CHAPTER ONE

GENERAL INTRODUCTION

1.1. Background of the Study

Infrastructure is seen as one of the drivers of economic growth and development. The term infrastructure according to online oxford dictionary, is defined as the basic physical and organizational structures needed for the operation of the society or an enterprise. Every company or organization deserves a perfect or near perfect infrastructure for a proper and smooth functioning (Cynafo C.N.O. Ezeogidi, 2014). Infrastructure could include roads, bridges, buildings and telephone lines. Infrastructure refers to the various structures put in place that is the various physical components of interrelated systems providing commodities and services essential to enable, sustain or enhance societal living conditions and maintaining the surrounding environment. However, in this context, we neither find precise definitions nor any theoretic references of this term. Nowadays, according to Nijkamp (2000) speaks about infrastructure as material public capital (roads, railways, (air) ports, pipelines etc.) and superstructure meaning immaterial public capital (knowledge networks, communication, education, culture etc.), again without specifying the proposed terms in sufficient detail. 

Infrastructure before 1700 consisted mainly of roads and canals. Canals where used for transportation or for immigration. The first paved streets appeared to have been built in UR in southern Mesopotamia modern day Iraq (Rickie Longfellow,2017) in 4000BCE. Corduroy roads were built in Glastonbury, England in 3300BCE and brick-paved roads where built in the Indus valley civilization on the Indian sub-continent from around the same time (Polesia Ukraine, 1918).

As traffic levels increased in England and roads deteriorated (poor infrastructure), toll roads were built by TURNPIKE TRUST, especially between 1730 and 1770 TURNPIKES where also later on built in the US. They were usually built by private companies under a government franchise.

Historical facts and data gathered over the past years have proven that numerous researchers have been investigating the impacts of poor infrastructure in the evacuation and storage of freight in the warehouse the search and enquiry however still continues till recent times. Good Infrastructure has always been the back bone behind a successful evacuation and eventual storage of freight in the warehouse.

According to Walter Buhr (2014) infrastructure (“infra” stems from Latin language, meaning below, thus “infrastructure” can be taken to express “foundation”). The various types of infrastructure mediums include roads, bridges, telephone, warehouses, airports, airways, seaports, electricity and canals. Infrastructure in Africa came about during the Colonial Era and since then has grown to greater improvements though constructing a strong and long lasting infrastructure in low income African countries has been a great problem. inadequate infrastructure remains a major obstacle towards Africa achieving its full economic growth potential. Despite the fact that Africa is seen as one of the world’s fastest growing economic hub, meeting the demand for key infrastructure has been identified as a priority. The world is eager to do business with Africa but find it difficult to access its interiors due to poor infrastructure (Andre Pottas, Deloitte cooperate finance advisory Leader for sub-Saharan Africa. Africa’s infrastructure stock inherited from the colonial powers supported reasonable strong economic growth from the early 1960s a long economic slowdown (Antonio Estache,2006).

Bringing infrastructure down to Cameroon, the country still faces a number of important infrastructure challenges including poor road quality, expensive and unreliable electricity and a stagnating and uncompetitive ICT sector. Cameroon currently spends about 930 million dollars on infrastructure per year with 586 million dollars lost due to inefficiencies (Carolina Dominguez-Torres, Vivien Foster2013). In Cameroon, infrastructural development has still been a great deal to contend with as there is still relatively very limited perfect infrastructure null and void of any infrastructural malfunctions like traffic, potholes.

In one way or the other, companies depend solely on these various infrastructures to ensure that they have a cost minimized, safe evacuation and above all storage of freight in the warehouse. Despite the numerous efforts that have been put in place to analyse various poor infrastructural impacts to industries, as evacuation and storage of freight is concerned, insufficient attention has been paid to finding out ways through which these impacts can be reduced or being able to minimize the impacts on the industry as well as damaging the freight itself.  Because of limited investigations, this project needs to seek the various impacts of poor infrastructure in the evacuation and storage of freight in the warehouse in CAMAS Douala.

1.2. Delimitation of Study

1.2.1. Spartail Delimitation

The study is carried out in the town of Douala specifically in the CAMAS DOUALA ENVIRONS located in Bonanjo. This is due to the fact that they own various infrastructure (warehouses) needed in gathering the information required.

1.2.2. Temporal Delimitation

This study will ran from March to July (5 months) this period could be considered as a very fertile time for economic activities within the city of Douala and equally for the company CAMAS. Within this period, sea waters are relatively high (moderate) thereby easing navigation and equally most business persons are highly engaged in the export and import of their freight hence a great need for the services of CAMAS Douala who act as freight forwarders or stock keepers of this freight upon payment.

1.2.3. Thematic Delimitation

Those aspects covered with my study are the transportation of freights owned by customers into the warehouse as well as various infrastructure within the city and company as well and how this infrastructure when poorly managed hinders a smooth performance of economic activities in the city of Douala specifically, Cameroon in general and CAMAS to be precise.

1.3. Problem Statement

In evacuating and storage of freight in the warehouse, companies as well as its clients expect nothing but a safe and successful transiting of freight into the warehouse or zero damage to cargo / freight. This is seemingly becoming impossible considering the bad nature of infrastructure across the country. CAMAS being a company that deals with reception of freight and eventual storage in the warehouse has experienced cost increase in the evacuation and eventual storage of freight in the warehouses due to the poor infrastructures in Douala and its environs. The impacts of these poor infrastructure is mostly felt during the rainy season as CAMAS’s vessels find difficulties in plying the numerous roads, bridges and as well manoeuvring the roads due to the small nature of the roads around them. More so, they find difficulties in communicating while on transit all this possess a big hindrance to a hinge free evacuation and eventual storage of freight.

Because of all this, transporting/evacuating freight to the warehouse has always been a great problem as the vehicles used in transporting the freight are not in good shape, the warehouses itself are not in good condition, communication between the carrier and the rest of the company is poor, handling equipment in the warehouse are mostly out-dated and worst all, the route leading to these warehouses is very poor. Evacuation and eventual storage of freight in the warehouse keeps on being a nightmare to most companies as they even end up incurring cost which maximizes the companies cost, minimizing its profit.

The objective of this study is to investigate strategies which companies can put in place in order to see that they minimize cost of evacuating and storage of freight in their warehouses. Hence, less damage of freight in the process of transporting to the warehouse equally to seek out ways which can be implemented by the company as well as other companies operating in the same field in the same region. To find a lasting solution, I seek to find a solution to the problem that is why I sort on answering the following questions.

1.4. Research Question

1.4.1. Main Research Question

• What are the impacts of poor infrastructure in the evacuation and storage of freight in the warehouse?

1.4.2. Specific Questions

• What are the causes of difficulties in the evacuation and storage of freight in CAMAS Douala?
• How does poor infrastructure affect transit time from point of origin to the warehouse?
• What strategies can be put in place to ameliorate the situation?

1.5. Research Objectives

1.5.1. Main Objective

• To examine the contribution of poor infrastructure on evacuation and storage of freight in CAMAS Douala.

1.5.2. Specific Objectives

• To investigate the causes of difficulties in the evacuation and storage of freight in CAMAS
• To examine the impacts of poor infrastructure on the transit time of freight from point of origin to the warehouse
• To propose solutions to improve poor infrastructure in the evacuation and storage of freight in the warehouse.