Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 015

Ethiopian Cargo introduces Trans-Pacific Route from Incheon to Atlanta


Effective Nov 9, Ethiopian Cargo & Logistics Services launched Trans-Pacific routes, extending from Incheon to Atlanta via Anchorage. The route is operated by B777-200F.

Operating next generation freighters and with Africa’s largest trans-shipment terminal, Ethiopian Cargo & Logistics Services facilitates the export of perishables, garments, mining products, and the import of high value industrial products and inputs, pharmaceuticals, among others across its global network.

Regarding the new service, Ethiopian Group CEO, Tewolde GebreMariam said, “We are delighted to have launched our newest freighter service to our Cargo Forwarder customers worldwide, extending from Incheon to Atlanta via Anchorage in the current global pandemic crisis where speed in the supply chain management is highly required to deliver urgently required goods. Our new cargo service will cut total air transport time significantly between Asia Pacific and North America facilitating fast and efficient global trade.”

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Government’s hard work to ensure the corridor is not affected by the current situation.

The government is working hard to ensure that the Ethio-Djibouti corridor is not affected by the current situation in Ethiopia.

It is stated that it is working closely with the government of Djibouti to ensure that 95% of the country’s import and export activities are not affected at the Ethio-Djibouti corridor.

In particular, products such as fuel, which should be imported every day, have been made to reach their destination without any problems said Ambassador Birhanu Tsegaye. The ambassador added that, as daily port operations in Djibouti and Tadjoura ports continue as usual, the government is working on a plan to transport import and export items.

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Dima-Rad road construction project is completed


Ethiopia Roads Authority announces the completion of Dima-Rad road construction project which connects Ethiopia with South Sudan. The completion of the 60.2-kilometer-long asphalt concrete road is expected to accelerate alternative revenue streams.

The road construction project will play a significant role in exporting fruits, honey and spices from the western part of the country, benefiting local farmers.

According to the authority, the project was constructed at a cost of 856 million birr allocated by the Ethiopian government and the consultation and supervision work was carried out by the Ethiopian Design and Supervision Corporation.

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Africa considers merging national carriers to boost aviation

Some African countries are deliberating on merging their national carriers to take advantage of economies of scale and make them competitive in the global market. The talks also include eliminating visa fees within the continent, simplifying immigration rules, improving air connectivity infrastructure and making airport charges affordable within Africa’s 54 countries.

To bolster Africa free trade and promote tourism sector that is reeling from the adverse effects of coronavirus pandemic, big African airlines such as Ethiopian Airlines Kenya Airways, , Egypt Air and South African Airways have been urged to merge and form the best continental airline, build intra-African routes and networks to enhance continental connectivity within the 54 countries.

But lack of open skies policy among the African states has been cited as a hindrance to fostering competition in the global airline business. Other challenges the continent faces include stereotypes on travel advisories, poverty and diseases such as Ebola.

The forum decried lack of support in the implementation of open skies policy, which they said holds the key to realizing the potential of the aviation sector. The Yamoussoukfro declaration endorsed by 44 members of the African Union in 1999 allowed for open skies among most African countries but it is yet to be implemented. It is only South Africa and Morocco that have successfully implemented it.

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The raging hub war at west African ports


There is an investment overdrive in Africa’s maritime sector as governments pursue ambitious port expansion projects. Currently, the African port sector has attracted $15 billion in private investment, and public funding brings the total to $85 billion. With most of this growth funded by mounting levels of debt, the profitability of these projects remains central to their undertaking.

Economists have expressed concern that the expansion of the African port sector has to align with the fact that at most only four ports will take the designation of continental transshipment hubs. It is already apparent which ports will take first place in most regions: Tanger Med and Port Said in North Africa; Djibouti in East Africa; and Durban in South Africa. The question is how governments will avoid the trap of grandiosity in ports expansion and ensure that the investments are wisely executed.

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