2.3 – Transport and Location | The Geography of Transport Systems (2022)

Author: Dr. Jean-Paul Rodrigue

The location of economic activities is related to their nature and function, with each activity having a level of dependence on transportation.

The location of activities encompasses the concepts of the site and its situation. The site relates to the characteristics of a specific location while the situation concerns the relationships of a location in relation to other locations. Both concepts are interdependent as the characteristics of a site can be expanded by a better situation (connectivity) and a situation can improve if a site is better endowed. Historically, specific sites suitable for defense or commerce have been essential factors in thelocation of cities. This perspective can further be expanded by three interdependent factors in the global location of cities:

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  • Connectivity. The city is located at a load breakpoint where cargoes are moved from one mode to the other, connecting two or more systems of circulation. This is particularly the case for port cities, which explains, for a large part, the coastal location of most of the world’s largest cities.
  • Proximity. The city is located in proximity to a major (or several) resources and serves as a convenient point of collection, distribution, and transformation. The resource can exist at a specific location (e.g. a mine) or encompassing an area (e.g. agriculture).
  • Accessibility. The city serves a hinterland in providing goods and services, with its size a function of the density.

In addition to being a factor of spatial organization, transportation is linked with the location of economic activities, including retail, manufacturing, and services. In a market economy, location is the outcome of aconstrained choice where many issues are being considered, transportation being one of them. The goal is to find a suitable location that would maximize the economic returns for this activity, such as the amount being produced, production cost, or market accessibility. There is a long tradition within economic geography in developinglocation theories with a view to explain and predict the locational logic of economic activities by incorporating market, institutional and behavioral considerations.

Location theories tend to have an explicit or implicit role attributed to transport since accessibility is an important factor in the location preferences of firms and individuals. As there are no absolute rules dictating locational choices, the importance of transport can only be evaluated with varying degrees of accuracy and based upon the context it takes place. Transportation has four main locational influences, including costs, agglomeration, density, and co-location. At best, the following observations concerning transportation modes and terminals and their importance as locations can be made:

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  • Ports and airports. Main port and airport facilities, particularly the networks they support, have been important factors in the reduction of transportation costs, particularly over long distances. The location and the level of activity ofports andairports are reflective of global trade patterns. These facilities are also important drivers of co-location of related activities, particularly for ports since inland distribution costs tend to be higher.
  • Roads and railroads. Road and rail infrastructures provide a structuring and convergence effect that varies according to the level of accessibility and density. In addition to reduce transport costs, efficient roads and railways support higher density levels of economic activities. For rail transport, terminals also have an important co-location effect with the setting of inland ports.
  • Telecommunications. They provide no specific local influence, but the quality of regional and national telecommunication systems tends to ease transactions. Telecommunication systems benefit from higher densities since it becomes more practical to service a customer base. With the ongoing digitalization of transportation, information technologies impact mobility in numerous ways, mainly by allowing the providers and consumers of transportation services to interact better.

Globalization has been associated with significant changes in business operations and markets. The whole scale of locational considerations has been expanded. Managing operations in such an environment have become increasingly complex, especially with the globalization of production and consumption. Manufacturing strategies tend to use different locations for each component of a product in order to optimize respective comparative advantages and reduce input costs. Transport requirements have proportionally increased to support and organize the related flows. The provision of faster long-distance transport services has propelled the importance of air transport, especially for freight. Air terminals have thus become a significant location factor for globally oriented activities, which tend to agglomerate in the vicinity. Additionally, the surge in long-distance trade has made logistical activities, namely transport terminals and distribution centers, at the forefront of locational considerations. Technological changes have also been linked with the relocation of industrial and even service activities.Global telecommunication facilities can favor the outsourcing of several services to lower-cost locations.

