence. After five of such endorsements, a driver's licence stands
suspended. Confiscation of licence can be between 3-6 months while revocation can be for life.
S.10(5)(c), FRSC Act, 2007
Section D: VEHICLE REGISTRATION
I. REGISTRATION REQUIREMENTS:
• Obtain and complete Form MVA01
• Pay the prescribed fee
• Submit certificate of payment or exemption from import duty by Customs and Excise
• Obtain valid insurance certificate
• Obtain road worthiness certificate in case of commercial vehicle
II. VEHICLE IDENTIFICATION MARK (Number Plate)
• Number plate is a vehicle identification mark. It is reflective to improve safety at night.
• The colour code is used to differentiate various categories of vehicles and the security water mark
is meant to deter forgery.
• The first two and the last three digits are alphabets, the middle are three numerals. It is alpha-
numeric.

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 • The last three alphabets represent the Local Government or Licensing Office where the vehicle is
registered.
Types Background Lettering
Temporary Black White
Private White Blue
Commercial White Red
Goverment White Green
Armed Forces/Paramilitary White Black

Temporary Number Plate

This is obtained whenever the original number plate is lost.
Procedure for Obtaining a Temporary Number Plate:
• Apply to the licensing authority with a sworn court affidavit and a police report.
• In the course of processing the number plate, write the number on a black background with white
lettering.
• There must be an evidence that the person is processing a new one.
Vehicle Identification Tag
This is a sticker having the same alpha numeric number with the number plate. It is an added security
device to prevent illegal transfer of number plate. It is affixed to the rear windscreen.
Proof of Ownership
It is a certificate designed to provide ultimate proof of ownership of a vehicle. It is a product of
information provided on form MVA01 used in vehicle registration.
Vehicle Licence
Shows that the appropriate road tax has been paid. It is pre-formatted in categories (truck, car, bus etc). It
carries the description of vehicle like colour, engine and chassis number.
Road Worthiness Certificate
Regular inspection of vehicles is required to ascertain their road worthiness. The successful vehicle is
issued certificate which is affixed to the certified vehicle.
Road Worthiness Validity Tag
A vehicle that passes road worthiness test is also issued a validity tag which is pasted on the screen of the
vehicle to save time during road checks.
Special Number Plate
• Obtain and complete Form MVA01
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 • Pay prescribed fee
• Obtain vehicle registration book
• Obtain current certificate of insurance
• Obtain road worthiness certificate
III. ROUTINE INSPECTION FOR ROAD WORTHINESS
Vehicle Inspection Requirements
• Present vehicle at VIO's office (Vehicle Inspection Officer's office)
• Pay the prescribed fee at MLA

The test may be a road test, visual test or with computer.

• The test shall focus on serviceability of the vehicle. the Chassis, Engine. Electrical parts,
Transmission, Brake system and safety devices.
• Inspection for road worthiness certificate is carried out and validity tag affixed to certificated
vehicle.
• It is repeated every 6 months for commercial vehicles and annually for other vehicles older than 4
years from the date of manufacture, except those of exempted bodies/organisations.
IV. VEHICLE INSURANCE
• Third Party Motor Insurance: This policy covers damage to third parties arising from auto
crashes Here, only the third party is indemnified.
• Fire and Theft Insurance: This policy covers risks associated with damage to vehicle through
fire and/or theft. Third party liability is also covered.
• Comprehensive Insurance: This is a policy covering risks on vehicles such as third party
liability, fire. theft and in some cases, diminution in value of the vehicle.
The more frequent you are involved in accident, the less the value of your vehicle. Do not obtain
insurance policy from unauthorised source.
Section E: VEHICLE CHECKLIST
Certain gadgets are expected to be carried in every vehicle at all times to meet the requirements of the
law. These include:
1. Warning triangle (c-caution)
2. Fire extinguisher
3. Jack
4. Spare tyre
5. First Aid kit

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 6. Wheel spanner
7. Water
8. Hydraulic
9. Transmission fluid
10. Torch light
11. Spare fan belt

A. Warning Triangle: To warn motorists that there is a break down.

B. Fire Extinguisher: There are two types of fire extinguishers: Dry powder-80F Liquid gas, which each
vehicle is expected to carry with required number of units and sizes.
VEHICLE NO./REQUIRED SIZE
*Articulated 2 units 9 kg
*Lorries 2 units 6 kg
*Luxury buses 2 units 6 kg
*Medium buses 1 unit 2 kg
*Light goods Vans 1 unit 1 kg
*Taxis 1 unit 1 kg
*Cars 1 unit 1 kg
C. First Aid Kits: The basic knowledge of first aid is among the most useful skills you can have as a
driver.
A First Aid kit should contain the following items:
• Pair of scissors
• Safety pins
• Iodine
• Cotton wool
• Handkerchiefs
• Plasters/dressing for wounds
• Splints
• Bandage
• Disposable gloves
• Razor blades
• Adhesive tapes
• Aspirin/ Paracetamol
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 • Antibiotic ointment
• Antiseptic
• Petroleum jelly
• Antibacterial Soap
• Latex gloves / Facial mask

Note that some of these items are consumables therefore, there is need to constantly check and
replenish them. Pay attention to items with expiring dates.

D. Spare tyre: A vehicle must always have a spare tyre.

Ensure that the pressure on all tyres including the spare is at maximum stability and road-holding.
Under inflated tyres cause tyre burst and over inflated tyre wears rapidly at the centre of thread.
This can cause damage to tyre casing

E. Jack: the gadget enables you to change your tyre when you need to.

F. Wheel spanner: this is used along with the jack to unscrew wheel nuts and tighten them as the need
arises.
Section F: BASIC VEHICLE SAFETY CHECK
Vehicle parade refers to the basic checks that must be considered on a motor vehicle daily before it is put
into use.
I. First "parade"
WOFT: (For petrol engines)
W = Water: Check water level in the radiator
0 = Oil: Check the level of engine oil in the sump using dip stick
F = Fan belt: Check fan belt for tension and cuts
T = Tyre: Check for cuts, punctures, depth of threading, pressure, alignment symptoms and wheel nuts
II. Second "Parade"
Lighting System:
• Check head lamps, side lamps, signal indicators and reverse lights.
Brakes and Clutches:
• Check the hydraulic level

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 • Check effectiveness of the brakes; start the vehicle, drive off a little and step on the brake pedal to
test the effectiveness
• Check the tightness and effectiveness of the brakes and clutches
• Change all the gears, one at a time, while pressing the clutch pedal
8.54 National Road Traffic Regulation, 2004
Wipers:
• Ensure that the wind screen wipers are functional
• Check the blades for effectiveness
8.63 National Road Traffic Regulation, 2004
Steering Mechanism:
• Check for clearance or 'free play'
• Check level of Automatic Transmission Fluid (ATF) for power steering only
8.60 National Road Traffic Regulation, 2004
Horns:
• Ensure that your horns are in good working condition
• Do not fit wrong horn on your vehicle
8.57 National Road Traffic Regulation, 2004
Spare Tyre:
• Check spare tyre for cut, puncture, thread and pressure
• Ensure that jack, jack handle and wheel spanner are in the vehicle
8.53 National Road Traffic Regulation, 2004
Reflective Triangle:
Ensure that a pair of reflective triangle is in the vehicle
Fire Extinguisher
Ensure that you have the correct type and size of fire extinguisher for your vehicle. A multipurpose fire
extinguisher is preferable.
Battery:
Check level of electrolyte (battery liquid) and condition of battery terminals.
Body Inspection:
Walk round the vehicle to check for dents and loose parts.
III. Third Parade
At the end of the day's activities:
• Check all items in the first and second parade

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 • Record appropriately in the log book
Tyres
Select the correct tyre and inner tube size and specifications for your vehicle and ensure that they are not
defective.
Worn out tyres or tubes with multiple patches are very unsafe. The traffic officer or Marshal can stop or
warn for defective tyres.
Tyre Pressure
Road traffic crash research has shown that tyre defect and "blow outs" constitute a high incidence factor.
Ensure that your tyres, including the spares are correctly inflated at all times in accordance with the
recommended level for the tyre type.
Check the manuals of your vehicles and the size of the tyre for the correct pressure.
Under Inflation
Contrary to what some drivers believe, under inflated tyres are bound to cause road crashes by sudden
blow-out, peeling or tearing at the sides.
Do not under inflate your tyres hoping that they will inflate themselves as you drive along.
Section G: REQUIREMENTS FOR A TOURIST IN NIGERIA
A Tourist is a person travelling or visiting a place for pleasure; when visiting Nigeria, ensure that:
• You are familiar with the Nigerian road network
• I You show evidence that you are permitted to import your vehicle temporarily (if any) into
Nigeria. Such vehicle carries the number plate of its country of origin
• Ensure that the vehicle is road worthy and has the following:
1. Vehicle licence
2. Vehicle inspection tag
3. Proof of ownership certificate
4. Road worthiness certificate
5. Road worthiness Validity Tag
6. National vehicle identification and
7. Any other relevant vehicle documents
• Such vehicle carry the number plate of the country of its origin affixed at the appropriate spaces at
the front and rear of the vehicle
• Within 90 days of your stay in Nigeria, change the number plate to Nigerian number plate
• You have your country's international driving permit in addition to your country's normal driver's
licence

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 • You seek and obtain permit to drive in Nigeria within 15 days of arrival
• Drive carefully and obey all rules and regulations
Ignorance of the law is no excuse
It is your responsibility to get yourself acquainted with the procedure guiding your stay, as well as
the use of your vehicle while in Nigeria

Within 30 days of your stay, you must have obtained the appropriate Nigerian National Driver's Licence
for the category of your vehicle.
If you are representing your company lorganisation, ensure that you have the details of your country's
Embassy or Consulate and any agent your company/organisation has in Nigeria.
This can be useful to you in case of emergencies.
Section I: CAUSES OF ROAD CRASHES
Road crashes have resulted in more waste of lives and property than major communicable diseases and
sundry ailments put together.

