ةزــغ – ةــيملاـــــسلإا ةــــــــــعماـجلا The Islamic University–Gaza ايلعلا تاساردلاو يملعلا ثحبلا نوئش Research and Postgraduate Affairs Faculty of Commerce ةراــــــــــــــــــجـــتلا ةــــــــــــــــــيلـك Master of Business & Administration لاـــــــــــــــــــــــمعلأا ةرادإ ريتسجام Evaluation of Construction Materials Supply into Gaza Strip Case Study of Karm Abu Salem Crossing Border ةزغ عاطق ىلإ ءانبلا داوم ديروت مييقت يراجتلا ملاس وبا مرك ربعم ةلاح ةسرا د Waseem Shaker Abushaaban Supervised by Prof. Dr. Yousif Hussein Ashour Professor of Management A thesis submitted in partial fulfilment of the requirements for the degree of Master of Business Administration October/2016 رراــــــــــــــقإ :ناونعلا لمحت يتلا ةلاسرلا مدقم هاندأ عقوملا انأ Evaluation of Construction Materials Supply into Gaza Strip Case Study of Karm Abu Salem Crossing Border ةزغ عاطق ىلإ ءانبلا داوم ديروت مييقت يراجتلا ملاس وبا مرك ربعم ةلاح ةسرا د امثيح هيلإ ةراشلإا تمت ام ءانثتساب ،صاخلا يدهج جاتن وه امنإ ةلاسرلا هذه هيلع تلمتشا ام نأب رقأ يأ ىدل يثحب وأ يملع بقل وأ ةجرد لينل نيرخلاا لبق نم مدقي مل اهنم ءزج يأ وأ لكك ةلاسرلا هذه نأو ،درو .ىرخأ ةيثحب وأ ةيميلعت ةسسؤم Declaration I understand the nature of plagiarism, and I am aware of the University’s policy on this. The work provided in this thesis, unless otherwise referenced, is the researcher's own work, and has not been submitted by others elsewhere for any other degree or qualification. Student's name: Waseem Shaker Abushaaban :بلاطلا مسا Signature: :عيقوتلا Date: :خيراتلا ةحورطلأا ىلع مكحلا ةجيتن II Abstract The research aimed to study and evaluate the supplying process of construction materials into the Gaza Strip through Karm Abu Salem Crossing Border and determining the factors that affect the supplying process. A survey questionnaire was used to collect the needed data supported by interviews, the population was 120 construction materials traders that works under the Gaza Reconstruction Mechanism. The research show that the supplying of construction materials into the Gaza Strip consists of two main streams; first stream called Gaza Reconstruction Mechanism (GRM) which brokered through United Nations Special Coordinator (UNSCO) for the Middle East Peace Process, Mr. Robert Serry, and the second stream belongs to Israeli Coordinator of Government Activities in the Territories Unit (COGAT) that allow international organisations to coordinate for construction materials for their projects. Research results show that the current process of supplying construction materials takes time and cost using Karm Abu Salem crossing border, and the allowed quantities of construction materials is not enough. The research recommends that the current used mechanisms should be changed or modified to be easier to fit with the high demand. Also the research recommends to open new suitable crossing border and to ask for increase in the allowed quantities. IV Abstract in Arabic ربعم للاخ نم ةزغ عاطق ىلإ ءانبلا داوم ديروت ةيلمع مييقتو ةسارد ىلإ ثحبلا فدهي .اهيف ةرثؤملا لماوعلا ديدحتو يراجتلا ملاس وبأ مرك ةيصخش تلاباقم ءارجإ متو ،ةمزلالا تانايبلا عمجل ثحبلا ةيجهنم يف ةنابتسلإا دامتعإ مت نم ةساردلا عمتجم لثمت ثيح ،ءانبلا داوم ديروت يف ةيلاحلا ةسرامملا ىلع بثك نع فرعتلل .ةزغ رامعإ ةداعلإ ايلاح ةمدختسملا ءانبلا داوم ديروت ةيلآ نمض نولمعي ءانب داوم رجات 120 للاخ نم ىلولأا ةيللآا ،نيتيلآ ىلإ مسقني ةزغ عاطق ىلإ ءانبلا داوم ديروت نأ ثحبلا نيب ءانبلا داوم ديروت متي هللاخ نم يذلاو قطانملا يف )ةيليئارسلإا( ةموكحلا لامعأ قيسنت بتكم للاخ نم يناثلا ءزجلاو ،ةدحتملا مملأل ةعبات ةيلود تاسسؤم للاخ نم اهذيفنت متي يتلا عيراشملل مملاا ثوعبم يريس تربور نم ةحرتقملاو ةدحتملا مملأا نم ةباقرلل ةعباتلا ةزغ رامعإ ةداعإ ةيلآ عيراشملل اهللاخ نم ءانبلا داوم ديروت متي يذلاو ملاسلا ةيلمعل طسولاا قرشلا يف ةدحتملا .ةمزلالا تاقفاوملا ذخأو ةددحم تاءارجإ عابتإ دعب نينطاوملاو يراجتلا ملاس وبأ مرك ربعم للاخ نم ءانبلا داوم لاخدإ تايلآ نأ ثحبلا حئاتن تراشأ .ةيفاك ريغ اهلاخدإب حومسملا ءانبلا داوم تايمك نأو ،تقو جاتحتو ةفلكم ةزغ عاطق ىلإ عم بسانتي امب ةعبتملا ءانبلا داوم لاخدإ تايلآ ليدعت وأ رييغت ةرورضب ةساردلا يصوت زهجم ديدج ربعم حتفب ةساردلا يصوتو امك ،ةزغ عاطق يف ءانبلا داوم ىلع عفترملا بلطلا .اهلاخدإب حومسملا ءانبلا داوم تايمك ةدايزب ةبلاطملا متي ثيحب ءانبلا داوم باعيتسلإ V Dedication This thesis is dedicated to my parents, brothers and friends for their endless love and support. To those who lit my life with their presence, and stood by my side all the way. To those who have shared with me the most beautiful moments, and left a large indelible footprint in my life. It is difficult to mention everyone, but thank you all. VI Acknowledgment First of all, I want to thanks Allah for his infinite blessings, and my parents for their continues support. I want thanks Prof. Dr. Yousif Hussein Ashour, for his effort, without his guidance I could not achieve this thesis. I am grateful for the helpful suggestions and guidance of my dissertation committee: Dr. Mohammed Migdad. Dr. Azzam Abu Habib To all those people who have helped me to complete this thesis. VII Table of Contents Declaration ............................................................................................................ II Abstract ................................................................................................................. IV