Importance of Water Transport in Economic Development
Water transport is a cheap of transportation. Capital goods, heavy machinery and bulk raw and finished goods can easily and cheaply be transported from and out of the country to the foreign countries. Its importance can be judged from the following facts.
1. Increase in Economic Activity
If country has a sufficient and sound infrastructure in the form of ports and waterways, the economic activity increases because many ships with tons of goods move in and out of harbors of the country.
2. Increase in Foreign Exchange
Water transport increases the foreign trade, as it increases the imports and exports of merchandise from one to the other parts of the world. International trade flourishes and trading partners are benefited a lot.
3. Decrease in Transportation Cost
Transportation cost reduces too much. Thus goods become cheap which improves the international trade between the various nations of the world.
4. Increase in Government Revenue
When foreign trade increases, it not only benefits general public, but it also becomes a great source of revenue for the government by way of customs duties.
5. Increase in Employment Opportunities
Too many people get jobs in shipping industry, as well as in loading the goods from the ships. Thus directly and indirectly lots of jobs are created. This increase the general welfare of the people of the country.
6. Increase in Foreign Investment
Foreign countries shipping offices are opened and investments in infrastructure facilities are set up, which causes an increase in the foreign investment of the country.