THE OPEN UNIVERSITY OF TANZANIA
FACULTY OF BUSINESS MANAGEMENT
MBA PROGRAMME
OME 627: TRANSPORT ECONOMICS AND PLANNING
COURSE OUTLINE
MBA LOGISTICS AND TRANSPORT
OME 627: Transport Economics and Planning
Course overview
This course is aimed at providing students at this level with an understanding of many of the core
transportation concepts and ideas available to an economist to be in a good position to
understand many of the current issues which arise and build an awareness of the problems in
developing transport strategies and policies to combat some of the policies to main economic and
social problems. It will enable the students to analyze and evaluate the past, present and
prospective problems associated with the demand for the movement of people, goods and
information at a local, national or international level and the identification of solutions in the
context of current and future identification of economic, social, environmental, land use and
technical developments and in the light of the aspirations and concerns of the society which it
serves"
KEY LEARNING OBJ ECTIVES
Upon completing this course, a participant should be able to assume the role of a Manager
responsible for Transport Economics and Planning:
(a) Plan transportation system,
(c) Analyze and evaluate the past, present and prospective problems associated with the demand
for the movement of people, goods and information,
(d) To solve problems related to Economic, social, environmental and land use issues in the
transport industry.
LECTURE ONE: The basics of Transport
1.1: Overview
This lecture intends to provide an insight into the definition of transport, types of transport,
modes of transport and the functions.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Definition of Transport
• Types of transport
• Transport modes
• Public and private transport
• Functions of transport
LECTURE TWO: Transport economics
2.1: Overview
This lecture intends to provide an insight into the Definition of transport economics, Concepts
of transport economics and the Role of transport in the economy.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Definition of transport economics
• Concepts of transport economics
• Role of transport in the economy
LECTURE THREE: Transport Investment and Economic development
3.1: Overview
This lecture intends to provide an insight into the importance of transport investment,
relationship between transport improvement and economic growth and theapplication of PPPs in
transport infrastructure investment
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Importance of transport investment
• Relationship between transport improvement and economic growth
• Application of PPPs in transport infrastructure investment
LECTURE FOUR: Challenges in the transportation sector
4.1: Overview
This lecture intends to provide an insight into thesocial and economic impacts of urban traffic
congestion, transport externalities and the transport integration.
Sub-Units
This lecture shall comprise of the following Sub-Units
• Social and economic impacts of urban traffic congestion
• Transport externalities
• Transport integration
LECTURE FIVE: What is transport planning?
5.1: Overview
This lecture will enable the participants in decision making process in providing and functioning
transport network in target area to smoothen movement of people and goods.”
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Review of Transport Planning
• Transport service as a derived demand
• Transport system conceptual model
• Transport market
LECTURE SIX: Basis for transport analysis, modeling and assessment
6.1: Overview
This lecture intends to provide an insight into interaction between supply and demand, travel
behavior, travel behavior, traffic and transport policies, supply-oriented policies, the Urban
Activity and Transportation Systems, demand-oriented policies, and transport planning activities.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Interaction between supply and demand
• Travel behavior
• Travel behavior implications
• Traffic and transport policies are intended to affect behavior, whether they are
• Supply-oriented policies
• The Urban Activity and Transportation Systems
• Demand-oriented policies
• Transport Planning activities
LECTURE SEVEN: Urban transport modeling system
7.1: Overview
This lecture intends to provide an insight into trip Generation, trip distribution, mode choice, and
traffic assignment.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Trip Generation [trips]
• Trip distribution [trips]
• Mode choice [traffic]
• Traffic assignment
LECTURE EIGHT: Defining transport policy and planning
8.1: Overview
This lecture intends to provide an insight into the major distinction between planning and policy;
it highlights the trends in policy developments, evaluation versus monitoring and evaluation
cycle.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Major distinction between planning and policy
• Why transport policy?
• Trends in policy developments
• What is sustainability?
• What is sustainable development?
• The three main elements of sustainability: people, planet and prosperity
• Evaluation
• Evaluation versus monitoring
• Evaluation cycle
LECTURE NINE: Project Finance
9.1: Overview
This lecture intends to provide an insight into corporate finance vs. project finance, capital
Investments/Budgeting and asset Liability matching principle
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Corporate Finance vs. Project Finance
• Why use Project Finance?
