The Four Main Locational Influences of Transportation
The influence of transportation on location choice can be
summarized in four major categories:
- Transport costs. The classic influence of transportation
where a location is selected in view to minimize total transport
costs. Weber's location
triangles are standard approaches to such problems.
- Agglomeration economies. The benefits derived from locating
in proximity to other activities, even if the location is
suboptimal. This involves the sharing of common infrastructure
such as roads and utilities as well as easier interactions
between firms in proximity. Often referred as the
- Economies of density. The benefits derived from
the increasing density of features on the costs of accessing
them. This could involve markets (e.g. consumption, labor) or
resources (e.g. mining, agriculture).
- Co-location. The benefits derived from having a direct
access to a transport terminal. A strong interdependency is
created between the terminal and the activity.