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Challenges of transporting retail goods into a landlocked country: the case of importing into Zimbabwe.

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Much of the literature that has been conducted for this study focuses on the general challenges of being landlocked. Due to the nature of the topic being studied, data were collected using qualitative methods.

Introduction

Background

However, the challenges of being landlocked can be minimized by governments changing regulations to favor landlocked countries. Zimbabwe is one of the landlocked countries in Southern Africa, bordered by Botswana, Mozambique, South Africa and Zambia (SADC, 2012).

Figure 1.1: Landlocked Countries in Africa
Figure 1.1: Landlocked Countries in Africa

Motivation for the Study

Problem Question

Research Objectives

Limitations of the Study

Due to the nature of the study, the study area was limited to Elite Global Logistics Durban Plant South Africa, Elite Line Haul Johannesburg South Africa and Safmarine Harare Plant Zimbabwe. Both the choice to select Safmarine, Elite Global Logistics Durban and Elite Line Haul for this study and Zimbabwe's choice to use them will also be elaborated in the study.

Scope of Study

The entry list includes two reputable clearing agents working for Elite Global Logistics, one based at the Port of Durban and one at the Beitbridge border post. Due to the wide variety of business-to-consumer goods imported into Zimbabwe, this study will focus on selected goods that are in high demand by the majority of the population and are normally transported by the companies selected for the study.

Plan for Dissertation

Conclusion

Introduction

Country Structure

Zimbabwe as a Landlocked Country

Trading in Zimbabwe

Zimbabwe’s Transport Structures

Zimbabwe’s Economy

The economy was optimistic and the country was aptly called 'the breadbasket of southern Africa' (Murray, 2010:19). In August 2006, in an operation dubbed 'Sunrise 1', the RBZ removed three zeros from the Zimbabwean currency and promised to initiate a new currency in the near future” (IMF 2009).

Zimbabwe’s Political Standpoint

Country Political Profile

Thus, a staggering 25 zeros were removed from the Zimbabwean currency in just three years. Hyperinflation was just false and when the Zimbabwean dollar was legally devalued in March 2009, the highest single denomination was a $100 trillion note.

Sanctions

15 Along with the United States, the European Union also imposed restrictive measures on Zimbabwe, including, among other matters, an asset freeze on select members of the government and individuals associated with them. These restrictive measures are amended annually in case there are changes to be retaliated against (Commission Regulations European Union, 2014).

Look East Policy

This law was enacted by the Ministry of Youth Development, Indigenization and Empowerment. 17 This law was passed in 2008 in an attempt to control all companies including mines and banks to black Zimbabweans.

Figure 2.2: Looking East Policy
Figure 2.2: Looking East Policy

Zimbabwe’s Currency – Dollarization

Large mining companies such as Anglo Platinum and Aquarius Platinum complied with the law, but this did not change the economic situation (Bbcnews, 2010). This has now led to more confusion in the country as businesses and stores face annoying transactions.

Figure 2.3: One Hundred Trillion Dollar Note
Figure 2.3: One Hundred Trillion Dollar Note

Conclusion

Introduction

Transport

Transporting Systems

  • Air
  • Road
  • Rail
  • Sea or Water Transportation
  • Pipeline
  • Multi-modal transportation of Goods
  • Transportation: Critical link in the Supply Chain
  • Transporting Corridors
  • Zimbabwe’s Main Corridor
  • Costing and Pricing of Transportation
  • Transport Regulations

There are three main types of institutions involved in determining the modal choice of freight transport - the government, the carrier and the shipper. Imbalances – the difference between supply and demand, input and output, import and export determine costs.

Figure 3.1: Harare International Airport
Figure 3.1: Harare International Airport

Logistics

The Importance of Logistics

  • Warehousing

The form of transport used is in most cases determined by the nature of the products, i.e. this also brings up the second point that transport is the biggest aspect of storage, because no matter what is stored, it has to be taken out of the warehouse transported (Coyle .

Figure 3.5: The Role of Transport in Logistics
Figure 3.5: The Role of Transport in Logistics

Third Party Logistics (3PL)

Several truckloads are moved from the port to the warehouse, where they are stored until cleared or needed. The freight is then transported to the customer using a strategic transportation modeling system, as summarized in Figure 3.6 (Warehousing Consolidation Systems, 2015).

