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The Impact of Transportation Infrastructure on Logistics in Pakistan

A Research Paper Submitted By Shariq Abdullah (3737) E-mail: shariq.abdullah@hotmail.com To Dr. Muhammad Azam The Requirement for passing the course of Advance Research Method.

Abstract: The purpose of the study is to analyze the transportation infrastructure in Pakistan to support and promote logistic business in Pakistan. As we are aware that the roads, motorways and railway are the main means of transport in our country; hence I analyze the availability and conditions of this facilities viz-a-viz its impact on the logistic business. A phenomenological research used for investigation because it is a qualitative research. The research is an expletory research; the sample size of data taken in the study is 8 companies. A real data is used in the research to arrive at the conclusions. In the study we arrive at a conclusion that infrastructure is the back bone for economic development of any country. The investors before starting any industry first of all look into the availability of infrastructure, power and availability of raw material and labor. The logistics has impact on cost of doing business and also effect price of the product which ultimately make it compatible or otherwise.

Keywords: Transportation, City logistics, Logistics channel and distribution management.

1. Introduction: Communication infrastructure is very essential for economic development of any country. The economic development of any country is greatly dependent upon roads network, bridges, tunnels, railway tracks and air transportation facilities. We can see progress of China where first of all they concentrate on providing basic essentials of business needs like power, communication infrastructure etc. due to which foreign investments attracted and now China is one of the top economic force in the world. In contrast what we see in Pakistan is very insufficient communication network like roads, bridges, railway tracks etc. The very reasons for current bad situation are political instability and lack of planning. In addition to this poor maintenance and corruption in related government departments are the issues. In this study, I reviewed various research papers relating to logistics and infrastructure importance for economic development of any country. One of the prominent research people Vijayara Ghavan (2007) in his study highlighted the logistics problems in India. From his findings we observe that the problems in India are quite similar to that of our country. Non availability of road links specially linking farms to Mandis are less available due to which the farm products not reach in time and considerable share of the farm products got destroyed. In another study Nikolaos Deonas (2004) has focused on transportation in Asia, he particularly discussed the transportation between Asia and Europe in which transportation links role is very important and unavoidable. The train and road routes are cheaper and less time consuming whereas other means i.e. through sea or air are either more time consuming or expensive. The purpose of my research is to highlight state of poor logistic infrastructure in Pakistan as compared to other neighboring countries like China and Iran. The previous governments not played their due role; however little effort was made to built motorways in some parts of the country in the province of Punjab, whereas roads linking Sind to Baluchistan are in very bad shape. Besides, roads in Punjab (other than motorways) are also not in good shape. The roads in Khyber Pakhtunkhwa and tribal areas are also in very bad shape which on the one hand hinder economic development and on the other hand help insurgency. The power shortage, poor water and sanitation facilities also make hindrance in logistic support. Recent financial problems in

railway, shortage of engines and fuel need also make situation worst in recent days. The availability of proper infrastructure is one of the essential thing for economic development of any country. China which is our neighbor country and got independence after our country is a model for us to follow. In China they have built infrastructure sufficient for next 20 years. The lacking I have found in different researches that there are very less work on infrastructure of logistics in Pakistan so my contribution is to highlight those issues which give bad impact on the economy of Pakistan and also highlight the effect of infrastructure on logistics and how these issues can be resolved. This paper is divided into five sections first section introduces my work and briefly explains my topic with its core focuses. In second section reviewed literatures are discussed. Third one is showing methodology of my work and all relevant references are given with related websites where needed in fourth section. Last section is of Appendix where questionnaire is provided which is used for the data collection.