• Projects Suitable for Project Finance
• Capital Investments/Budgeting
• Capital Rationing
• Capital
• Maturity Mismatch:
• Asset Liability Matching Principle
COURSE EVALUATION
• The course will be evaluated as follows:
• Timed Test 30.0
• Final Examination 70.0
• Total Marks 100.0
• Pass Mark shall be 50%
INDICATIVE RESOURCES LABS, SPECIALIST EQUIPMENT, INDICATIVE
READING
Banister, D. (1995): Transport and Public Policy Planning, Mansell Publishing Ltd, London
Button, K. (2000): Air Transport Theory and Policy Implications, Edwards Edgar, Cheltenham
Cole, S. (2004): Applied Transport Economics Kogan Page London
Economic Research Centre OECD (2003): “Vandalism, Terrorism and Securityin Urban Public
Gubbins, E.J . (1996): Managing Transport Operations, Kogan Page, London.
Hibbs, J . (2004): Transport Economics and Policy, Apprisal Guide Analysis of performance;
Edwards Edgar, Cheltenham
Iles, R. (2005): Public Transport in Developing Countries, Elsevier Ltd, UK, London.
Lowe, D.(2007): The Transport Manager’s and Operator’s Handbook, Kogan Page Ltd.
Pattison, T. (2000): J anes’ Urban Transport System J ane’s information Group, London.
Ponsonby, G.J . (1969): Transport Policy; Coordination through competition. Institute of
Economic affairs, London
Stranks, J . (2006): “The health and Safety Handbook – A practical guide to health and safety
law”: Management Policies and Procedures, Kogan Page, London
Sweet, K. (2003): “Aviation and Airport Security Terrorism and Safety Concerns”, Prentice-
Hall, London.
Transport” , European Conference of Ministers, Transport Report of the 123rd Round Table on
Transport Economics held on 11th – 12th April, 2002, Paris France.
White, P.R. (2000): Public Transport its Planning management and Operation. Spon Press,
London
doc_711732598.pdf
FACULTY OF BUSINESS MANAGEMENT
MBA PROGRAMME
OME 627: TRANSPORT ECONOMICS AND PLANNING
COURSE OUTLINE
MBA LOGISTICS AND TRANSPORT
OME 627: Transport Economics and Planning
Course overview
This course is aimed at providing students at this level with an understanding of many of the core
transportation concepts and ideas available to an economist to be in a good position to
understand many of the current issues which arise and build an awareness of the problems in
developing transport strategies and policies to combat some of the policies to main economic and
social problems. It will enable the students to analyze and evaluate the past, present and
prospective problems associated with the demand for the movement of people, goods and
information at a local, national or international level and the identification of solutions in the
context of current and future identification of economic, social, environmental, land use and
technical developments and in the light of the aspirations and concerns of the society which it
serves"
KEY LEARNING OBJ ECTIVES
Upon completing this course, a participant should be able to assume the role of a Manager
responsible for Transport Economics and Planning:
(a) Plan transportation system,
(c) Analyze and evaluate the past, present and prospective problems associated with the demand
for the movement of people, goods and information,
(d) To solve problems related to Economic, social, environmental and land use issues in the
transport industry.
LECTURE ONE: The basics of Transport
1.1: Overview
This lecture intends to provide an insight into the definition of transport, types of transport,
modes of transport and the functions.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Definition of Transport
• Types of transport
• Transport modes
• Public and private transport
• Functions of transport
LECTURE TWO: Transport economics
2.1: Overview
This lecture intends to provide an insight into the Definition of transport economics, Concepts
of transport economics and the Role of transport in the economy.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Definition of transport economics
• Concepts of transport economics
• Role of transport in the economy
LECTURE THREE: Transport Investment and Economic development
3.1: Overview
This lecture intends to provide an insight into the importance of transport investment,
relationship between transport improvement and economic growth and theapplication of PPPs in
transport infrastructure investment
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Importance of transport investment
• Relationship between transport improvement and economic growth
• Application of PPPs in transport infrastructure investment
LECTURE FOUR: Challenges in the transportation sector
4.1: Overview
This lecture intends to provide an insight into thesocial and economic impacts of urban traffic
congestion, transport externalities and the transport integration.
