Transportation and Communication

Adequate, reliable and economical facilities for the storage, handling and carrying of material and finished products are essential to every factory. Transport facilities are especially important in industries having heavy, perishable and weight-losing raw materials or finished products. This explains the location of jute industry on the banks of Hoogly river in India. In addition to transportation, business firms require efficient means of communication to remain in close touch with their environment. From the point of view transport, the ideal location is one of one of that is directly served by water, rail, road, and air transport and where the aggregate costs of transport per unit of finished product are the lowest possible one. The junction point of railways, roadways and waterways tend to become important industrial centers. Industrialists are reluctant to locate their plants in the rural areas due to the absence of improved means of transport and communication in such areas. Transport policy also affects location. The pre-independence policy of railways to stimulate traffic to port towns tended to make industries concentrate in port towns. This policy is no longer in force and consequently the significance of port has diminished.

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