Determinants of Throughput Performance of Modjo Dry Port, Ethiopia

Abstract

Efficient and effective dry ports are crucial for the economic growth of a landlocked nation like Ethiopia. This study presents the assessment of the performance and the determinants factors for effective and efficient dry port performance by taking the case of Modjo dry port. Primary data were collected from 130 sample customers and 41 sample employees of the dry port, which were selected based on convenience sampling technique. The data were collected using questionnaire and were analyzed using descriptive statistics and ordinal logistics model. STATA software was used to estimate the logistic regression model. The performance of the dry port estimated using pre-defined performance indicators identified for the latent performance dimension, such as human capital, information capital, and size of the dry port, port machinery, infrastructure and reliability. Accordingly, the overall findings showed that the throughput performance of Modjo dry port was found at medium level with inter-month and annual fluctuations. The result of the study further indicated that except human capital and size of the port, information capital, service cost, port machinery, port infrastructure and reliability were functioning at medium level of performance. Human capital was found at low level of performance, whereas the size of the port was functioning at higher level of performance. Apart from this, the regression analysis of the study suggests that except infrastructure and machinery, information capital, human capital, service cost, size of the port and reliability found positive and significant determinants for the performance of the dry port at different levels of intensity and probability levels. The findings study implied that there is a possibility of improving the performance of Modjo dry port through capacitating human resources, ICT infrastructure, the size of the port and reconsidering the service cost and its reliability. Therefore, the study recommends the strategic leadership on the interventions of improving the performance of Modjo dry port.