There are two main types of terminals: passenger terminals and freight terminals.
1. Passenger Terminals
Passenger terminals are designed to handle the movement of people.
Examples

Airports (air passenger terminals)

Railway stations

Bus terminals
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Ferry terminals / Cruise terminals

Metro stations
2. Freight Terminals
Freight terminals are facilities where goods are transferred between transport modes, consolidated, stored, or
prepared for shipment.
Examples

Ports / Seaports (loading and unloading cargo ships)

Rail freight yards / container depots

Truck terminals / logistics parks

Air cargo terminals

Inland Container Depots (ICDs)

Distribution centers / Warehouses


 Passenger terminals serve people—airports, bus stations, railway stations.
 Freight terminals serve goods—ports, container depots, logistics parks.
4. Terminal Costs
Terminal costs are a major part of total transportation cost and consist of:
a. Infrastructure Costs
Cost of building and maintaining port docks, airport runways, storage facilities, cranes, etc.
b. Transshipment Costs
Cost of loading and unloading cargo or passengers.
c. Administration Costs
Costs of terminal management by port authorities, airport authorities, or private operators.
Why Terminal Costs Matter
Terminal costs are fixed costs, independent of trip distance.
Modes with high handling time (ships, trains) have higher terminal costs, making them less suitable for short trips.
Road transport has the lowest terminal cost because trucks can load/unload quickly.
6. Economic Importance of Terminals
Terminals do not just handle transport—they create massive economic activity:
Direct Employment
Dock workers, crane operators, baggage handlers, air traffic controllers, rail yard workers.
Indirect Employment
Shipping lines, airlines, customs agencies, freight forwarders, logistics firms.
Cities with major ports, airports, or rail hubs often become major economic centers because terminals attract
industries, trade, and services.
BEFORE IMPROVED TRANSPORT
Long Travel Time → Places Feel Far → Limited Markets → High Costs
AFTER IMPROVED TRANSPORT
Short Travel Time → Places Feel Close → Larger Markets → Lower Costs