Transportation Costs and Logistics
It is likely that the largest barrier that could impede the exportation of this product will be transport. Thunder Bay Feeds does not currently ship any of its products outside of North America. In order for the export of their poultry netting to Nepal to work, a third party shipping or freight company will be needed and the costs of this are relatively high. Another barrier to transport that exists is the poor infrastructure in Nepal (CIA, 2016). The inhabitants of the mountain region, in particular, are directly affected by this, as they have limited access to reliable roads and face unsafe road conditions (Jacoby, 2000). Figure 5a: Estimated costs of shipping with Purolator from Murillo, ON to Kathmandu and Pokhara, Nepal. Transport would be via air from Pearson International Airport, Toronto, ON to Tribhuvan International Airport, Kathmandu, Nepal and then by transport truck to Pokhara and/ or farmers, distributors and hardware stores. (Estimates for one roll of 2” x 48” x 50’ poultry netting). Source: Purolator, November 2016 Figure 5b: Estimated costs of shipping with FedEx from Murillo, ON to Kathmandu, Nepal. (Estimate for one roll of 2” x 48” x 50’ poultry netting). Source: FedEx, November 2016 Figure 5c: Estimated costs of shipping with three different available methods through Canada Post, from Murillo, ON to Kathmandu, Nepal. Parcels shipped with International Parcel-Surface travels by boat to India, where the shipment is received and transported to Kathmandu by truck. Shipments placed using International Parcel-Air or Priority™ Worldwide travel via air from Pearson International Airport, Toronto, ON to Tribhuvan International Airport, Kathmandu, Nepal. The biggest differences in the services are cost and travel time. (Estimates for one roll of 2” x 48” x 50’ poultry netting). Source: Canada Post, November 2016 |