Time-space convergence and the reduction in the friction of distance
Transport systems are the means by which material, products and people are transferred from place to place. Communication systems are the ways in which information is transmitted from place to place in form of ides, instructions and images. In 19th century, information could move at the same speed as the transport system carrying it. As time has progressed, the diffusion of new ideas has speeded up so that a technical breakthrough in one part of the world has had an impact on other parts of the world much more quickly than ever before. In terms of communication, television has brought people all around the world images and knowledge of a large number of other places. There have also been a dramatic increase in the number of people with access to fixed line and mobile phone links. Newspapers and maganzines have much more global flavour than they had even 20 years ago. Internet has the greatest impact on communications in modern times at both the business and personal scales. Articles can be translated on the Internet, making them accessible to a much wider number of people. Developments in ocean freight have had a substantial impact on the movement of goods around the world. In addition, there have been significant improvements in road, rail and pipeline transportation. Intermodal transportation means that containers can be moved quickly between ship, road and rail.
The friction of distance refers to the reduced likelihood of people using a service the greater the distance that they live from it. Its effect is to create a distance decay in the use of the service which is a reduction in the amount of movement or spatial interaction between two places, the greater the distance they are apart. The friction of distance is far less in a lowland region with high-level transport systems than in a rugged highland area where transport routes are few and far between. It may vary according to directions if there are significant variations in the physical and human landscape.
Time-space convergence is a concept in which the travel time required between places decrease and distance declines in significance which was developed by Janelle in 1968. It resulted in a shrinking world. Time-space convergence is a direct consequence of transport innovation.
~The example of the travel time between Los Angeles and Santa Barbara in the USA, which took 500 minutes in 1901 and only 100 minutes in 2001. This gives a time-space convergence of 400 minutes or an average rate of convergence of 4 minutes per year.
~The example of the travel time between Edinburgh and London in the UK and those two cities converged at an average rate of 30 minutes per year over a 200-year period.
In reality, the improvements in transport that would reduce the travel time to such an extent would occurred at particular points in time, for example on the opening of a motorway or a new rail link. High usage of infrastructure can lead to congestion and increasing travel time or time-space divergence, which can have an impact on different activities and social groups. New York, London and Tokyo are the world's three important financial centers with a huge volume of communication between them. About 60% of the world's population now have mobile phone subscriptions, showing that mobile phones are the communications technology of choice. Mobile subscriptions increased from 1 billion to 4.1 billion from 2002 until 2008.
~The example of the travel time between Los Angeles and Santa Barbara in the USA, which took 500 minutes in 1901 and only 100 minutes in 2001. This gives a time-space convergence of 400 minutes or an average rate of convergence of 4 minutes per year.
~The example of the travel time between Edinburgh and London in the UK and those two cities converged at an average rate of 30 minutes per year over a 200-year period.
In reality, the improvements in transport that would reduce the travel time to such an extent would occurred at particular points in time, for example on the opening of a motorway or a new rail link. High usage of infrastructure can lead to congestion and increasing travel time or time-space divergence, which can have an impact on different activities and social groups. New York, London and Tokyo are the world's three important financial centers with a huge volume of communication between them. About 60% of the world's population now have mobile phone subscriptions, showing that mobile phones are the communications technology of choice. Mobile subscriptions increased from 1 billion to 4.1 billion from 2002 until 2008.
Changes in the speed and capacity of transport
Transport is one of the world's largest industries and in its various forms directly employs about 4.5 million Americans and accounts for more than 10% of America's economic activity. Transport is a major land use.
The cost of transport has two components:
Fixed (terminal) costs
Line-haul costs
Fixed costs are accrued by the equipment used to handle and store goods, and the costs of providing the transport system. Line-haul costs refer to the cost of actually moving the goods and are largely composed of fuel costs and wages.
Other factors affect the cost of transport too, such as:
The type of load carried (perishable and breakable commodities such as iron ore and coal)
Journey that involve transferring cargo from one mode of transport to another
Varying degrees of competition within and between the competing modes of transport.
