Infrastructure and modal integration as drivers of logistics system efficiency in developing countries: Evidence from Ethiopia
Abstract
Background: The relationship between infrastructure investment and logistics performance in emerging economies remains poorly understood, particularly as existing studies examine infrastructure and modal integration as separate concerns rather than an interconnected system. Objectives: This study aimed to examine how infrastructure and modal integration jointly shaped logistics system performance in Ethiopia, and analyse the conditions under which infrastructure investments translated into efficiency gains. Method: A qualitative research design was adopted, drawing on 10 key informant interviews and two focus group discussions with six participants each, conducted between 09 and 25 February, 2026. Participants were purposefully selected from public and private transport and logistics service providers. Data were analysed using thematic analysis following the six-phase framework. Results: Three overarching themes were identified: (1) infrastructure adequacy and spatial distribution, characterised by spatially uneven development concentrated along specific corridors; (2) modal integration failure, marked by the absence of functional coordination across road, rail, and dry port systems; and (3) the infrastructure–integration–performance relationship, revealing that infrastructure investments yielded diminishing returns in the absence of system-wide coordination. Conclusion: Infrastructure and modal integration functioned as interdependent components of logistics performance in Ethiopia. Extensive investment without coordinated, integrated systems produced limited and spatially uneven efficiency gains. The findings challenge infrastructure-led development strategies and support a system-oriented approach to logistics development in Ethiopia. Contribution: This study contributed to the literature by providing empirical evidence on the conditionality of infrastructure returns in emerging economies and advancing a system-integration perspective on logistics hub development.