The Challenges of Being a Landlocked Country

Overview of Landlocked Countries

Problems Landlocked Countries Encounter

This is practical because there is no certainty about when the goods will actually arrive (Muller, 2011:7). Some goods are not allowed in certain countries and due to the regulations of different countries, some goods need to be opened for inspection before entering the country of deposit (Aryeetey, 2012:64).

Costs incurred by Landlocked Countries

The Almaty Program of Action, as it is commonly called, was adopted as a global framework for action to develop efficient transit transport systems in non-coastal and transit developing countries. 52 provide financial and technical support to support non-coastal and transit countries in effectively solving the challenges and demands of transit traffic (ATPC, 2010:15).

Table 3.6: Customs Procedures   Customs Procedure or
Table 3.6: Customs Procedures Customs Procedure or

The Retail Industry

Logistics in the Retail Industry

Distribution

Retail Implications

54 The illustration above shows an example of what importers have to pay each time they buy cargo from world markets. These costs must be incurred in addition to the transportation costs, taxes, tariffs and all the other regulations that must be met in order for these retail goods to be delivered to their final destination.

Economic Implications

Economic and Developmental Challenges

A 1970s study by the United Nations Conference on Trade and Development (UNCTAD) noted that lack of access to the sea remains a major obstacle to economic and social development. Moreover, their lack of direct access to the sea incurs additional expenses due to the cost of transporting goods through a transit country, resulting in less competitive international trade and causing delays or even interruptions in their development and economic growth (UNCTAD, 2013).

Transport Implications

It is not surprising that the majority of all landlocked countries have some of the lowest growth rates in the world. Overall, most landlocked countries are among the poorest countries in the world.

Conclusion

59 foreign countries; without such services, the development of the country is delayed, if not completely stopped. Clearly, it is not just fate that non-land developing countries are the poorest in the group of developing countries with an almost systematically declining growth rate per capita. inhabitant.

Introduction

Research Design

An exploratory study she used in this study to further investigate whether what is observed can be explained by current existing theories. Yin defines case study research as “an empirical inquiry that examines a contemporary phenomenon within its real-world context, when the boundaries between phenomenon and context are not clearly defined, and using multiple sources.”

Qualitative Research

Exploratory research allows this initial research to be explored further through other research work that may be carried out in the future (Purposes of Research, 2015:30) To achieve the specific objectives of this research, a case study will be done at Safmarine Durban plant in South Africa, the Safmarine Harare plant in Zimbabwe, Elite Global Logistics and Elite Line Haul. In this study, it was decided to collect information in a qualitative way by making use of semi-structured interviews.

Table 4.1: Interview Participants
Table 4.1: Interview Participants

The Research Philosophy

Research Strategies

  • Phenomenological Research Strategies
  • Case Study
  • Population and Sampling
  • Target Population
  • Sampling
  • Kind of Sampling

The researcher chose these companies as well as the selected individuals because of the knowledge they have in the industry and their well-known reputation. In the probability sampling technique, the researcher must ensure that each person has the chance to be selected and this is achieved through randomization.

Research Instrument

  • Semi-structured interviews
  • Online Interviews
  • Visual Diaries
  • Field Notes

The field notes in this study were taken in the port of Durban and at the Beitbridge border post. Both supervisors explained in detail the procedures and processes that take place in the port and at the border.

Pilot Study

The researcher used several methods to gain as much understanding of the research study as shown in Table 4.2. There were supervisory authorities who assisted the researcher in both locations in obtaining the necessary information.

Companies Selected for Study

Trustworthiness

  • Credibility (Truth value)
  • Transferability
  • Strategies for Transferability
  • Dependability
  • Confirmability

This ensures that the findings are the result of the data collected and not the bias of the researcher. The researcher ensured that the study was reliable by including accurate operational measures for the concepts being studied.

Data Collection

The first step in this study will be a review of literature related to the challenges of being landlocked. Afterwards, interview questions will be drawn up and dates set with the participants for the interviews themselves, dates for field notes and collection of visual diaries.