For major manufacturing firms in developed countries transport now accounts for less than 4% of total costs. The main reasons for this reduction are:
Major advances
Greater improvements in the efficiency of transfer networks
Technological developments
Advances in international logistics such as multi-modal transport technology, electronic documentation and streamlined customs procedures have expanded the scope for international trade of goods and services which resulted in reshaping of supply chains. In case of transport capacity, the limits have been already reached. In the USA and Europe, lorries traveling on motorways are generally limited to 40 tonnes. However, in Canada and Australia lorries up to 70 tonnes can operate known as mega lorries.
China had about 200km of motorways in 1989 whereas by the beginning of 2008, it had more than 50 000km making it second in terms of length and America's Interstate Highway system has 75 600km of motorways.
Air transport has been a major catalyst in the globalisation process. The global air transport network is a highway for world commerce particularly in movement of business people but increasingly for high-value / low-bulk freight. The global air transport is closely interlinked with global economic growth as face to face contact is still perceived to be of high importance for many types of business. It has also been fundamental to the development of tourism. It contributes 3% of global GDP. It carried 4.8 billion passengers and 89 million tonnes of freight in 2007. It was recorded that there were more than 76 million aircraft movements in 2007. Lastly, it is a major employer. According to the International Civili Aviation Organisation (ICAO) world airline passenger traffic fell 3.1% in 2009 which is the biggest drop in aviation industry history. This was a direct consequence of the global financial downturn.
The airport in Atlanta, Georgia, is the world's busiest airport by passenger traffic serving 90 million passengers a year. It has 151 domestic and 28 international gates and is the main airline hub. The creation of hub airports has been an important concept in extending the connectivity of air transfer.
The Dubai World Central International Airport is currently under construction. It is due to be fully operational in 2017 and will have a larger capacity than any other currently operating airport in the world. It will be capable of handling 120 million passengers a year.
Very large aircraft (VAL) ate steadily increasing in number, and they are defined as planes with seating capacity of more than 400 passengers. The largest examples are: The Airbus 21-st century flagship A380 and Boeing's 747-8. However, tourism is the major source of demand accounting over 70% of air travel globally. Although the promotion of freight carried by air is relatively low, the rate of increase has been very significant. Modern industries whose high-cost / low-bulk products can accommodate air freight charges.
One of the most important changes in air transport has been the gradual deregulation of airlines from international and government control.
Case Study: London Heathrow airport
It is located 21km west of London and in 2007 almost 68 million passengers passed through the airport's terminals on 476 000 flights. It accounts for 30% of all UK air passenger traffic. More than 35% of Heathrow's passengers are business travelers. It is the second busiest airport in the world for cargo. It accounts 55% of all UK air freight by volume. However, a fifth terminal was opened recently and it drew a number of protests. The expansion would increase the number of flights from 420 000 a year to 700 000. The main arguments against the further expansion of the airport are:
About 600 000 people are affected by noise levels of 55 decibels or over. People living close to the airport are affected by noise levels up to 75 decibels. Significant annoyance from aircraft noise begins at 50 decibels. A recent study has highlighted the link between exposure to noise and ill health, the relationship between night-time aircraft noise and high blood pressure which can lead to heart attacks and strokes later on.
However, Heathrow has a huge economic impact to the local region, London as a whole and to the national economy. It provides 72 000 direct employment places, it supports another 100 000 further jobs in the UK. A large number of independent firms depend on Hethrow for much of their business. For example, in-flight catering and security services.
Many companies say that relatively easy access to Heathrow was an important factor in locating in the surrounding region. The airport has been describen as the UK's gateway to the global economy. There is strong relationship between Heathrow and the financial services industry operating in the City of London. Supporters of the airport's expansion argue that if the third runaway is not built, Heathrow will lose business to competing airports such as Paris and Amsterdam.
Transport is one of the world's largest industries and in its various forms directly employs about 4.5 million Americans and accounts for more than 10% of America's economic activity. Transport is a major land use.
The cost of transport has two components:
Fixed (terminal) costs
Line-haul costs
Fixed costs are accrued by the equipment used to handle and store goods, and the costs of providing the transport system. Line-haul costs refer to the cost of actually moving the goods and are largely composed of fuel costs and wages.
