TRANSPORTATIONThe decisions a business owner must make regarding transportation of products are closely related to a number of other distribution issues. For example, the accessibility of suitable means of transportation factors into decisions regarding where best to locate a business or facility. The means of transportation chosen will also affect decisions regarding the form of packing used for products and the size or frequency of shipments made. Although transportation costs may be reduced by sending larger shipments less frequently, it is also necessary to consider the costs of holding extra inventory. The interrelationship of these decisions means that successful planning and scheduling can help business owners to save on transportation costs.
Within freight transport, railway transport rose substantially, while maritime transport dropped by a fifth. Transport of goods by railway surged by 14.9%, and the growth of road freight transport remained strong at 7%. The rapid expansion of land transport is explained by the robust domestic GDP growth and the high increase in harbour transport (10.6%). Roughly in the middle of 2006, the global growth of maritime transport eased off, which led to several quarterly decreases in the volume of this form of transport, including the first quarter of 2007, when the volume of Slovenian maritime transport fell by 19.9%. Over the past three years, the volume of road freight transport enjoyed the highest growth (by more than 50%) within freight transport (railway transport rose by 13.8%), while harbour and maritime transport rose by over 30%. Road freight transport is the main transport activity within the transport, storage, and communications sector, which has also seen the biggest expansion in the last few years. In 2006, the three main transport activities within the transport, storage, and communications sector were road freight transport, which employed 35.8% of workers in this sector, railway transport (15.2%), and the shipping industry (6.6%; both companies and sole proprietors are included, and the latter are also counted as employees). The corresponding shares of value added generated in these three branches are 23.3%, 12.0%, and 6.3%. Looking at the structure of workers employed in transport activities within the sector in 2003-2006, the highest increase of 3.2 p.p. was recorded in the share of road freight transport, while the shares of railway transport and shipping declined by 1.3 p.p. and 2.2 p.p., respectively (a similar direction and intensity of changes was also observed in the structure of value added; see graph). The number of employees in the transport segment of the transport, storage, and communications sector rose by 2,053 to 39,028. In 2006, road freight transport employed 18,807 workers, 2,425 more than in 2003. The number of workers in the forwarding industry fell by 950 to 3,445, while the number of railway workers declined by 326 to 7,985. The decline in the volume of the forwarding industry was largely caused by Slovenias entry to the EU. Data regarding both the volume of transport and the size of the activity are unfavourable in terms of sustainable development, since cargo is still largely being moved from railways to roads, rather than the other way around.
In the final quarter of 2007, passenger transport saw the largest increase in air transport and the largest decline in city bus transport. Within land passenger transport, the declining trend of bus transport continued. The annual decline in the number of passengers in intercity and city bus transport (-3.9% and -3.5%, respectively) was also similar to the average annual decrease in the last three years (5.9% and 3.3%, respectively). The volume of railway passenger transport in the final quarter of 2007 did not strengthen significantly year on year; the 2.4% growth recorded in 2007 was also only slightly above the three-year average (2.1%). Air transport and airport transport posted vigorous growth in the final quarter of last year (27.6% and 19.6% year on year, respectively). The increases in 2007 (13.7% and 13.3%, respectively) were also somewhat greater relative to the average annual rises in the last few years. In air transport, this also enabled an increase in aircraft fleet (lease of one and purchase of two new aircrafts) and in airport transport, the completion of the first phase of the new passenger terminal and arrival of two new airline companies, which started to fly regularly from Ljubljanas airport last year. Within freight transport, road transport has increased significantly, whereas maritime freight transport is still decreasing slightly, following the boom recorded in this branch two years before. In the final quarter last year, the volume of freight transport by rail decreased by 3.7% relative to the same quarter of 2006, whereas 2007 as a whole saw a solid 6.8% growth, which exceeded the average growth in the last three years (4.6%). Road freight transport strengthened by as much as 19.1% in the final quarter of 2007; the high 13.4% annual growth nevertheless fell short of the annual average of the last three years by almost 2.p.p. Against the background of favourable international trends, maritime freight transport increased by a respective 30.6% and 41.8% in 2004 and 2005, whereas it dropped by a respective 6.4% and 5.2% in 2006 and 2007. The fall in the volume of maritime transport in the final quarter last year (-8.7%) indicates that the slowdown continues. Harbour freight transport in the final quarter and in 2007 as a whole recorded only a slight increase, particularly compared to the high 22.5% growth in 2006 (average annual growth in the last three years totalled 9.5%). Road freight transport by domestic carriers recorded a much stronger increase than railway freight transport over the last few years, largely due to the increasing international transport (see graph). The volume of road freight transport (in tonne kilometres - tkm), which was almost as much as three times greater than railway transport in 2004, increased by 4,728 million tkm until 2007 (by 52.5%), whereas railway transport increased only by 454 million tkm (by 14.4%). In three years, road freight transport became almost four times greater than railway transport; the share of road transport within freight transport rose to 79.2%. Road transport growth strengthened particularly after Slovenias accession to the EU and mainly through increased international transport (see SEM 1/2008: 14). The largest increase was recorded in cross-trade transport and cabotage, by 2,161 million tkm (by 155.2%). International transport of goods loaded in Slovenia increased by 1,323 million tkm (by 49.4%) and international transport of goods unloaded in Slovenia by 937 million tkm (by 35.1%). National road transport in Slovenia increased by a mere 306 million tkm (by 13.5%).
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