Factors Affecting the Effectiveness and Success of International Road Freight Transit from Iran

Abstract

International freight transit involves the entrance of goods through one national border and exit through the other. Because of Iran's role in the economy of the region and the long record of international freight transit via this route, international freight can be a significant source of foreign currency. A review of the history of this sector provides the basis to model the factors affecting transit, and thereby to classify the questions and hypotheses to identify and prioritize those factors influencing success. Using questionnaires with managers, those involved in the member companies of the International Transportation Union, and those with a minimum of five years of experience in the industry, the authors developed a statistical sample. Using a random sample method, and the confirmatory factor analysis, results were obtained. These results indicate the effect of the model constructs-Infrastructure, Policies/Rules, Technology, Operation Management and Capacity-building-on the effectiveness of the sector (international road freight transit from Iran). Five hypotheses were confirmed, and we discovered that among various factors, the one that most significantly affects success is to revise the policies/rules. After this most significant factor, other factors-technology, infrastructure, operation management and capacity-building consecutively-affect success. In conclusion, we provide suggestions to make international road freight transit more successful.