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6/1/2019 12:57:00 AM ID:980311078910
Two sides of the coin; trade and transportation

Two sides of the coin; trade and transportation

The role and impact of transportation on production, job opportunities and the national economy of countries cannot be overlooked. Transportation, particularly maritime transportation can be considered as mainline and the strategic point of imports, exports and income of countries.
Based on this, in many developed and developing, transportation accounts for 6-12 percent share of Gross domestic product (GDP).
Trade and transportation are regarded as two axes of countries’ growth and development. These two main axes are interdependent. Since proposing this theory that countries which enjoy comparative advantage in producing some goods, they must focus on producing those specific goods, the relationship between trade and transportation was highlighted more than ever. So that, nowadays the transportation of goods will be impossible without trade and on the other hand, the trade will be impossible without transportation.
In a nutshell, it must be affirmed that transportation and trade are two parallel processes which prefer one over the other does not seem to be logical. In this regard, contribution and effective interaction of all players and beneficiaries of trade and transportation area is very critical issue.
The Outstanding share of maritime transportation in global trade 
The effective transportation will be associated with an increase in the international trade. In better put, transportation is a main tool for expanding international trade as well as meeting the various needs of economy activists. Currently, we have different kinds of transportation including; road, railway, maritime and air transportation.
In the old days, traders themselves were responsible for transporting goods from one country to another, but with an increase in the speed of communications, transportation and movement, they have found a need to increase the speed of trade.
However, among different methods of transportation, maritime transportation accounts for the highest share in the international transportation. In a way that in different countries, this share is between 80-90 percent. But it also depends on that to what extent countries are surrounded by land or sea.
Nowadays, container vessels with a carrying capacity of more than 20,000TEU, transport goods from one point to the other point. These kinds of vessels have changed the concept, nature and trend of transportation market, as a result, trade has undergone a complete change. As matter of fact, joining these vessels to the global fleet caused a decrease in trade costs and an increase in speed of transportation. Simultaneously, services are increasingly developing. In light of these developments, we are able to easily monitoring the condition of vessel and goods in every moment.
It can be asserted that in terms of scale, cost, time and security in transporting goods, maritime transportation occupies the first position among other methods of goods transportation. Because the goods will be transported from one corner of the world to the other corner, in a limited time and with very low cost. It should be added that this trend will be influential on final production cost.
In other words, maritime transportation has the highest share in the global trade. Joining ultra-large container vessels (ULCVs) to the global fleet had led many shipping lines to record an unprofitable business. 
In hinterlands, railway and road transportations are responsible for Capillary distribution. In this regard, the share of road transportation in Gross domestic product GDP is mainly the largest share in most countries of the world. But with regards to mass distribution and transportation from one continent to another, maritime transportation stands in the first place. 
Less expensive transportation, more production
While on a global scale, the share of transportation in final production cost is between 6 -7 percent, however in Iran, this share reaches 12 percent. The reason for this obvious difference is subsidy payment to the transportation section by Iranian government.
Transportation experts believe that reducing the cost of transportation will result in an upward trend in trade. It is worth noting that during the recent decades, the issue of transportation is not just the issue which has been proposed and discussed, but the issue of logistic and supply chain like warehouse, products maintenance, designing for warehouse expansion, the speed of goods flow and inventory management have also received attention.
Based on global trade system, goods inventory including agricultural and industrial goods should be consumed quickly, so that a next wave of production can reach to the consumer as early as possible.
In better put, the longer shelf life of the products in warehouse, the higher cost will be imposed on consumer. Currently, the global production system will be regulated based on the predicted demand.
With the advancement of Information technology IT industry, it has found a strong position in the transportation industry, in a way that now, it is possible to observe vehicle through electronic systems and technology management. Therefore, the information will be available for producer on time. Then in accordance with market demand, the producer will deliver its productions to the market through quick and fast methods of transportation. 
Overall, a set of factors such as applying IT, technique and method of pricing are very effective. 
The Share of transportation methods in GDP
The amount of impact of transportation in various countries is different and also influenced by macroeconomic policies. For instance, 80 percent of transportation in some countries is done through road. In Iran, around 85 percent of domestic transportation is related to road transportation and around 12 percent is related to railway transportation.
However, in some countries we can observe contrary figures. In European countries, the issue of sustainable development and environment has resulted in more focus on railway transportation. 
For example, In Germany,19 percent of goods transportation is done though railway, on the other hand, the average percentage of railway transportation in Europe is 18 percent. This share in Russia and US reaches 88 and 38 percent, respectively. 
In Iran’s economy, about 80 percent of transportation is related to domestic road transportation, the share of maritime transportation and railway transportation reaches 16 and 4 percent, respectively.
In the world, air transportation is responsible for transporting 25 to 30 percent of goods which are significant in terms of value.
Maritime transportation with more than four century history in the world is very older than other transportation methods. Moreover, given that the risks of this type of transportation is more than other methods of transportations, the type of legislation and regulations are in a way that consider specific conditions for operators and carriers.
Fortunately, international maritime transportation fleet in Iran has experienced a remarkable growth and is very modern in comparison with other methods of transportation. There is no shred of doubt that the performance of maritime transportation is notably higher than other methods. It is important to highlight that the performance of maritime transportation in Iran has been better than even countries such as UK. It seems that in Iran, other sectors of transportation should make use of maritime transportation model as a pattern.
The development of transportation is equal to job growth and production
Transportation as an economic activity has a direct influence on economic growth and creating job opportunities. It like other economy activities creates added value and makes a big contribution to economic growth. It also provides ample job opportunities.
One of the main purposes of production for produces is exports. Therefore, transportation and its prices will be very effective on production. 
The majority of raw materials, intermediate goods necessary for domestic manufactures are dependent on maritime transportation.
The active network of maritime transportation through on time delivery of raw materials will make a considerable contribution to the productivity of industries and manufacturers. As a result, the goods will be delivered to the customers with suitable final production cost and desirable quality.