Other factors affect the cost of transport too, such as:
The type of load carried (perishable and breakable commodities such as iron ore and coal)
Journey that involve transferring cargo from one mode of transport to another
Varying degrees of competition within and between the competing modes of transport.
For major manufacturing firms in developed countries transport now accounts for less than 4% of total costs. The main reasons for this reduction are:
Major advances
Greater improvements in the efficiency of transfer networks
Technological developments
Advances in international logistics such as multi-modal transport technology, electronic documentation and streamlined customs procedures have expanded the scope for international trade of goods and services which resulted in reshaping of supply chains. In case of transport capacity, the limits have been already reached. In the USA and Europe, lorries traveling on motorways are generally limited to 40 tonnes. However, in Canada and Australia lorries up to 70 tonnes can operate known as mega lorries.
China had about 200km of motorways in 1989 whereas by the beginning of 2008, it had more than 50 000km making it second in terms of length and America's Interstate Highway system has 75 600km of motorways.
Air transport has been a major catalyst in the globalisation process. The global air transport network is a highway for world commerce particularly in movement of business people but increasingly for high-value / low-bulk freight. The global air transport is closely interlinked with global economic growth as face to face contact is still perceived to be of high importance for many types of business. It has also been fundamental to the development of tourism. It contributes 3% of global GDP. It carried 4.8 billion passengers and 89 million tonnes of freight in 2007. It was recorded that there were more than 76 million aircraft movements in 2007. Lastly, it is a major employer. According to the International Civili Aviation Organisation (ICAO) world airline passenger traffic fell 3.1% in 2009 which is the biggest drop in aviation industry history. This was a direct consequence of the global financial downturn.
The airport in Atlanta, Georgia, is the world's busiest airport by passenger traffic serving 90 million passengers a year. It has 151 domestic and 28 international gates and is the main airline hub. The creation of hub airports has been an important concept in extending the connectivity of air transfer.
The Dubai World Central International Airport is currently under construction. It is due to be fully operational in 2017 and will have a larger capacity than any other currently operating airport in the world. It will be capable of handling 120 million passengers a year.
Very large aircraft (VAL) ate steadily increasing in number, and they are defined as planes with seating capacity of more than 400 passengers. The largest examples are: The Airbus 21-st century flagship A380 and Boeing's 747-8. However, tourism is the major source of demand accounting over 70% of air travel globally. Although the promotion of freight carried by air is relatively low, the rate of increase has been very significant. Modern industries whose high-cost / low-bulk products can accommodate air freight charges.
One of the most important changes in air transport has been the gradual deregulation of airlines from international and government control.
Case Study: London Heathrow airport
It is located 21km west of London and in 2007 almost 68 million passengers passed through the airport's terminals on 476 000 flights. It accounts for 30% of all UK air passenger traffic. More than 35% of Heathrow's passengers are business travelers. It is the second busiest airport in the world for cargo. It accounts 55% of all UK air freight by volume. However, a fifth terminal was opened recently and it drew a number of protests. The expansion would increase the number of flights from 420 000 a year to 700 000. The main arguments against the further expansion of the airport are:
- The considerable increase in the number of people whol will be affected by aircraft noise
- Rising air pollution levels due to an increase in flights
- Road traffic
- The impact on wildlife
About 600 000 people are affected by noise levels of 55 decibels or over. People living close to the airport are affected by noise levels up to 75 decibels. Significant annoyance from aircraft noise begins at 50 decibels. A recent study has highlighted the link between exposure to noise and ill health, the relationship between night-time aircraft noise and high blood pressure which can lead to heart attacks and strokes later on.
However, Heathrow has a huge economic impact to the local region, London as a whole and to the national economy. It provides 72 000 direct employment places, it supports another 100 000 further jobs in the UK. A large number of independent firms depend on Hethrow for much of their business. For example, in-flight catering and security services.
