Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 046

Ethiopian Ship Docks in Berbera Port After 20 Years

Ethiopian Ship Docks in Berbera Port After 20 Years

The Ethiopian ship, Gibe, has docked for the first time in Berbera Port of Somaliland after 20 years, according to the Ethiopian Shipping and Logistics Services Enterprise (ESLSE). The enterprise announced that, the commencement of regular scheduled liner service at the Berera Port.

Gibe ship, loaded with 11,200 tons of sugar and rice, has already arrived at the port while another Ethiopian ship, Shebele is expected to arrive at the port next week.

Using the Berbera Port will increase the service provision of Ethiopian Shipping and Logistics Services Enterprises. The Berbera-Ethiopia corridor is also believed to offer competitive service for Ethiopia’s import and export while hugely contributing to the national export earnings, the enterprise disclosed.

Ethiopia owns 9 ships, of which two are tanker ships while the rest have the shipment capacity of 28 metric tons.

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Customs Duty Squeezes Gov’t Suppliers Margins

Customs Duty Squeezes Govt Suppliers Margins

Suppliers of equipment and furniture for the federal government cry foul over the imposition of an “unfair” amount of duty by the authorities, squeezing profit margins and causing delays in procurement processes.

Representatives of a dozen of 40 companies contracted out by the Federal Public Procurement & Property Disposal Services voiced their complaints last week during a meeting held at the new headquarters of the Ethiopian Customs Commission, on Ras Birru Street (Meshualekia area).
Debele Kebeta, head of the Customs Commission, legal procedures cannot bend simply because these companies “supply government offices.”

“We receive letters pleading with us to review the issues for the suppliers,” he said. “We can’t allow this.”

Debele pledged to prioritise reviewing the complaints and said that suppliers unhappy with the Commission’s decisions may take their case to a court of law.

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Stakeholders formulating legal framework to utilize Berbera port

Government authorities and other stakeholders are deliberating the formulation of a legal framework that would enable Ethiopia utilize Berbera port for its import-export activities.

The port facility in the Indian Ocean is attracting wider attention in the Horn of Africa, which is believed to further the economic advantages of countries, particularly Ethiopia. The legal framework issues needed before Ethiopia begins to use the port for itself would be handled by the Ethiopian Maritime Authority.

In addition to that, Ethiopia’s effort to undertake its shipping and forwarding plans would be realized with the collaboration of various institutions including ESLSE, EMAA, transport authorities, and Customs Commission. These bodies are already working together to design and formulate the required legal frameworks, will decide what kind of goods and items are going to be transported via this port, CEO of Ethiopian Shipping and Logistics Services Enterprise (ESLSE), Roba Megersa noted, adding that discussions are underway with stakeholders.

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Private Sector Role Critical to Improve Logistics System in Ethiopia: WB Specialist

Enhanced private sector role is necessary to improve the logistics system of Ethiopia, World Bank Lead Private Sector Specialist Charles Kunaka said. The specialist Charles Kunaka told that, significant reforms undertaken by the Government of Ethiopia, including the opening up of the logistics sector to Foreign Direct Investment and private sector competition, require more continuous improvement and enhanced role of the private sector.

Ethiopia’s Logistics Performance Report 2020: A Self-assessment based on World Bank’s ILPI was launched.

World Bank’s international LPI is a summary indicator of logistics sector performance, combining data on the six core performance components into a single aggregate measure: Customs, infrastructure, international shipment, logistics quality and competence, tracking and tracing, timeliness are the key dimensions to benchmark countries performance.

Logistics system, however, is a continuous process and the government and the private sector have roles to improve the logistics system. The dimensions of the Logistics Performance Index (LPI) such as customs, infrastructure and quality of services are led by the government or the public sector. But there are also parts of the LPI such as logistics quality, international shipment and timeliness that are perhaps dominated by the private sector, he elaborated.

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