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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