Many companies say that relatively easy access to Heathrow was an important factor in locating in the surrounding region. The airport has been describen as the UK's gateway to the global economy. There is strong relationship between Heathrow and the financial services industry operating in the City of London. Supporters of the airport's expansion argue that if the third runaway is not built, Heathrow will lose business to competing airports such as Paris and Amsterdam.
Ocean Transport
Water transport is the cheapest way of moving heavy and bulky goods such as iron ore, coal and grain. The locations of supply and demand for raw materials, semi-processed products and manufactured goods.
Bulk cargo is a commodity that is transported unpackaged in large quantities. The busiest bulk cargo port in the world is the Port of South Louisiana near New Orleans. The container has been the major development in intermodal transportation. It has changed the movement of goods so much that the term "container revolution" has been used to describe the massive change in freight movement. Containers are boxes made of steel or aluminium into which goods are packed. They are 2.4 metres high, 2.4 metres wide and can be 3, 6, 9 or 12 meters long. They can be carried on railway flat-cars, lorries, aircraft, barges and ships, and moved quickly from one to another. Containerisation is tightly linked to roll-on roll-off facilities. The diffusion of container technology around the world has been rapid. Hong Kong was recorded with the most container traffic in 2002 and Singapore in 2008. Nine of the twelve busiest container ports in 2008 were in Asia, illustrating the growing importance of this continent in world trade.
Ultra-large container vessels (ULCV) are making increasing inroads into the container market. They could reduce average transport costs by up to 40%. They have much higher financial break-even points. Infrastructure limits such as the size of canals and ports may mean that they are unable to function on some important routeways.
Case Study: Panama Canal
The Panama Canal has long been a crucial link in the global supply chain. However, since 1970s an increasing number of ships have been too big to pass through it. The larger container ship nowadays can carry 12 000 containers but the biggest that can fit in the canal at its current size carry only 4500. Since mid 1990s, it has become obvious that the canal will need to widened. The upgrading of the canal to accommodate more and larger vessels will result in a major improvements in global shipping movement. It cost was estimated at about 5.25 billion dollars.
Water transport is the cheapest way of moving heavy and bulky goods such as iron ore, coal and grain. The locations of supply and demand for raw materials, semi-processed products and manufactured goods.
Bulk cargo is a commodity that is transported unpackaged in large quantities. The busiest bulk cargo port in the world is the Port of South Louisiana near New Orleans. The container has been the major development in intermodal transportation. It has changed the movement of goods so much that the term "container revolution" has been used to describe the massive change in freight movement. Containers are boxes made of steel or aluminium into which goods are packed. They are 2.4 metres high, 2.4 metres wide and can be 3, 6, 9 or 12 meters long. They can be carried on railway flat-cars, lorries, aircraft, barges and ships, and moved quickly from one to another. Containerisation is tightly linked to roll-on roll-off facilities. The diffusion of container technology around the world has been rapid. Hong Kong was recorded with the most container traffic in 2002 and Singapore in 2008. Nine of the twelve busiest container ports in 2008 were in Asia, illustrating the growing importance of this continent in world trade.
Ultra-large container vessels (ULCV) are making increasing inroads into the container market. They could reduce average transport costs by up to 40%. They have much higher financial break-even points. Infrastructure limits such as the size of canals and ports may mean that they are unable to function on some important routeways.
Case Study: Panama Canal
The Panama Canal has long been a crucial link in the global supply chain. However, since 1970s an increasing number of ships have been too big to pass through it. The larger container ship nowadays can carry 12 000 containers but the biggest that can fit in the canal at its current size carry only 4500. Since mid 1990s, it has become obvious that the canal will need to widened. The upgrading of the canal to accommodate more and larger vessels will result in a major improvements in global shipping movement. It cost was estimated at about 5.25 billion dollars.
Energy pathways
The long running tensions that exist in the Middle East caused serious concerns about the vulnerability of oilfields, pipelines and oil tanker routes. Middle East exports are vital for the functioning of the global economy. Strait of Hormuz is one of the world's major energy pathways. It is a relatively narrow body between the Persian Gulf and the Gulf of Oman. The strait and its narrowest is 55km wide. Roughly, 30% of the world's oil supply passes through the strait, making it one of the world's strategically important chokepoints. Iran has at times indicated that it could block this vital shipping route in the event of serious political tension. Strait of Malacca between Malaysia and the Indonesian island of Sumatra is another potential checkpoint of concern to China and other Asian countries.