Abstract in Arabic ................................................................................................. V Dedication ............................................................................................................. VI Acknowledgment ................................................................................................. VII Table of Contents .............................................................................................. VIII List of Tables .......................................................................................................... X List of Figures ...................................................................................................... XII List of Apindix ................................................................................................... XIII List of Abbreviations ........................................................................................ XIV Chapter 1 Introduction ............................................................................................. 1 1.1 Background ...................................................................................................... 2 1.1.1 Gaza Strip Crossing Borders.................................................................... 2 1.2 Problem Statement ........................................................................................... 4 1.3 Research Objectives ......................................................................................... 4 1.4 Thesis Importance ............................................................................................ 4 1.5 Research Variables .......................................................................................... 5 1.5.1 Dependent variable: ................................................................................. 5 1.5.2 Independent variables: ............................................................................. 5 1.6 Research Hypotheses ....................................................................................... 5 Chapter 2 Literature Reviews .................................................................................. 7 2.1 Construction Materials..................................................................................... 8 2.1.1 Portland Cement ...................................................................................... 8 2.1.2 Aggregate ................................................................................................. 8 2.1.3 Steel Bars ................................................................................................. 9 2.2 History of Construction Materials Supply into the Gaza Strip ........................ 9 2.2.1 1994 to 2007 ............................................................................................ 9 2.2.2 2008 to 2009 ......................................................................................... 10 2.2.3 2010 – 2013 ........................................................................................... 10 2.2.4 2014 – Present: ....................................................................................... 11 2.3 Review of Cross-Border Supply .................................................................... 13 2.3.1 Jiegao Border Crossing, China .............................................................. 13 2.3.2 Petrapole Border Checkpoint, India ....................................................... 14 VIII 2.4 Logistics Performance Index (LPI) ............................................................... 14 2.4.1 Importance of Logistics Performance .................................................... 17 2.5 Previous Studies............................................................................................. 20 Chapter 3 Practice of Construction Materials Supply into Gaza Strip ............... 27 3.1 Karm Abu Salem Crossing Border ................................................................ 28 3.1.1 Introduction ............................................................................................ 28 3.1.2 Structure ................................................................................................. 28 3.1.3 Materials Flow ....................................................................................... 32 3.1.4 Service Rate ........................................................................................... 36 3.2 Transportation to the Gaza Strip .................................................................... 37 3.3 Construction Materials Coordinators ............................................................. 38 3.3.1 Coordination through International Organizations (COGAT) ............... 39 3.3.2 Coordination through Gaza Reconstruction Mechanism (GRM) .......... 39 3.4 Gaza Strip Demand of Construction Materials .............................................. 45 Chapter 4 Methodology ............................................................................................ 47 4.1 Research Design ............................................................................................ 48 4.2 Data Collection Methodology: ...................................................................... 