2. Literature Review Kazuo et al (2011), Infrastructure support and new plant formation: This study was based on factor analysis approach. In this study data from 1997 to 2003 was used. The aim of the study was to highlight importance of infrastructure for construction of a new plant. The finding in the study is that there is a location factor consisting of various infrastructure supports, the role of infrastructure-based location factor varies. In the study it was found that the impact of the factor normally grows as infrastructure density rises; however the enlargement turns to a turn down when population mass is extraordinarily high. Adebambo et al (2010), Impact of freight flows on city logistics in a megacity of a developing company. The research paper identifies gaps in the provision of infrastructural capacity and logistics services in the region selected for the study. The study further recommended that city logistics should be improved so that the city becomes economically efficient, socially effective and environmentally friendly. Methodology that was implementing was inferential statistical techniques and descriptive methods, besides further assessment

correlation of coefficient and paired t test are used in the study. Researcher create that understandable need for provision of reasonable opportunity for innovative solutions is to develop and improve the standard of life in urban areas through latest techniques. Changbing et al (2010), Research on Logistics Network Infrastructure Based on HCA and DEA-PCA Approach. Logistics Network Infrastructure (LNI) is an main area of Logistics Infrastructure Capability (LIC). Hierarchical cluster analysis, data envelopment analysis, principal component analysis are some of the methods used to examine the data. The connotation of LNI is used in this paper and compared with the wide-ranging research on LNI in developed world. With the extensive research on LNI in developed world, empirical work is still exceptional in China. In this study the theory of (logistics network infrastructure) is analyzed for the first time. Changbing et al (2009), Research on Urban Logistics Infrastructure An Empirical Study of China. The topic of this study is how the Urban Logistics Infrastructure (ULI) is an important area of urban competition capability. The implication of Urban Logistics Capability (ULC) is analyze in this study and compared with the wide research on ULC in developed world. In this study the theory of ULC is firstly reviewed. Performance, hierarchical cluster analysis, principal component analysis are used in this research. Micheal.s et al (2008), Measuring the importance of attributes in logistic research. Multi Dimensional scaling is presented as a research method to capture attributes, important scores allowing logistics research. The objective of this study was to observe how to get better validity in measuring logistics attribute and to recognize more accurately and truly what is important to the population and to identify relevant needs. Torbon et al (2004), Assessment of logistic effects from transport infrastructure investment .This paper aims to see a structure for assessment of logistic effects from transport infrastructure investment such that these special effects can be incorporated into the appraisal methodologies. n the study CGE model is used for assessment. The paper presented practiceoriented ideas that can present the root for comprehensive mechanism for assessing logisticgoods effects as part of overall assessment of transport infrastructure schemes.

Nikolaos et al (2004), Transportation infrastructure in Asia: Priorities that will facilitate trade Europe used. This paper examines the implications of the quick growth in demand for trade between Europe and Asia through existing transportation network and logistics infrastructure and support. Trade between Asia and Europe potentially involves highways and railways, as well as sea and aerial means of transportation. ABC analysis used for evaluation A, b and C words use to classify the infrastructure of different countries. The paper first considered how problems, issues, and policies differ in A, B, and C countries; and then recognize appropriate priorities and policy selection for each country. Leif et al (2004),Impacts of major traffic infrastructure on firms of logistics and transportexamples from the fixed link of great belt and Oresund. Based on empirical finding and experiences from previous research projects on freight transport, this study applied a transport logistical chain perspective. The purpose of this study was to discuss how new major traffic infrastructure influence transport logistical system in terms of fundamental structural changes and through increase in physical mobility. Michael et al (2001), The City Logistics paradigm for urban freight transport. The purpose of this study was building a city logistics systems simulation model that optimizes logistics efficiency under overcrowded urban traffic conditions that reflects the unique commercial, traffic and urban form characteristics of Australian cities. In the research simulation model was used to evaluate the issue. This study reviewed some of the reasons why freight transport in urban areas increasing interest and concern. The study discussed significant changes in pattern and intensity of freight movements that are occurring as a result of technological and societal changes and the development in techniques and ways to boost e-commerce.

