Subject 'Transportation Economics'

Year:   2007/2008    2008/2009    2009/2010    2010/2011    2011/2012    

- Task-solving based on the theory of transpordtation economics;
- Capital and current assets in transportation, their characteristics, structure, assessment, use,
circulating.
- Aging of capital assets and amortization calculation;
- Program/ plan of activity - planning and calculating the activity of freight and passenger transport .
Comparison of indicators and teconomic analysis;
- Cost of materials - cost of fuel, cost oftires.Staff calculation. Labor productivity figures in transport;
- Technical development planning, new techniques and technology, economic efficiency calculation
(operating lease, capital-rent leasing);
- The structure and classification of transport cost, net-cost calculation, factors affecting it;
- Factors affecting transport demand determinants, the marginal cost and its use in business decisions;
- The position of equilibrium, market regulation in transport - the transport externalities, public
transportation vs car usage, Pareto optimality, external cost transformation into internal cost.
- Socio-economic cost-benefit analysis, the lowest cost model;
- Financial indicators of a transport company - profit, cost benefit, business solvency, return on assets
(ROA), return on equity (ROE); return on investments (ROI). Risks and profitability.
- Taxes and fees in transport.

The course aims to deal with basics of transportation economics and their applications on freight and
passenger transport levels. Acquired knowledge and skills within the framework of the subject, create a
primary idea of exploring and analyzing of interdisciplinary relationships both individually and at
company level in the system as a whole. The acquisition gives the idea of forming and understaning the
substance of "Transport Strategy".

- Is familiar with the terminology, holds knowledge of the nature of transportation economics, its
theory and application possibilities;
- Is able to associated the economy with technics and technology;
- Understands the pricing policy in freight and public transport;
-Is cognizant of the transport expenditure categories - commits cost accounting and creatse cost
accounting system for a company, is able to determine the cost of materials and plan the workforce and
calculate the payroll;
- Can identify the different types of stocks in transport;
- Conducts statistical database of consumption of current assets, commits the analysis of consumption;
- Plans and organizes maintenance and repairs of fleet - contracts the maintenance and repairing with
workshops, prepares regular maintenance schedules for the fleet, organize regular in-house inspection
of vehicles;
- Can use professional models for optimizing transportation and conduct cost-benefit analysis of
transport-related investment;
- Is able to analyze the transport system individually by its components and integrated as a whole, to
find its bottlenecks in order to propose alternatives;
- Is cognizant in planning, calculating and analyzing an estimate transport costs, counting the net-cost
and finding necessary financial information;
- Understands the content of financial indicators, is able to calculate and provide an economic
interpretation;
- Is adequate to react to matters related to transportation economics within the company - is able to see
the links between costs and effectiveness of the company.

Subject consists of lectures and practices. During practices different tasks are being solved, developed
discussions on the vital issues of transportation economics. Home works are being given to students in
order to practise wotkung/studing independently. There are 2 main test planned wihtin a semester,
giving a total of 60% out of final result. The remaining 40% are formed out of independent home work
and teamwork (solving cases in classes) results.

M.Villemi, Transpordiökonoomika, Tallinn. Külim 1996.a.
M. Villemi, Transpordi hinnakujundus. Tallinn: TTÜ Kirjastus, 2003
H.Kallam, E.Kolbre, E.Lend jt.Ärikorralduse põhiteadmised.Tallinn. Külim. 2003.a.
T. Powell "The Principles of Transport Economics" PTRC, London 2001
Summary prepared by the lector, practice-tasks, case-studies.

2012: LI  RT  

2011: LI  RT  

2010: LI  RT  

2009: LI  RT  

2008: LI  RT  

2007: LI  

2006: LI