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Difficulty: MediumTransportation: Modes and Functions in Trade

A mining enterprise operating in Jos needs to regularly transport 8,000 metric tons of heavy, bulky raw iron ore over a distance of 700 kilometres to a steel rolling mill in Ajaokuta. Which mode of transport is most economically suitable for this operation?

  1. Rail transport, because it offers the lowest cost per ton-kilometre for heavy and bulky goods over long inland distances.Answer
  2. B
    Air transport, because it provides maximum speed of delivery and reduces transit inventory holding costs.
  3. C
    Road transport, because it provides direct door-to-door delivery and total schedule flexibility for all freight sizes.
  4. D
    Commercial trade, because it coordinates auxiliary storage and financial services directly at the destination point.

Answer

Rail transport, because it offers the lowest cost per ton-kilometre for heavy and bulky goods over long inland distances.
Rail transport is ideal for moving low-value, heavy, and bulky raw materials (such as iron ore, coal, and cement) over long inland distances because of its high carrying capacity per journey and low unit transport cost per ton-kilometre.

Step-by-Step Solution

1
Analyze the cargo characteristics and route requirements.
The cargo is raw iron ore, which is heavy, bulky, low-value per unit weight, and moving over a long distance (700 km).
Selecting an appropriate transport mode depends on cargo weight, volume, urgency, value, and distance.
2
Compare transport mode capabilities against cargo requirements.
Rail transport handles massive freight volumes in single trainloads at the lowest operational cost per ton-kilometre over long land distances.
Road transport suffers from low carrying capacity per vehicle and higher unit costs for long-haul bulk, while air freight is cost-prohibitive for raw mineral ores.
3
Select the correct option based on economic suitablity.
Rail transport is the most economically suitable mode.
It fulfills the requirement of transporting heavy, bulky commodities efficiently over long overland distances.

Key Concept

Suitability of Rail Transport for Heavy and Bulky Bulk Cargo
Estimated Time:1m 0s
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Topics

Transportation: Modes and Functions in Trade

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