A Study on Externally Driven Costs for Road Freight Transportation in Zimbabwe

Abstract

The purpose of the study was to assess how external costs impacted on the overall performance of road freight transport sector in Zimbabwe. Both internal and external dynamics play a huge role on the decisions made by operators and mangers in freight transport business. Freight transport is key to socio- economic development of a country and hence there is need to scrutinize how external costs impact on the performance of such entities. This was a quantitative study of road freight transport sector across Zimbabwe with a population of 1256 registered companies and a randomly picked sample size of 384. A total of 384 questionnaires were distributed and 291 were retrieved giving a response rate of 75.6%. study found out that external costs such as accidents, traffic congestion and environmental pollution, if go unchecked have a huge impact on profitability margins due to fines for non-compliance, compensation and insurance costs. The study recommends development of a company policy document that would outline the scope and actions to be taken to ameliorate the negative impact of external costs on business performance.