The Role Of Rail Transport To The Multimodal Operator Performance Of Ethiopian Shipping And Logistics Enterprise

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Date

2020-06

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Addis Ababa University

Abstract

The Ethiopia- Djibouti corridor linking Ethiopia to the port of is now the dominant gateway for the country with over 95 percent Ethiopia imports and export using this route. Recent investment in road and rail along the Djibouti corridor have the potential to significantly reduce transport costs and time and are a key element encouraging greater interest from investor in opportunities to develop manufacturing export capabilities in Ethiopia. Multimodal transport system is modern transport and freight distribution system all over the world is tending towards the adoption of best practices. The study examined to assess the role of rail transport to the multimodal operator performance of Ethiopian Shipping and Logistics Enterprise. Factors that measure the role and performance are delivery performance or timeliness, cost effectiveness and reliability in terms operation liability. The study used exploratory research methodology and survey techniques to collect data related to the topic understudy. Both qualitative and quantitative approaches were used in data analysis. In particular, primary data collected through questionnaire and the secondary data were collected from journal and reports. Mainly the data was analyzed Statistical Package for Social Science Version 20.0 software. As the major finding of the result shows rail transport increases the average of cargo traffic, reduce transit time, lowering the cost of logistic and improves customer satisfaction. Therefore, rail transport is one among the major factors which can accelerate the growth in economies. Despite of this contribution to multimodal transport performance, the situation of railway transport is in a poor state. It is noted that, the government have invested mainly in road infrastructure improvement, while neglecting railways. The responsible factors for this decline includes lack of efficient rail system, low capacity of rail transport, poor emphasis in rail to dry port intermodal and limited financial resources. This implies that there are strong and positive relationship between rail transport and the multimodal operation performance. Finally, the study recommends that the government should promote railway sector in order to improve the delivery performance of multimodal transport system.

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Keywords

rail transport, multimodal transport, delivery performance and cost effectiveness

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