Chapter 6, Problem 6SQ

Study the scenario below and answer the question that follow. Transcard– an integrated travel card for Johannesburg Metro The Big 5 (South African Black Business Consortium) won ZAR400 Million contract to build and operate the Transcard system in 2013 and have it operating by 2015. The parent corporation of Affirmative Action Group (AAG) International Inc., is a software engineering application maintenance, program management and consulting services company that had extensive experience in overseeing and project managing transport and technology companies to produce integrated system, and had implemented similar systems in In Capetown and Durban.  Big 5 supervised four technology and infrastructure companies and their sub-contractors, and provided back-end financial system. The Big 5 companies provided the terminal management system and fare collection equipment; communication systems installation and maintenance; automated fare collection systems; and smart cards and related card…

Pipelines account for more than 20 percent of the intercity ton-miles but less than5 percent of the revenue paid by shippers to transportation companies. What factorsaccount for this contrast? Is this situation likely to change? Why or why not?

The cost structure of the railways is distinct from the cost structure of motor vehicles. In what respects does this disparity contribute?