Government intervention in intermodal transportation innovation

Running head: TRANSPORTATION 1 INNOVATIONS IN INTERMODAL TRANSPORTATION 3 US Government should Promote Innovations in Intermodal Transportation Introduction Regulation of markets is an activity whereby markets are controlled through rules and for many private companies; watchdogs like Ofcom regulate their market. By having regulators, new companies are controlled from exploiting their monopoly power in trying to stimulate competition that allows companies to have a smooth transition when they move into the private sector. The regulators are known to involve themselves in activities like price capping (OECD, n.d.). In market deregulation, the rules and restrictions are removed in the market, which sees to it that markets are opened and competition is increased. Moreover, contestability of markets is increased through market deregulation. Deregulation is favored by most people because it results in consumers enjoying lower prices, increased investment and eventually this leads to increased economic growth. Globally, freight transportation systems are important as they contribute significantly to the development and growth of regional and local economies. Locally, the freight transportation system has been helpful in linking the United States with the globe. Therefore, the customer needs to be placed on freight services have increased capacity and demand. Studies conducted in the past have raised major concerns to issues such as environmental and health issues, and it is for such reasons that it is necessary to allow the government to be catalysts concerning innovations in intermodal transportation. Therefore, I agree with the author that free market economies experience limitations in delivering innovations in the freight transportation system. In the adoption and implementation of intermodal transportation, the government usually considers political will, organization, and capacity. Therefore, the U.S. government should play a role in improving the intermodal sector through innovation. The government should also act as a catalyst that ensures that different parties of the transportation system are brought together for them to get involved in exploiting technologies like the information systems that promote standards of living. Historical Examples In the American case, freight system of transportation has provided the country with significant amounts of economic importance. For example, in 1997, the business and industry department of America managed to transport cargo that was worth $6.9 trillion weighing eleven billion tons. From this, nearly three trillion ton-miles of goods were transported across the United States alone. Americans alone are known to spend more on transportation, commuting and freight movement as seen from having transportation costs at eleven percent of an individual’s disposable income. Such figures show that the impact of freight on the economy of the country is considerable. Intermodal planning in the United States and Europe looks at defining, programming and investing in projects that will foster an efficient and seamless transportation system. In the U.S., some states have managed to implement exemplary planning practices that have managed to gather input from different stakeholders concerning intermodal projects. Nuclear Power Development In America, climate change concerns and air pollution problems prompted the government to reconsider their aversion to nuclear power due to the growing demand for electricity. The introduction of nuclear plants by the government meant that little carbon dioxide would be emitted. Therefore, they had built an impressive safety and reliability record for its population both current and future. In 2016, thirty-three states had about one hundred nuclear power reactors producing 805 TWh. From 2001, the power generated by these nuclear plants has accounted for 20% of the total electricity generated, and the figures keep rising. The changes in government policy that were applied in the late 1990s have been seen to help in growing the nuclear capacity of the United States (World Nuclear Association, 2017). The government continues to spend more money on research and development activities for these nuclear power options to help them understand how the market demands are changing. Development of New Technologies for DOD The Department of Defense (DOD) has managed to develop new technologies that cooperate with close allies of the country. The whole idea is to reduce pressures on exporting technologies that have the potential of proliferating implications. They offer explicit quid pro quo arrangement on proliferation. Investing in such defense technology was exchanged with prior agreements that restricted exported systems that used the same technology. Such policy intended to lead institutional structure to reduce economic pressures for the proliferation of advanced technologies used by the military department (Flamm, 2008). Conclusion In summary, the government plays very significant roles in fostering intermodal transport innovations that have come in handy to boost a country’s economic status. The involvement of the US government in such activities has also prompted them to be catalysts for the same innovation activities in intermodal transportation with the intention of helping their people meet their desired need. Moreover, the aspect of being catalysts has helped improved the freight industry because security has been enhanced resulting in improved service delivery to the citizens. The development of nuclear power by the US has seen many people have access to electricity. Moreover, it has improved their living standards because they have access to many things. Therefore, government involvement in the regulation and deregulation of markets is beneficial to the citizens, especially in the freight transportation sector.