Embracing the Potentials of Intermodal Transport in Ethiopia: Strategies to Facilitate Export-Led Growth
Abstract
:1. Introduction
2. Theoretical Background
2.1. Overview of Industrial Development and the Current State of Intermodal Transport in Ethiopia
2.2. Challenges and Opportunities of Intermodal Transport—Evidence from Other Countries
3. Research Design
4. Results
4.1. Current Challenges of Intermodal Transport in Ethiopia
4.2. Strategies to Improve the Current State of Intermodal Transport in Ethiopia
5. Implications
6. Study Limitations and Outlook
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
- Bontekoning, Y.; Priemus, H. Breakthrough innovations in intermodal freight transport. Transp. Plan. Technol. 2004, 27, 335–345. [Google Scholar] [CrossRef]
- Bhattacharya, A.; Kumar, S.A.; Tiwari, M.; Talluri, S. An intermodal freight transport system for optimal supply chain logistics. Transp. Res. Part C Emerg. Technol. 2014, 38, 73–84. [Google Scholar] [CrossRef]
- Mostert, M. Design and management of freight transport networks: Intermodal transport and externalities. 4OR 2017, 16, 227–228. [Google Scholar] [CrossRef]
- Mathisen, T.A.; Hanssen, T.-E.S. The academic literature on intermodal freight transport. Transp. Res. Procedia 2014, 3, 611–620. [Google Scholar] [CrossRef] [Green Version]
- Shin, S.; Roh, H.-S.; Hur, S.-H. Technical trends related to intermodal Automated Freight Transport Systems (AFTS). Asian J. Shipp. Logist. 2018, 34, 161–169. [Google Scholar] [CrossRef]
- Lin, N. CO2 emissions mitigation potential of buyer consolidation and rail-based intermodal transport in the China-Europe container supply chains. J. Clean. Prod. 2019, 240, 118121. [Google Scholar] [CrossRef]
- Kaack, L.H.; Vaishnav, P.T.; Morgan, M.G.; Azevedo, I.L.; Rai, S. Decarbonizing intraregional freight systems with a focus on modal shift. Environ. Res. Lett. 2018, 13, 083001. [Google Scholar] [CrossRef]
- Pedersen, P.O. Freight transport under globalisation and its impact on Africa. J. Transp. Geogr. 2001, 9, 85–99. [Google Scholar] [CrossRef]
- Devlin, J.; Yee, P. Trade logistics in developing countries: The case of the Middle East and North Africa. World Econ. 2005, 28, 435–456. [Google Scholar] [CrossRef]
- Naudé, W.; Matthee, M. ; World Institute for Development Economics Research the Significance of Transport Costs in Africa; United Nations University: Helsinki, Finland, 2007; ISBN 978-92-808-3041-5. [Google Scholar]
- Wheat, P.; Stead, A.D.; Huang, Y.; Smith, A. Lowering transport costs and prices by competition: Regulatory and institutional reforms in low income countries. Sustainability 2019, 11, 5940. [Google Scholar] [CrossRef] [Green Version]
- Wiederer, C.; Straube, F. A decision tool for policymakers to foster higher-value perishable agricultural exports. Transp. Res. Interdiscip. Perspect. 2019, 2, 100035. [Google Scholar] [CrossRef]
- Schoeman, C.B. Intermodal transportation perspectives in South Africa: A case study of its application within the Gauteng Province and lessons learned for other metropolitan areas. In Urban Transport XX, Proceedings of the 20th International Conference on Urban Transport and the Environment, The Algarve, Portugal, 28–30 May 2014; WIT Press: Southampton, UK, 2014; pp. 3–15. [Google Scholar]
- Havenga, J.H.; Simpson, Z.P.; De Bod, A. South Africa’s freight rail reform: A demand-driven perspective. J. Transp. Supply Chain Manag. 2014, 8, 14. [Google Scholar] [CrossRef]
- Kalgora, B. Intermodal terminal localisation using a linear programming approach: The case study of Togo and West African landlocked Countries. J. Transp. Technol. 2019, 9, 215–231. [Google Scholar] [CrossRef] [Green Version]
