Question

“The cost of transport plays an important role in location of industries.” Justify the statement with examples.

Hint:

Industries that rely on bulky raw materials or have high transportation costs often locate themselves near these materials or transport hubs to reduce expenses.

Answer 1

Transport cost is a critical factor in the location of industries because it influences both the cost of raw materials and the distribution of finished products. If transportation costs are high, it increases the total cost of production and reduces the profitability of the industry.

• Heavy Industries: For example, industries like steel plants and cement factories, which require bulky raw materials, are often located near sources of raw materials or transport hubs to reduce transportation costs. This is why the Tata Steel plant is located in Jamshedpur, where iron ore is abundant, and transportation costs are minimized.
• Light Industries: Light industries, such as electronics manufacturing, are generally located near markets or urban centres where transportation of finished goods is more critical. For example, electronics factories in places like Noida are strategically located to take advantage of the proximity to markets and access to advanced transport networks.
• Agricultural Processing Industries: The location of industries such as sugar mills is often influenced by the proximity to agricultural areas and transport infrastructure. Sugar mills are generally found near sugarcane-producing areas to reduce transport costs for raw materials.

Thus, industries prefer to be located where transport costs are minimized, either by being close to raw materials or to markets.