Research conducted on Road Traffic Crashes have shown that there are three major causes of these
crashes, namely:
• Human Factor
• Mechanical Factor
• Environmental Factor
I. Human Factor
This constitutes about 90% of road traffic crashes. Out of this percentage, drivers' action or reaction
makes up 80%.
Human factor can further be classified under the following:
Drivers:
• Overconfidence: Drivers often feel that they are masters of the vehicle and road.
However we all know that tyres, brakes and the engine control the motion of the vehicle. Drivers merely
operate these controls.
Failure to ensure good working condition, as well as observing safe driving measures while on the road
will result in road traffic crashes.
• Speeding: Drivers believe that the faster they drive, the more they impress themselves and others.
They however forget that anything can happen to the vehicle, such as tyre burst, brake failure, or
pedestrian running across the road.

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More disasters and casualties are recorded when vehicles travel at higher speed than what obtains at low
speed.
At 100 Km/hr, a vehicle moves at 28 meters per second. Imagine where driver would be if this vehicle
veers off the road for 1 second, bearing in mind that the road is usually 12 meters wide.
Drivers forget that they cannot control the road, weather conditions and the environment.
0n-coming vehicles or vehicles being overtaken may do the unexpected, like swerving, stopping or trying
to avoid pot holes. Furthermore, some of the roads have narrow bridges hidden around the corner.
• Lack of Concentration: Drivers often engage in things that distract their attention while driving.
Such things include discussions with passengers, answering phone calls, eating, gesticulating, changing
radio station or cassette.
Lack of concentration is very dangerous as it takes only a moment for crashes to occur. The vehicle in
front may stop abruptly or a child may run into the road suddenly; hence anything can happen.
Be alert, always anticipate danger.
• Tiredness: Some drivers drive long distances without even stretching their legs and improving
their blood circulation to the brain. This makes the drivers feel tired and sleepy.
It is a frightening experience to be driven by a driver who sleeps while driving. Sudden awakening of the
driver may result in a crash.
Again driving after a heavy meal can also be hazardous as the blood concentrates in the stomach to
absorb the food, thus depriving the brain of oxygen which can cause the driver to fall asleep.
Over working also causes fatigue. Some articulated vehicle drivers work an average of 9 to 12 hours per
day which is dangerous.
• Driving under the influence of alcohol: Alcohol can cause over confidence, poorjudgement,
lack of coordination and recklessness.
In many countries, it is a major cause of road traffic crashes. This is the reason why special tests are
conducted to detect those who have been drinking prior to driving.
bers of Percentage Concentration of
Behavior
Bottles Blood
1 0,01-0,02 Slight behavior
2 0,03-0,06 Feeling of wanmh and mental ralaxation
3 0,07-0,09 Exaggerated emotion and behavior or noisy or gloomy
Clumsiness, unsteadiness in standing or working in
4 0,10-0,12
uncoordinated movement

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5 0,12-0,60 Gross intoxication

• Driving under the influence of drugs: Drugs can interfere with the ability to drive, Sometimes
drugs that are prescribed by doctors have sedative (i.e, sleep inducing) effect on the driver.Coffee
and kolanut are stimulants that tend to increase the alertness of drivers. Another stimulant
popularly taken by these drivers is Indian hemp which is a street drug, and sometimes cocaine.
Such stimulants may work for some time and then tiredness and sleep come suddenly while driving,
resulting to road traffic crashes.
Some drivers have been known to use chewing sticks to keep their mouths active, with the aim of staying
awake. Remember, these drugs are no substitute for rest.
• Poor vehicle care: Drivers often do not check their vehicles to ensure that they are in good
condition for the road before setting out on a journey.
Tyres, tyre pressure, brake fluids, trafficator and brake lights are often neglected, These lead to road
traffic crashes.
• lndiscriminate Parking: Parking a vehicle in the middle of the road just to change a tyre or
because of engine trouble is among the causes of road traffic crashes especially at night or around
a sharp bend or close to the crest of a hill where the vehicle cannot be seen far off by other road
users.
Some drivers of broken down vehicles do not give adequate warning signs to approaching vehicles and as
such, others run into these vehicles.
In some cases hazardous obstacles placed on the road to warn or divert traffic, are left behind when the
vehicles move on after repairs. This endangers other road users and may result in crashes.
S.10(3)(i) FRSC Act 2007
• Dangerous overtaking: This is responsible for about 45% of all crashes. Careless overtaking and
poorjudgement combine to cause road traffic crashes.
If in doubt about your judgement don't overtake.
S.10(4)(j) FRSC Act 2007
Passengers:
• Distraction: Passengers contribute to road traffic crashes by engaging the driver in discussions
and arguments.
Sometimes the passengers show the driver interesting things inside and outside the vehicle. These distract
drivers from total concentration.
8.50 National Road Traffic Regulations. 2004

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 • Nonohalant Attitude: Passengers board buses, taxis and private vehicles without even taking a
look at the tyres to see if they are worn out.
They often encourage speeding, reckless driving. overtaking at corners and other dangerous practices by
either cheering on the driver or keeping quiet.
You can report this to the driver's employer or to the first traffic authorities you encounter on the road, or
demand to be set down at the next convenient spot if the driver persists on driving recklessly, before he
drives you to death.

Remember, crashes claim the lives of more passengers than drivers. 0n the average, eight
passengers are killed along with only one driver.
S.10(3)(i) FRSC Act 2007
• Pedestrians: Pedestrians contribute to road traffic crashes by not observing road traffic rules and
regulations.
Some pedestrians walk or run across the road without looking and ensuring the road is safe to do so,
while others do not wear reļ¬‚ective dresses or clothes at night so that drivers could easily see them.
These behaviours contribute to road traffic crashes.
II. Mechanical Factor
Irregular and poor maintenance of vehicle can lead to crashes which may manifest while the vehicle is in
motion. This constitutes about 10% of road crashes.

Such irregular maintenance may lead to stoppage of the vehicle. or development of other faults that affect
the control of the vehicle, especially when the vehicle is on high speed.

These could lead to crashes The choice of preventive servicing and routine maintenance is between the
road mechanics and approved motor dealers.

The road side mechanics are the most popular because they attend to the problem immediately and are
less expensive. However, they may cause more dangers to the vehicles due to lack of adequate
knowledge and equipment.

In essence, crashes due to mechanical factors have to do with malfunction of the vehicle which
eventually leads to loss of control of the vehicle and invariably to road traffic crashes.

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Factors contributing to this include the following:
• Malfunction of engine
• Poor steering mechanism
• Tyre burst
• Brake failure
• Failed wipers during rainy season
• Spilled oil leading to crashes
• Exhaust fumes or smokes leading to temporary road blindness
• Faulty security gadgets
• Defective lighting system
• Defective horn
• Faulty wheel balancing and alignment
• Absence of rear mirror
• Leaking fuel that may result to fire outbreak
• Lack of reflective triangle
• Incompetent wheel nuts
• Electrical fault
• Inconsistency in vehicle load design
• Lack of seatbelt

III. Environmental Factor

It is believed that bad road causes more crashes than good road. However, it has been observed that with
the construction of new roads, crashes are known to be on the increase.

Other elements constituting environmental factor include:

• Improperly placed or absence of road signs
• Pot holes on our roads
• Bad roads (Narrow, rough, dusty and winding roads)
• Heavy rain
• Harmanan Haze
• Hot sun on roads in desert/savannah area
• Absence of road markings

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 • Collapsed bridges
• Slippery surface; (oil spill on the road)
• Fallen trees on the road
• River overflow
Part Two - Road Use Activities:
Section A: HOW TO DRIVE SAFELY
Driving is a profession that requires total concentration Every driver should know the basic rules and
regulations of driving This is necessary in order to ensure good driving culture
I. BEFORE TAKEOFF:
• Ensure that the gear is in a neutral position
• Ensure that all the mirrors are functional
• Turn on the ignition key to observer the fuel level and other electrical appliances
• Start the vehicle and allow it to steam for few minutes
II. DURING TAKEOFF:
• Observer the mirror and ensure that the road is clear
• Use the left leg to press the clutch
• ngage the gear in gear one
• Gently release the left leg from the clutch while simultaneously using the right leg to press the
throttle
• Observe that the vehicle is moving forward gradually
• Manoeuvre the steering on to the road
• Keep your eye on to the road while the vehicle moves on
• Be ready to change the gear to the next as soon as the sound of the vehicle becomes high
• Vehicles with automatic gear do not need this change
• Subsequent change of gear will depend on the sound of the vehicle and it will go on progressively
from gear one to the last gear
• Be ready to go back to a lower gear when the vehicle slows down
Note: The reverse gear is used only when the vehicle is reversing
III. BRAKING:
Never get too close to the vehicle in front. When it is safe to slow down, brake smoothly and in a
controlled manner.
Sudden braking could result in loss of control. Always try to brake gently and in plenty of time.
IV. REVERSING:

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Before you reverse, make sure that there are no pedestrians particularly children or physically challenged
persons or physical obstructions on the road behind you.
Be especially careful about the 'blind area" behind you that is, that part of the road you cannot see from
the driving seaL either through the mirror or by looking backwards.
Do not reverse
If you cannot see clearly behind, get someone to guide you when you reverse. Otherwise don't.
NEVER reverse from a side road into a major road.
While reversing
Persons reversing are liable for any obstruction or accident, which they might cause.
At night, always put your headlight off while reversing. Ensure that your reverse light is working, you
may switch on your HAZARD lights.
Turning round
In the course of driving, motorists may need to change the course of their direction. This can be achieved
by making U-turns or the "three-point turn" in areas where they are permitted.
Generally, you may turn around only in areas where traffic is low such as parking garages, side roads.
petrol stations, private driveways and in designated areas.
V. U-TURNS
You may make U-turns, unless road traffic signals indicate otherwise, at controlled intersections when
you are given right of way to turn left.
Note: Whenever you have cause to turn round, it is safer to keep moving forward, turn left or right at a
suitable place and reenter the desired traffic.
Do not make U-turn
Vou must not make U-turns at or near the following places
1. Crest or brow of a hill
2. Bends or corners
3. Where a NO U-TURN SIGN is pasted
4. Busy streets, highways or expressways
5. Any place where other drivers cannot see your vehicle from at least 120 meters
REMEMBER: Do not make U-Tum anywhere it is unsafe to do so
Three-point turn
The threepoint turn (four-step manoeuvres) is mandatory for U-turn on any narrow road where this is
permitted.
The steps are shown below:

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Step 1: Move to the extreme right edge of the road and stop. Turn your wheels fully to the left.

Step 2: Check traffic from behind and front When it is safe, signal left, and then move out to take a full
turn to the left towards the opposite side. Remember the LOOK, SIGNAL, MOVE routine.

