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Traffic congestion: modelling its economic impact on petroleum products distribution in a metropolis

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  • G.K. Nwalozie
  • S.I. Oni
  • E.E. Ege
  • D.I. Onuoha
  • S.A. Oke
  • Charles Asenime
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    Abstract

    This paper considers the financial implications of the traffic congestion problem in the distribution of petroleum products in a Nigerian metropolis. Data relating to truck movements, their servicing costs and other parameters that are connected with traffic congestion are collected and analysed using SPSS. The regression models that describe the differences in expenditure and variation in incomes from the use of the trucks are established. In terms of monetary losses, about $99.7 per truck per year were lost owing to traffic congestion as part of the fleet maintenance cost, which was not budgeted for and about $1,559.1 in deficit of the budgeted income per truck per year (deficit in income). Thus, the transportation haulage industry loses substantial money due to traffic congestion on an annual basis. Information in this work could be utilised for performance improvement purpose when performance targets/reward schemes are set and monitored for cost saving activities due to traffic congestion.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Applied Management Science.

    Volume (Year): 3 (2011)
    Issue (Month): 2 ()
    Pages: 186-209

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    Handle: RePEc:ids:injams:v:3:y:2011:i:2:p:186-209

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    Web page: http://www.inderscience.com/browse/index.php?journalID=286

    Related research

    Keywords: traffic congestion; tanker drivers; trucks; Lagos; delays; turn around time; TAT; modelling; economic impact; petroleum products; distribution; Nigeria; truck movements; truck servicing costs; fleet maintenance cost; haulage industry.;

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