Transportation, Communications, and Utilities Industry

The branch of manufacture and trade based on freight , transportation, communications, and
utilities.
Freight and transportation include railroads, trucking, and public transportation, including
transit systems, highways, roads, and bridges.
Communications include radio and television, but not newspapers and magazines .
Utilities include water, gas, electricity, sewage, and irrigation, including publically and privately
owned infrastructure such as dams, and wastewater treatment plants.

Transportation, Communications, and Utilities Industry Categories:

1. Air Transportation Industry: All establishments engaged in furnishing domestic and

foreign transportation by air and also those operating airports and flying fields and
furnishing terminal services. This does not include establishments that may incidentally
use airplanes, such as crop dusting and aerial photography.

Most important means of air transport are:

1) Air transport is considering that world is becoming a global village. It is the fastest means of
transport and one can reach the destination in a few hours covering the distance of hundreds
of kilometers.
2) It is free from surface hindrances such as inaccessible mountains, dense forests, marshy
lands or flooded areas.
3) It is most important due to its utility in national defense.
4) It also connect countries of different continents making earth a global village.
5) It is suitable for transporting fruits, vegetables or high value goods like costly drugs and
sophisticated machines in desired time frame.
6) It is very useful at the time of natural or any other calamities for saving people or supplying
goods of their basic requirements immediately.

2. Communications Industry: All establishments furnishing point-to-point communications

services, whether intended to be received aurally or visually; and radio and television
broadcasting. This also includes paging and beeper services, and microwave or satellite
facilities. This does not include establishments that provide telephone answering services.

3. Electric, Gas, and Sanitary Service Industry: All establishments engaged in the generation,
transmission and/or distribution of electricity or gas or steam. This also includes water and
irrigation systems, and sanitary systems engaged in the collection and disposal of garbage,
sewage, and other wastes by means of destroying or processing materials. This includes
publically and privately owned infrastructure such as dams and wastewater treatment plants.

4. Highway Transportation: All public highways, roads, and bridges. This includes such related
infrastructure as guardrails, streetlamps, rest stops, embankments, and sound barriers.
5. Local and Suburban Transit Industry: All establishments primarily engaged in furnishing
local and suburban passenger transportation by bus, rail, or subway, either separately or in
combination, and establishments engaged in furnishing highway passenger transportation and
passenger terminal and maintenance facilities.

6. Motor Freight Transportation and Warehousing Industry: All establishments furnishing

local or long-distance trucking or transfer services, or those engaged in the storage of farm
products, furniture and other household goods, or commercial goods of any nature. This also
includes terminal facilities for handling freight. This does not include natural gas storage or the
establishments of the United States Postal Service.

7. Pipelines, Except Natural Gas Industry: All establishments primarily engaged in the pipeline
transportation of petroleum and other commodities. This does not include establishments
primarily engaged in natural gas transmission.

8. Railroad Transportation Industry: All establishments furnishing transportation by line-haul

railroad, and switching and terminal establishments. This does not include railways serving
single municipalities, contiguous municipalities, or a municipality and its suburban areas.

9. Transportation Services Industry: All establishments furnishing services incidental to

transportation, such as forwarding and packing services, and the arrangement of passenger and
freight transportation.

10. United States Postal Service: All establishments of the United States Postal Service. This
does not include establishments transporting mail on a contract basis for the U.S. Postal Service

11. Water Transportation Industry: All establishments engaged in freight and passenger
transportation on the open seas or inland waters, and establishments furnishing such incidental
services as lighterage, towing, and canal operation. This also includes excursion boats,
sightseeing boats, and water taxis.

The role of transport and communication sectors to the economic development and discuss
the importance of transport and communication

Importance of Transport and Communication :

Rail, road, air and ships are including the transport sources. While postal, telephone, telegraph,
internet, radio and T.V are included in the communication sources. These sources play very
effective role in the economic development of any country. The importance of these sectors
can be judged by the following facts :

1. Mobility of Factors of Production :

If the means of transport and communication are improved, quick and cheap they will increase
the mobility of factors of production. The reward of all the factors will become equal.
2. Stable Prices :
The developed system of transport and communication helps in stabilizing prices of the
commodities through our the country.

3. Supply of Raw Material :

Due to the quick and cheap transport system, raw material can be easily supplied to factories
on lower cost. Even from outside the country it can reach in time.

4. Supply of Manufactured Goods :

From the factories goods can be easily transported to the markets if transport is efficient.

5. Use of Natural Resources :

To use the idle resources of the country transport sector plays very important role. The
production of the country can be increased with the development of transport and
communication. Minerals like coal, gas and oil can be explored easily.

6. Extension of Market :
If the means of transport and communication are cheap and fast then commodities can be
easily carried over to long distance and the size of the market will expand. Today domestic and
international market has been expanded due to the modern transport system.

7. Specialization :
If the transport and communication system is developed the different areas will adopt the
process of specialization. Due to specialization the cost of production reduces.

8. Stimulates Trade :
The cheap and quick means of transport simulates the trade inside and outside the country.

9. Agricultural Development :
Due to developed transport system fertilizer and seeds can be provided in time to the framers.
It will increase the production of agriculture sector.

10. Industrial Development :

The machine and raw material can be imported from other countries for the industrial sector. If
our means of transport and communication are fast and then experts services can also be hired.
11. Importance for Emergence :
In case of food shortage we can import the food from other countries. Transport and
communication importance can not be ignored in case of floods and storms also.

12. Increase in Employment :

This sector is providing the employment to a large number of people. With the development of
this sector we can reduce the rate of unemployment.

13. Increase in the Income of the State :

The development system of transport and communication increases the income of the state.

14. Spread of Education :

If the developed transport system is available in the country then students can visit from
different areas to receive education. Radio , T,V also plays its role in increasing the education in
the country.

15. Improves the Sense of Brotherhood :

Improved transport and communication system has developed the sense of unity and
brotherhood. Today every person can move from one place to another easily.

16. Increase in Social Welfare :

Due to the developed system of transport and communication we can provide the basic needs
of life to the poor nations.

17. Sound Defence :

A well developed transport and communication system enables the government to defend the
country on sound footing.

18. Political Awareness :

Radio, T.V, internet and cheap transport facilities create the political awareness. They are in a
better position to know their economic and social problems. They can also cooperative to solve
these problems.