March 24, 2022

Water transport refers to movement of goods and passengers on waterways by using various means like boats, steamers, launches, ships, etc. With the help of these means goods and passengers are carried to different places, both within as well as outside the country. Within the country, rivers and canals facilitate the movement of boats, launches, etc. Since the goods and passengers move inside the country, this type of transport is called inland water transport. When the different means of transport are used to carry goods and passengers on the sea route it is termed as ocean transport. 1. Inland water transport Inland water transport use boats, launches, barges, streamers, etc., to carry goods and passengers on river and canal routes. These routes are called inland waterways and are used in domestic or home trade to carry bulky goods. Passenger transport through waterways can also be used. 2. Ocean transport Ocean transport refers to movement of goods and passengers with the help of ships through sea or ocean waterways. It plays an important role in the development of international trade. It is also used for transporting goods and passengers in the coastal areas. Ocean transport has its fixed route, which links almost all the countries of the world. Sea transport may be of the following two types. Coastal Shipping – In this transport, ships ply between the main ports of a country. This helps in home trade, and also in carrying passengers within the country. Overseas shipping – In this transport, ships ply between different countries separated by sea or ocean. It is mainly used for promotion and development of international trade. It is economical means of transport to carry heavy machines and goods in bulk. Overseas transport is carried out on fixed routes, which connect almost all the countries. In ocean transport, different types of ships are used to carry passengers and goods. These may be classified under. Liners – A liner is a passenger or cargo vessel, which belongs to a regular shipping company. These ships ply over a fixed route according to a prescribed schedule or timetable. Tramps – A tramp is a cargo ship, which does not make regular trips but plies whenever cargo is offered to it. It does not follow a fixed route or prescribed timetable like that of liners.

Ropeway refers to a mode of transport, which connects two places on the hills, or across a valley or river. In the hilly areas, trolleys move on wheels connected to a rope and are used for carrying passengers or goods, especially building materials, food, etc.

In modern times, pipelines are used for various purposes. Water supply to residential and commercial areas is carried on with the help of pipeline. Petroleum and natural gas are also transported from one place to another through pipelines. This is the most convenient as well as economical mode of transport for petroleum as well as natural gas in comparison to road and rail transport, provided the volume to be transported is large. But the cost of installation and maintenance requires large capital investment.

Transportation of goods and passengers on rail lines through trains is called rail transport. It occupies an important place in land transport and it to carry goods and passengers over a long distance. Besides long distance, local transport of passengers is also provided by local trains or metro-rail in some metropolitan cities. Rail transport is available throughout the country except some hilly or mountainous regions. While passenger trains carry both human beings and a limited quantity of goods, the goods trains are exclusively used for carrying goods from one place to another. These trains are driven by rail engines and they use steam, diesel or electric power to move. Advantages of Rail transport It is a convenient mode of transport for travelling long distances. It is relatively faster than road transport. It is suitable for carrying heavy goods in large quantities over long distances. Its operation is less affected by adverse weathers conditions like rain, floods, fog, etc. Limitations of Railway transport It is relatively expensive for carrying goods and passengers over short distances. It is not available in remote parts of the country. It provides service according to fixed time schedule and is not flexible for loading or unloading of goods at any place. It involves heavy losses of life as well as goods in case of accident.

It has the following limitations: Due to limited carrying capacity road transport is not economical for long distance transportation of goods. Transportation of heavy goods or goods in bulk by road involves high cost. It is affected by adverse weather conditions. Floods, rain, landslide, etc., sometimes create obstructions to road transport.

Road transport has the following advantages. It is a relatively cheaper mode of transport as compared to other modes. Perishable goods can be transported at a faster speed by road carriers over a short distance. It is a flexible mode of transport as loading and unloading is possible at any destination. It provides door-to-door service. It helps people to travel and carry goods from one place to another, in places which are not connected by other means of transport like hilly areas.

