FINANCIAL EFFICIENCY AS AN AID TO TECHNICAL EFFICIENCY IN ROAD TRANSPORT MANAGEMENT

Although vehicle operating efficiencies are initially measured in technical terms such as "litres per 100 kms" or "kilometres per set of brake linings", the final measure is financial. Business operating results are stated in financial terms and the manager of road transport operations and equipment must therefore have a good understanding of the principles of financial management. As a result of the substantial rise in the annual rate of inflation over the last decade and the increasing awareness of the time value and opportunity cost of money, managers at all levels today have to consider the financial implications of their decisions and actions. Considering the large sums of capital invested in road transport equipment today, the manager responsible for acquiring, operating and maintaining this equipment has a major financial accountability. This paper deals with the main financial aspects of the management of road transport operations and equipment. These are: financing the acquisition of new road transport equipment, estimating working capital requirements, cash flow budgeting, handling of depreciation, provision for replacement, and the various financial services available. For the covering abstract of the conference see IRRD 288720. (Author/TRRL)

• Supplemental Notes:
  • Annual Transportation Convention held at Milner Park Showgrounds, Johannesburg 25-29 July 1983, Volume 3.
• Corporate Authors:

  Council for Scientific & Industrial Res S Africa

  P.O. Box 395
  Pretoria,   South Africa 
• Authors:
  • Westhuizen, Van Der
• Publication Date: 1983

Language

• English

Media Info

• Pagination: p. 269-286
• Serial:
  • Publication of: Council for Scientific & Industrial Res S Africa
  • Issue Number: S316
  • Publisher: Council for Scientific & Industrial Res S Africa

Subject/Index Terms

• TRT Terms: Capital costs; Cash flow; Conferences; Depreciation; Equipment; Finance; Financing; Highway transportation; Inflation; Investments; Operations
• Uncontrolled Terms: Financial management; Replacement costs
• ITRD Terms: 155: Administration; 8525: Conference; 263: Economics of transport; 3674: Equipment; 244: Financing; 2755: Highway; 1144: Operations (transp network); 5414: Time
• Subject Areas: Administration and Management; Finance; Highways;

Filing Info

• Accession Number: 00471128
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Files: ITRD, TRIS
• Created Date: May 31 1988 12:00AM