The Effect of Multi-modal Cargo Transport System on the Efficiency of the Import Business in Ethiopia. Prepared
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Date
2019-06
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Addis Ababa University
Abstract
In general, transport sector has a significant effect on the international trade in terms of cost, and lead time. Especially, in the landlocked country like Ethiopia the effective and efficient management of multimodal transport operation has a positive and significant effect on the efficiency of foreign trade economy. This research conceptualizes and develops on four dimensions of multimodal cargo transport system (regulations, infrastructures, ICT applications and competence/skill) and tests the selected company employee’s prospect on effect of multimodal cargo transport system on the efficiency of the import business in terms of cost and time. The data for the research was collected from 203 employees of 15 convenient companies. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis it is concluded that there is strong relationship between multimodal transport system (the collective representative of the four dimensions) and import business efficiency (cost and time). Moreover, multimodal transport system (regulations, infrastructures, ICT applications and skill) has an influence on both total costs and lead time of the imported cargos. On the other hand, the total lead time has also an influence on the total cost of imported cargos. Therefore, in order to achieve effective and efficient multimodal operation and import business in both cost and time it is very important for the country to give due emphasis to the development of transport regulations, suitable infrastructures, appropriate & updated ICT applications and competent/skilled man power.
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Keywords
Multimodal Transport System, Import Business efficiency, cost, lead time