The location of economic activities is dependent on the nature of the activity, particularly what are its inputs and who consumes its outputs. While in the past locations were mainly considered at the scale of whole industries such as petrochemicals, the focus is now more on the specific activities involved. This allows for a broader range of locations to be considered since it can focus on specific components or services. The location spectrum represents a range of requirements for a specific activity, such as its material (resources) and non-material inputs (labor) and its outputs (market). It underlines that covariance is important since the economic success of a location is more than often not just the outcome of a single factor, but of a combination. Therefore, the assessment oflocation factors such as the attributes of the site, its level of accessibility, and its socioeconomic environmentis an important exercise to better understand and articulate the principle of location.Although each type of economic activity has its own set of location factors, some general factors can be identified by major economic sectors:

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  • Primary economic activities. Their dominant location factor is related to environmental endowments, such as natural resources. For instance, mining takes place where economically recoverable mineral deposits are found, and agriculture is subject to environmental constraints such as soil fertility, precipitation, and temperature (climate). Primary activities are thus characterized by the most basic location factors and have a strong reliance on transportation since their locations are rarely close to markets. When ponderous goods are concerned, substantial investments in extraction and distribution infrastructures must thus be made before they can be brought to markets. The capacity to transport raw materials plays a significant role in the possible development of extractive activities at a location.
  • Secondary economic activities. Imply a complex web of location factors which, depending upon the industrial sector, relate to labor (cost and/or skill level), energy costs, capital, land, markets, and proximity of suppliers. Location is thus an important cost factor, and the general purpose is usually to minimize it. Considering the wide variety of industrial and manufacturing activities, understanding the rationale of each sector is a difficult task that has been subject to many investigations in economic geography. Globalization, recent developments in supply chain management, andglobal production networks underline the locational complexity with the presence of many intermediaries and significantlocational changes. The contemporary industrialization of Japan, South Korea and China have been supported by several strategies trying to multiply locational advantages, such as the setting of export-orientedspecial economic zones and large investment in transport infrastructure.
  • Tertiary economic activities. Involve activities that are most bound to market proximity. The capacity to distribute a product or to make a service available is an important location requirement. As many of these activities are retail-oriented, consumer proximity, as well as their level of income, is essential and is directly related to sale levels. The main focus is to maximize sales revenues, with location an importantrevenue factor. The retail industry has seen the emergence of large retail stores that maximize sales through economies of scale and local road accessibility. E-commerce also provides a new dynamic where niche retailing markets can be developed with high product diversity.
  • Quaternary economic activities. Imply activities not linked to environmental endowments or access to a market, but to high-level services such as banking, insurance, education, research, and development. This often relates to the high technology sector, where innovation is a key commercial factor. With improvements in telecommunications, many of these activities can be located almost anywhere, as demonstrated by the trend to locate call centers offshore. There are still some strong locational requirements for high technology activities that include proximity to large universities and research centers and a pool of highly qualified workers (as well as cheap labor for supporting services), availability of venture capital, high quality of life (cultural anbd commercial amenities) and access to excellent transportation and telecommunication facilities. The sector has shown a propensity at clustering as close inter-firm relations are a factor of innovation.

Each of these sectors thus has its own set ofeconomies related to its relations with production, distribution, and consumption. However, basic location strategies appear to be dominantly cost minimization or revenue maximization endeavors. Understanding location factors enable a better overview of the dynamics of the global economy and the associated territorial changes at the global, regional, and local levels.

Since accessibility is dominantly the outcome of transportation activities, namely the capacity of infrastructures to support mobility, it presents the most significant influence of transportation on location. Hence,location (accessibility) and economic activities are interrelated. Accessibility plays an important role by offering more customers through an expanded market area, making distribution more efficient (in terms of capacity, costs, and time), or enabling more people to reach workplaces (labor cost and qualification). While some transport systems have favored the dispersion of socioeconomic activities (e.g. automobiles and suburbanization), others have favored their concentration (e.g. airports and container terminals). All transport systems are bearers of spatial specialization and configuration. Among thefive main economies (economies of transportation, economies of scale, economies of scope, agglomeration economies, and economies of density), four are particularly influential for transportation:


  • Transportation costs. Refer to the benefits of a location that minimizes transport costs either for passengers or freight. These considerations are at the core of classic industrial location theories where transport-dependent activities seek to minimize total transport costs. With the expansion of transport infrastructures, shifts in manufacturing, new economic activities such as high technology, logistical management, and an overall decline in transport costs, cost minimization is no longer a substantial consideration in the locational choice. However, transport costs cannot be easily dismissed and must be considered in a broader context where the quality and reliability of transport is of growing importance. It has been demonstrated that travel time, instead of distance, is the determining factor behind commuting ranges. For freight distribution, while cost factors are significant, there is a growing importance of the concept of reliability.
  • Agglomeration economies. Refer to the benefits of having activities locate (cluster) next to another, such as the use of common infrastructures and services. Clustering continues to be a powerful force in location as the reduction in transport costs favored the agglomeration of retail,manufacturing, and distribution activities at specific locations. For instance, shopping malls are based on agglomeration economies, offering customers a wide variety of goods and services in a single location. Distribution activities, even unrelated, also have a tendency to cluster in logistics zones where they benefit from common infrastructures and access to markets. The development of special economic zones, many export-oriented, also benefit from the clustering effect.
  • Co-location. An agglomeration economy which is specific to transport terminals and concerns the benefits derived for activity from being located directly adjacent to a terminal facility. Globalization has underlined the growing importance of transport terminals and of the principle of co-location, which is a particular form of an economy of agglomeration. The main benefit concerns complete and privileged access to the transport capacity and connectivity of the terminal. Any level of separation between the activity and the terminal significantly reduces or even negates the advantages of co-location. It could involve an individual activity or a cluster of activities where agglomeration economies can be added to the benefits of co-location. Hotels located adjacent to airports or rail stations are set on the co-location principle since they derive their business almost exclusively from the terminal’s passenger activities. The distribution centers of parcels companies are commonly located directly adjacent to runways so that their air freight services can be tightly synchronized with the consolidation and deconsolidation of air parcels. For intermodal rail terminals, inland ports facilities are built over the principle of co-location.
  • Economies of density. Somewhat related to economies of agglomeration but focus on spatial coverage and proximity. A core issue concerns the benefits derived from market density so that the same customer base can be reached (or serviced) with shorter distances and thus with fewer facilities. For instance, if the customer density is sufficient, a retailer can achieve several types of cost savings by locating its stores in proximity to one another. Such a structure reduces logistics and delivery costs by sharing a distribution center. Other advantages may include the possibility of relocating part of the workforce between nearby facilities and having shared advertising. In such a circumstance, the locational strategies are based on proximity to existing facilities, even if this implies the selection of sub-optimal locations.

Because of the provided level of accessibility, new transport infrastructures influence the setting of economic activities. It becomes a particularly strong effect when new infrastructures are added to an undeveloped (or underdeveloped) site. In this context, locational decisions tend to be simpler and unhindered by the existing spatial structure. Therefore, there are more substantial locational impacts of transportation improvements in a less developed context than in the case of high density. The locational effects on activities are not always automatic or evident. However, they are important when infrastructure is accompanied by social, economic, and urban transformations. New infrastructures, therefore, play a catalytic role because they are able to transform space through land use and mobility changes, to which further improvements change in a more marginal fashion.

Related Topics

  • Transportation and Space
  • Transport Terminals and Hinterland
  • Transportation and Accessibility
  • Location Analysis
  • The Specialization Index and the Location Coefficient


  • Button, K. J., S. Leitham, R.W. McQuaid and J.D. Nelson (1995) “Transport and industrial and commercial location”, The Annals of Regional Science, 29(2), pp. 189-206.
  • Haggett, P., A.E. Frey, and A.D. Cliff (1977) Locational Analysis in Human Geography. New York: Wiley.
  • Harrington, J.W. and B. Warf (1995) Industrial Location: Principles, Practice and Policy, New York: Routledge.
  • Isard, W. (1956) Location and Space-Economy: a general theory relating to industrial location, market areas, land use, trade, and urban structure, Cambridge: MIT Press.
  • McQuaid, R.W. et al (2004) The Importance of Transport in Business’ Location Decisions, United Kingdom, Department for Transport.
  • Weber, A, (1909; 1929 Translation) Alfred Weber’s Theory of the Location of Industries. Chicago: University of Chicago Press.
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What is the importance of transport in location? ›

In addition to being a factor of spatial organization, transportation is linked with the location of economic activities, including retail, manufacturing, and services. In a market economy, location is the outcome of a constrained choice where many issues are being considered, transportation being one of them.

What is the transport system? ›

A transport system can be conceptualized as the set of relationships between nodes, networks, and demand. These relationships involve locations spatially expressing this demand, flows between them, and infrastructures designed to handle and link these flows.

What does transportation mean in geography? ›

transportation, the movement of goods and persons from place to place and the various means by which such movement is accomplished.

