Vol. 2, Issue 7, Part N (2016)

Abstract
This article investigates the key challenges in the operation of Multimodal Transport System. The ‘Multimodal Transport’ concept can be defined as the combination of various types of transport modes used in a national or international transport operation, which provides door-to-door services, under the responsibility of one single transport operator. The Multimodal Transport System is a concept aimed at improving trading efficiency. Following the introduction of Multimodal Transport System in Ethiopia since 2012, there have been symptoms which have stimulated substantial public debate and inefficiencies as studies shows. The study identifies the key challenges of Multimodal Transport System in the trade and investments during importation of goods and it is expected to help beneficiaries to know the gap for using Multimodal Transport System. Simple descriptive statistics and inferential statistical measures were used to analyze the data. The key identified challenges are network connectivity, lack of ICT usage at each level, lack of railway infrastructure, and lack of clear lows and regulations that support the involvement of privately owned service providers. The study suggests that in order to improve the services of Multimodal Transport System these key challenges should be solved. In order to encourage competition between private operators and the Ethiopian Shipping and Logistics Services Enterprise, the government or Ethiopian Maritime Affairs Authority is recommended to produce the possible new law or/and proclamation which requires private potential Multimodal Transport Operators to be established at the national level for developing and maintaining competitive advantage.