Sub-Units
This lecture shall comprise of the following Sub-Units
• Social and economic impacts of urban traffic congestion
• Transport externalities
• Transport integration
LECTURE FIVE: What is transport planning?
5.1: Overview
This lecture will enable the participants in decision making process in providing and functioning
transport network in target area to smoothen movement of people and goods.”
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Review of Transport Planning
• Transport service as a derived demand
• Transport system conceptual model
• Transport market
LECTURE SIX: Basis for transport analysis, modeling and assessment
6.1: Overview
This lecture intends to provide an insight into interaction between supply and demand, travel
behavior, travel behavior, traffic and transport policies, supply-oriented policies, the Urban
Activity and Transportation Systems, demand-oriented policies, and transport planning activities.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Interaction between supply and demand
• Travel behavior
• Travel behavior implications
• Traffic and transport policies are intended to affect behavior, whether they are
• Supply-oriented policies
• The Urban Activity and Transportation Systems
• Demand-oriented policies
• Transport Planning activities
LECTURE SEVEN: Urban transport modeling system
7.1: Overview
This lecture intends to provide an insight into trip Generation, trip distribution, mode choice, and
traffic assignment.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Trip Generation [trips]
• Trip distribution [trips]
• Mode choice [traffic]
• Traffic assignment
LECTURE EIGHT: Defining transport policy and planning
8.1: Overview
This lecture intends to provide an insight into the major distinction between planning and policy;
it highlights the trends in policy developments, evaluation versus monitoring and evaluation
cycle.
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Major distinction between planning and policy
• Why transport policy?
• Trends in policy developments
• What is sustainability?
• What is sustainable development?
• The three main elements of sustainability: people, planet and prosperity
• Evaluation
• Evaluation versus monitoring
• Evaluation cycle
LECTURE NINE: Project Finance
9.1: Overview
This lecture intends to provide an insight into corporate finance vs. project finance, capital
Investments/Budgeting and asset Liability matching principle
Sub-Units
This lecture shall comprise of the following Sub-Units:
• Corporate Finance vs. Project Finance
• Why use Project Finance?
• Projects Suitable for Project Finance
• Capital Investments/Budgeting
• Capital Rationing
• Capital
• Maturity Mismatch:
• Asset Liability Matching Principle
COURSE EVALUATION
• The course will be evaluated as follows:
• Timed Test 30.0
• Final Examination 70.0
• Total Marks 100.0
• Pass Mark shall be 50%
INDICATIVE RESOURCES LABS, SPECIALIST EQUIPMENT, INDICATIVE
READING
Banister, D. (1995): Transport and Public Policy Planning, Mansell Publishing Ltd, London
Button, K. (2000): Air Transport Theory and Policy Implications, Edwards Edgar, Cheltenham
Cole, S. (2004): Applied Transport Economics Kogan Page London
Economic Research Centre OECD (2003): “Vandalism, Terrorism and Securityin Urban Public
Gubbins, E.J . (1996): Managing Transport Operations, Kogan Page, London.
Hibbs, J . (2004): Transport Economics and Policy, Apprisal Guide Analysis of performance;
Edwards Edgar, Cheltenham
Iles, R. (2005): Public Transport in Developing Countries, Elsevier Ltd, UK, London.
Lowe, D.(2007): The Transport Manager’s and Operator’s Handbook, Kogan Page Ltd.
Pattison, T. (2000): J anes’ Urban Transport System J ane’s information Group, London.
Ponsonby, G.J . (1969): Transport Policy; Coordination through competition. Institute of
Economic affairs, London
Stranks, J . (2006): “The health and Safety Handbook – A practical guide to health and safety
law”: Management Policies and Procedures, Kogan Page, London
Sweet, K. (2003): “Aviation and Airport Security Terrorism and Safety Concerns”, Prentice-
Hall, London.
Transport” , European Conference of Ministers, Transport Report of the 123rd Round Table on
Transport Economics held on 11th – 12th April, 2002, Paris France.
White, P.R. (2000): Public Transport its Planning management and Operation. Spon Press,
London
doc_711732598.pdf