1. Accessibility – This primarily deals with the ease of getting a vehicle. If a mode is not easily accessible then it loses its usefulness because of its unavailability in a certain condition. 2. Cost/fare of ticket or cost of service – Considering large number of trips taking place for different purposes and a modern capitalist economy, cost becomes one of the single most important determining factor. It can also be linked to affordability of the user. This factor is one of the most dynamic as the willingness to pay changes on the basis or urgency and need to travel/transport. 3. Fuel efficiency/ carbon emission – With the growing environmental concerns many people and companies prefer to choose an option with smaller carbon footprint. Some people prefer electric vehicle solely because of the ―green‖ label associated with them. Fuel efficiency is closely linked with carbon emission while doing a comparative study, getting more output from same quantity of fuel is always desirable. 4. Speed – This factor is another most important and deterministic factor depending upon the situation. Fastest mode may seem to be best option but cost associated with it makes it less lucrative, a cheap mode might result in delay and the purpose of whole trip may be defeated. In cases of emergency speed gains much more significance as compared to day to day trips. 5. Capacity/ Carrying Capacity – This is another important factor especially for logistic companies, it becomes important in case of travelling in a group. While going on a trip with your complete class you cannot expect to take multiple vehicles because of safety and security concerns, a vehicle with more carrying capacity will be preferred. In case of transporting goods the concept of scale of economies is best exploited for economic profit while dealing with bulk orders. 6. Integration with other modes – For long trips or trips which requires change of mode this factors becomes most significant for completion of the trip. In case the selected mode is not integrated with other modes than the trip will never get completed. In some cases to overcome the problem of integration a heavy cost will be incurred to complete the required trip. 7. Reliability of the vehicle/mode – The chosen mode must be reliable. All factors will turn out to be useless if the vehicle develops some fault or is prone to develop fault. If the mode is not reliable than it will result in loss of both time and money. Reliability again becomes important on the basis of situation. 8. Comfort – This factor is at times ignored while some makes it priority depending upon the affordability. This is essential in case of travelling and ignored in case of transporting goods. Humans undertakes the trip for various purpose like work, leisure journey, picnic, shopping and thus always prefer comfort. Those who can afford to pay more are expected to get more comfort while some prioritize cost over comfort depending on their personal decision. 9. Safety – Considering the increased cases of accidents safety becomes another important factor. Anyone will wish to ensure maximum available safety of their goods. In case of logistics also safety matters a lot especially while dealing with fragile material. 10. Privacy – This factor is usually ignored and comes into mind in some cases especially when the purpose of trip is confidential like in case of business trips. All conversation taking place during the journey are required to be kept confidential. It can also be required when a person wishes to spend quality time with someone. Public transport does not provide option of privacy or if in some cases they do provide than its negligible. Private vehicles can provide high level of privacy. 11. Employment generation – This factor is not considered for individuals and companies but is essential for government while making policies as employment generation becomes their responsibility. 12. Frequency – A mode with higher frequency is desirable as the waiting time reduces thus saving time. Modes with good frequency helps especially in cases of delays.

In accordance with the Law on Customs, the exemption from customs import duties and taxes are granted for certain goods and to certain qualified importers. The following goods are exempted from customs duties and taxes: 1. Goods imported by foreign diplomatic or consular missions, international organizations and agencies of technical cooperation of other governments, to use in the exercise of their official function with the attachment of the certification from the Head of Mission, and the Ministry of Foreign Affairs and International Cooperation; 2. Goods imported for the personal use of the official personnel of missions and organizations as stated in sub-paragraph (a). The implementation of this sub-paragraph and sub-paragraph (a) shall be based on existing international law and the principle of reciprocity between governments concerned; 3. Goods originating in Kenya or goods that have previously been taxed which are outside the customs territory and re-import with no value added; 4. Goods exempted from customs import duties and taxes under the provisions of other laws and regulations of the republic of Kenya; 5. Goods donated for charity; goods for research and scientific purposes, samples and goods for exhibition with no commercial value; coffins containing human remains; 6. Goods up to a certain value or quantity imported by passengers, crews of conveyances and border crossers as determined by the Director of Customs; 7. Goods in transit or being transshipped through the customs territory; 8. Household goods, personal effects and belongings excluding motorized vehicles, imported by persons changing residence to Kenya in quantities determined by the Director of Customs; 9. Industrial equipment, and products needed for the operation and maintenance of such equipment, that is used on the continental shelf for the exploration and extraction of hydrocarbons and other mineral and organic substances as approved by the Minister of Finance; 10. Other goods approved by the Minister of Finance. Person imported goods under the above paragraphs must provide documentary evidence to the customs administration that the goods are qualified for exemption of duties and taxes. Organizations and persons wishing to apply for exemption of duties and taxes on goods under paragraphs (a) and (b) above must first obtain authorization from the Ministry of Foreign Affairs , in accordance with existing procedures. Person wishing to import goods under the provisions of the Law on Investment of the republic of Kenya must follow the existing procedures and related regulations. In accordance with the provisions of the Law on Customs, partial exemption of import duties and taxes is granted for certain goods and to certain qualified importers. The following goods are partially exempted from customs import duties and taxes: Goods partially exempted from customs import duties and taxes under the provisions of any existing law; Goods expected to undergo repair, processing or testing; Goods re-imported in the same state; Goods imported by the Government for public purposes and goods imported in the form of temporary admission; Other goods determined by the Minister of Finance. Persons who import goods in accordance with this provision shall provide documentary evidence to customs to prove that the goods are qualified for the partial exemption of duties and taxes.