- Okyere, S.; Yang, J.Q.; Aning, K.S.; Zhan, B. Review of sustainable multimodal freight transportation system in African developing countries: Evidence from Ghana. Int. J. Eng. Res. Afr. 2019, 41, 155–174. [Google Scholar] [CrossRef]
- Dettmer, P. An Optimisation Model for Intermodal Transportation in Humanitarian Logistics: Development of a Decision Support Tool for Supply Network Design in East Africa. Master’s Thesis, University of Göttingen, Göttingen, Germany, 2017. [Google Scholar] [CrossRef]
- Amentae, T.K.; Gebresenbet, G. Evaluation of performances of intermodal import-export freight transport system in Ethiopia. J. Serv. Sci. Manag. 2015, 8, 57–70. [Google Scholar] [CrossRef] [Green Version]
- Coutts, K.; Laskaridis, C. Financial balances and the development of the Ethiopian economy. In The Oxford Handbook of the Ethiopian Economy; Cheru, F., Cramer, C., Oqubay, A., Eds.; Oxford University Press: Oxford, UK, 2019; pp. 212–229. ISBN 978-0-19-881498-6. [Google Scholar]
- Ethiopian Maritime Affairs Authority. Federal Democratic Republic of Ethiopia: National Logistics Strategy (2018–2028); Ethiopian Ministry of Transport: Addis Ababa, Ethiopia, 2019; p. 100.
- Delbecq, A.L.; Van De Ven, A.H. A group process model for problem identification and program planning. J. Appl. Behav. Sci. 1971, 7, 466–492. [Google Scholar] [CrossRef]
- International Trade Center. Pulse Sector Investment Profile: Ethiopia; International Trade Center: Geneva, Switzerland, 2019; p. 36. [Google Scholar]
- The World Bank. Ethiopia Economic Update—The Inescapable Manufacturing-Services Nexus: Exploring the Potential of Distribution Services; The World Bank: Washington, DC, USA, 2018; p. 106. [Google Scholar]
- Ethiopian Investment Commission. Overview of Industrial Parks in Ethiopia 2020. Available online: http://www.investethiopia.gov.et/index.php/investment-opportunities/other-sectors-of-opportunity/overview.html (accessed on 23 June 2020).
- Giannecchini, P.; Taylor, I. The eastern industrial zone in Ethiopia: Catalyst for development? Geoforum 2018, 88, 28–35. [Google Scholar] [CrossRef]
- Françoise, N. Chinese Investors in Ethiopia: The Perfect Match? IFRI: Paris, France, 2017. [Google Scholar]
- Schmidt, E.; Dorosh, P.; Jemal, M.K.; Jennifer, S. Ethiopia’s Spatial and Structural Transformation: Public Policy and Drivers of Change; IFPRI: Washington, DC, USA, 2018. [Google Scholar]
- Zhang, X.; Tezera, D.; Zou, C.; Wang, Z.; Zhao, J.; Gebremenfas, E.A. Industrial Park Development in Ethiopiacase Study Report, Inclusive and Sustainable Industrial Development Working Paper Series; United Nations Industrial Development Organization: Vienna, Austria, 2018; p. 85. [Google Scholar]
- United Nations. The Djibouti City—Addis Ababa Transit and Transport Corridor: Turning Diagnostics into Action; United Nations Conference on Trade and Development; United Nations: New York, NY, USA; Geneva, Switzerland, 2018; p. 39. [Google Scholar]
- World Bank Group. Measuring Rural Access Using New Technologies; World Bank Group: Washington, DC, USA, 2016; p. 91. [Google Scholar]
- UNDP Ethiopia. National Logistics Strategy; UNDP Ethiopia: Addis Ababa, Ethiopia, 2017. [Google Scholar]
- Bedassa, K.W. Assessing Freight Transport Performances in Relation to Delays in Ethiopia: The Case of Addis Ababa-Djibouti Corridor; Addis Ababa University: Addis Ababa, Ethiopia, 2017. [Google Scholar]
- World Bank Group. Ethiopia Trade Logistics Project: Combined Project Information Documents/Integrated Safe-Guards Data Sheet (Pid/Isds) Appraisal Stage; World Bank Group: Washington, DC, USA, 2017; p. 18. [Google Scholar]
- Padilha, F.; Ng, A.K.Y. The spatial evolution of dry ports in developing economies: The Brazilian experience. Marit. Econ. Logist. 2012, 14, 99–121. [Google Scholar] [CrossRef]
