Showing posts with label airport business. Show all posts
Showing posts with label airport business. Show all posts

Thursday, 23 January 2014

Problems in Developing Countries


There are however several problems which developing countries may face in promoting indigenous multimodal transport organizations .

1)   Multimodal transport operations are linked , in the majority of cases with the use of modern transport technologies like containerization ,These technologies are on the whole capital intensive and would require large investment in ship , vehicles , transport equipments , container depots , ports and other inland  transport infrastructure like roads and railways .

2)   At the same time these technologies are labour saving and would give rise to undesirable redundancy of port labour in developing countries where the cargo handling operations are labour intensive .

3)   Indigenous MTOs may face competition from foreign and develop MTOs already operating inb the same routes .

4)   Apart from large investment , international multimodal transport operations will call  for organizing ability as well as marketing and planning expertise of a high order .

5)   Developing countries may also experience shortage of trained and experienced managerial staff for dealing with the various aspects of multimodal transport operations  , including legal and insurance aspects and trained technical personnel for operating and maintaining the equipment used in modern transport technologies .

6)   The introduction of modern transport technologies will give rise to various institutional changes . These institutional changes , if unregulated , may have adverse economic effect on developing countries or may not be compatible with the overall economic and social objectives of their Governments .

7)   At present in most developing countries , the exports are carried generally on F.O.B. terms while imports are carried on C.I.F. terms . This is also a problem for MTOs of developing countries .

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