Improper exports – ‘goods attempted to be improperly exported’ are liable to confiscation. In brief, attempting to export goods in violation of law, mis-declaring goods, export under false claim of duty drawback or violating rules regarding movement, storage or loading of export goods will make them liable for confiscation (smuggling). Improper exports – ‗goods attempted to be improperly exported‘ are liable to confiscation. In brief, attempting to export goods in violation of law, mis-declaring goods, export under false claim of duty drawback or violating rules regarding movement, storage or loading of export goods will make them liable for confiscation (smuggling). Persons who can be penalised – Customs authorities are empowered to impose monetary penalty , confiscation of goods, conveyance etc. These are separately provided as, if, the smuggled goods are abandoned, smuggler may not be traceable. In such cases, it is not possible to impose penalty, but goods can be confiscated. Penalty can be imposed for improper import as well as attempt to improperly export. any person: who does or omits to do any act which act or omission would render such goods liable for confiscation or who abets in doing or omission of such act ,who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation. Liability of Ship Owner/Airlines – If goods are unloaded without including in ‗Import manifest‘ or loaded without entering in ‗export manifest‘, the shipper is liable.

Types of Inspection Except for imports exempted from PSI(personal service income), the PSI company shall perform pre-shipment inspection on shipments of goods covered by the Import Declaration Form (IDF) in the country of export prior to export to Kenya to determine the quality, quantity, value, duties and taxes as follows: Detailed Quality Inspection of goods in Schedule Two Verification of Comparative Price of goods in Schedule Three Full Detailed Inspection of goods in Schedule Four Destination Inspection of goods in Schedule Five Any type of inspection that the Commissioner may specify for the goods in Schedule Six.

For the Buyer Deal with seller with sound reputation or established track record. Request for performance guarantee to avoid non-performance risk. Agree on more secure methods of payment such as documentary credit or open account. Acknowledge and respect cultural differences with the seller. Buy and sell in same currency to minimise foreign exchange risk. Alternatively, the buyer can hedge against foreign exchange risk by entering a forward or option foreign exchange contract with a bank. If financing is needed, enter into a fixed interest rate loan or interest rate swap agreement to mitigate against interest rate risk. Ensure sufficient insurance coverage against transit risk. Always have a contingency plan against unfavourable events. For the Seller Deal with buyer with sound reputation or established track records. Engage a reputable credit agency or credit insurer to minimise buyer‘s insolvency or credit risk. Engage on more secured methods of payment such as documentary credit or advance payment. Avoid granting excessive credit period or limit to the buyer. Ensure that the sales contract or documentary credit does not contain ambiguous or erroneous terms and conditions that are subject to future disputes. Acquire sufficient knowledge in document preparation to mitigate against documentation risk. Acknowledge and respect cultural differences with the buyer. Buy and sell in same currency to minimise foreign exchange risk. Alternatively, the buyer can hedge against foreign exchange risk by entering a forward or option foreign exchange contract with a bank. If financing is needed, enter into a fixed interest rate loan or interest rate swap agreement to mitigate against interest rate risk. Ensure sufficient insurance coverage against transit risk. Engage a representative in the buyer‘s country to deal with the goods or relevant parties in case of non-payment or non-acceptance by the buyer. Always have a contingency plan against unfavourable event.

UNIVERSITY EXAMINATIONS: 2017/2018 EXAMINATION FOR THE DEGREE OF MASTER OF SCIENCE IN DATA ANALYICS/MASTER OF SCIENCE IN INFORMATION SYSTEMS MANAGEMENT MDA 5203/MISM 5203: DECISION SUPPORT SYSTEMS DATE: DECEMBER 2018 TIME: 2 HOURS INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions. QUESTION ONE [20 MARKS] a) Explain the relationship between problem solving and decision making. (4 marks) b) Describe the process of training artificial neural networks (6 marks) c) Elaborate on the process of decision making (4 marks) d) Describe limitations that managers encounter in making decisions. (6 marks) QUESTION TWO [15 MARKS] a) Describe giving examples the different types of knowledge that you need as a decision maker. (8 marks) b) What are the characteristics of a DSS? (7 marks) QUESTION THREE [15 MARKS] a) Explain how Genetic Algorithm is used in decision support systems (5 marks) b) Describe the Data Warehouse Architecture for decision support systems (5 marks) c) Discuss the Datamining Techniques Used in intelligent decision support systems (5 marks) QUESTION FOUR [15 MARKS] a) Using examples discuss the importance of visualization in decision making (7 marks) b) Discuss the common strategies that are used in guiding decision-making processing. (8 marks)