Assessing local road transporters’ participation readiness in oil and gas industry in Uganda.

Abstract

Purpose - The study sought to establish the readiness of local road transport service providers to participate and deliver the desired services in Uganda’s budding oil and gas industry. Methodology/Approach - The study adopted a mixture of qualitative and quantitative research methodologies to assess the readiness of local road transport service providers on the dimensions of eligibility compliance and capacity parameters while transport service quality was measured based on reliability, extent of the service, comfort, safety, and affordability). Research Design - A cross sectional survey design was used. Two questionnaires were used; one questionnaire was sent to clients (companies dealing in oil and gas related products) and another was sent to the local road transporters. Findings - Local road transport providers are largely wanting in compliance with eligibility requirements to conduct business. Notable challenges facing local transporters rotate around three aspects: legal and regulatory constraints and poor condition of roads, which together accounted for about 68% of the challenges. Research Limitations -The extant study looked at the readiness of local road transport service providers in the oil and gas industry in Uganda. This could limit the generalizations to the entire industry as the analysis did not cover rail, water and air transport. Practical Implications - There is need to strengthen the institutional capacity of local road transporters to enable them formalise their businesses and increase their eligibility status. Only when this is done will they be able to access tenders and actualise the intentions of the local content oil and gas policy. Originality/Value - The results contribute towards the limited empirical and theoretical evidence regarding the readiness of local road transport service providers to deliver the desired services in the oil and gas industry in Uganda.