A new age of piracy?
Piracy is the crime of attacking or stealing from ships at sea. It is particularly active off the coast of Somalia in East Africa. Piracy in this region has been a threat to international shipping since the beginning of the Somali Civil War in the early 1990s. A number of countries, including China, Japan and the UK have sent warships to the area to protect commercial shipping.
The long running tensions that exist in the Middle East caused serious concerns about the vulnerability of oilfields, pipelines and oil tanker routes. Middle East exports are vital for the functioning of the global economy. Strait of Hormuz is one of the world's major energy pathways. It is a relatively narrow body between the Persian Gulf and the Gulf of Oman. The strait and its narrowest is 55km wide. Roughly, 30% of the world's oil supply passes through the strait, making it one of the world's strategically important chokepoints. Iran has at times indicated that it could block this vital shipping route in the event of serious political tension. Strait of Malacca between Malaysia and the Indonesian island of Sumatra is another potential checkpoint of concern to China and other Asian countries.
A new age of piracy?
Piracy is the crime of attacking or stealing from ships at sea. It is particularly active off the coast of Somalia in East Africa. Piracy in this region has been a threat to international shipping since the beginning of the Somali Civil War in the early 1990s. A number of countries, including China, Japan and the UK have sent warships to the area to protect commercial shipping.
Extension and density of networks
The internet is a group of protocols by which computers communicate. It involves innumerable servers and cables. The concept was developed in 1970 at the University of California, Los Angeles. It is the fastest growing mode of communication ever. It took 38 years for radio to reach 50 million users, 13 years for television and just 4 years for the internet to reach the same number of users. Internet traffic is expanding at about 50% a year.
The internet penetration rate as a percentage of the population is far lower in Africa than in any other world region.
The advantages of the internet will not just be economic but also social and political. Certain levels of infrastructure are vital if international business is to be attracted to a country or region on a significant scale. The speed of connection is becoming increasingly important, particularly for business use. For every 5 billion dollars invested in broadband infrastructure to create these networks, 97500 new jobs in the telecommunications, computer and IT sectors will be created.
Average broadband speed in OECD countries.
The fastest 3
The digital divide is a term used to refer to inequalities in access to ICT and it could be seen between:
"Silver surfers" are users aged over 60 and their number is increasing. Many products and services are offered at lower prices online compared with being purchased in a shop, which can put older people on lower incomes at a disadvantage. Many of the poorest countries lack a universal electricity supply which is a major factor in lack of connectivity. Digital music sales accounted for more than a quarter of the music industry's global income in 2009, for the first ever. The use of the internet for music sales is even more age sensitive than general Internet use with teenagers and young adults dominating this section of the market.
The internet penetration rate as a percentage of the population is far lower in Africa than in any other world region.
The advantages of the internet will not just be economic but also social and political. Certain levels of infrastructure are vital if international business is to be attracted to a country or region on a significant scale. The speed of connection is becoming increasingly important, particularly for business use. For every 5 billion dollars invested in broadband infrastructure to create these networks, 97500 new jobs in the telecommunications, computer and IT sectors will be created.
Average broadband speed in OECD countries.
The fastest 3
- Japan
- South Korea
- France
- Mexico
- Turkey
- Poland
The digital divide is a term used to refer to inequalities in access to ICT and it could be seen between:
- developed and developing countries
- urban and rural areas
- ethnic and socio-economic groups in the same country
- different age groups
- males and females
"Silver surfers" are users aged over 60 and their number is increasing. Many products and services are offered at lower prices online compared with being purchased in a shop, which can put older people on lower incomes at a disadvantage. Many of the poorest countries lack a universal electricity supply which is a major factor in lack of connectivity. Digital music sales accounted for more than a quarter of the music industry's global income in 2009, for the first ever. The use of the internet for music sales is even more age sensitive than general Internet use with teenagers and young adults dominating this section of the market.