OPTIMUM STRUCTURE AND SIZE OF ROAD HAULAGE FIRMS. POSITIVE AND NEGATIVE EFFECTS OF SPECIALIZATION

The road haulage firm has traditionally been a small scale operation of 1 to 5 vehicles, and still is to a large extent in many countries. Larger firms, while not numerous, do have a substantial share of the market. The concentration is difficult to judge, as statistics are for firms with a national market, and also subcontracting and own-account trucking. The haulage industry can be entered with very little capital, and overhead is small. Both of these characteristics favor small firms. Attempts to determine the existence of economies of scale are inconclusive because of the difficulties in determining scale indicators, units of output measurement, and the effects of state regulation, which tends to favor small firms. Economies of scale appear to be absent, but so do diseconomies, and so firms generally do experience growth. Demand is varied enough to require firms of many sizes. The evaluation of an optimum firm size can take several forms, considering such measures an ton-miles, carrying capacity, turnover, and profit.

• Supplemental Notes:
  • This is a report of the Twenty - Third Round Table on Transport Economics held in Paris, Nov. 8-9, 1973.
• Corporate Authors:

  European Conference of Ministers of Transport

  19, rue de Franqueville
  75775 Paris Cedex 16,   France 
• Publication Date: 1974

Media Info

• Features: References; Tables;
• Pagination: 45 p.

Subject/Index Terms

• TRT Terms: Businesses; Demand; Freight handling; Freight transportation; Laws; Profits; Ton miles; Trucks
• Uncontrolled Terms: Hauling
• Old TRIS Terms: Firm; Truck laws & regulations
• Subject Areas: Economics; Freight Transportation; Highways; Law; Motor Carriers; Society;

Filing Info

• Accession Number: 00072077
• Record Type: Publication
• Source Agency: Transportation Systems Center
• Files: TRIS
• Created Date: Jun 10 1975 12:00AM