HLB Decision Economics Inc.
Relationship between E-Business, Advanced Transportation Logistics, and Canadian 
Industrial Economic Performance

The study examined the direct and indirect productivity effects of e-business investments in transport infrastructure. An original framework was developed to measure indirect benefits of investments that have not been captured in traditional cost-benefit analysis. From recent empirical studies it is estimated that a 10% reduction in transportation costs yields a 14.5% reduction in overall logistics costs. The project included a limited survey of Canadian firms to provide corroboration of potential effects of improvements in transportation system performance on their logistics and productivity. The report concludes that, without consideration of the full supply chain benefits in policy decision making, there is likely to be under-investment in transportation.