Step 3: Look out for traffic again and turn your wheels to the maximum right, if it is safe, signal right,
and then reverse, keeping as close as you can to the right edge of the road.

If it is necessary you must give priority to traffic, and then reverse.

Step 4: Check traffic again Do not forget, you must give priorify if it is necessary Turn your wheels
properly, then reenter traffic in the opposite direction.

Note: You must allow enough time for approaching traffic and give due consideration to other road users.
VI. PARKING
Before parking, check your mirror and look out for other road users Signal to show your intention to stop.

Remember the Look-Signal-Move routine. Stop as close as you can to the edge of the road.

Before leaving your vehicle. switch off the engine and make sure your parking brake is on. Always lock
your vehicle.

Do not expose valuables in your vehicles. Where safety or anti-theft devices are installed, use them.
Remember to switch off your headlamps at night.
Where not to park
Vou must not park wherever you see NO PARKING sign. You must not park wherever your vehicle will
obstruct the views of other road users or constitute danger to them, for instance at or near:
• Road junction
• Bends or corners
• Brow or crest of a hill
• Narrow bridge
• Level crossing

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 • Bus stop
• Pedestrians crossing, or on either side of a crossing
• School entrance or other entrances
• Footpath, pavement or cycle path
• The left hand side of the road at night (except in a oneway street)
Do not block view of traffic signs
You should not park your vehicle in such a manner as to stop traffic flow or cause any inconvenience to
others.
Do not park:
• On a narrow road
• On flyovers, in tunnels or in underpasses (unless there are signs to say you may park there)
• On expressways (except on the hard shoulder in an emergency)
• On a single track road or in a passing place on such a road
• Outside a private entrance for vehicles
Emergency Entrance Exit
Do not park your vehicle to block or within 15 meters of entrances through which emergency vehicles go
in and out, that is, near the entrance of:
• Hospitals
• Roadside clinics
• Road Safety Stations
• Fire Stations
• Fire hydrants
• Police stations
• Market
Avoid Obstruction
Do not park where you would make the road narrow:
• Opposite traffic island
• Alongside another parked vehicle
• Opposite another vehicle if this would narrow the road to less than the width of two vehicles
(double parking)
• Near road works
Note: Make sure you always park your vehicle safely. Walk a few more meters rather than cause an
accident.

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Parking on a slope
In order to avoid your vehicle rolling down the slope or being forced down in the event of a collision,
always apply your hand brake or the parking brake and follow the simple parking guidelines set below:
Road with kerbs
If you are facing UPHILL on a road with a kerb to your right, turn your wheels as much as possible to the
left. The kerb will prevent your vehicle from rolling backwards.

If you are facing DOWNHILL, turn your wheels fully to the right so that in event of rolling forward, the
kerb will prevent your vehicle from rolling into traffic.
Road without kerbs
Whichever direction you are facing, uphill or downhill, turn your wheels as far as possible to the near
edge of the road.

Note: Parking the vehicle with the position in a non-neutral gear may assist in extreme cases; it is not
usually recommended as a practice.
Parking between vehicles
This manoeuvre is a mandatory test of your driving competence, before you even obtain a driver's
licence, The usual method is to reverse into available space.
Other parking rules
Leave enough room for your vehicle to move out from where you are parked and leave enough room for
other vehicles to move out.

You must park within half a meter from the edge of the road but not on the edge or walkway.

Do not open the door on the traffic side as it may interfere with traffic flow.
VII. ROAD JUNCTIONS
Do not blockjunction
• Always approach a junction with great care and be ready to stop.
• Before crossing or turning, look left then right, then left again. Do not proceed until you are sure
it is safe and that you will not block the road.

Restrict yourself to signalling your own intention. Do not relay signals to other drivers. Leave that to
authorized officers.

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Check road markings
A junction with double broken white lines across the road may also have a GIVE WAY sign. You must
slow down and be ready to top to let traffic on the major road go by first.
Stop
The STOP sign is an eight sided polygon formerly known as octagon. Vou must make a complete stop at
a junction with a 'STOP' sign. and go slowly to a point with maximum visibility, then check traffic on
both sides before proceeding.
Crossing a dual carriageway
When crossing a dual carriageway, treat each half as a separate road. You may wait at the central
dividing strip (the central reserve) until there is a safe gap in the traffic on the second half of the road.
Junction controlled by Officers
When traffic ahead is held up, do not assume it is safe to filter right unless the traffic officer signals you
to do so. He may be moving other traffic into that line.
Traffic lights at junctions
• Although green light means you may go, do not go forward if other vehicles are held up at the
junction, as you will only contribute to traffic jam.
• When the red and amber lights are showing together you must stop.Make sure you stop at a
distance to see the lights before the double lines across the road.
Always stay behind the stop lines at traffic lights controlled junctions
Junction with green arrow filter signal
When traffic lights have a green fillter arrow signal, do not get into the lane of the direction of the filter.
unless you want to go in that direction, otherwise, you deny others their right of way.
Turning Left
• Before you turn left, use your mirror to make sure you know the position and movement of traffic
behind you.
• When it is safe, give a left-turn signal, take up position just left of the middle of the road, or in the
space marked for left turning traffic.
• Leave room for other vehicles to pass on the right. Stay parallel to the lane until you can wheel
left.
• Do not position your vehicle in a half turn, it obstructs other vehicles.
• Wait until there is safe.
Turning left at dual carriageway

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When turning left from a dual carriageway. or when joining in from a side road and then turning left, wait
in the opening in the central reserve until there is a safe gap in the traffic in the second half of the road.
Turning Right
Wait before you turn right. use your mirror and give a right turn signal Do not swing out to the left before
or after the turn.
VIII. OVERTAKING RULES
Do not overtake unless you are sure it is safe for you and other road users.

Before you start to overtake make sure that the road is clear ahead and behind. Look out properly.

Use your mirrors and glance behind you to see the blind spots. You must signal before you start to move
out.

Be particularly careful at dusty and in misty environment or bad weather when it is more difficult tojudge
speed and distance.

REMEMBER: the LOOK-SIGNAL-LOOK again and MOVE routine ("LSLM").

Clear View
On fast roads, vehicles may be coming up behind much more quickly than you think.

Make sure that the lane you will be going into is clear for a good distance behind and in front of you.
Cutting in
Once you have started to overtake, move past the vehicle you are overtaking as quickly as possible. and
leave it plenty of room.

Then move back to the right side of the road as soon as you can, but without cutting in.

Do not accelerate against the rear of the vehicle in front, or out to the left at the last moment. The vehicle
in front of you may have cause to slow down abruptly. Always move out from a safe distance.
On the right
Overtake only on the left except:

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 1. When the driver in front has signalled that he intends to turn left and you can overtake him on the
right. Watch out in case the driver in front abruptly changes his mind or has wrongly left his
signal on.
2. When you want to turn to the right at a junction and have signalled to do so.
3. When traffic is moving slowly in queues and vehicles in the left lane are moving slower than you
are.
4. In a one-way street as vehicles may pass on either side.
On Being Overtaken
Do not accelerate when you are overtaken Slow down if necessary to help and let the overtaking vehicle
pass.
Parked Vehicles
On an ordinary two-lane road, give way to vehicles coming towards you before you overtake parked
vehicles or other obstructions on your right side of the road.

Sometimes, two vehicles are nearly double parked (an illegal act in itself), or other impediments such as
road work, potholes, or mounds of garbage obstruct both sides of the road.

Drivers approaching such obstacles are usually unable to determine which of them should give way to the
other.

The general rule is that the vehicle further from the stationary object should slow down or stop to allow
the nearer vehicle to go first.

Common sense however should compel both drivers to show adequate caution and consideration for each
other. to avoid collision.

Never compete for speed supremacy with other motorists; do not gamble with your life and life of others
in traffic; it is sure to end in a crash.
Do Not Overtake
Do not overtake at or when coming to:
• A pedestrian crossing, a bus station, a road junction, a corner or bend, a narrow bridge and where
the road narrows.

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 • A level crossing; the crest of a hill, when to do so would force another vehicle to swerve or brake
suddenly.
• If you would have to cross double solid white lines.
• If the solid line of the centre lines is nearer you.
• When you see a 'NO OVERTAKING' sign

Overtaking Guides:
• Is it safe?
• Is it legal?
• Is it Necessary?
If in Doubt, Do Not Overtake.
IX. SPEED LIMITS ON DIFFERENT ROADS AND FOR DIFFERENT VEHICLES
Speed Limits: This can be described as the pace of a moving vehicle at a given time frame, according to
laid down traffic laws. It is a maximum legal speed a driver can travel on a road under ideal conditions.

Speed limits differ in application, depending on the types of roads, vehicles and the environment.

The sign below indicates speed limits according to place and road condition.

These speed limits require the driver to adhere strictly to the speed indicated because of the
condition of the road, and the nature of the place.
Speed Limits for Different Vehicles
Different vehicles are required by law to keep within specified speed limits.

For example, in Nigeria the law imposes maximum limit of 100 Km/hr for cars on any highway in
Nigeria.

Taxis and Buses are expected to maintain 50Km/hr within built up areas like streets in towns, villages
and cities.

Articulated vehicles like tankers and trailers re expected to maintain a maximum speed limit of 50Km/hr
on highways and 60Km/hr on expressways respectively as shown below:
SPEED LIMITS FOR VEHICLES IN km/hr

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TYPES OF VEHICLES BUILD-UP HIGHWAY EXPRESSWAY
MOTORCYCLES 50 50 -
PRIVATE CARDS 50 80 100
TAXIS & BUSES 50 80 90
TANKERS & TRAILERS 45 50 60
TOW VEHICLE (WHILE TOWING) 45 45 45
TOW VEHICLE (WHILE NOT TOWING) 50 60 70
Speed Limit Regulations
Common sense often dictates lower speed limits. Common sense speed should be lower when the
weather is bad or the roads are defective.

Speed monitors are installed in some vehicles to regulate speed and some roads are specially built with
speed cameras to make or force motorists to drive at a required speed limit.

Ignorance is no excuse in law. obey speed regulations and avoid conviction.

X. EXPRESSWAV DRIVING
The term expressway means any specially assigned and restricred highway divided with un-lraversable
barriers with iraffic in opposite direciions completely separated from each other.

Traffic in one direction may be in two or more lanes.