- Rodrigues, T.D.A.; Mota, C.M.D.M.; Ojiako, U.; Dweiri, F. Assessing the objectives of dry ports: Main issues, challenges and opportunities in Brazil. Int. J. Logist. Manag. 2020, 32, 237–261. [Google Scholar] [CrossRef]
- Kumar, A.; Anbanandam, R. Evaluating the interrelationships among inhibitors to intermodal railroad freight transport in emerging economies: A multi-stakeholder perspective. Transp. Res. Part A Policy Pract. 2020, 132, 559–581. [Google Scholar] [CrossRef]
- Ng, A.; Gujar, G.C. Government policies, efficiency and competitiveness: The case of dry ports in India. Transp. Policy 2009, 16, 232–239. [Google Scholar] [CrossRef]
- Gu, Y.; Loh, H.S.; Yap, W.Y. Sustainable port-hinterland intermodal development: Opportunities and challenges for China and India. J. Infrastruct. Policy Dev. 2020, 4, 228–248. [Google Scholar] [CrossRef]
- Jeevan, J.; Chen, S.-L.; Lee, E.-S. The challenges of Malaysian dry ports development. Asian J. Shipp. Logist. 2015, 31, 109–134. [Google Scholar] [CrossRef]
- Jeevan, J.; Salleh, N.; Loke, K.; Saharuddin, A. Preparation of dry ports for a competitive environment in the container seaport system: A process benchmarking approach. Int. J. e-Navig. Marit. Econ. 2017, 7, 19–33. [Google Scholar] [CrossRef]
- Zeng, Q.; Maloni, M.J.; Paul, J.A.; Yang, Z.; Yang, J.A.P. Dry port development in China. Transp. J. 2013, 52, 234–263. [Google Scholar] [CrossRef]
- Nitsche, B. Decrypting the belt and road initiative: Barriers and development paths for global logistics networks. Sustainability 2020, 12, 9110. [Google Scholar] [CrossRef]
- Schoenherr, T.; Modi, S.B.; Benton, W.; Carter, C.R.; Choi, T.Y.; Larson, P.D.; Leenders, M.R.; Mabert, V.A.; Narasimhan, R.; Wagner, S.M. Research opportunities in purchasing and supply management. Int. J. Prod. Res. 2012, 50, 4556–4579. [Google Scholar] [CrossRef]
- Nitsche, B. Unravelling the complexity of supply chain volatility management. Logistics 2018, 2, 14. [Google Scholar] [CrossRef] [Green Version]
- Nitsche, B.; Durach, C.F. Much discussed, little conceptualized: Supply chain volatility. Int. J. Phys. Distrib. Logist. Manag. 2018, 48, 866–886. [Google Scholar] [CrossRef]
- Van De, A.; Delbecq, A.L. Nominal versus interacting group processes for committee decision-making effectiveness. Acad. Manag. J. 1971, 14, 203–212. [Google Scholar] [CrossRef]
- Goodman, C.M. The Delphi technique: A critique. J. Adv. Nurs. 1987, 12, 729–734. [Google Scholar] [CrossRef] [PubMed]
- Lloyd, S. Applying the nominal group technique to specify the domain of a construct. Qual. Mark. Res. Int. J. 2011, 14, 105–121. [Google Scholar] [CrossRef]
- Green, T.B. An empirical analysis of nominal and interacting groups. Acad. Manag. J. 1975, 18, 63–73. [Google Scholar] [CrossRef]
- Chapple, M.; Murphy, R. The Nominal Group Technique: Extending the evaluation of students’ teaching and learning experiences. Assess. Eval. High. Educ. 1996, 21, 147–160. [Google Scholar] [CrossRef]
- Ellingsen, I.; Størksen, I.; Stephens, P. Q methodology in social work research. Int. J. Soc. Res. Methodol. 2010, 13, 395–409. [Google Scholar] [CrossRef]
- Rekiso, Z.S. Trade deficits as development deficits: Case of Ethiopia. Struct. Chang. Econ. Dyn. 2020, 52, 344–353. [Google Scholar] [CrossRef]
Industry Type | Total Number of Employees | Revenue (USD) |
---|---|---|
Manufacturing (n = 5) | Up to 50 (n = 10) | Up to 10 million (n = 12) |
Logistics service provider (international) (n = 9) | 50–250 (n = 11) | 10–50 million (n = 6) |
Logistics service provider (regional) (n = 8) | 251–1000 (n = 6) | 50–250 million (n = 3) |
Academia (n = 8) | 1001–2500 (n = 4) | 250–1000 million (n = 2) |
Governmental organizations (n = 2) | 2501–5000 (n = 3) | 1–5 billion (n = 1) |
