In Ethiopia, several dry ports have been developed and operated since 2009. Modjo dry port isrnone of these types of dry ports which have been operated since 2009. Modjo dry port facesrnseveral challenges, which have a significant impact on its operations performance. In thisrnregard, this paper investigates the challenging factors of Modjo dry port operations. Thisrnresearch has adopted a mixed method research methodology by employing semi-structured faceto-rnface interviews in the qualitative method and questionnaire surveys in the quantitative methodrnand used both explanatory and descriptive analysis. The researcher has distributed surveyrnquestionnaires for 170 samples of actors at Modjo dry port and interview discussions with eightrnkey informants about the challenges at Modjo dry port operations. Multiple regression isrnemployed for data analysis. Findings suggest that six significant challenging factors such asrngovernment policy, socio-cultural influence, hinterland conditions, technological advancement,rninformation accuracy and capacity are identified as Modjo dry port operations challenges.rnTheses challenging factors have great impacts on the performance of Modjo dry port. Due tornthese impediments, the Modjo dry port performance is poor. This thesis is expected to be ofrnmanagerial value to dry port operators, when developing strategies to enhance operationalrnefficiency and imperative improvement is needed especially in customs clearance technology andrnintroducing a range of value-added services especially in Modjo dry port for its ownrndevelopment and clientâ€™s benefits.