Special distinction
Expressways are designed for traffic movement with minimum interruption but are certainly not speed
tracks.

Violators stand the risk of being prosecuted according to the National Road Traffic Regulations.
Restrictions
Expressways are subject to very stern restrictions as given below;
• No animals
• No pedestrians or hawkers
• No pedal cycles
• No motorised cycles with capacity below certain specified capacity, except where tracks are
provided, or special concessions have been given specially for motorcycles.
• No learner drivers
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 • No stopping
• No loading or unloading
Other restrictions on expressways relate to minimum and maximum speed limits and other regulations
which are clearly posted on road signs. Always watch out for these.
Before Entering the Expressway
Make sure your vehicle is fit to cruise at a safe speed, has correct tyre pressure, and enough fuel; oil and
water to take you to the next service area.
Expressway
When you join the expressway other than at its start, you will approach from a road on the right (a slip
road).

Give way to traffic already on the highway, and then accelerate in the extra lane (the acceleration lane) so
that when you join the inside lane, you are already travelling at the same speed as the traffic on it.

You should not exceed the prescribed speed limit for that highway.
Interchanges
Because of the nature and restrictions on the expressway, there are stipulated ways in which you mayjoin
or leave the expressway.
Special intersections called interchanges are designed to enable you cross, enter or leave the expressway
without interfering with other vehicles.
The four common types of interchanges are the CLOVERLEAF, DIAMOND, TRUMPET and
DIRECTIONAL, see part one section A.
Driving on the expressway
1. Concentrate. Traffic travels faster on expressways than on ordinary roads, and you will need to
fathom up traffic situations quickly. Use your mirrors, and concentrate always. Watch out for
vehicles entering the expressway.
2. Keep your distance. Do not get too close to the vehicle in front. Remember the "two-second-
rule".
3. Maintain a Steady Speed. Do not move in jerks. There are both minimum and maximum speed
limits on the expressway. Apply the common sense speed limits and the limitations of your
vehicle.

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 4. Avoid Lane Hopping. Stay in one lane unless when overtaking. If you have to overtake, do so
smoothly and do not hop. Overtake only from the left. Remember the LOOK-SIGNAL-MOVE
routine. Be sure to check blind spots.
5. Never Reverse on the Expressway. Under no circumstance should you reverse on the
expressway. If you miss your exit, go to the next one.
6. No Stopping. Do not wait or stop on the expressway. If you have to stop, pull out to the hard
shoulder and post a suitable and safe signal. Do not leave your parking lights on to prevent other
vehicles from running into you. Vou may put on your HAZARD LIGHTS.
7. Stop! If Sleepy. Driving for long distances may make you feel sleepy. To help prevent this, make
sure there is plenty of fresh air in your vehicle. Stop at a service area, or turn off at an exit, and
walk around for a while. Get off the highway. Take a nap if necessary. Avoid the monotony of the
expressway which may hypnotise you into a fatal error. Avoid fatigue or the effect of drugs. If
you are in any doubt or feel unfit, STOP driving immediately.
8. Leaving the Expressway. If you are not going to leave at the end of the expressway, you will
leave by a slip road on your right. Watch for signs letting you know you are getting near your
turnoff point, give a right turn signal, get into the extra lane (the deceleration lane) in order to
slow down before you join the slip road.
Missing Vour Exit
If you miss your exit point, YOU MUST CARRY ON UNTIL YOU REACH THE NEXT ONE, do not
reverse or turn back.
As You Leave the Expressway
When you leave an expressway, remember to alter your driving to suit the different conditions on the
other roads.
Vour speed will be higher than you think - a speed of 30km/hr MAV FEEL like 50km/hr. So be sure to
check your speedometer. Observe the posted speed limit signs.

XI. FOLLOWING AND STOPPING DISTANCE

Stopping distance
Never get too close to the vehicle in front. Leave enough space between you and the vehicle in front so
that you can stop safely if the vehicle in front slows down or stops suddenly.

The safe rule is never to get closer than the overall stopping distance as shown in the table below On wet
roads the gap should be much more. Slow down if an overtaking vehicle fills the gap in front of you.

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Stopping Distance
Speed Thinking distance Braking distance Overall stopping distance
(Km/h) (Metre) (Metre) (Metre)
20 5 5 10
40 10 12 22
60 16 30 46
80 22 50 72
100 27 65 92
NOTE: Stopping distance increases greatly with wet and slippery road, poor brake, bad tyres and tired
drivers with low speed reacting time (Distance given above are approximate).
A Simple Way to Keep Safe Distance
To provide a safe distance between your vehicle and the one ahead of you. you should always apply the
following simple rule known as the "TWO SECOND RULE".
Two Second Rule
Choose a stationary object in front of the vehicle ahead of you near or above the road, like a road sign,
tree or overpass, any convenient object will do. As the vehicle ahead passes it recite slowly:
"Staying too close or trailing for safety". If you reach the same object before you finish reciting. you
are following too closely. Slow down and let the vehicle move further away ahead of you.
Some wise drivers actually prefer the "three second rule" and they add: "Playing it Safel". When
weather conditions are bad, you are strongly urged to add the extra jingle:
"Safer and Sane". For extra distance, that is, adopt the "four- second rule". Memorise these simple
jingles. Try it out. NOTE:
1. It takes approximately two seconds to recite any three word phrase. It is unsafe to select very
short words.
2. The safe gap between your vehicle and the one in front depends on the relative speed between the
two vehicles.
Beware of Heavier Vehicles
It is obvious that smaller vehicles stand greater risks on collision with larger vehicles such as articulated
Lorries (or "trailers'), tankers, "luxury buses" and other heavier trucks and vans.
You must know that heavier vehicles are more difficult to control and their ability to stop or manoeuvre
is greatly hampered by weight of load conveyed.
Avoid the "No Contest" Encounter

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ou are urged to note the large weight differential or disparity between cars and heavy trucks and buses.
A typical laden 'trailer" weighs 30 to 40 metric tonnes and a fully loaded 'luxury bus' weighs some 10 to
20 metric tonnes with full load. It is a scientific fact that when it comes to a collision, a "trailer" for
instance, travelling at a speed of 50km per hour has the same destructive effect as a Peugeot Saloon car
travelling at 250km/hr. No wonder the smaller vehicle usually gets shredded and its driver and
passengers mangled on impact when collision occurs.
Section B: ROAD SIGNS, SIGNALS, AND MARKINGS
A thorough knowledge of traffic signs, signals, roads and pavement markings is compulsory for all
drivers.
Road signs and markings together with signals by authorized traffic officers are to ensure a smooth and
safe traffic flow. You must know them and be able to recognize them immediately. In the case of signs,
signals and markings, you must obey them without hesitation.
The Signs
Traffic signs tell you about traffic regulations. special hazards and other road conditions, construction
areas speed limits, etc. You should not only be familiar with each of the signs, you should recognize the
special shapes and colours.
Their shapes are:
Regulatory Signs are mostly circular in shape and are of two types. Those with red & yellow circles
are PROHIBlTIVE SIGNS.
Those with blue circles but no red border are MANDATORY SIGNS. They give positive instructions,
and are regulatory signs.
Informative signs.
They are usually rectangular in shape and provide guidance information. The stop Sign is a prohibitive
sign. It is the only &sided traffic sign. It means come to a complete stop before entering. Proceed when it
is safe to do so. Warning Signs are usually triangular in shape, with red perimeter.
The only one warning sign with inverted triangle means YIELD or GIVE Way
I. I. REGULATORY SIGNS (Prohibitory)

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Stop at intersection Stop police No left turn No right turn

No "U" Turn Overtaking prohibited No change lane' No entry for vehicles with load above 2 tonnes

No entry for lorries No Horn Speed Limit (Maximum) Derestriction Sign

Close to all vehicles in both directions No Entry To Pedal Cycles No entry for all vehicles

No entry for vehicles having No entry for vehicles exceeding Stop customs inscription
Overall height exceeding 3.5m 12 metric tonnes laden load varied to suit other obligations to stop

Parking prohibited No stopping Litter Prohibited

8.30am to 5.30pm
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II. WARNING SIGNS

A railway level crossing with gate Railway level crossing without gate Supplementary intermediate
Level crossing signs

general danger sign "Y" Junction Carriageway Narrows Carriageway Widens

Narrow Bridge Dangerous Double Bend Pedestrian Crossing children crossing

(First To Left)

beware of animals road work blind people drive carefully give way to the traffic left
& right

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Cross-Road "T" Junction "T" Junction "T" Junction

"Y" Junction "Y" Junction long grade dangerous hill dangerous bend right

dangerous bend left Dangerous Double Bend (First To Right) Roundabout

Slippery Surface Ferry Falling Rocks UNEVEN ROAD

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direction to be followed diversion one way Roundabout

compulsory cycle track Pedestrian Track Divided 2-Lanes 2-Way Ahead 2-lane-2 way ahead

4-lanes undivided 2-way ahead Priority to approaching vehicle Two way

two way keep right end diversion pass either side pedestrian track

speed limit (minimum) divided 4-lanes 2-way ahead Sign for temporary traffic control
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IV. INFORMATION SIGNS

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V. Traffic Control Signs

145
VI. Hands Signals
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Section C: LANE DISCIPLINE
After joining the highway, stay on the inside lane long enough to get used to the speed or traffic before
trying to overtake.
Two Lanes
Drive in the red light hand lane on a two-lane carriageway, except when overtaking.
Three Lanes
On a three lane carriageway you must stay in the middle lane when traffic is slower on the inside lane,
but you should return to the inside lane when you have passed them. The outside lane is for overtaking
only. If you use it always move back into the middle lane and then into the inside lane as soon as you
can, but without cutting in. Failure to observe this rule may lead to multiple accidents.
Overtaking
Overtake only on the left, unless traffic is moving in queues in all lanes and you have no choice but to
keep moving forward where you are. Never move to a lane on your right to overtake, Hard shoulders are
meant for maneuvering during emergencies.
Warning signals
When you come into expressways which have flashing amber light signal at their entrances or intervals,
the lights warn of danger ahead. For example, an accident, mist or risk of skidding. When lights are
flashing, keep your speed under 50 km.p.h.
When you see the danger sign, slow down still further to a crawl if need be. Do not exceed 50 kmph.
Do not stay or park on:
• The carriage-way itself
• The slip roads
• The hard shoulders or diagonally stripped lane
• The central reserve
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Section D: DRIVING UNDER SPECIAL CONDITIONS
Special conditions are:
• Night driving
• Driving in the Rain
• Driving in Harmattan Haze
• Driving in Misty/Foggy Weather
• Driving in a Convoy
This means driving when it is dark. Night driving is discouraged because:
• The road user cannot see far ahead unlike in daylight
• In the event of emergency, help is not readily available
• Security is uncertain
• The driver may easily fall asleep
Precautions
• Motorists are advised to avoid night journeys;
• Plan your journey ahead;
• Ensure that your vehicle is in good condition;
• Ensure that the driver is healthy;
• Drivers should not drive under the influence of drug/alcohol;
If you are dazzled by the high beam of an oncoming vehicle:
• Do not do the same
• Avoid looking directly at the bright lights
• Slow down and keep an eye on the right side of the road
• Stay close to the right side of the road
• Look quickly ahead intermittently to determine the other vehicle's position, continue until you
have passed the other vehicle
AT BEST STOP UNTIL THE VEHICLE WITH DAZZLING LIGHTS PASSES YOU
What to do while driving in the dark
• The driver should reduce his speed by at least half
• Never drive at night with only one headlamp or with your parking lights
• The driver should see and be seen
• Dim your light while facing an oncoming vehicle
Driving in the rain:
This means driving when rain is falling. When it rains, road surfaces become wet and slippery.