Non-governmental organizations (n = 3) | 5001–10,000 (n = 2) | Above 10 billion (n = 4) |
Associations (n = 3) | Above 10,000 (n = 2) | n/a (n = 10) |
Challenge | Strategy | Effectiveness | Complexity |
---|---|---|---|
Missing cooperation between all stakeholders | Establishment of strong supply chain partnerships that share and align capacities | 5.39 | 4.22 |
Development of clear standard operating procedures for the different stakeholders in the supply chain | 5.06 | 3.67 | |
Joint development of multi-stakeholder IT platforms | 5.00 | 4.78 | |
Establishment of public and private multi-stakeholder cooperation platforms | 4.94 | 3.89 | |
Clear definition of roles and responsibilities of platform members and key performance indicator (KPI) monitoring | 4.67 | 3.72 | |
Development of incentive system to foster stakeholder cooperation | 4.67 | 4.17 | |
Missing processes to integrate transport modes at transshipment points | Policy changes to accelerate customs at the port of Djibouti | 5.65 | 5.41 |
Establishment of a more frequent train connection between Djibouti and Ethiopia to make the train a more attractive transport mode | 5.53 | 3.71 | |
Tracking and tracing of goods (at truck or container level) to better estimate arrivals at transshipment points | 5.35 | 3.88 | |
Simplification of processes within each stakeholder to make mode changes more efficient | 5.35 | 4.18 | |
Connection of IT systems of logistics service providers to utilize available data | 5.12 | 4.24 | |
End-to-end visibility of actual and planned goods within the network to enable a holistic integrated planning | 4.94 | 4.35 | |
Establishment of a central continuous improvement organization to control the whole flow of goods | 4.82 | 4.29 | |
Lack of qualified personnel | National certification for certain job profiles to assist companies in finding qualified personnel | 5.25 | 3.25 |
Incentivization of staff to participate in further education programs | 5.22 | 3.28 | |
Development and implementation of KPIs to measure performance of personnel | 5.17 | 3.39 | |
Knowledge capacity building through on-job mentoring and experience sharing (from another countries and experts) | 5.11 | 3.44 | |
Vocational training on specific job profiles (considering good practice examples of other countries) | 5.00 | 3.28 | |
Collaboration between companies and universities to teach the necessary practice-oriented content to close gap between theory and practice | 4.94 | 3.44 | |
Monopolistic structures for intermodal transport | Set-up and follow-up on KPI (that track operators’ performance) to lower prices | 5.33 | 4.39 |
Support of consolidation of small operators | 5.00 | 4.44 | |
Anti-monopoly regulations to open up the market for freight forwarders | 4.78 | 4.28 | |
Promotion of platform for transparency of small operators and their services and prices | 4.36 | 4.17 | |
Promotion of sub-contracting schemes | 4.33 | 3.94 | |
Conduction of quantitative study that assesses whether monopolistic structures in Ethiopia lower logistics service level and increase cost | 4.28 | 4.33 |
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. |
© 2021 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Nitsche, B. Embracing the Potentials of Intermodal Transport in Ethiopia: Strategies to Facilitate Export-Led Growth. Sustainability 2021, 13, 2208. https://doi.org/10.3390/su13042208
Nitsche B. Embracing the Potentials of Intermodal Transport in Ethiopia: Strategies to Facilitate Export-Led Growth. Sustainability. 2021; 13(4):2208. https://doi.org/10.3390/su13042208
Chicago/Turabian StyleNitsche, Benjamin. 2021. "Embracing the Potentials of Intermodal Transport in Ethiopia: Strategies to Facilitate Export-Led Growth" Sustainability 13, no. 4: 2208. https://doi.org/10.3390/su13042208