3. Methodology: In this research I have applied quantitative approach. This is qualitative research because the data available is in a text form. The purpose of this study is to analyze the impact of transportation infrastructure on logistic in Pakistani. In the research we analyze how the infrastructure affects performance of any particular company and overall economic development of the Country. For the data collection I have design open ended questionnaire and get it approved from my

instructor. I visited multiple logistics organizations and investigate what kind of problems they are facing due to poor infrastructure in the Country. I also met relevant government personnel and taken their interviews on the questions like why the government had not made the infrastructure like developed countries. My research is an expletory research. The sample size of data taken in the study is 8 companies. In research all the data used is actual and my findings are based on the facts without any biased. The variable which I have used in the research is infrastructure, transportation and logistics. A phenomenological research used for investigation because it is a qualitative research.

4- References: Adebambo Olayinka Somuyiwa(2010), Impact of freight flows on city logistics in a megacity of a developing company, Journal of Geography and Regional Planning Vol. 3(2), pp. 029-034. Changbing Jiang (2010), Research on Logistics Network Infrastructure Based On Hca and DeaPca Approach. (http://ojs.academypublisher.com/index.php/jcp/article/viewFile/0504533540/1614) Changbing Jiang (2009), Research On Urban Logistics Infrastructure an Empirical Study Of China. (http://www.scirp.org/Journal/PaperInformation.aspx?paperID=460) Kazuo Kadokawa (2011), Infrastructure Support and New Plant Formation: A Factor Analysis Approach. (http://www.academicjournals.org/jgrp/PDF/pdf2011/Apr/Kadokawa.pdf) Leif Gjesing Hansen (2004) Impacts Of Major Traffic Infrastructures on Firms' Organization Of Logistics and Transport - Examples from the Fixed Links of Great Belt and Oresund In. (http://vbn.aau.dk/files/437183/1161.pdf)

Micheal.s graver (2008), Measuring the importance of attributes in logistics research. The International Journal of Logistics Management, Vol. 21 No. 1, 2010, pp. 22-44. (http://www.emeraldinsight.com/journals.htm?articleid=1864416&show=html) Micheal A P Taylor (2001), The City logistics paradigm for urban freight transport. (http://www.griffith.edu.au/__data/assets/pdf_file/0010/81397/infrastructure-18taylor.pdf) Nikolaos Deonas (2004), Transportation Infrastructure In Asia: Priorities That Will Facilitate Trade Europe Used. (http://www.trforum.org/forum/downloads/2005_TransInfrastructure_paper.pdf) Torben Holvad (2004), Assessment of Logistic Effects from Transport Infrastructure Investment. (http://www1.ctt.dtu.dk/downloads/pdfs/2004/Paper%20RIRL.PDF) Yung-yu TSEN (2005), The Role of Transportation in Logistics Chain. Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1657 - 1672, 2005 (http://www.siam.org/journals/plagiary/1657.pdf) http://logisticsmanagementandsupplychainmanagement.wordpress.com/2007/05/23/impa ct-of-transportation-infrastructure-on-logistics-in-india/

4. Appendix Q 1: Which types of transportation are you used for distribution? Q2: How the infrastructures influence overall activity of your companys business? Q3: How the infrastructures affect the price of a commodity? Q4: Why the government failed to build good infrastructure? Is it a reason of low collection of taxes or wrong allocation of budget or different priorities? Q5: Foreign investments and industrial development depend on infrastructure of the country? Is your organization missed any opportunity due to this reason? Q6: If your organization is expanding your business in neighboring countries so what is the importance of infrastructure here? Q7: If the government provides proper infrastructure then what kind of benefits would be surfaced for the economy? Q8: Present situation of infrastructure is weak. There are many issues like bad roads, electricity and gas shortage. How your organization manage this? Q9: Has Local government or federal government has taken steps for infrastructure development any in last several years according to your organization research? Q10: What kind of initiatives government should take to solve current problems being faced by your company and other industries? Give suggestions.