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Driving in harmattan/misty/foggy conditions:
This means driving where there is strong wind, dust, mist, fog, thunderstorm, and other related
conditions.
What to do while driving under these conditions
• Put on your wipers;
• Reduce your speed;
• Ensure that your demister is functional;
• Put on your headlights;
• Dim your headlights in order to see and be seen;
• Put on your hazard lights;
• If visibility is poor, move off the road and park safely
• Leave your parking lights on
• Keep a safe distance from the distance in front of you
Driving in a convoy
This means driving in a group of vehicles travelling together, often with an escort for protection.
What to do while driving in a convoy:
• Drivers must obey the recommended speed limits
• Drivers must observe common sense following distance
• Drivers must not constitute hazards to other road users
• Drivers must drive on straight line
• Do not drive on straight line
• Do not get excited on being in a convoy
• Being in a convoy demand attention and total concentration
Section E: DEFFENSIVE DRIVING
Meaning of defensive driving:
Defensive driving means driving to save lives, money and time in spite of the conditions around you and
the provocative actions of the other driver.
Qualities of a defensive driver:
• A defensive driver assumes he is the only sane person on the road
• He drives intelligently in order to arrive alive
• A defensive driver is always cautious
• A defensive driver knows and obeys all road traffic signs and symbols

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 • A defensive driver should develop the right attitude to driving. These are patience, care, skill and
consideration for other road users

A DEFENSIVE DRIVER RECOGNIZES HAZARDS, UNDRSTANDS THE DEFENCE AND

ACTS CORRECTLV AND IN TIME
Things a Defensive Driver must know
Motor crashes are not mere accidents. They are caused by the faulty decisions and actions of drivers and
other road users. Any person on the road constitutes hazard to other road users and other road users
constitute hazards to him. Most road users are not knowledgeable on the rules of the road. They are
therefore likely to make faulty decisions or take actions that may result in danger to others.
Section F: DRIVING HOURS
There is time for everything. Many have embarked on journeys without adequate planning and
management.
This has caused much avoidable crashes as drivers are prone to sleep on steering while driving.
A driver must rest for 15minutes after every 4 hours of driving. No single driver should drive more
than 10 hours in 24 hours (or a day)
Part Three - Post Road Use Activities:
Section A RESPONSIBILITIES IN THE EVENT OF ROAD CRASH
I. DRIVERS OF VEHICLES
Owners Responsibility in the event of road crash
• Stop at the scene of the crash
• Check if you are hurt
• Check if anybody is hurt
• If not hurt, leave the epicenter of the crash to a safe location, summon courage and assist others
• State the fact of the case if asked by law enforcement agents
• Get skid marks, other identification and photographs
• Contact your insurer and lawyer
• Report the crash to the nearest FRSC Office or phone 0700-2255-3772
II. VEHICLE OCCUPANTS
• If not hurt, vacate the hazardous location on the highway
• Give all necessary information
• If hurt but can talk, explain where it hurts to the firrst Aider
• Cooperate with first Aider

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III. VOLUNTEERS
• Stop to help at every traffic crash scene
• By-standers are to cooperate with first Aider
• Do not compound the pain of the victim with your expressed emotion
• Help to clear obstructions
• Do not constitute obstructions
Note: The life you help save today may save yours tomorrow
IV. FIRST AID AND CASUALTY HANDLING
First Aid is the immediate treatment given to an injured person or someone that suddenly falls ill, before
the arrival of medical personnel. First Aid treatment is mostly rendered in a state of emergency. It
involves careful application of accepted principles of treatment. using facilities available to the first Aider
and within the short scene to the hospital. Proper handling of causalities facilitate administration and
reduces the chances of complications.
• Every road user is expected to have basic knowledge of First Aid
• First Aider must have aid kit and be able to improvise when necessary (i.e. getting things from the
immediate environment to replace the item needed. E.g. part of clothing for bandages, light
woods for splints etc)
• Ensure that you are before proceeding on the First Aid i.e. leave hazardous location, remove
battery terminals, put on hand gloves
• Follow the A, B, C categorization of traffic crash victims strictly
• Never assume the role of a doctor, evacuate victims to the hospital
• Make use of by-standers when necessary in transporting victims
Note- Improper handling can worsen the victim's condition
First Aid is aimed at:
1. Saving Life
2. Preventing injuries from becoming worse
3. Promoting recovery by relieving pain as fast as possible
General Rules of First Aid
The first things to do in first aid procedure in order of importance are:
A. Remove the casualty from the danger or remove the danger from the casualty
B. Assess the victim and treat the most urgent casualties at an accident scene.
There are four categories of casualties:

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 1. Casualties with life threatening conditions such as cessation of breath, or circulation of blood and
the unconscious.
2. Casualties with serious injuries, head and spinal cord injuries and casualties with impelled objects
3. Casualties with fractures, minor injuries, bruises and scald
C. Casualties with life threatening conditions are mostly the unconscious, move them with great
care. Before moving them, watch out for spinal cord injuries. Put the unconscious in a comfortable
position (prone or recovery position) to ease respiration. D. Give artificial respiration (mouth to mouth,
or mouth to nose respiration) for casualties with breathing problems.
E. Restore the functioning of the heart by instituting the principle of external cardiac massage (chest
compression) if heart has stopped working. F. Guard against shock by stopping severe bleeding and
pains. G. Reassure the victim to give him confidence of recovery from whatever condition he/she may be
in
H. Control the crowd, keep them away to ensure adequate supply of fresh air and prevent them from
inciting causalities. I. Do not give the casualty anything to eat or drink. J Handle casualty properly in a
case of suspected fracture of the spinal cord. DO NOT LIFT casualty alone until there are enough helpers
(four to six persons). K. Transport the casualty to the hospital or any nearby medical center without delay
AIRWAY- is he breathing?
If he does not reply to questions and not breathing, then: Loosen any tight clothing around his chest or
neck. Check to see if there is any blockage in his mouth or windpipe. Clear out if possible. Carefully tip
the head backwards placing one hand under the neck and the other under the head.
Bring thejaw forward so that the tongue is not blocking the airway. If the victim does not start to breath
normally, you will need to give the "kiss of life"

The Kiss of Life

Keep his head tilted backwards and pinch his nostrils with your thumb and index finger.

With the other hand, take hold of his chin and open his mouth. Take a deep breath and place your mouth

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over his. Breathe out slowly into his mouth, His chest should rise. Take your mouth away, his chest
should fall .Take another deep breath. Repeat about every second until the victim starts to breathe
normally. DONT GIVE UP! It may take some time for him to be able to breathe on his own. NOTE: Use
a clean cloth or handkerchief to cover your mouth while breathing into the victim's mouth.
BLEEDING
If the victim is bleeding heavily, undertake arterial bleeding control by putting pressure points or by use
of tourniquet, which is tying a bandage immediately below the wound, making sure it is only tigh enough
to allow the insertion of the little finger under it, so as not to restrict ļ¬‚ow of blood to the extremities
which could cause gangrene. However, if the bleeding is not heavy, use your hand to apply pressure over
the wound using a gauze, clean cloth or handkerchief for 5-10 minutes. Additionally, raise the bleeding
site above heart level if it is a limb.

CONSCIOUSNESS- Is he conscious?
If he is breathing and answers questions, then - Lie the victim on his back and keep him warm.
If he is breathing but does not answer questions, then - Put him in the recovery position to stop him
choking on his own blood, tongue or vomit. Ensure the victim's blood is discreetly handled so that it does
come in direct contact with your blood.

V. THE RECOVERY POSITION

Place the victim on his back on a level surface. Kneel beside him. Loosen any tight clothing. Extend the
arm and leg nearest to you. His elbow and knee should be slightly bent. turn his head towards you. Grip
his far shoulder and upper thigh and gently pull him towards you so that he can roll on to his front. Pull
his jaw forward to make sure that his tongue is at the front of his mouth and not blocking his airway.
Check for a pulse in his wrist, or temples or by placing two fingers beside the Adam's apple. Protecting
his neck, turn him on his back. Place the heel of your hand on the lower half of his breastbone. Keep your
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palm and fingers off his chest.Cover this hand with your other hand. Keeping your arms straight. rock
forward to press down firmly on his breastbone. Repeat every (five) seconds
Section B: VEHICLE FIRE PREVENTION, DRILLS
We are all acquainted with fire as a source of heat, light and power, and as one of the most dangerous
things to play with, Every year, so many people die by fire. Good worth millions of naira and vehicles are
destroyed, thereby causing interruption to business and business and productions.
Every automobile fire is an environmental pollution, the wastage; "national lose", and its
prevention, a national dirt.
Definition of fire
Fire:-ls a rapid combination of two or more substances which produce heat, light, smoke and carbon.
Before fire could occur, oxygen, heat and fuel must be present.
1. Oxygen: This is the gas that supports burning
2. Heat: Is the sufficient temperature needed for ignition of fire
3. Fuel: Is any combustible material (s) i. e Solid, Liquid, and Gas, This is to say that fuel can exist
in any of the three states of matter: Oxygen, heat, and fuel form, what is called the FIRE
TRIANGLE.
When an automobile fire or any fire is deprived of any of these. the fire goes off
classes of fire:
For easy identitification and extinction purpose, fire is classified into four categories and they are
Class A
Fire involving free burning materials like wood, paper, textiles, etct WATER is the best extinguisher
agent in form ofjet or spray.
Class B:
Fire involving flammable substances like petrol, paint. grease, etc, fall under class B fire, Fire under this
category could best be extinguished with LIQUID FOAM extinguisher. Dry chemical powder,
Carbonoioxide extinguisher and dry sand are also good materials that can put off class B fire.
Class C:
Fire involving combustible gases or liquefied petroleum like propane, Butane, etc. They can best be
extinguished with Dry chemical powder and Carbon Dioxide fire extinguishers; water in spray form
could be used to cool down the cylinder
Class D
Fire involving metals, e.g Potassium, Aluminium, Magnesium, Zink, etc. They can best be extinguished
with Dry Chemical Powder fire extinguisher or Dry sand.

