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 clustering effect.
  • 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.