TRL 3705 EXAM PACK.

TRL 3705 EXAM PACK. Standard gauge is 368mm wider than the cape gauge. Therefore, the wheel track of standard gauge rolling stock is 34.5% wider than cape gauge. This means rolling stock is much more stable on the track. An increase in stability on passenger rail means increased customer utility levels meaning passenger comfort and safety levels are improved. An increase in stability on freight rail means less movement of the rail car, resulting in less damage to the goods transported. Stakeholder confidence is improved, which ultimately leads to an increase in demand. Standard gauge tracks could therefore assist in increasing rail demand above its current level. QUESTION 2 2.1) Financial concerns – the financial implications of the damage to rolling stock and railway tracks, as well as the cost of repairing or replacing freight goods when accidents occur, can be significant in the rail freight sector. As TFR is unsubsidised and pays all its own costs and investments directly from its balance sheet, this can be crippling to the financial performance of the operator. Customer demand- safety concerns and high incidences of accidents such as derailments and collisions can have a significant effect on the demand for freight rail transport. When safety reports such as the safety regulators annual report are published, or when accidents are publicised in the media, customers need to ensure that their goods arrive at their destination on time in good condition. Accident and unsafe operations can mean that goods are delayed or damaged. Customers see a poor safety record as a reduction in service quality and this increases the risks associated with the transport mode. Employee reactions and labour supply – many of the people who are injured or affected during accidents are railway employees. Just as freight customers do not wish to transport their freight on unsafe trains or routes, employees do not wish to work in an unsafe environment. Deterioration in the safety of a workplace can result in the loss of employees. 2.2) Average journey time, reliability and opportunity cost are closely linked when it comes to passenger demand. Average journey time is important for commuters because they are time sensitive travellers – in other words, they need to get to work each day, on time and they therefore need to choose the shortest journey available. However, it is important to note that they will factor in the cost of the journey, with the time saving, when compared to other transport modes available. For similar reasons- such as time sensitivity, and the purpose of the journey (such as, in this case, commuters getting to their places of work)- passengers will increase their demand for a reliable service that runs on time. If the service is unreliable commuters will risk arriving at work late, or in some extreme cases, missing work for the day. These two variables journey time and reliability are influenced by the opportunity cost of the commuter. Therefore, high opportunity costs and a high level of time sensitivity mean that commuter demand is strongly affected by journey time and reliability variables. QUESTION 3 3.1) Accessibility- if a commuter rail service is reliable and affordable, and it offers a high-quality service to its passengers, then it allows communities and individuals access to locations and opportunities. Passengers will have access to employment opportunities in different areas and employers will have access to labour. Decreased transport costs- commuter rail services should be a cheaper transport mode than other modes because they are subsidised. Commuters will be able to limit their monthly travel costs and increase their disposable income levels. External costs- a well-functioning and efficient commuter rail service allows commuters to decrease their usage of other transport modes such as buses and taxis. Rail transport has fewer negative externality costs than road transport does. Railway stations- if a rail service is operating efficiently and is sufficiently in demand, the stations along the route will benefit from this demand. retail outlets within the stations themselves will have access to a larger market and the areas surrounding the stations will have the opportunity to target this market as well. 3.2) A number of areas were disadvantaged by the railway network. Railways bypassed many rural areas with large black populations. In cases this was due to the terrain of the areas, such as the Transkei which is exceptionally rugged. However, preference was most certainly given to white business, and the economic viability of black areas was not a priority for the government at the time. For example, Lesotho supplied Kimberly with wheat before the railway line was completed, and was a large source of income for the area. Once the town was connected to the cape colony, wheat and grains were imported severely reducing the demand for those from Lesotho. A decrease in demand has many latent effects, in this case it crippled the economy and dramatically reduced the living standards of the locals. As such the spatial distribution of the railways increased the racial segregation. Question 4 4.1) A) positive economic implications Direct benefits include job creation, improved energy provision and a new potent revenue stream for government. The construction of the pipeline would directly employ labourers and construction companies to build the infrastructure. New jobs are created and employment levels increase. Another direct benefit would be the increase in energy transmission and distribution across the country. B) Negative externalities Caused mainly during the construction of the pipeline. During construction pipelines cause noise and air pollution and they disrupt the agricultural activities of the land on which they are built. 4.2) Dunnage- when cargo or freight is transported, it generally needs to be packaged. Dunnage refers to the loose materials that are used to ensure that these items do not shift or get damaged during transit. Backhaul journey- is a transport logistics term that describes the journey that vehicles make when they travel from their destination back to their point of origin. For example, if a truck transports potato from a farm to a retail outlet, once it has delivered the potatoes, it must return to the farm for the next load. This return journey is called the backhauls journey. 4.3) Please refer to leaning unit 10. October/November Question 1 1.1) This bill serves to consolidate economic regulation of the transport sector into a single framework and policy, through the creation of the single transport economic regulator (STER) and the transport economic council. These entities will create an overarching policy for rail as a whole in south Africa (as well as a policy for each transport mode), operate independently of transport organisations like Transnet and PRASA, and will be accountable to the minister of transport. 1.2) The commuter rail is more important to the economy of the country, then inter city rail, and therefore requires more urgent attention. If the government invests in the commuter rail services and creates a more reliable efficient and safe operation, the economy will benefit from an increase in accessibility. 1.5) 1.4. Standard gauge is the most common track gauge used across the world, with just under 60% of all railway’s lines. As the name suggests, it is considered to be the standardised track gauge. Standard gauge is 368mm wider than the cape gauge. Therefore the wheel track of standard gauge rolling stock is 34.5% wider than cape gauge. This means rolling stock is much more stable on the track. An increase in stability on passenger rail means increased customer utility levels meaning passenger comfort and safety levels are improved. An increase in stability on freight rail means less movement of the rail car, resulting in less damage to the goods transported. Stakeholder confidence is improved, which ultimately leads to an increase in demand. Standard gauge tracks could therefore assist in increasing rail demand above its current level. Question 2 2.1) a) Exports- are critical for the development of a countrys economy because they allow industries to access much larger markets. Larger markets mean that businesses are able to take advantage of economies of scale. In other words, producing larger quantities and therefore reducing the cost per unit. b) External costs- freight rail can be a useful tool for reducing the negative externalities created by the freight transportation system. These externalities include air pollution, carbon dioxide (Co2) emissions, traffic congestion, accidents and policing. Rail offers a reduction in congestion on roads. 2.2) a) Time saving- travel time is generally considered to be wasted time, and in economics it is often referred to as a disutility. A natural deduction from this is that transportation modes should aim to reduce travel time by increasing speed. However, it is important to note that average speed is more important than maximum speed. Maximum speed can be achieved only during certain parts of the overall journey while the rest of the journey includes stoppage time at stations and time spent slowing down to stop. All of these factors affect the journey time of the train from origin station to destination station for a passenger. Station-to station journey times As discussed in learning unit 2, business travellers have a higher opportunity cost of travel than leisure travellers, and more time sensitive. Time spent on a train is time spent out of the office, therefore it reduces productivity and increases the cost of the employee to the employer as the employee is operating less efficiently. Shorter station-to-station journey times reduce this opportunity cost, and HSR services are therefore beneficial for business travellers. An additional benefit is that high-speed trains often offer additional services such as complimentary on board WIFI, allowing business passengers to work whilst travelling. Although they are still considered to be more productive in the office, this alleviates some wasted productivity and reduces the opportunity costs even further.