Transportation is vital for the economic development of any country because it include the movement of goods and people from one region or location to another. It is no doubt that it contribute immensely to the economic, industrial, social and cultural development of any country, while the inadequacy of transport operation facilities retards the process of social economic development of a country base on vehicle operation.
There are three modes of transportation this are land, water and air. Land has given scope for development of road and rail transports water and air developed water ways and air ways respectively.
Vehicle operation are branch of traffic operation cost varies with performance of road network and terminals therefore, vehicle operation cost varies from one transport agency to another which includes direct user expenses to public and private vehicle user (plus incremental costs for mobility substitutes such as tele work). These indicate the savings that result when vehicle ownership and users reduced vehicle cost can be measured per-vehicle mile, passenger mile or vehicle years, or various other ways. Each perspective produces different results. These can be divided into fixed (also called ownership) and variable (also called operating marginal or incremental) cost. Theoretically, Variable cost increase with vehicle mileage and fixed cost do not. However, many fixed costs actually barely to some degree with distance.