Challenges and Prospects of Multimodal Transport System Provision and Operation in Ethiopia: The Case of Modjo Dry Port

Abstract

In this contemporary world, multimodal transport system faces with various challenges totransport freight effectively in most landlocked developing country, causing lost economic growthand development. The limitations of freight transit facilitation that exists in these countries arefrequent problems of Ethiopia. This study assesses the challenges and prospects of multimodaltransport system provision and operations in Ethiopia: The case of modjo dry port. Particularly,the study attempts to identify challenges of system provision, factors affecting operation of thesystem in modjo dry port and role of modjo dry port for the system to manage the problems inEthiopia. Primary data were collected through structured questionnaires, interview, focus groupdiscussion and field observation; total of 96 samples from modjo dry port enterprise, revenue andcustoms authority of modjo branch and customs clearing agents are selected. Both probability and non-probability sampling were utilized. Secondary data sources were also collected from different books, websites, pamphlets, research papers, reports, magazines. Mixed research approach that combined both qualitative and quantitative is utilized to triangulate the analysis of the finding. Generally, the major challenges of multimodal transport system provisions in modjo dry port were unfinished infrastructures; lack of essential equipments for cargoes handling; unfulfilled structure with skilled personnel; absence of railway, lack of truck; poor public private partnership, low level of technology and information technology provision. Whereas, increasing rate of foreign currency; frequent theft and pilferage; lack of training and awareness creation;high turnover rate; unbalanced trade; complex documentation and customs process; delay and congestion of cargo; un-automated service and high transport, port and warehouse fee at sea port are the major challenges of multimodal transport system operation in modjo dry port confirmed by this study. This study proves that now modjo dry port has not sufficient capacity to accomplish the activity of the system successfully. However, to overcome the challenges attempt to reduce unnecessary fee at port, give different service and provide essential equipments to run the activity of the system efficiently. At the end, based on survey result the study forwarded the possible implications to be considered to the concerned bodies to enhance efficiency and effectiveness of its transit facilitation.

Keywords: multimodal transport system; multimodal transport provision; multimodal transport operation and dry port enterprise.

DOI: 10.7176/IEL/10-2-01

Publication date:March 31^st 2020