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Automobile Fire
An automobile can start to burn because of so many things such as from electrical sparks, faulty wiring,
over heating etc
1. In most cases the fire usually starts from the engine compartment
2. As soon as an automobile fire is discovered, switchoff and safely discharge the passengers.
3. Reach out for your fire extinguisher, open the bonnet gently and discharge fire extinguisher
directed to the base of the fire
4. The battery terminals may be disconnected to avoid more sparks

A jet of water may be necessary for passenger compartment fire. Also, the cooling of the tank with water
spray may be necessary to prevent busting. All moving vehicles should be stopped and made to switch
off the engine. All vehicles should park within reasonable distance from the leaking tanker
Allow only vehicles with spark arrestor fixed to their exhaust pipe to move across
Discourage/stop everybody within the vicinity from smoking Contact fire Brigade as soon as possible
Apply foam orjet spray or sand to dissolve the already leaded fuel. Improvise and stop the leaking.
If the petrol tanker is on fire, clear people from the vicinity and call fire Brigade. Don't fire the fire leave
it for the experts.
Types of Extinction:
Cooling
Water can be used to reduce the temperature of the burning material(s) below ignition point or the flash
point
Smothering
Excluding air or the supporter of combustion by the use of foam or fire blanket.
Starving
The act of removing the burning material to a safe place thereby avoiding its spread
To Operate a Fire Extinguisher
Hold it up-right and do the following:
1. Pull the safety pin/break cartridge
2. Aim horn at the base fire
3. Press/squeeze nozzle
4. Discharge at the base of flame

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Fire prevention is in everyone's utmost interest, Fire that begins from your own property can
spread to others and can cause a lot of inconveniences to the general public
Section C: WARNING DANGER LABELS FOR HARZARDOUS SUBSTANCES
In many countries, vehicles carrying dangerous goods are required by law to display hazard information
panels
The codes in the boxes give important information about:
• The equipment needed to deal with any spillage of fire
• The chemical being carried
• The telephone number in an emergency situation
If you have an accident with a vehicle carrying a dangerous load, make sure the emergency services
know what the load is and its code numbers, if given. Diamond Symbols Indicating Other Risks Are
Shown Below:

Diamond Symbols Indicating Other Risks Are Shown Below

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Explanation of Symbols
The danger labels prescribed for substances and articles have the following meaning

No. 1 Black bomb on orange back ground): Liable to explosions

No. 2.1 Black flame on red back ground; Danger of flammable gas
No. 2.3 Skill and crossbar on the white background: danger of TOXIC GAS
No. 3.0 (Black fame on a red background): danger of the inflammable Liquids):
No. 4.1 (Black flame on ground of equidistant alternate and white vertical stripes) danger of fire
(inļ¬‚ammable solids)
No. 4.3 (Black flame on blue back ground) danger of emission of inflammable gases on contact with
water
No. 5.1 and 5.2 (Flame over a blank circle, blank on yellow back ground): oxide substances or organic
peroxide
No. 4.0 (st Andrew's cross on ear corn black on white back ground): harmful substances. to be kept apart
from foodstuffs in vehicles and at loading, unloading or Trans load points
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No. 8.0 (Liquid dripping from test-tube on to hand. Black on white back ground lower triangle with black
label, white boarder: corrosive substance). No. 6.0 (Crystalized trefoil inscription RADIOACTIVE,
contain radioactive substances
Section D: TRAFFIC OFFENCES AT A GLANCE
On every road there are road users such as motorists, pedestrians, cyclists, motorcyclists, passengers and
animals
As a road user, it is expected that the road is used in accordance with the rules and regulations, Every
road user should be disciplined. careful and considerate to others, to ensure safer roads. thereby avoiding
road crashes and or arrest and prosecution. In the exercise of the functions conferred by (510(4) of the
FRSC Act, 2007 establishment), members of the corps shall have the right to arrest ad prosecute any
person reasonably suspected to have committed any traffic Offence(s).
It is therefore an offence to:
1. Be on any road without any lights or faulty lights, signs or reflectors or wrongful use of signals
2. Obstruct any section of the road with vehicles or in any other way that may affect free flow of
traffic
3. Use a restricted road where it Is marked "one way" or "no entry"
4. Disobey speed-limits erected at road construction areas or any other road
5. Drive a vehicle without a valid learner's permit; driver's license or any other permit required by
law
6. Drive a vehicle without a valid vehicle license of identification mark being displayed
7. Overtake another vehicle wrongfully
8. Disobey traffic light signals
9. Disobey or disregard road signs or pavement markings
10. Drive a vehicle, a two or three wheel cycle on any road in a reckless or negligent manner that will
be dangerous to other road users.
11. Drive a vehicle or motorcycle with forged vehicle papers
12. Drive a vehicle or motorcycle under the influence of drugs or alcohol
13. Drive a vehicle or motorcycle or any mechanically propelled engine that would result in the
damage to any public presence, street light, traffic lights, road signs etc
14. Engage in any act of commission or omission by motorists which may constitute hazard to other
road users
15. Remove from a vehicle, the sign, "Do not move"
16. Use a road that is under construction

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17. Fail to move over to the slow lane to free up traffic flow
18. Uncover gravel or other unstable materials with tarpaulin or strong plastics to stop it spilling on
the road
19. Cover number plates at the front and rear sides the vehicle
20. Load a vehicle above the weight or number of passengers required by law
21. Drive a vehicle with projected load
22. Obstruct a marshal in the performance of his duty
23. Drive a vehicle with damaged or shattered windscreen
24. Drive a vehicle with worn tyres or without spare tyre
25. Drive a vehicle that is mechanically deficient
26. Drive a vehicle without fire extinguisher
27. Assault a marshal on duty
28. Corrupt a marshal on duty
29. Fail to report at designated place by a traffic offender
30. Drive a vehicle that emits excessive smoke
31. Drive a commercial vehicle without a passenger manifest
32. Use your GSM phone while driving
33. Driver under 18 years of age
34. Ply the road by commercial drivers and conductors without badges
35. Ply the road without side and inner rear mirrors
36. Smoke or eat while driving
37. Drive a double-decker bus in Nigeria
38. Fail to use your headlight s during inclement weather
39. Fail to signal when changing lanes, making a turn or pulling in front of another vehicle
40. Fail to properly secure under-aged children in an approved school safety seat or booster seat
41. Travel in a bed of a pick-up truck by any person
42. Fail to use belts while driving
43. Fail to pay any prescribed fine or other fees under the law
44. Provide incorrect address under the law
45. Reject accident victims by hospital medical personnel
46. Ride a motorcycle without a crash helmet properly strapped to the head and fastened under the
chin47. Drive with one hand
47. Drive with one hand

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SOURCE highwaycode.com.ng
TRANSPORT REGULATORY AGENCIES
1. Federal Ministry of Transportation: Hon Chibuike Rotimi Amaechi was born on 27th May 1965 at
Umuordu-Ubima in Ikwerre Local Government Area of Rivers State is the minister of transport.
Federal Ministry of Transport is responsible for rail and marine transport and inter modern co-ordination.
The mandate, policies, programmes and budgets of the ministry are implemented through the various
agencies at the ministry which include Nigeria Railway Nigeria Ports Authority, Nigeria Maritime
Administration and Safety Agency (NIMASA), Nigeria Shippers Council, National Inland Waterways
Authority, Nigeria Institute of Transport Technology, Zaria and Maritime Academy of Nigeria,
Oron.VISION:To evolve a world class transportation system in Nigeria and to position it as a hub in
West and Central Africa.
Federal Ministry of Transportation Parastatals
a. National Clearing and Forwarding Agency National Clearing & Forwarding Agencies is an Abuja
based shipping agent for clearing and forwarding services. A total freight solution provider with offices
strategically located in major commercial cities in Nigeria.
b. The Nigerian Maritime Administration and Safety Agency NIMASA
The Nigerian Maritime Administration and Safety Agency is the apex regulatory and promotional
maritime agency The Agency was created from the merger of National Maritime Authority and Joint
Maritime Labour Industrial Council (former parastatals of the Federal Ministry of Transport) on the 1st
August 2006. Their reas of focus include effective Maritime Safety Administration, Maritime Labour
Regulation, Marine Pollution Prevention and Control, Search and Rescue, Cabotage enforcement,
Shipping Development and Ship Registration, Training and Certification of Seafarers, and Maritime
Capacity Development.Using modern tools that guarantee efficiency and effectiveness, we are
determined to develop indigenous capacity and eliminate all hindrance.
c. Nigeria Ports Plc : The Nigerian Ports Authority (NPA) is a Federal Government Agency that governs
and operates the Ports in Nigeria. The major Ports include; Lagos Port Complex and Tin Can Island Port
Complex both in Lagos State. The Calabar Port Complex in Cross River State. The Delta Ports in Warri,
Delta State and the Rivers Port Complex and Onne Port Complex both in Rivers State.
d. Federal Ministry of Aviation Arm: The Nigerian Federal Ministry of Aviation is a ministry of the
Nigerian Government that regulates air travel and aviation services in Nigeria. The ministry is
responsible for formulation and management of the government's aviation policies in Nigeria. It is
directly responsible for overseeing air transportation, airport development, maintenance, provision of
aviation infrastructural services and other needs. The ministry is headed by a Minister appointed by the

160
President, assisted by a Permanent Secretary, who is a career civil servant. The Ministry is responsible
for parastatals such as the Nigerian College of Aviation Technology.
Federal Ministry of Aviation Parastatals
Nigerian metrological agencies
Nigeria college of aviation technology
Nigerian airspace management agency
Federal airport authority of Nigeria
Nigeria civil aviation authority
Accident investigation bureau

e. Nigerian Railway Corporation (commonly abbreviated as NRC) is the state-owned enterprise with
exclusive rights to operate railways in Nigeria.

