Determinants of Dry Port performance in Kenya : a case of the Internal Container Depot, NAIROBI
Loading...
Date
2020
Authors
Okoyo, Brian Mokua
Dr. Ogaga, Bruce
Dr. Kemboi, Ambrose
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/Moi University
Abstract
In view of the global outlook, the rising number of container throughput and traffic
globally has affected the functionality of seaports necessitating the emergence of dry
ports. Dry ports have become an essential medium for seaports to solve the problem of
rapid changes in globalization with the need to fulfill economies of scale and scope in
the international market. Since the introduction of dry ports, there has been a lot of
considerations with concern to Inland Container Depots targeted at improving port
operations with an aim of making global trade more efficient and effective to all
stakeholders. This study looked at the factors used by Embakasi dry port in optimizing
its purpose as a way of providing solution to trade facilitation and ensuring there is free
flow of containers at the Seaport in Mombasa. In particular, the study interrogated the
determinants of dry port performance with a view of improving revenue collection. The
explanatory variables used in this research project were Information Communication
Technology, infrastructure, capacity of personnel and stakeholder cooperation.
Hypothesis were formulated so as to describe an unknown but a tentative answer to
what the research considered ought to be the possible outcome of an existing problem.
Theories covered in this research project were the stakeholder theory, institutional
theory and the theory of agency. The research used explanatory research design. Data
collected was primary data through an ordinal scale involving close-ended structured
questionnaires. The target population of the study consisted of 838 participants in
international trade comprising of senior managers of Kenya Revenue Authority (KRA)
customs and border control department, clearing and forwarding agents, and senior
managers of Kenya Ports Authority (KPA). Sample size of 271 participants was
selected using stratified random sampling technique. Data was collected at the Internal
Container Depot (ICD) Nairobi and KRA headquarters, Nairobi for the financial year
2018/2019. The study employed descriptive and inferential statistical analysis to
determine the relationship between variables using Statistical Package for Social
Scientists (SPSS). In particular, correlation analysis and multiple regression analysis
were used. The results are presented in the form of tables, and figures. The results of
the multiple regression analysis revealed that Information Communication Technology
(β1=0.141, p<0.05), infrastructure (β2=0.565, p<0.05), capacity of personnel
(β3=0.094, p<0.05) and stakeholder cooperation (β4= 0.22, p<0.05) had a significant
and positive influence on the performance of the dry port as p-values of the respective
variables were less than 0.05. The model summary results revealed that there was a
77.2% variation in the performance of the dry port due to changes in Information
Communication Technology, infrastructure, capacity of personnel and stakeholder
cooperation. The study therefore concluded that that Information Communication
Technology, infrastructure, capacity of personnel and stakeholder cooperation had a
positive and significant effect on the performance of dry port. Therefore, KRA should
develop a policy that enhances infrastructural development within the dry port through
the construction of better facilities and foster useful collaborations and linkages with
other border agencies involved in the process of customs clearance. The research
suggested that future studies can evaluate the political, economic, social, technological,
environmental and legal factors determining the performance of a dry port.
Description
Keywords
ICD, Dry Port, Clearance Time, Cargo Scanning