Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 006

An Ethiopian High Level Delegation Led By W/ro Dagmawit Moges Holds Talks with Djibouti High Officials

An Ethiopian high level delegation led by W/ro Dagmawit Moges holds talks with Djibouti high level officials. During the stay in Djibouti, the delegation hold talks with Djibouti’s President Ismail Omar Guelleh and senior Djibouti officials on how to strengthen the port operation of dry bulk cargo.

One of the criteria for ensuring the reliability of a country’s economy is an efficient and effective logistics system. And Ethiopia is implementing a policy and strategy framework to guide the logistics sector at the national level to modernize the country’s logistics system and achieve the level of service that the sector should provide for various economic and national issues.

The port of Djibouti, which has been a major supporter of Ethiopia’s imports and exports, has been improving its services from time to time. Following Ethiopia’s economic growth, the two countries are expected to work together more to provide quality services and improve the flow of logistics.

W/ro Dagmawit said that, the two sides discussed ways to make the logistics effective and efficient and the outcome of the discussion will be mutually beneficial to the people of the two countries.

The delegation led by W/ro. Dagmawit Moges includes Minister of State for Finance, Eyob Tekalign (PhD) – State Minister of Ministry of Finance, Ethiopia, Mamo Mihretu – Senior Advisor and Chief Trade Negotiator at Office of the Prime Minister of Ethiopia and Ambassador Redwan Hussein – State Minister of Ministry of Foreign Affairs.

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Chinese-Built Ethiopia-Djibouti Railway Records Increase in Revenue Despite Pandemic

The Ethiopia-Djibouti Standard Gauge Railway has recorded an over 51 percent increase in revenue during the first half of 2020 despite the difficulties brought by the COVID-19 pandemic, said the railway’s managing entity.

The railway’s revenue had increased 45 percent in 2019 as compared with its maiden year in 2018, while its income also climbed by 51.38 percent in the first-half of 2020 as compared with the same period of 2019 despite the difficulties brought by COVID-19 pandemic, it was noted.

In the past two years, EDR transported 588 wagons, 38,000 containers, 730,000 tons of cargo, 73,000 tons of fertilizer and 60,000 grains, said Guo Chong Feng, General Manager of CCECC and Representative of CCECC and CREC Joint Project Office.

Amid its ever expanding services, the railway had in August also commenced the refrigerated train service, by which the Ethiopian fruits and vegetables will be sold to Europe and other parts of the world.

The Ethiopia-Djibouti railway presently provides different kinds of freight services including the transportation of perishable goods, vehicles, cereals and fertilizers at Indode, Mojo, Adama, and Nagad stations.

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The 3rd Control Post of Ethio-Djibouti Road was officially inaugurated

Ethio-Djibouti Road 3rd control post was officially opened in Afar on the 20th of September, 2020. State Minister for Peace, Frealem Shibabaw, inaugurated the control post.

Frealem said, the increase in the number of control posts between Ethiopia and Djibouti has contributed to the protection of illegal immigrants and the reduction of smuggling.

The control post connects the Afar region with Djibouti, which is said to help curb human trafficking and smuggling in the area. According to Mujib Jamal, Director General of the Immigration and Citizenship Registration Agency, the number of control posts along the country’s border has reached 12 which increased the controlling capacity to some extent. He said the control post is a gateway to Djibouti’s Tadjoura port which will be used to control human movement and reduce human trafficking through Djibouti to the Middle East.

The control post was built with the support of GIZ that is supported by Germany and the European Union which costs 9.5 million Birr.

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These Airlines Made a Profit in 2020–and Here’s How

Since Covid-19 closed borders and restricted travel, the tourist industry has taken a tumble, with airlines some of the biggest losers. However, a handful of carriers have managed to turn a profit this year, despite the downturn, mainly by rapidly shifting their focus when the crisis hit.

Africa’s largest airline, Ethiopian Airlines, has done well through the pandemic. With a combination of cargo and repatriation flights, the airline has covered all its fixed costs and made a small profit for the fiscal year lasting up until July. Revenue generated from the transportation of goods has allowed Ethiopian to keep up monthly fixed payments of $120 million to $150 million, including servicing loans, aircraft leases, salaries and rentals, the CEO said. Tewolde Gebre-Mariam was quoted, “we may not be as profitable as we expected but we registered some profit. The cargo business has also done very well.”

Ethiopian’s success is similar to Korean and Asiana’s: taking advantage of the drop in cargo capacity. Using its fleet of dedicated freighter aircraft, and a large number of converted passenger planes, Ethiopian has ramped up cargo operations across the globe from its hub in Addis Ababa. The airline has also been conducting up to 40 charter flights a week during the pandemic, raking in significant revenue. While the airline has taken a significant revenue hit, it’s the ability to withstand the crisis with no bailout is exemplary and stands apart from other large carriers.

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EDR to Connect Petroleum Depot with the Main Railway Line

The Ethio Djibouti Railway SC (EDR) is planning to connect the Awash Petroleum Depot with the main line this year to use its idle 110 tankers.

Despite the modern electric railway line commenced in the first day of January 2018, it is not yet engaged on the transportation of petroleum because the line is not connected to any depots in the country. Awash petroleum depot is a hub for the national fuel import, while it is close for the Ethio- Djibouti railway line but it is using trucks to store the product imported from Djibouti.

“We are working to accomplish the project in nine months to one year time,” said Tilahun Sarka, Director General of EDR. He estimated that the project may cost from USD 50 to USD 60 million to construct the 1.5 kilometer line.

“If we operate the rail tankers we shall cover more than 30 percent of the oil transport to the central part of the country,” Tilahun added.

The daily fleet to Djibouti would be increased by three if the oil cargo transport was commenced.

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Somaliland’s Berbera Airport Being Spruced to Match the Best in Africa

Work at the Berbera International Airport in Somaliland is almost complete with new infrastructure being put in place to make it one of the most modern aviation facilities in the continent, Dritan Gjonbalaj, the airport Director General Berbera has said.

Perfectly located on the coast, very close to the brand new Berbera Seaport built by Dubai Ports (DP) World, and a four lane highway to the capital Hargeisa taking shape, Berbera Airport has a huge potential for both people and cargo traffic.

The expected opening of the airport will add to the growing status of Berbera which has already been boosted by the expansion of the Port, the building of the road linking the town to the Ethiopian border and the planned construction of the multi-million Berbera Economic Free Zone.

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Academy of International Trade and Transport to hold its First ever Awards

The Academy of International Trade and Transport is a reputed education body that focuses on the knowledge required by the professionals of the logistics and freight forwarding industry. AITT is the only entity authorized to carry out the FIATA Diploma in Sri Lanka and it also conducts the Foundation Course in Multi Modal Transport and Logistics and the Certificate Course in Freight Forwarding and Multi Modal Transport.

FIATA and the FIATA Diploma

The re-validation certificate is issued based on past performance and is reviewed once every four years. The revalidation meeting was held at the FIATA World Congress in September 2019 in Cape Town, South Africa. The FIATA Diploma which is offered in Sri Lanka under the purview of FIATA (global) is internationally acclaimed and accepted. Those who complete the examinations successfully are able to secure employment in freight forwarding, logistics, shipping and even air transport.

Awards Ceremony

For the first time in four years, an awards ceremony has been planned to recognize the accomplishments of the hundred students who completed the three courses in 2020.

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