FEDERAL ROAD SAFETY CORPS FRSC

Road Transportation and Traffic Law Enforcement in Nigeria was established in order to reduce the
increasing road crashes and fatalities as well as making road users comply with traffic Laws and
regulations as a counter measure, which remain as a great challenge in Nigeria.
The establishment of FRSC by Decree No 45 of 1988 as amended by decree 35 of 1992 later cited as
FRSC act (CAP 141) Laws of the Federation of Nigeria (LFN) 1990 and re-enacted as FRSC
(Establishment) Act 2007 was in line with the principles of good governance.

According to Nwaegbe (2008) and Balogun (2006:7) the most significant step taken to address road
safety matters in Nigeria was the promulgation of motor Traffic Ordinance of 1913 which was restricted
to the Southern protectorate. By 1916, the National Motor Traffic Ordinance was promulgated following
the amalgamation of the Northern and a southern protectorate in 1914.this was, however, reviewed in
1940 and 1945 sequel to English Road Traffic Act of 1930. The Traffic Road police Unit was established
in 1960 after independence with its functions and limitations. The Nigeria Army introduced her annual
one week safety campaign in 1972 to sensitize the public on the dangers of road traffic accidents. Though
the programme was laudable, it was not sustained hence it suffered for lack of continuity. A Highway
Code was produced in 1972 to serve as a guide to drivers. The Federal Government declared 1974 as
National Road Safety year when there was noticeable increase in road traffic accidents and subsequently
established a Road Safety Advisory commission under the Federal Ministry of Works and Housing in the
same year.

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The most visible action on road safety was the establishment of Oyo Road safety corps (ORSC) through
Edict No. 18 of 1977 by the old Oyo state Government. The perennial and high rate of accidents along.
The federal Government also put in place some legislative framework to promote road safety activities in
the country. These legislations includes the federal Highways Act cap p. 19, National Road Traffic
Regulations 2004 in addition to state Traffic laws 1976. By 1980s the carnage on the roads became a
laming despite the efforts of the Federal Government especially at providing the necessary legislations to
curb road traffic accidents. This scenario placed Nigeria as being second to Ethiopia with the
worst road traffic accident records in the world prior to the establishment of the Federal Road Safety
Commission.

Following the challenges posed by road traffic accidents in the country And in a bid to confront this
malaise, the federal Ministry Government on February 18th 1988 established the Federal Road Safety
Commission to serve as a Lead Agency on road safety matters, vide Decree No.45 of 1988 as amended
by Decree No.35 of 1992. Both decrees were later cited as FRSC Act (CAP 141) FRSC (Establishment)
Act 2007. While Decree No.45 of 1988 restricted FRSC operations to Federal highways, Decree No.35 of
1992 gave FRSC additional jurisdiction to cover all public highways in the country and empowered the
personal of the corps to bear arms. Furthermore, Decree No.35 of 1992 changes the designation of the
Chief Executive Officer from Director of Organization and Chief Executive (DOACE) to the present
status of Corps Marshal and Chief Executive (COMACE).

Roles and responsibility

The Commission has the responsibility of organizing, administering and making policies with regards to
road safety administration in Nigeria. The Corps was established by virtues of Section 10 (1) as the
operational arm of the Commission and consists of uniform and non-uniformed members. The regular
Marshals are the uniform members who own salaries, while the non-uniformed members are the Special
Marshals who are volunteers. Section 10 (2) charges the corps the with the following functions: making
the highways safe for motorists and other road users, recommending works and devices designed to
eliminate or minimize accidents on the highways and advising the Federal and State Governments
including the Federal Capital Territory Administration and relevant governmental agencies on the
locality where such works and devices are required; educating motorists and members of the public on
the importance of discipline on the highway; preventing or minimizing accidents on the highway;
designing and producing vehicle number plate; designing and producing the driver’s license; to be used

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by various categories of vehicle operators; determining, from time to time, the requirements to be
satisfied by an applicant for a driver’s license; determining and enforcing speed limits for all categories
of roads and vehicles and controlling the use of speed limiting devices; giving prompt attention and care
to victims of accidents among others.
At inception in 1988, the Management of FRSC created 5 Zonal Command located in
Aba, Bauchi, Benin, Ibadan and Kaduna to coordinate the activities of the Commission in the various
States. The Commission had its first National Headquarters at Ibadan, which was later moved to
Gbagada, Lagos and finally moved to Abuja in 1991

Occasionally, the Corps introduced special patrols and operations to respond to specific traffic
challenges. For instance, ‘Operation Eagle Eye’ during the Ember Months and ‘Operation Rainstorm’
during the rainy season. Free Safety Vehicle Cheek is another enforcement strategy aimed at ensuring
minimum safety standards of vehicles without prosecuting offenders but, rather guiding them on
appropriate remedial actions. Accidents involving motorcycle operators are equally addressed with
nationwide public enlightenment and plan to regulate their conduct and operations. This led to the
enactment of motorcycle safety bills by some State Government hence an enforcement date of 1st
January, 2009 was fixed for compulsory use of safety helmet for motorcycle riders and their passengers.
In the same vein, a nationwide awareness campaign/enforcement tagged, ‘Total War on Overloading’
(TOWOL) was launched to check high cases of overloading in the country. Source from Operations
Department of FRSC indicate that between January to June, 2009, 5,844 traffic offenders were arrested
for overloading violations.

Lack of adequate funding: Less

than adequate funding through annual budgetary releases to FRSC have not been enough to execute
capital projects and cater for overhead costs. Right now about 95% of residential and office
accommodation in the Crops are rented. A lot of money is paid on maintenance of patrol vehicles,
ambulances, motor bikes and rent leaving little or nothing for other projects like purchase of more heavy
duty tow vehicles for removal of obstructions on the highways and other services.
(ii) Lack of Adequate Communication gadgets: For efficiency and effective operations like patrolling
the highways and rendering rescue services, vital operational equipment like Walkie Talkies are required
to enable Road Marshals to share information among themselves. These equipment are also needed to
alert other patrol teams at different locations ahead wherever there are reported case of emergencies and
tracking recalcitrant traffic offenders.

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(iii) Lack of Adequate Trained Manpower: The need to have officers and men well trained in related
field like law to prepare them for prosecution of traffic offenders cannot be overemphasized. Other areas
are rescue and emergency services, ICT and human resource development among others. This would
build more confidence in staff to discharge their duties more firmly. West African Journal of Industrial &
Academic Research Vol.11 No.1 June 2014 147
(iv) Assault Cases: violent traffic offenders have physically assaulted Road Marshals on duty several
times simply because these offenders see FRSC staffs as defenseless since members of the Crops are not
armed. Despite the provisions of Section 19 of FRSC (Establishment) Act 2007 which allows members
of the Crops exposed to high risk to bear arms, the Federal Government is yet to grant administrative
approval to that effect. Chidoka (2010) confirms that there are increasing case of mob attacks on the
personnel and offices of the Crops across the country leading to destruction of patrol vehicles and other
equipment. He further reveals that 40 cases were recorded in 2009 alone while 21 others were recorded
between January and June 2010. he concludes that over 100 personnel sustained various injuries in the
attacks while an officer was kidnapper in the south- East.
(v) Lack of inter-Agency Cooperation:
FRSC receives less than adequate cooperation from key government agencies. For instance, whenever the
Corps embarks on Special operations like enforcement of use of safety helmets and end of year special
patrols, the Nigeria police Force would be approached to assist provide security. Unfortunately, the
expected cooperation is never forth coming. Similarly, some judges either for personal reasons makes
judicial pronouncements that weaken the course of law enforcement. For example, inspite of the
provision in Section 15 of FRSC (Establishment) Act 2007 that the operation of the Crops shall cover all
public highways, some judges have not accepted the position of the law on this, hence judgments have
been awarded against FRSC whenever there is dispute. As reported by “Leadership Newspaper” of 8th
June, 2010, a High Court judge in calabar ruled that FRSC has no statutory power to regulate road traffic
activities on State roads. This judgement which was pronounced in 2007 was reaffirmed recently in 2010
by an Appeal Court judgement.
(vi) Indiscipline and Lawlessness:
There is high level of indiscipline in the country exhibited by both the elite and illiterate members of the
society especially as it regards Route Violation. Uniformed men drive against traffic and at times mount
illegal road blocks causing obstructions on the road. Tanker and trailer drivers park indiscriminately on
the highways with reckless abandon. Some Nigerians are not willing to wear safety helmets due to
cultural biases because of their dress code. The Crops has continued to intensify public enlightenment on
this. One of the strategies adopted by the Crops is to enlist the support of prominent traditional rulers for

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intervention as reported by “Punch Newspaper” of 12th July, 2009
(vii) Corruption: Corruption and misconduct on the part of law enforcement officers make them to
compromise. Such officers collect bribes from motorists and allow them to ply the highways with
overloaded and rickety vehicles among other traffic offences. This is why serials traffic offenders
continue to violate traffic rules and regulation with impunity.
(viii) Lack of Traffic Signs: The present networks or roads are poorly constructed, not regularly
maintained and in most cases, these roads do not have traffic signs. The absence of good roads creates
creates traffic congestion and multiple road traffic accidents.
Characteristics of road transport in Nigeria
1. The Road Transport system accounts for over 75% of mobility needs in Nigeria. This exerts excessive
pressure on the road transport industry. Available statistics from the Department of Motor Vehicle
Administration (MVA) of the Federal Road Safety Commission (FRSC) shows that the Commission has
as at December 2008 a total of 13,277,933 vehicles and motorcycles issued the Vehicle Identification
Number plates in its data bank. Available records indicate that Nigeria has about 14 (Fourteen) million
registered vehicles.
2. The Federal Ministry of Transport also informed that the total road network is about 200,000 km out of
which Federal roads account for about 34,000 km which are mostly inter-state roads with high traffic
density and attendant Road Traffic Crashes.
3. Within the last decade, a new challenge in Public transportation in Nigeria emerged with a phenomenal
growth in night travels with attendant negative consequences. FRSC statistics indicated that though the
rate of Road Traffic Crashes (RTC) at night is not as high as the number during the daytime, the fatality
is higher. The fatality from a single road crash at night has been known to outstrip ten occurrences at day
time, because of poor road conditions, unlighted streets/roads, disregard to traffic rules and regulations
and poor rescue services.
4. It has been revealed that the haulage operators as well as luxury passenger bus operators programme
their movements to night because of multiple taxations by government agencies and also due to the
preference of night travels by some commuters, especially businessmen who see night trips as savings in
time and costs, particularly in avoiding paying for accommodation.
5. The FRSC has also observed that Fleet Operation in the country is not properly regulated and many
operators lack the basic competence in terms of handling road safety issues. Safety is relegated to the
background. Hence, Section 115 of the National Road Traffic Regulations (2004), made
pursuant to Sections 5 and 10 (10) of the FRSC (Establishment) Act 2007 provides for the establishment
of Safety Units and appointment of competent Safety Managers by all road transport operators.