Data Analysis

Ethical Considerations

Informed Consent

Elimination of Bias

Ensuring no Harm to Participants

Ensuring Confidentiality and Anonymity

Ensuring that Permission was obtained

Conclusion

Introduction

Presentation

In some cases, these are trucks that are not properly registered and are not allowed to cross the border. Cagan P (1956) "The Monetary Dynamics of Hyperinflation" in Friedman M (ed) Studies in the Quantity Theory of Money: University of Chicago Press.

Figure 5.1: Goods Packed from Country of Purchase
Figure 5.1: Goods Packed from Country of Purchase

Participants’ Profile

Thematic Analysis

The development of themes developed by the participants in this study showcased their knowledge of the supply chain and the challenges associated with transporting goods to Zimbabwe. The data presentation below shows the thoughts expressed by the participants and are the key outcomes materialized therein.

Presentation of Data

Major Retail Goods Imported into Zimbabwe

Most of the foreign stores were closed after the sanctions that were imposed in the country. This business has grown over the years and these cars are one of the most imported retail goods in Zimbabwe.

The Challenges of Transporting Retail Goods into Zimbabwe

Sometimes when inquiring about cargo, the delay takes longer as certain verifications need to be done (Interviewee 2, 2014). Once authorized at the port, they must also be cleared at the Zimbabwean border.

Costs of Transporting Retail Goods into Zimbabwe

Price is always calculated based on cost, insurance and freight (CIF) value of the imported goods. Being on the road makes it inevitable for one to encounter delays due to certain unforeseen circumstances accidents.

The Clearance Procedures, Laws, Regulations and Documentation Requirements 88

However, interviewee 8 disputed this and stated that if all these documents are available, then there are no restrictions that prevent the rapid clearance of these goods. They stated that the poor maintenance of roads in Zimbabwe makes it difficult to transport goods.

Different Cargo, Different Challenges

93 Interviewee 12 mentioned that due to the nature of the food products being transported, rail is preferable. Unlike clothing, electronic goods are standard, new products are introduced after a certain time, so they have one time to sell while waiting for the next new production.

Noticeable Challenges that can be avoided or improved

As long as the cargo coming in meets all the requirements, everything else doesn't have to be difficult. Interviewee 6, Interviewee 10 and Interviewee 12 both agreed that the challenges all come back to the central focus, which is cost.

Visual Diaries

The cargo is checked again and all contributions must be paid before they are allowed to cross the border. All regulations mentioned above must be met before the goods can be transported to the point of delivery (Interviewee 8, 2014).

Field Notes

Entry is only permitted if you have permission to enter and if you are conducting business at the port. Most customs payments are not made inside the port, but outside the SARS office.

Conclusion

Introduction

Interpretation of Data

However, due to the poor railway system in Zimbabwe and the unavailability of several locomotives, road transport is used. Safmarine NV Container Lines, Elite Line Haul and Elite Global Logistics all play an important role in transporting the cargo from the port to its final destinations.

Findings from the Literature Review

Some of the challenges in transporting retail goods stem from Zimbabwe's poor infrastructure standards. The preliminary phase of the research involved discovering categorized and external literature to understand the challenges of transporting retail goods to Zimbabwe.

Conclusion

Introduction

Discussion of the Study

Study Limitations

Recommendations

  • Creating Uniformity
  • Government intervention
  • Upgrading to reliable systems
  • Maintaining the Road and Rail Systems

As Zimbabwean goods are mainly transported by either road or rail, it is important to ensure that these systems are always maintained and upgraded to eliminate transit delay issues. The Zimbabwean government has received funding from China, and ensuring that transport systems are in good working order should be one of the country's goals.

Future Research

This minimizes some of the challenges that buyers face when purchasing goods from around the world. 116 other landlocked African countries and compare to see if the challenges are the same or different from country to country, port to port or specific commodity.

Conclusion

Do you think the procedures, rules and processes you have to go through to take a load through are necessary. What do you think about the road infrastructure relevant to your industry to deliver goods to customers.

Gambar

Figure 1.1: Landlocked Countries in Africa
Figure 2.1: Map of Zimbabwe and its Neighbouring Countries
Table 2.1 shows Zimbabwe’s main exports and imports.
Figure 2.2: Looking East Policy
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