What makes a good transport system? ›

High quality public transport services are reliable, frequent, fast, comfortable, accessible, convenient, affordable and safe, serving routes for which there is demand.

What are the uses of transport? ›

Transportation allows for access to food, healthcare, educational opportunities, and employment. Additionally, access to transportation increases rural residents' ability to access recreation, entertainment, and other activities that promote community engagement.

What is called transport? ›

1 : the act of carrying from one place to another : transportation. 2 : a ship for carrying soldiers or military equipment. 3 : a vehicle used to carry people or goods from one place to another. 4 : a state of great joy or pleasure.

What is transport and example? ›

Transportation is a system for taking people or goods from one place to another, for example using buses or trains.

What is transportation system example? ›

Public transportation systems include a variety of transit options such as buses, light rail, and subways. These systems are available to the general public, may require a fare, and run at scheduled times.

What are the 4 types of transportation in geography? ›

  • Solution - minerals are dissolved in the water and carried along in solution.
  • Suspension - fine light material is carried along in the water.
  • Saltation - small pebbles and stones are bounced along the river bed.
  • Traction - large boulders and rocks are rolled along the river bed.

What are the 4 types of transportation? ›

Air, Road, Sea and Rail. These are the four major modes of transport (or types) in the logistics industry.

What is importance of transportation? ›

The importance of transportation is that it enables trade, commerce, and communication that establish civilization. It is good planning that manages traffic flows and enables the undisturbed and steady movement from one place to another.

What is modern transport? ›

Modern transportation systems such as automobiles, trucks, aircraft, trains, pipelines and bulk and container ships provide the mechanism to move vast amounts of goods and people that enable a global economy.

What are the benefits of public transport? ›

Benefits of public transport

you don't have to worry about finding a parking space. it reduces congestion in towns and cities. using public transport is cheaper than owning and operating a car. no more sitting in traffic jams in rush hour thanks to bus lanes and other bus priority measures.

What is supply of transport? ›

Transport supply is the capacity of specific transportation infrastructures and modes over a time period. Transport demand is mobility needs for the same time period, even if they are only partially satisfied.

What are the important features of the modern transport system? ›

An interconnected network of highways, railroads, airports, public transit systems, waterways, and pipelines makes possible high levels of personal mobility and freight movement and links the country to the rest of the world for trade, travel, and tourism.

What is the nature of transportation? ›

Transportation is the spatial linking of a derived demand. Distance is a relative concept involving space, time and effort. Space is at the same time the generator, support and a constraint for mobility. The relation between space and time can converge or diverge.

What is transport operation? ›

Transport operation. This is the movement of a single type of goods from one place of origin, where the goods are loaded, to a destination, where they are unloaded.

How many types of transport are there? ›

The four primary modes of transportation in logistics are shipments by truck, ship, train and plane — also known as road, maritime, rail and air shipments.

What are the two types of transport? ›

There are two types of transport in this regard: (1) passive transport and (2) active transport. Passive transport is a kind of transport by which ions or molecules move along a concentration gradient, which means movement from an area of higher concentration to an area of lower concentration.

What is the root of transport? ›

Etymology. From Middle English transporten, a borrowing from Old French transporter (“carry or convey across”), from Latin trānsportō, from trans (“across”) + porto (“to carry”).

What are the elements of transport system? ›

The four elements of transport are (i) the way, (ii) the unit of carriage, (iii) the motive power unit, and the terminal.

What are the components of a transport system? ›

The components of the transport system in human beings are the heart, blood, and blood vessels.

What is river transportation in geography? ›

River transport processes remove material, creating mountain valleys. They carry sediment and nutrients downstream, which sustains lowland landscapes and even marine ecosystems.

What are the 4 main types of erosion and transportation in a river? ›

Erosion There are four ways that a river erodes; hydraulic action, corrosion, corrosion and attrition.

How rivers are used for transportation? ›

a type of transportation that moves passengers and cargo primarily by internal waterways, both natural, including rivers and lakes, and man-made, including canals, reservoirs, and lock sections on rivers. River routes are subdivided into mainline, interregional, and local.

What are means of transport answer? ›

Means of transport refers to the modes of transport. It is the way a person/object is moved from one place to another. Modes of transport include water, air, land (rail and road), cable, pipeline and space.

