Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 008

Tadjoura Port of Djibouti Begins Serving Ethiopia

The new Tadjoura Port of Djibouti began this week serving northern Ethiopian regions allowing the country to import and export non-containerized goods, says the Ministry of Transport of Ethiopia. The Port is designed to handle non-containerized goods such as coal, steel, potash and the like.

Last month the Port has handled its first shipment of some 25,000 metric tons of steel last month, according to the Ministry of Transport of Ethiopia. A few weeks ago Ethiopia has also used Tadjoura Port to import 50,000 metric tons of coal and two ships with over 25,000 metric tons of steel.

Tadjoura Port can handle up to 2,000 tons of potash per hour. It is expected to benefit Ethiopia by allowing the country to quickly transport its potash products to the port for export.

The Ministry in its statement indicated that Ethiopia in the future will plan to use the Tadjoura Port for importing and exporting of wheat, sugar and fertilizers.

Read More at:አዲሱ-የታጁራ-ወደብ-የብረት-እና-የድንጋይ/


Reforming the Logistics Sector

A regulation to open up the multimodal sector for private actors has been tabled to the Council of Ministers.

The National Logistics Transformation Council has approved the draft regulation that is supposed to be ratified by the Council of Ministers. The draft regulation seeks to have a more open multimodal scheme, which offers the transportation of goods through different means of shipping including rail and road under a single contract.

According to Mekonnen Abera, Director General of Ethiopian Maritime Affairs Authority (EMAA), the regulation has already been sent to the Council of Ministers for approval. “The sector has received attention from the government,” he said. He expressed that there are about 100 intervention areas awaiting response in the logistic sector, of which the multimodal reform is a major part. “One of the top areas that the logistics council which is comprised of relevant government bodies and private sector is keenly focused towards is the multimodal scheme,” he added. In addition, he stated that the sector will be open to limited and capable developers. Furthermore, Ethiopian Logistics companies may come together in a joint venture to form strong entities so as to be part of the business.

As per the government’s decision, the involvement of foreign investors on the logistics sector is limited to up to 49 percent. So far, CMA CGM and Bolloré Africa Logistics, both French companies, have agreed to get the maximum share on two local logistics companies.

Apart from the multimodal scheme, the dry port investment is another area the government wants to open for local investors. According to sources, the new regulation is expected to be approved by the Council of Ministers in the coming few weeks.

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Two Giant Bulk Cargo Ships to be Constructed

Ethiopian Shipping and Logistics Enterprise (ESLSE) has formed a project office to carry out the construction of two bulk cargo ships in the 2013 Ethiopian budget year.

The project office who has 6 members is comprised of veteran and young professionals who served and still serving the enterprise on managerial level with rich experience and knowledge on the construction of ships.

The project office will mainly oversee the design of ships, selection of construction sites, machinery to be installed on ships, and so on. It is also stated that it will consult on the legal and financial processes required by the construction phase.

According to ESLSE, Ato Mekonnen Aberra, Board Chairperson of ESLSE and the Director General of EMAA, Ato Roba Megersa, CEO – ESLSE and senior members of the management attended the launching session of the project office.

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Djibouti, Nation of One Million, is Building the Largest Free Trade Zone in Africa

Djibouti is capitalizing on its strategic location on one of the world’s busiest trade routes to build Africa’s largest free trade zone area.

In 2018, lowly-populated Djibouti launched the first phase of the project comprising a 240-hectare (593-acre) site. The year before, it had unveiled three new ports and a railway linking it to landlocked Ethiopia, as part of its bid to become a global trade and logistics hub.

The $3.5-billion China-backed initiative will span 4,800 hectares when completed and it will become the biggest free trade zone area on the continent. “Djibouti aims to become a gateway not only to Ethiopia but to South Sudan, Somalia and the Great Lakes region,” said Aboubaker Omar Hadi, chairman of the Ports and Free Zones Authority.

The project is part of China’s “One Belt, One Road” initiative to expand trade routes and a series of infrastructure across 60 countries. It is being constructed by China’s largest public port operator, Dalian Port Corporation Limited. The operations of the port will be a jointly run by the Djibouti Ports and Free Zone Authority and three Chinese companies: China Merchants Holdings, Dalian Port Authority and big data company IZP.

The agreement calls for the zone to handle $7 billion in trade within two years. Besides, Djibouti will create a unified customs system with China, establish a transit trade center and set up a currency clearing system.

At least 21 countries have signed on to operate in the zone which offers tax-free incentives to investors.

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The Flight of Ethiopian Sailors Become a Serious Concern to the Authority

The Ethiopian Maritime Affairs Authority has trained more than 7,000 sailors in one year and hired 4,450 sailors for international organizations. However, sailors fleeing from ships become a big problem. The desire of shipping companies to hire Ethiopian sailors is declining from time to time. Due to this, it is having a negative impact not only to the authority but also on the country’s image, said Mekonnen Abera, Director General of the Ethiopian Maritime Affairs Authority.

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Under the New National Transport Policy, 2,000 Km Expressway is planned to be built over the Next 10 Years.

The new national transport policy has enabled regional governments to build asphalt roads within their administrative boundaries, said Dagmawit Moges – Minister, Ministry of Transport. The cost of asphalt roads to be built in the regions will be covered by the regional states and the federal government. The plan will also set to increase expressway from 200 km to 2,000 km.

Setting to raise the growth of regional integration as one objective, the policy planned to increase the number of roads by 14 which will connect Ethiopia to neighboring countries. Moreover, the national transport policy will allow foreign investors to participate in the transport sector by no more than 49 percent with the local ones.

Watch More at:በሚቀጥሉት-አስር-ዓመታት-2-ሺህ-ኪ-ሜ-የፍጥነ/

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