Analysis of transport logistics challenges affecting freight forwarding operations in Malawi (original) (raw)
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2023
For several years, a modal shift from road to rail transport has been promoted by policymakers and industry experts as it is believed that this move would provide a basis for achieving lower transportation costs. Malawi's main goal is to reduce transportation costs and ensure that transport does not constrain its economy and the achievement of this strategic objective would be by facilitating a modal shift from road to rail transport. While all these efforts are being made, there is still not much to trigger the modal shift. This study therefore, focused on understanding the freight modal split between road and rail and went further to establish the reasons why shippers choose a particular mode of transport for their shipments. A descriptive research design within quantitative methodology was employed. Using a simple random sampling technique, 84 participants were recruited for this study. The finding of the study revealed that 87 percent of shippers use road transport because it provides a shorter shipment delivery window, reliable transport service, and availability. It is therefore recommended that the government should invest to revitalize rail transportation to make it more efficient.
Bottlenecks in the Freight Forwarding sector in West - coast Africa
2009
Problem-The expansion of global trade and supply chain integration has put great emphasis on logistics, particularly in the intermediary sector, freight forwarders. Whilst in developed countries freight forwarders benefit from competitive markets and trade facilitating policies, this sector in West coast Africa exhibits low logistics performance levels. In order to address such issues, one needs to analyse the problem and identify the causes; this thesis focuses on identifying the bottlenecks in the freight-forwarding sector in west coast Africa.
2007
Logistics was identified by the South African government in the Accelerated and Shared-Growth Initiative of South Africa (ASGISA) as one of the six potential hurdles that may limit future growth in the country. Strategies were put in place to address this potential treat. The National Freight Logistics Strategy and the National Land Transport Strategic Framework are two such strategies, supported by strategies in many other spheres of government to ensure that the country increases its competitiveness. Currently these strategies are being implemented within our developing economy with varying degrees of success. The theme of this survey, "Implementing logistics strategies in a developing economy", is therefore highly appropriate. Implementation is critical but doing it properly and thoroughly with a long-term view does not happen overnight. Proper foundations need to be laid to ensure sustainable growth as well as increased competitiveness through world-class supply chains. It is only through such endeavours that South Africa will be able to operate and compete in the global market place. In addition, those within the second economy who require focused assistance, specifically from a logistics and supply chain management point of view, cannot be ignored. The CSIR (Council for Scientific and Industrial Research) and its associates believe that critical aspects are addressed in the third State of Logistics report. The report is similar in format to the first two surveys and allows for trend analysis, which is vital to keep track of what is happening in this critical area. From our current results it is interesting to note that although logistics costs are rising as a result of growth, the percentage of logistics cost, as a percentage of GDP, is decreasing since the growth in GDP is faster! Indications are that the envisaged improvements in infrastructure have not yet happened and this is to be expected. These improvements will take time to have the desired effect and impact. Nevertheless, all indications are that the appropriate interventions have been made and these now need to be implemented. As stated in the second survey, the National Freight Logistics Strategy now also needs time to affect reform. Our industry focus in this survey is the fast-moving consumer goods (FMCG) sector. This is a large sector which is growing at almost the same rate as the economy but it also faces a whole range of challenges in the supply chain environment. It was important to determine how the sector copes with these and what innovation, if any, there is in this sector. This survey should not only open the agenda for further discussions on various logistics and supply chain management issues, but also contribute to an appropriate R&D agenda. In this regard all stakeholders are urged to interact with the CSIR and academic institutions. It is only through these collaborative interactions that relevant research can be conducted that will benefit the country. The CSIR and its associates are however grateful for past feedback and interactions.
Supply Chains and Transport Corridors in East Africa
2014
Transport infrastructure plays a key role in boosting a country or region’s economic development. IPIS and TransArms have ascertained on several occasions that the underdevelopment or degeneration of transport infrastructure is a problematic issue across a number of African countries and regions. This report analyses the current logistics situation in Eastern Africa, and the logistic challenges faced by various actors in that region. It is based on desktop research, and interviews and data collected by the authors during several field missions to East and Central Africa. At the time of writing, however, logistic and other challenges to cost-efficient trade and overall economic development are yet to be addressed. Further research and policy actions to effectively tackle current shortcomings are much needed. A strategy relying on a piecemeal approach (e.g. on ad hoc investments in infrastructure) is likely to result in a ‘quick fix’ to ship raw materials out of the African continent rather than in an effort to boost sustainable economic development.
2023
Understanding the transport mode choice factors that are important to the commodity shippers is one of the important key aspects to consider when aiming for efficient and effective transport planning. Over the years, several studies have been conducted in other countries trying to establish the factors that influence commodity shippers' decisions when choosing transport modes. While these factors have been unearthed, little is known about how these factors are prioritized in shipping decisions. This study therefore aimed to investigate the factors that influence transport mode choices and also examine how shippers weigh and rank these factors with regard to their importance. A descriptive research design within quantitative methodology was employed. Using a simple random sampling technique, 84 participants were recruited for this study. The findings of the study revealed that shipment travel time, transport cost, transport mode availability, and transport service reliability have an influence on how shippers choose a transport mode for their shipments. The study further revealed that transportation cost was the ranking transport modal choice factor among the factors. It was therefore recommended that the government should consider revitalising low-cost rail transportation to make it more efficient and responsive to shippers' demands.
