What does the term private transportation mean?

Answer 1

Private transportation is occurs a company transports its own goods. In terms of the make or buy decision private transportation is a make decision. Firms choose to own their own transportation in order to gain greater control, flexibility, and reduce costs. From a legal perspective private transportation is defines as "any person who transports in interstate or foreign commerce property of which such person is the owner, lessee, or bailee when such transportation is for the purpose of sale, lease, rent or bailment, or in the furtherance of any commercial enterprise.

The key to that definition is that the transportation is done to further the commercial enterprise and that the transportation itself is not the core value provided by the firm. Another key is that the private carrier does not provide service to the general public, meaning that the firm is not in the business of providing transportation services.