The Challenges Of Dry Port Management And Its Effect On Import Goods Clearance: The Case Of Modjo Dry Port
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Date
2019-06
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Addis Ababa University
Abstract
Ethiopia as a landlocked country has started constructing dry ports in its hinterland along the transit corridors; among the planned dry ports modjo dry port is the biggest. To gain the maximum benefit from this dry port, the efficient and effective performance of the dry port is very crucial and to do that it is important to identify major challenging factors which influence the performance of dry port management. Hence, the objective of this study was to investigate challenges of dry port management and its effects on import goods clearance. To achieve the research objective, both descriptive and an explanatory research design was employed and used both qualitative and quantitative research approach. Stratified and purposive sampling technique was used as a sampling technique. Primary data were collected from importers, customs clearing agents, ESLSE employees and customs commission employees. Sample sizes of 280 questionnaires were distributed and 93.2% were filled and returned and 6.8% not returned. The data were infilled using the five point Likert-Scale while the Cronbach’s Alpha was used to check the data reliability of measurement scale. The relationship between independent variables (dry port management challenges) and dependent variable (import goods clearance) are cross-checked from Pearson correlation matrix. To predict import goods clearance from dry port management challenges, the multiple linear regression models were adopted. The analysis indicated that the independent variables explained 86.3% of import goods clearance process. Staff competence, physical infrastructure, customs services, warehouse condition and ICT have the greater positive influence on import goods clearance whereas ownership of dry port, bank document process and importer behaviour have no significant impact on import goods clearance. The result of the analysis indicated that, ICT, customs service’s, staff competence and importers behaviour are major challenges of modjo dry port management. Based on the findings of the study it is recommended that recruiting skilled manpower and preparing work related trainings, investing on modern dry port physical and ICT infrastructure and rising the awareness of importers to collect their containers on time. Thus, further research needs to be conducted to address other challenges of dry port management that affect dry port performance
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Dry Port, Physical Infrastructure, Ownership Staff Competence, Customs Services, Warehouse Condition