The role of SHIPPING BUSINESS in the ECONOMIC DEVELOPMENT of a country Assignment

The role of SHIPPING BUSINESS in the ECONOMIC DEVELOPMENT of a country is important. Hence, MARITIME TRANSPORT plays a significant role in that development. Discuss - Assignment Example e significant for the movement of the goods and services are fixed infrastructures, means of transportation and organizational system which is quite significant for ensuring that ships and fixed infrastructures are used in an effective and efficient manner (Samija, n.d.). Since its foundation in the 3200 BC as Egyptian coastal sail ships, it can be observed that the maritime transportation has endorsed in the global trade. It was during 1200 BC, most of the Egyptian ships were found to trade as far as Sumatra which has been observed to be one of the lengthy maritime routes of that particular time. European regal powers, generally England, Netherlands, Spain and France were the first countries to develop a worldwide maritime trade network. Maritime transportation can be considered as a derived demand. It has been noticed that seaborne trade led to 89.6% of the world business and 70.1% in terms of value in 2006 (Tamiotti & et. al., 2009). When considered in terms of ownership, maritime shipping is found to be a globalised industry. Maritime transportation is geographical by its physical characteristics, strategic in terms of control as well as commercial in terms of usage and thus tends to run on its own space similar to land and air modes. Rivers and oceans are considered to be the two main components of physiography of maritime transportation. Modifications made to the water canals, augmentation of the size and specialization of vessels have been because of the technological alterations that had a major impact upon the water transport. It has been noted that the significance and configuration of maritime route has altered with economic developments as well as technical developments (Rodrigue & et. al., n.d.) A noteworthy characteristic of the economies of shipping is mainly focused upon its capital costs thereby demanding financing. It is due to their size, ships demonstrate a noteworthy capital outlay. One of the crucial benefits of maritime transportation is