Intermodal transportation refers to the transport of goods or people using different forms and modes of transportation. The development of containers and technologies that can support a long supply chain has increased the industrial demand for intermodal transportation. Legislations and regulations of states and countries also influenced the growth of intermodal transportation. These regulation had both a positive and negative impact. (Lowtan, 2004)
Increase in population and economic growth increased the demand for transportation in America. In the beginning, regulation of transport in US was under government control. The first transportation mode that was regulated through legislation in US was the railways during the 1800s; followed by the steamships in the early 1900s; pipelines, motor carriers and airline in 1930’s. These different modes of transportation, were regulated by different commissions. These commissions were concerned only with the promotion and welfare of their individual sector. This eventually led to competition between different modes of transport. Rather than working together in an integrated way, they began to competitive against each other. Further each state had the authority to regulate transport within its borders. This lead to discrepancies in cost of transport, as it was different for each state, based on the state’s economic status. The ICC termination act of 1995, brought an end to the state’s control over the transport within its border. (Rita.dot.gov,2015). The period before 1945, could be considered as the regulation period. During the regulation period, owners of one transportation mode were not allowed to own another transportation mode in US. Likewise there was a tough competition between different transportation modes, for government grants, tax easements, permission to raise weight limit and size limit, and for other subsidies. Though the need for an integrated system of transport was felt before 1940, it was only after 1940, legislation favoring deregulation started in US. (Rita.dot.gov, 2015)
In 1940, government and industrial groups that facilitate intermodal transportation were set up. However these groups were less efficient in integrating different modes. In 1967, the U.S Department of Transportation was established, to regulate all modes of transportation. This establishment put forward new transportation policies in 1975. Though many of the policies were not adopted by the Congress, it remained the forerunner for the deregulation policies of 1979. Policies of 1975, recommended the use of multimodal transport system, rather than intramodal system. The recommendations of this policies encouraged more streamlined and coordinated handling of transport between different modes. All these recommendation helped in the growth of deregulation of intermodal transport.
The Intermodal Surface Transportation Efficiency Act (1991) was passed by the US in 1991 to protect certain set of public objectives. The aim of implementing this regulation on intermodal transport was to restrict the goods that will affect health and safety of the citizen. It also aims to support development and maintain a competitive industrial environment in the country. Restricting good from outside to enter the country will help protecting incumbent suppliers from retaining the market. Apart from these restriction, the Act encouraged improved intermodal connectivity, reliability and flexibility. This act expired in 1997 and was replaced by the Transportation Equity Act for 21st century. This law recommended the improvement of intermodal transport by construction of new intermodal connectors, highways, rail yards, marine terminal and airports.
With deregulation there was a significant increase in the rate of shipments of commodities, which paid way for the growth of industrial and agricultural sectors. It is now possible to transport perishable goods across states and countries at an affordable price. This reduced the cost of transportation and increased consumer affordability of goods. More private sectors were put to use and thus intermodal system began to expand and grow. (Google Books,2015
References:
Google Books,. (2015). Intermodal Freight Transport. Retrieved 16 July 2015, from https://books.google.co.in/books?id=GfIDAQAAQBAJ&printsec=frontcover&dq=Impact+regulation+and+deregulation+had+on+the+growth+of+intermodal+transportation.&hl=en&sa=X&ved=0CEMQ6AEwCGoVChMI1Y3mrYnfxgIVxsAUCh17GABp#v=onepage&q&f=false
Lowtan,, D. (2004). Assessing the impact of regulation and deregulation on the rail and trucking industries. Dspace.mit.edu. Retrieved 16 July 2015, from http://dspace.mit.edu/handle/1721.1/28297
Rita.dot.gov,. (2015). Chapter 2: Growth, Deregulation, and Intermodalism | Bureau of Transportation Statistics. Retrieved 16 July 2015, from http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/the_changing_face_of_transportation/html/chapter_02.html