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6. Arising from the above provisions, the Scheme referred to as the Road Transport Safety
Standardization Scheme (RTSSS) is hereby formulated and adopted as Road Traffic Safety working
document. The Scheme is being implemented through the Corps Transport Standardization Office
(CTSO) at the Federal Road Safety Commission National Headquarters (RSHQ). There are Transport
Standardization Officers in all the field commands of the FRSC to implement the scheme nationwide.
RTSSS is a road transport regulatory policy which stipulates minimum safety requirements for fleet
operators (organizations, Ministries, Departments and Agencies as well as companies and other road
transport owners) with a minimum of five (5) vehicles in their fleet.
7. The concept and the implementation of the Scheme address certain issues that are discussed below:
Road transport agency stakeholders
The various stakeholders, like the Nigeria Association of Road Transport Owners (NARTO), Association
of Luxury Bus Owners of
Nigeria
(ALBON), National U
nion of Road Transport
Workers (NURTW),
Road Transport Employers Association of Nigeria (RTEAN),
etc
Anambra Motor Manufacturing Company (ANAMMCO)
2 Association of Luxury Bus Owners of
Nigeria (ALBON)
3 Chartered Institute of Logistics and
Transport (CILT)
4 Dangote Group of Companies
5 Dunlop Nigeria PLC
6 Federal Ministry of Health (FMH)
7 Federal Ministry of Information (FMI)
8 Federal Ministry of Justice (FMJ)
9 Federal Ministry of Transport (FMT)
10 Federal Ministry of Works, Housing and
Urban Development
11 Federal Roads Maintenance Agency
(FERMA)

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12 Michelin Tyres Service Company Ltd
(MTSCL)
13 National Automotive Council (NAC)
14 National Council of Women Societies
(NCWS)
15 National Drug Law Enforcement
Agency (NDLEA)
16 National Insurance Commission
(NAICOM)
17 National Union of Road Transport
Workers (NURTW
18 Nigeria Building and Road research
Institute (NBRRI)
19 Nigeria Red Cross (NRC)
20 Nigerian Medical Association (NMA)
21 Nigeria Union of Local Government
Employees (NULGE)
22 Nigerian Association of Road Transport
owners (NARTO)
23 Nigerian Institute of Transport
Technology (NITT)
24 Peugeot Automobile Nigeria (PAN)
25 Road Transport Employers Association
of Nigeria RTEAN)
26 Standards Organisation of Nigeria
(SON)
27 The Nigerian Police
28 Vehicle Inspection Officers (VIO)
29 World Health Organisation (WHO)

Airport Ownership in Nigeria

Airports in Nigeria are managed by Federal Airports Authority of Nigeria (FAAN). The body is
responsible for the management of all commercial airports in Nigeria through the provision of services to

167
passengers and airlines. It is a parastatal of the government, under the supervision of the Federal Ministry
of Aviation. FAAN generates revenue for operations through aeronautical and non-aeronautical sources
such as landing fees, parking fees, rents, concession fees and utilities fees(Adeniran and Gbadamosi,
2017). One of its main functions is to develop, provide and maintain airports, necessary services and
facilities for safe, orderly, expeditious and economic operation of air transport. There are four ownership
and operation schemes for airports (Afolayan, Asaju, & Malik, 2012):
1. Public ownership and operation: This is the first model and is common in Africa. Just like other
regions, the governments of countries in Africa often consider airports as public infrastructure that
provides revenue and foreign currency. Even if the airport is corporatized (as in the case of the Airports
Company South Africa), the state retains majority ownership. However, even airports with operational
surpluses fail to undertake necessary maintenance and reinvestment. The success of this model is thus
questionable (Afolayan, Asaju, & Malik, 2012).
2. Regional ownership and operation: Regional ownership is most common secondary airports and is
often used by central governments to remove less profitable airports from the national budget. It is also
found in federal countries, especially those with strong airport markets, such as the United States of
America. This form of ownership is unlikely to benefit regional airports in poorer countries with weak
provincial government systems and it is therefore generally inappropriate for Africa (Afolayan, Asaju, &
Malik, 2012).
3. Public ownership and private operation: There are several models for public-private partnerships
(PPPs): joint ventures, partial and majority divestitures, management contracts, and concession contracts.
The few recorded attempts at PPPs in African airports have occurred in markets of all sizes:
i. Cameroon: This is a small market that serves below 1 million seats a year.
ii. Tanzania: This serves more than 1 million seats a year (an average size for the region).
iii. South Africa: This is the largest market in Sub-Saharan Africa (Afolayan, Asaju, & Malik, 2012). The
majority of private participation in African airports is through concessions. Under a concession
agreement, the government continues to fund infrastructure investment while the concessionaire assumes
responsibility for service provision. This arrangement allows private firms to offer specific services, such
as Swiss Port’s passenger counter services in Johannesburg and Dares Salaam and private contractors’
cargo-handling functions in lesser-known airports, such as Mwanza in Tanzania. Contract bidding occurs
in regular cycles, and terms vary from airport to airport (Afolayan, Asaju, & Malik, 2012).
4. Private Ownership and Operation: Concessioning of specific services is a well-developed model in
airports throughout the world, and it may be the most appropriate and sustainable form of PPP for Africa.
Full privatization is rare among airports and it is generally attractive only for airports with substantial

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passenger traffic that is potentially profitable. One example is that of the British Airports Authority,
which owns three main London airports (Heathrow, Gatwick, and Stansted) as well as three main
Scottish airports (Edinburgh, Glasgow, and Aberdeen) (Afolayan, Asaju, & Malik, 2012).. However, it
has been argued that because of the authority’s monopolistic nature, airport charges have soared, service
quality declined, and reinvestment in basic airport infrastructure has been insufficient.
2.1.9 Administration of Air Transport Industry
The Nigeria aviation industry is generally administered by the Federal Ministry of Aviation
(FMA) and is composed of six parastatals: The Nigerian Civil Aviation Authority (NCAA), the Federal
Airports Authority of Nigeria (FAAN), Accident Investigation Bureau (AIB), Nigeria College of
Aviation Technology (NCAT), the Nigerian Airspace Management Authority (NAMA), and Nigerian
Meteorological Agency (NIMET).The FMA is headed by a minister, appointed by the President of the
Federal Republic of Nigeria. The ministry has five departments namely; Finance and Accounts
Department, Human Resources Management Department, Planning, Procurement Analysis and Research
Department, Safety and Technical Policy Department, and Air Transport Management Department.
These departments are headed by directors in the ministry of aviation and all are responsible to the
minister. In addition to processing inputs from the six parastatals, the aviation ministry is charged with
the responsibility of developing aviation policies and managing the aviation industry in Nigeria. Principal
of the mandates of the aviation ministry is the design, development and execution of security and safety
procedures in the aviation industry according to the International Civil Aviation Organization (ICAO)
standards and the World Meteorological Organization (WMO) code of practices (FMA, 2013).
2.1.10. Catalyst of Air Transport in Nigeria
According to Nwaogbe, Wokili Omoke and Asiegbu (2013) the air transport industry’s most
important economic contribution is through its impact on the performance of other industries and as a
facilitator of their growth. It affects the performance of the world economy, improving the efficiency of
other industries across the whole spectrum of economic activity – referred to as catalytic or “spin-off”
benefits
1. Air Transport Facilitates World Trade: Air transport helps countries participate in the global market
by increasing access to main markets and allowing globalisation of production. Air transport also
encourages countries to specialize in activities in which they have a comparative advantage and to trade
with countries producing other goods and services (Nwaogbe, Wokili Omoke and Asiegbu, 2013)
2. Air Transport is Indispensable to Tourism: Particularly For Remote and Island Destinations
Tourism directly supports jobs in airlines and airports, and expense of visitors arriving by air creates a
substantial number of jobs in the tourism industry.

169
3. Air Transport Boosts Productivity across the Global Economy: Improved transport links expand
the market in which companies operate. As a result, companies are better able to exploit economies of
scale thereby reducing costs, and to specialize in areas of comparative advantage. By opening up markets,
air services expose companies to stiffer competition, encouraging them to become more efficient.
4. Air Transport improves the Efficiency of the Supply Chain: For example, many industries use air
transport to shorten delivery, as part of their just-in-time delivery systems, enabling them to deliver
products to clients quickly and reliably and to reduce costs.
5. Air Transport is an Enabler of Investment both into and out of Countries and Regions: Viable air
transport links is one of the key considerations that influence where international companies choose to
invest (Nwaogbe, Wokili Omoke and Asiegbu, 2013)
6. Air Transport can act as a Spur to Innovation: By encouraging effective networking and
collaboration between companies located in different parts of the globe. A good transport infrastructure
can also encourage greater spending on research and development by companies. For example, increasing
the size of potential markets allows the fixed costs of innovation to be spread over larger sales (Nwaogbe,
Wokili Omoke and Asiegbu, 2013).
Ckass exercise
1. Transport Economics is seen as a key role in modern society, with your basic
knowledge of Transport, what is Transport Economics?
2. What are the major importance of Transport to economic development in Namibia
3. Transport is believed to cause increase in GDP, explain how both supply led view
and demand led view leads to economic development.

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