Factors Affecting the Performance of Multi Modal Transportation Operation Service: In Case of Ethiopian Shipping and Logistics Services Enterprise

Abstract

International multimodal transport is one means of facilitating efficient and cost effective transit logistic service of country’s international trade. Ethiopian Shipping and Logistics Services Enterprise have been designated as a sole Multi Modal Operator in the Country. Not only as land locked country like Ethiopia but also internationally, most countries get benefit of multimodal transport that can minimize logistics costs and transit time due to cargoes can be moved from one country to another with single administration document and one multimodal operator. Most reviews of literature show that the implementations of multimodal transport system in Ethiopia have been bottle nicked by various problems. These problems include poor existing infrastructure and lack of basic infrastructures, congestion of dry ports, inefficient and ineffective freight vehicles, long and inefficient custom clearance process and lack of competition in multimodal transport service due to this the standards of gracing paired and dwelling time are unable to attain. This study was made with the main objective of factor affecting the performance of multimodal transport service in Ethiopian Shipping and Logistics Services Enterprise. In order to achieve this objective, has used explanatory research design and employ mixed research approach in order to triangulate the data. To collect data from respondent and other sources, this study used primary and secondary sources of data. Out of the 228 questionnaires distributed only 190 were returned back. In order to analyze and present the collected data, descriptive and inferential statistics analysis method were used. The study used multiple linear regression modules to see the effect of independent variables, which were the factors under study, on dependent variable performance of multimodal transport system using SPSS software. The findings from hypothesis testing showed that Customs, Infrastructure, Competence, Timeliness, Competition, and Tracking and Tracing have positive and significant relationship with performance of multimodal transport system. However, the findings from regression analysis coefficients of β (beta) showed that Customs has largest significant influence on the performance of Multimodal transport service followed by Infrastructure, Timeliness, Competence, Tracking and Tracing and Competition. Therefore, the researcher has recommended that the company should work with different stockholders and give due emphasis to those driving factors to appropriately address performance issues.