Efficient transport system will reduce inflation – Experts

Experts in the Transportation sector have asserted that the country can tame the spiralling inflation rate with an efficient transportation system.

The experts who made the assertion at a seminar organised by the Transport and Aviation Correspondents Association (ATACA) said an efficient transport system was key to a price reduction of commodities in the marketplace and taming the rising inflation in the country.

In a keynote address, a lead economist, Dr. Emeka Okengwu, argued that while resources remain the foundation of economic activities, the commodification of the economy has been linked with higher levels of material flows.

He stated “An efficient transport system offering cost, time, and reliability advantages enables goods to be transported over longer distances. This facilitates mass production through economies of scale because larger markets can be accessed.

“The concept of just in time in supply chain management has further expanded the productivity of production and distribution with benefits such as lower inventory levels and better responses to shifting market conditions.

“Thus, the more efficient transportation becomes, the larger the markets that can be serviced and the larger the scale of production. This results in lower unit costs.”

Okengwu explained that “when transport is efficient, the potential market for a given product (or service) increases, and so does competition. A wider array of goods and services becomes available to consumers through competition, reducing costs and promoting quality and innovation.

“Transport also contributes to economic development through job creation and derived economic activities. Accordingly, many direct (freighters, managers, shippers) and indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employment are associated with transport.

“Producers and consumers make economic decisions on products, markets, costs, location, and prices, which are based on transport services, availability, costs, capacity, and reliability.”

The President of the Nigeria-Bangladesh Business Technology Forum, Bob Achanya, said transportation policies in the country need to be reviewed.

He lamented that Nigeria with inland waterways connecting over 28 states remains faced with road congestion with an influx of trucks.

Achanya stated that with an effective means of transportation in the country, the cost of products will drastically be reduced, taming inflation.

On his part, the Minister of Transportation, Sen. Sa’id Alkali, stated that there is a need for stakeholders in the sector to support the federal government’s efforts in harnessing the gains of the industry for the development of the nation.

Represented by the Special Assistant (Technical), Dr. Shuaibu Danwaka, Alkali expressed concern that Nigerian farmers are losing billions of naira due to a lack of modern storage facilities for consumables.

He said the challenges confronting the transport sector can be addressed if all transport systems are harnessed and made easy for the farmers and other Nigerians to navigate easily with choice.

The minister cautioned the media to be professional in sharing information about the progress in the transportation sector.

In his address, the Chairman of ATACA, Mr. Leopard Oru, said in harnessing the Aviation, Railway, Marine, and Blue Economy sectors for Sustainable Transportation in Nigeria, Land Transportation, and the Railway sub-sectors should be guarded and funded properly while seeking collaborations around the globe.

“For our transportation system and businesses, whether Air, Land or Sea to thrive, Security and Safety is key. Therefore, we implore Security agents, regulators, and enforcers of the relevant laws to step up their game,” he stated.