Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 019

Committee Arises to Facilitate Ethio-Djibouti Trade

A new committee composed of members from the Ethiopian and Djiboutian transport authorities has been formed to facilitate freight and shipping logistics between the two countries. The Committee was initiated by the Maritime Affairs Authority and endorsed by the National Logistics Council, a high-level team formed to put forward policy interventions to solve the bottlenecks in the logistics industry.

Founded following a workshop held this October, the Committee is comprised of members from the Customs Commission, the Federal Transport Authority, the Ministry of Trade & Industry, and the National Bank of Ethiopia among others. Djibouti port, customs and roads agencies are taking part on behalf of the neighboring country, while the Ethiopian Freight Forwarders & Shipping Agents Association represents the private sector in Ethiopia.

The Committee will conclude its discussions on two major points: a shared standard working procedure and the alignment of working hours between the two countries.
This is a platform to develop these working procedures to bring systematic change, according to Elizabeth Getahun, President of the Association.

The Association also signed a memorandum of understanding (MoU) with the Customs Commission at its annual general assembly event held at the Hyatt Regency earlier this month as part of the “ease of doing business” reforms in the country. In line with this, the Commission has launched an automated system that enables companies to process and secure permits and pay duties and tariffs online.

During its general assembly, the Association also presented its annual report and its first five-year plan since its establishment in 1998. Notable throughout the past year was its consultative participation in the 10-Year National Logistics and Transport strategic plans and the directive on the categorization of freight trucks in the country approved in November.

It is also into its fourth month of training under the newly launched Young Logisticians Programme, whereby trainees get an FIATA diploma from the International Federation of Freight Forwarders Associations (FIATA) based in Zurich, Switzerland.

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Ethiopia, Sudan Discuss on Cooperation to Enhance Use of Port Sudan, Petroleum Supply

An Ethiopian delegation led by the Minister of Transport Dagmawit Moges met on Monday with Sudan’s Minister of Infrastructure and Transport to consult on ways that help Ethiopia better use Port Sudan.
The meeting aimed at making Port Sudan an additional port option to Ethiopia to facilitate the country’s export trade besides identifying the bottlenecks encountered in using the port, according to Ministry of Foreign Affairs.

The meeting also noted other products, including fertilizer, can easily be imported through the port and be accessible to the north and west parts of the country.

Representatives from Sudan Sea Port Authority, Sudan Rail Way, Sudan Land Transportation, Sudan Highway Authority, Ministry of Trade and Customs Authority have also attended the meeting.

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Ethiopian Airlines introduces second weekly flight between Addis Ababa and Moscow


Ethiopian Airlines has introduced its second weekly flight to Addis Ababa from Domodedovo Airport, Moscow. The carrier performs regular flights on Thursdays and Saturdays. Ethiopian Airlines decided to add new frequencies to meet rising demand among Russian travellers for connecting flights to Tanzania, South Africa, the United Arab Emirates, and Seychelles, as reported by Travel Daily News.

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Will Somaliland’s Berbera port be a threat to Djibouti’s?


East African competition to provide port and logistics services for landlocked Ethiopia is heating up between Djibouti and Somaliland.

Djibouti’s port is the main transit point for imports to and exports from Ethiopia, but the government in Addis Ababa wants to diversify its options. Somaliland, an unrecognized breakaway region of Somalia, is home to the Berbera port, where a major expansion is expected to be inaugurated in March of 2021.

In 2016, Somaliland signed a 30-year contract with United Arab Emirates-owned DP World, the world’s third-largest port operator, to manage and expand the port at Berbera. The joint-venture Berbera deal is between Somaliland (30%), DP World (51%) and Ethiopia (19%).

To be a viable import-export option, Berbera will need infrastructure links. In 2019, a $400m road project to connect the Ethiopian border town of Togochale to Berbera was launched.

The road will compete with the Chinese-built Addis Ababa to Djibouti rail line. Somaliland is trying to increase foreign investment through additional infrastructure projects such as the Berbera Free Trade Zone and international airport.

The UAE also plans to strengthen its regional influence by building an oil pipeline connecting Addis Ababa to Assab in Eritrea.

The Somaliland government hopes that Berbera will deal with 50% of Ethiopia’s trade traffic in the years to come. Currently, about 95% of Ethiopia’s trade goes through Djibouti.

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$1.1 Billion Investment in New Senegal Port and Terminal by DP World


Plans were unveiled for a massive new deep-water port development project in Senegal on the North West coast of Africa. Global ports and logistics company DP World announced that it has signed an agreement valued at more than $1.1 billion with the Government of Senegal for its biggest port investment to date in Africa.

The plan calls for the creation of a new 1,500-acre port at Ndayane, near Dakar, that will be located approximately 30 miles from the current port and near the international airport. Along with a 700-acre container terminal and an adjacent free trade zone. A new company, DP World Dakar, is being established a joint venture between DP World and the Port Authority of Dakar.

In announcing the project, they said that the new port will further reinforce Dakar’s role as a major logistics hub and gateway to West and North West Africa. The existing DP Word terminal will continue to operate during the development project but later will be redeveloped into a mixed use residential and commercial waterfront. They are also proposing the creations of a cruise terminal.

Senegal recently join the World Logistics Passport, an initiative established by Dubai and DP World to encourage trading opportunities between developing markets, further build African trade.

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WCO Members share best practices and foster resilience to combat COVID-19 at dedicated Inter-regional workshop for African regions

On 15-18 December 2020 the WCO COVID-19 Project hosted and facilitated the Online Inter-regional Workshop on Disaster management and Supply Chain Continuity in times of COVID-19 for the Eastern and Southern Western and Central Africa regions. The initiative, supported by the Government of Japan, aims to improve the capacity of Member Customs administrations to address the challenges stemming from COVID-19, other infectious diseases and similar events.

The workshop, attended by more than 60 participants from 25 WCO Member administrations, focused on the response by Customs administrations in the two aforementioned regions to overcome the difficulties resulting from the pandemic and gave ample space to the sharing of national experiences.

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