48 4.3 Assumptions .................................................................................................. 49 4.4 Population and Sampling ............................................................................... 49 4.5 Questionnaire Content ................................................................................... 49 4.6 Pilot Study ..................................................................................................... 50 4.7 Validity of the Research ................................................................................ 51 4.7.1 Content Validity of the Questionnaire ................................................... 51 4.7.2 Statistical Validity of the Questionnaire ................................................ 51 4.8 Reliability of the Research ............................................................................. 52 4.8.1 Half Split Method .................................................................................. 53 4.8.2 Cronbach’s Coefficient Alpha ............................................................... 53 Chapter 5 Data Analysis and Discussion ................................................................ 54 5.1 Analysis and Discussion of Research Hypotheses ........................................ 55 Chapter 6 Conclusion and Recommendations ....................................................... 66 6.1 Conclusion ..................................................................................................... 67 6.2 Recommendations .......................................................................................... 68 References .................................................................................................................. 71 Appendices ................................................................................................................. 74 IX List of Tables Table (2.1): Sample Question of LPI 2014 Survey. Source: Ojala, 2015 ................... 15 Table (3.1): Capacity of Trucks Inside Karm Abu Salem Crossing Border ............... 31 Table (3.2): Number of Trucks Inside Karm Abu Salem Crossing Border ................ 31 Table (3.3):Max. Allowed Number of Construction Materials Trucks per Day through Karm Abu Salem Crossing Border ................................................................ 37 Table (3.4): Working Hours of Karm Abu Salem Crossing Border for Construction Materials ..................................................................................................................... 37 Table (3.5): Construction Materials Required to Build an Average House in Gaza: . 45 Table (3.6): Demand of Construction Materials in 2014 ............................................ 46 Table (3.7): Entered and Remaining Construction Materials ..................................... 46 Table (3.8): Needed Quantities of Construction Materials in Gaza Strip ................... 46 Table (4.1): Lekart scale ............................................................................................. 50 Table (5.1): Evaluation of construction materials supply to Gaza strip ..................... 65 Internal Consistency Test ............................................................................................ 83 Table (6.1): The correlation coefficient between each question in the field and the whole field (The first field: Construction materials supplying mechanism) .............. 83 Table (6.2): The correlation coefficient between each question in the field and the whole field (The second field: Allowed quantities of construction materials) ........... 84 Table (6.3): The correlation coefficient between each question in the field and the whole field (The third field: Construction materials demand) ................................... 84 Table (6.4): The correlation coefficient between each question in the field and the whole field (The fourth field: Prices of construction materials shipments) ............... 84 Table (6.5): The correlation coefficient between each question in the field and the whole field (The fifth field: Crossing border infrastructure) ...................................... 85 Table (6.6): The correlation coefficient between each question in the field and the whole field (the sixth Scope: Customs and clearance on construction materials) ...... 85 Table (6.7) Structure Validity of the Questionnaire ................................................... 86 Table (6.8) Results of Split-Half Coefficient Method ................................................ 87 Table (6.9) Results of Cronbach’s Alpha Test ........................................................... 87 Table (6.10): One Sample T Test for The Opinion of the Respondents About Construction Materials Supplying Mechanism ........................................................... 88 Table (6.11): One Sample t Test for The Opinion of the Respondents About Allowed Quantities of Construction Materials .......................................................................... 89 Table (6.11): One Sample t Test for The Opinion of the Respondents About Construction Materials Demand ................................................................................. 89 X