The State of LogisticsTM – an overview of logistics in South Africa
2010
Logistics and supply chain management play a big role in any economy and are a critical contributor to the competitiveness of a country. The demand for products can only be satisfied through the proper and costeffective delivery of goods and services. South Africa’s main economic activity is located in Gauteng and this has a serious effect on logistics costs. In addition, most of the freight in the country is transported by road. Furthermore, for South Africa to grow its market share of various products in the global market, the supply chains need to be world class to ensure effective delivery of goods. These and other aspects of the logistics environment in South Africa will be presented and major issues affecting logistics costs will be discussed. In addition, reference is made to the recent World Bank report on logistics competitiveness, and comparisons are made with Brazil and the USA on logistics performance.
Logistics Practices in Ethiopia
The ability to transport goods quickly, economically and reliably is vital to a nation’s prosperity and capacity to compete in global market. Ethiopia is a landlocked country in East Africa with a land area of about 1.13 million square kilometers and a population of about 82.8 million. 85 percent of the population is living in rural areas and the economy of the country is based mainly on agriculture accounting for 45 percent of GDP, 80 percent of exports and 80 percent of employment. Ethiopian logistics system is characterized by poor logistics management system and lack of coordination of goods transport, low level of development of logistics infrastructure and inadequate fleets of freight vehicles in number and age, damage and quality deterioration of goods while handling, transporting and in storage. This coupled with lack of sea port resulted in poor linkage of producers (farmers) to the consumers (market) and non-competitiveness of Ethiopian goods on global market, which compromised livelihood of the people and economy of the country. There is very high rate of traffic accident (first in the world) and congestion in cities and at city inlets/outlets to which freight vehicles contribute significantly. Efficient and effective logistics system needs to be put in place to solve these socio-economic problems. The objective of this work is to assess the current status of logistics practices in Ethiopia with the aim of identifying the gaps, potentials and constraints for development of effective and efficient logistics system. To meet this objective, qualitative assessment of the soft and hardware of logistics, freight logistics and transport companies, organizations dealing with documentation of import and export goods and case studies of specific supply chains of major goods in Ethiopia are made. Information from secondary sources is used to carry out the assessment. Presence of road of high density and quality makes efficient distribution of goods easy. Customer orientation, low level bureaucracy at customs and trade facilitations expedite goods flow. Availability of skilled manpower, conducive labor regulations and business environment promotes economic activities. On most of these criteria, Ethiopian logistics system is found to be poor. There is urgent need for research on the problems, for which Excellence Center for Freight Transport and Logistics in Ethiopia (EthioLog) is established. Intermodal transport system is the best solution and commencement of construction of 10, 000 km rail line is an opportunity to use road-rail integrated intermodal transport system to solve the logistics problems of the country.
Logistics in Namibia: Issues and challenges
2012
Logistics is perceived to be important for Namibia's growth and development, but this may be a matter of conjecture as there is a dearth of documented information about the industry in Namibia. Furthermore, it is uncertain what the understanding of logistics is for key stakeholders in the country. This article reports on a project; the objectives were to address some of these issues and to lay the foundation for a more thorough investigation in the future. The findings of the initial project were disseminated in 2012 by: a conference paper showing the challenges and opportunities facing logistics in Namibia in 2012; a report; and through a Logistics and Transport Workshop held in Walvis Bay, Namibia in September 2012. These reports, additional interviews and subsequent discussions highlighted some potential opportunities and problems. This article summarises the project to date, showing the methodology and findings as updated by subsequent feedback and further interviews. The findings from key stakeholders of the logistics industry in Namibia include: universal agreement on the importance of logistics to Namibia; the variety in the understanding of the term logistics; the strength of the continuing influence of South Africa as the dominant economic power in southern Africa; and contrasting views on the main factors limiting logistics development, including infrastructure, attitude, government, customs, training, railways, corruption and driver shortage.
2005
The following organisations made publication of this document possible: The CSIR is one of the leading R&D, technology and innovation institutions in Africa, with a track record spanning 60 years. The Centre for Logistics is home to extensive expertise in operations research, quantitative modelling and logistics. It has a long history in research and consulting in various industries, and is the originator of the Annual State of Logistics Survey for South Africa. USB-ED Consulting offers customised business solutions which combine the theory and practice of business science. This allows for strong research-based methodologies when assisting clients in fields such as strategy-setting, market research and change management. The Department of Logistics offers undergraduate and postgraduate programmes in logistics, as well as academic and professional research and the production of accredited publications.