Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 016

Ethiopia, Djibouti Economic Ties Model for Economic Integration in Africa

President Sahle-Work said the remarkable economic ties between Ethiopia and Djibouti is an inspirational model for economic integration in the continent. The President visits logistics infrastructure in Djibouti.
President Sahle-Work Zewde made the remark during a press statement she gave with her Djiboutian counterpart, President Ismail Oumer Guelle on Sunday November 29, 2020.

President Sahle-Work, extending her heartfelt gratitude for the warm welcome accorded to her and the delegation, praised the ever growing ties between the two countries as remarkable.

The President has expressed her government’s unwavering commitments to further strengthen the strategic cooperation with Djibouti on multifaceted areas. She also discussed ways to improve the logistics infrastructure, which is crucial for the Ethiopian economy.

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Ethiopian Airlines wins Decade of Airline Excellence Award for Africa region

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Ethiopian Airlines, the Largest Aviation Group in Africa, has won the “Decade of Airline Excellence Awards.” The award is a recognition for the incredible achievement the airline made through a challenging time in the aviation industry, according to FlightGlobal.

Operating in an incredibly challenging region for airlines, Ethiopian evolved over the decade from a national carrier to the first true pan-African airline, based on a strategy that leveraged its hub in Addis Ababa and strategic equity investments in smaller national African operators.

It recorded an eight-fold increase in revenues and a six-fold rise in profitability over the decade.
The decade ended on a more positive note, with Ethiopian announcing plans to build a new $5 billion airport in Addis Ababa to replace its Bole International airport home, heralding a new stage in the carrier’s growth, before the coronavirus hit.

By the end of the decade, the airline commanded the lion’s share of the pan-African network, having overtaken Dubai as the biggest transfer hub for long-haul travel to Africa in 2018. That was driven by a fleet strategy befitting a world-class long-haul airline, with Ethiopian becoming only the second global operator of the Boeing 787 in 2012, and Africa’s first Airbus A350 operator in 2016.

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Alibaba Logistics Arm Chills with Ethiopian Airlines to Transport COVID-19 Vaccines

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Cainiao Smart Logistics Network, the logistics arms of Alibaba Group Holdings Limited, announced its partnership with Ethiopian Airlines to launch a special cold chain air freight for the transportation of temperature-controlled medicines from Shenzhen Airport, China’s first medical cross-border cold chain facility.
The air freight will depart from Shenzhen Airport, which Alibaba says houses China’s first cross-border medical cold chain facility, twice a week to countries via Dubai and Addis Ababa. The route is carried out by Cainiao, which operates in over 200 countries and regions.

It’s certified by the International Air Transport Association (IATA) to fly COVID-19 vaccines, which normally need to be stored at low temperatures. Cabins will contain temperature-controlled monitors, for instance, and Ethiopia’s cargo terminal comes with facilities that can be adjusted between -23°C and 25°C, or -9.4°F and 77°F. It occupies an area of 54,000 square metres, with dedicated cool dollies and pharma team, as well as real-time temperature monitoring system to ensure a safe and seamless cold chain logistics for handling temperature sensitive healthcare products.

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Djibouti on Track to Become a One-Stop-Shop in the Logistics Arena

Djibouti Ports and Free Zones Authority (DPFZA) has launched the construction of the Djibouti ship repair yard project as part the vision to make East Africa a massive logistics hub. The project commencement was officially kicked off by the President Ismail Omar Guelleh at Damerjog on Thursday November 26.

Aboubaker Omar Hadi, Chairperson of DPFZA, said that the ship yard project is another milestone that will drive forward Djibouti’s vision to become a global trade and logistics hub. “Today’s ship repair yard supplements this model, ensuring that we are a one-stop-shop, offering integrated maritime services for ocean going vessels, and that we harness the blue economy to drive forward Djibouti’s socio-economic development,” he said.

DPFZA recently launched the regeneration of the historical Port of Djibouti into a business centre and the construction of a liquid bulk port in Djibouti Damerjog Industrial Park, representing the final steps in the implementation of the Port-Park-City concept.

Djibouti, the major outlet for Ethiopian cargo, is undertaking massive projects in the logistics sector to make the country the most favorable destination on the logistics sector not only in the region but in the continent.

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African Customs Chiefs Commit to Implement New Continental COVID-19 Trade Facilitation Guidelines

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Africa’s customs experts have given their support to the adoption of continental guidelines to facilitate free and timely flow of cross-border trade amid the COVID-19 pandemic ahead of the start of trading under the African Continental Free Trade Area (AfCFTA) on 1 January 2021.

They made the pledge at a virtual meeting of Directors General of Customs on the continent organized by the African Union Commission (AUC), saying that the solutions must be maintained and upgraded following the crisis.

The meeting observed that by magnifying Africa’s cross-border inefficiencies, the corona virus pandemic presented an opportunity to reinvigorate efforts at overcoming long-standing trade facilitation challenges.
The guidelines cover a number of new sub-sections to respond to specific gaps in existing rules, including the regulation of small-scale cross-border trade and cross-border trade by fishermen, gender considerations, and treatment of essential workers, including transport and humanitarian workers.

“Once in force, the continental guidelines are expected to ensure a harmonized approach to support smooth and safe trade amid the pandemic, including transit trade between RECs,” said Hussein Hassan, AUC’s Acting Director for Trade and Industry.

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