Effect of Green Freight Transport Practices on the Operational Costs of Freight Firms in Kenya

Abstract

The recent changes in business dynamics on merchandised goods and cargo transportation have impacts on the business operational costs. On the other hand, the study of Green Freight Transport Practices and freight firm’s operational costs pursued knowledge and environment friendly business practices. The benefits realized by the study are promotion of sustainable development in the economy, environmental protection and sustainable operational costs. The study sought to determine the effects Green Freight Transport Practices on Operational costs of freight firms operating in Kenya. The study objectives were; to determine the level of adoption of green freight transport practices by freight firms and to establish effects of green freight transport practices on operational costs. The study explored seven practices which were distribution strategies and transport practices, reverse logistics, warehouse and green building, eco-design and packaging practices, internal management, cooperation with customers and external management practices. The study adopted descriptive research design in obtaining information about the study topic. The study population comprised 141 licensed freight firms who are members of Kenya International Freight and Warehouse Association (KIFWA). The firms were sampled and data were collected using questionnaires and analyzed using descriptive and inferential analysis. The study found out that the practices were averagely implemented to a moderate extent except for internal management practices and external collaboration practices which were implemented to a small extent. The study found a positive correlation between the green freight transport practices and operational costs. The study concluded that increase in green freight transport practices lead to the positive effect on poerational costs. The study also recommended that proper budgetary consideration and plan should be considered before any freight firm undertake any green freight transport practices decision.