Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations
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Due Date: April 2025
2.1. FACTORS HINDERING THE GROWTH OF SEA WATER TRANSPORT
Sea water transport faces a variety of challenges that can limit its expansion and
competitiveness in both the tourism and freight sectors. Firstly, the high cost of developing
and maintaining port infrastructure is a significant barrier. Large harbors require massive
capital outlay for construction and upkeep of terminals, berths, and specialized equipment,
such as cranes and loading facilities. Often, governments shoulder these expenses, and if
state budgets are limited, expanding harbor capacity or upgrading older facilities can become
a lengthy, underfunded process.
Secondly, competition from other forms of transport—particularly road, rail, and air—can
make sea travel less appealing for both passengers and cargo operators. Rail and road
networks typically receive government subsidies, which may disadvantage coastal shipping
when it comes to pricing. Additionally, in some countries, protected freight rates and policies
favor land-based transport, leaving coastal and inter-island shipping with minimal market
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