Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 033

EFFSAA Graduated Over 150 Trainees by Internationally Accredited Freight Forwarding Diploma.

EFFSAA Graduated Over 150 Trainees by Internationally Accredited Freight Forwarding Diploma

The Association warmly graduated 78 regular program and 80 Young Logisticians Training Program trainees with the presence of high government officials.

The graduation ceremony was held on 1st of April 2021 at Sheraton Addis Hotel Lalibela Ballroom. During the event, W/ro Dagmawit Moges, Minister of Transport, Ato Debele Kabeta, Commissioner of Customs Commission and Ato Mekonnen Abera, Director General of Ethiopian Maritime Affairs Authority delivered a congratulatory message and urged graduates to utilize the knowledge they acquired from the training for the development of the Logistics sector of Ethiopia.

This colorful ceremony which marked the largest number of trainees in the history of the Association, were also attended by Ato Yabibal Addis, Deputy Director General of Ethiopian Maritime Affairs Authority, Ato Roba Megersa, CEO of Ethiopian Shipping and Logistics Services Enterprise, Former Presidents of the Association, members, trainers, guests from different government and non-government institutes.

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Ministry to Demolish State Monopoly on Multi-Modal Transport Sector

The multi-modal transport sector will soon be open to private companies after authorities finalize a bill, they hope will introduce liberalization, thereby opening a long-closed industry to the private sector.

Experts at the Logistics Transformation Office under the Ministry of Transport have drafted the bill, according to people familiar with the progress.
The administration wants to see the number of private investors entering the sector limited to five, with possible revision upon the analysis of performance, according to people who have seen the first draft. However, the transport sector’s 10-Year Perspective Plan states that Ethiopia will have six private multi-modal transport operators in a decade.

Mulugeta Assefa, board chairman of MACCFA Freight Logistics Plc, a private company that has been in the industry for a quarter of a century, has had his eyes on the multi-modal transport sector. Although he views the initiative to liberalize the sector positively, Mulugeta believes the new requirements set for entrants are uninviting and difficult to attain.

“I doubt there will be many private companies who would have the capacity to meet the requirements. For actual transformation to happen, competitiveness must be encouraged,” Mulugeta said.

Despite such voices of caution from the industry, the bill will be presented to the National Logistics Council, comprising members from the Federal Transport Authority, the ministries of Trade & Industry and Finance, as well as the Ethiopian Freight Forwarders & Shipping Agents Association.

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ESLSE targets to procure 300 trucks

The Ethiopian Shipping and Logistics Services Enterprises (ESLSE) have targeted to procure more trucks for its cross orders operation services.

The state giant that recently imported 150 general cargo trucks from Chinese prominent truck manufacturer Jinan Sinotruck Co. at a total cost of over USD 11 million said that it has a planned to add 300 more trucks this time around.

Roba Megersa, CEO of ESLSE, told Capital that the recently imported trucks that did final assembly works in Djibouti have commenced operation by transporting fertilizer from the port. “The process has been very swift and their certification and registration concluded when they were in Djibouti. The plates were also issued where they were which allowed them to seamless started their operation by transporting fertilizer which enabled us to generate 4 million birr in profit rather than cost in their first trip,” he said.

“We are now expected to have more fleet from the new plan,” he said about the upcoming procurement.

The government has decided on the procuring of 2,400 trucks on the aim to accelerate the logistics service, which has different constrains including trucks, fleet and shortage. Of the stated number of trucks, 400 tracks will be oil tankers.

“If we get approval, our proposal is to get 300 of the total 2,000 cargo trucks,” Roba said.

About four and half years ago, 215 trucks were purchased from the French automotive company, Renault Trucks that made the total number of ESLSE trucks to about 440, while the coming of the Sinotruk trucks will enable the enterprise to remove old and economically inefficient trucks from service.

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Modjo Dry Port Cuts Tariffs on Exports by 70pc

Modjo Dry Port Cuts Tariffs on Exports by 70pc

The state monopoly shipping giant, Ethiopian Shipping & Logistics Services Enterprise, will implement tariff cuts of between 50pc and 70pc within a month on products exported through Modjo Dry Port.

The tariff reduction will apply to all the services the port provides including cleaning the containers, containerizing the goods, transportation and loading and unloading costs. The 50pc to 70pc discount for exports are in relation to what the Enterprise normally charges for imports.

It also offers up to a 73pc lower freight rate than the global shipping spot market rate for exports to be carried by its shipping vessels. As part of the new changes, the Enterprise has also granted access to private logistics operators to use the port to serve their customers.

“We made the discounts to support export containerization,” Roba Megersa, CEO of the Enterprise said.

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Ethiopia’s Interest to Build Reputable Rail Academy.

Ethiopian Railways Corporation (ERC) has an interest to establish reputable rail academy. A project to establish a modern and standard rail academy is estimated to have a total cost of 172 Million USD.

The corporation planned to execute the project by the support of different donors according to the Transport Division Acting Deputy Manager of ERC, Engineer Henok Bogale.

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Challenges of Ethiopia’s Logistics Sector

Program coverage about the challenges of Ethiopia’s Logistics on the weekly Tv program “Addis Menged”

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