What is introduction of transportation? ›

Introduction to Transportation is an introductory course designed to help students become familiar with fundamental principles in modes of land, sea, air, and space transportation, including basic mechanical skills and processes involved in transportation of people, cargo and goods.

How does transport affect the economy? ›

How Transportation Creates Economic Growth. Sound transportation investments lower the costs of moving people and goods. This increases economic productivity, which roughly can be measured as the output of goods and services per dollar of private and public investment.

How did transportation start? ›

In 3500 BC, the wheel was invented in Iraq and the first wheel was made from wood. Initially, a canoe-like structure was used for water transportation, which was built by burning logs and digging out the burned wood. In 3100BC, the sailing boat was invented by Egyptians while the Romans built roads across Europe.

What is traditional transportation? ›

Context 1. ... traditional means of transport like donkeys and donkey pulled carts and the modern ones are used to transport raw cotton to producers' house, market place, storage area and to ginners' house.

What is the oldest mode of transport? ›

Walking might be the oldest form of transportation, but that hasn't stopped technological innovation from changing how we walk.

How does transport affect the location of a business? ›

Transport improvements can influence location decisions through market and competitiveness changes, such as costs of delivery or increased reliability of logistics systems and lower costs of access to supplies; labour market impacts through access to a larger pool of labour, which might have efficiency benefits; land ...

How does transport affect the location of an industry? ›

Availability of easy transportation always influences the location of the industry. So the junction points of waterways, roadways and railways become humming centers of industrial activity. The finished goods should reach the market at the end of the process of manufacturing.

What is the importance of means of transport? ›

the means of transport supply the required assistance at shortest intervals. The means of transport integrate and unite the nation. They bring the people living in various places closer to one another. They promote the feeling of oneness and consolidate national unity.

What is the importance of transportation in tourism? ›

All transport modes are very important for tourism because they facilitate the movement of tourists from the place of departure to the place of destination. Transportation enables to transport the tourists to locations where other (tourism) services are provided.

What is importance of location? ›

Location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they're based in order to optimize work-life balance. Good location decisions can significantly boost a company's long-term performance. Poor ones can cost millions in lost talent, productivity and capital.

What are the factors of location? ›

The 7 most important location factors
  • Location factor 1: The right image of the district. ...
  • Location factor 2: Accessibility for customers and employees. ...
  • Location factor 3: Environment with quality of life. ...
  • Location factor 4: Size and technical requirements. ...
  • Location factor 5: Inviting building, equipment and layout.

Which are the main factors which influence the location of industry? ›

The factors affecting the location of industries are the availability of raw material, land, water, labour, power, capital, transport and market. Industries are situated where some or all of these factors are easily available. Was this answer helpful?

What is the major factors affecting location decision? ›

The top five major factors identified that may strongly influence international location decisions generally were: costs, infrastructure, labour characteristics, government and political factors and economic factors.

How does transportation affect settlement? ›

Transport routes can also link other settlements to one another and allow for people to travel for pleasure and employment. Communities that are on major transport routes have better access to healthcare, education, and jobs than settlements that are more isolated and rural.

What transport explain? ›

Transport (in British English), or transportation (in American English), is the movement of humans, animals, and goods from one location to another. In other words, the action of transport is defined as a particular movement of an organism or thing from a point A (a place in space) to a point B.

How many types of transport are there? ›

The four primary modes of transportation in logistics are shipments by truck, ship, train and plane — also known as road, maritime, rail and air shipments.

What are the 4 types of transport? ›

Air, Road, Sea and Rail. These are the four major modes of transport (or types) in the logistics industry.

What are the components of transportation system? ›

The components of the transport system in human beings are the heart, blood, and blood vessels. The function of the heart is to pump oxygenated blood throughout the body and receives deoxygenated blood from the various body parts and sends this impure blood to the lungs for oxygenation.

What is the importance of transportation essay? ›

Transportation is important because it facilitates exchange and travel. Without transportation the different regions are isolated from each other. Improved transportation plays an important role in a country's economic growth, tourism industry and infrastructure.

What is the most important factor in transportation design? ›

Cost of Transport: When choosing how to best transport products for import or export, your budget should be the most important factor when making decisions. Costs can vary based on the type and amount of goods that need to be transported. Bear in mind that the cost of transport will influence the cost of goods.


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