Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 063

Closing Program of Capacity Building Program Held.

Closing Program of Capacity Building Program Held

The closing program of capacity building program which was conducted starting from 13th of December 2021 was held on Saturday January 01 2022 at the training hall of EFFSAA.

On the closing program, President of EFFSAA, W/ro Elizabeth Getahun, Vice President of EFFSAA and Chairman of Airfreight Institute (AFI) of FIATA, Ato Dawit Woubishet, Chairman of Region Africa and Middle East (RAME) of FIATA, Ato Salahadin Khalifa, A/Country Director of Trademark East Africa Ato Abenet Bekele and trainees who completed the training programs successfully were presented.

A total of 68 professionals who attended these three training programs received certificate of completion from invited guests of the program.

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Ethiopia Introduces Cargo, Logistics Services Online Platform

Ethiopia Introduces Cargo, Logistics Services Online Platform

Ethiopian Cargo and Logistics Services said it has launched a new feature that enables customers to make online reservations for their cargo.

A press release from Ethiopian Cargo and Logistics Services stated that the platform enables customers to check flight schedules, space availability, loadability of freight and make real-time booking of their shipment in single and convenient way on cargo booking.

The online booking is subsequent to its introduction of the mobile application to heighten customer experience, it added.

The Mobile App, which is available for Android and IOS, brings convenience to customers with a real-time update through a range of self-service features.

Customers can check flight schedule, submit enquiry, receive notifications when the shipment is ready, book charter flights and track shipments on the application.

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Kombolcha Dry Port and Terminal Resumes Operation.

Ethiopian Shipping and Logistics Services Enterprise (ESLSE) resumes its operation at Kombolcha dry port and terminal. Starting from January 10, 2022.

The Enterprise resumes operation by conducting the necessary maintenance to office facilities and infrastructures which are very important for the commencement of operation.

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Ethiopia-Djibouti Railway’s Annual Revenue Increased by 37.5%

Ethiopia-Djibouti Railway’s Annual Revenue Increased by 37.5%

The Ethiopia-Djibouti Railway (EDR) has earned $86.13 million revenue in the year 2021. The figure has shown a 37.5% increase as compared to the previous year.

The EDR attributed various factors to the rise in its annual revenue which was affected by incidents of vandalism and theft in 2020.

Last year however, the 756-km railway experienced no significant incidents, after its officials managed to secure the railway lines.

Its officials have been able to implement the railway transport safety regulation in the Somali region of Ethiopia starting from August 31, 2021.

Last year, the railway’s freight service transported 77,357 containers between Ethiopia and Djibouti port in the year 2021.

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State Shipping Enterprise Eyes Cold Chain Logistics Entry

The state shipping monopoly is closing in to acquire its maiden batch of refrigerated (reefer) containers as part of its expansion plans into cold chain logistics.

The Ethiopian Shipping & Logistics Services Enterprise (ESLSE) executives are considering their options to buy 30 units of refrigerated containers from one of two companies bidding to win the contract. The Chinese Guangdong Pi Power Co. Ltd and SG International vie to supply containers manufactured by CRRC Yangtze Co. Ltd and TSSC Group (both Chinese firms), respectively.
The international market for a 40ft reefer container ranges between 10,000 and 12,000 dollars. Regular 40ft shipping containers go for around 7,500 dollars.

The federal government has plans to construct a cold chain facility at Modjo Dry Port on 5.6hct of land with an outlay of 50 million euros. The Dutch government covers half of the cost.

“The feasibility study is finalised, and we’re awaiting a decision on how and when to allocate the remaining 50pc share,” said Mengist Hailemariam (PhD), manager of the Ethiopia Trade Logistics Project at Maritime Authority, whose office is overseeing the facility.

Modjo Dry Port has made the land available for constructing a cool chain facility, disclosed Dereje Mideksa, general manager of the Port.

The Port was chosen to construct a cool chain facility because it is the biggest dry port located on the country’s major trade corridor, according to Ergana Buche, logistics coordinator and representative of Flying Swans. A consortium established to help Dutch corporations and entrepreneurs succeed in developing markets in Africa, Asia and South America, Flying Swans has prepared the feasibility study for the cold chain facility.

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Construction Begins at DP World’s $1.1 Billion Port in Senegal

Construction Begins at DP World's $1.1 Billion Port in Senegal

Senegal President Macky Sall laid the foundation stone for the construction of a $1.13 billion deep-water port being developed by Dubai’s state-owned port operator DP World at Ndayane, around 50 km (31 miles) south of the capital Dakar.

DP World Dakar, a joint venture between the Dubai-based logistics provider and the Port Authority of Dakar (PAD), is the biggest private investment in the West African country, Sall said.

DP World has said the first phase will include 840 metres of quay and a 5 km marine channel designed to handle 366-metre vessels, with a second phase adding 410 metres of container quay and further dredging to handle 400-metre vessels.

DP World chairman Sultan Ahmed bin Sulayem said his company would develop and operate the 300-hectare container terminal, as well as finance and design the land and maritime infrastructure.

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COVID-19 Delays at Ningbo Could Disrupt US$4 Billion Worth of Trade, Says Russell’s Analysis

COVID-19 Delays at Ningbo Could Disrupt US$4 Billion Worth of Trade, Says Russell’s Analysis
COVID-19 Delays at Ningbo Could Disrupt US$4 Billion Worth of Trade, Says Russell’s Analysis

The risk modelling company Russell Group has conducted an analysis indicating that a week’s delay of essential trade at Ningbo could impact US$4 billion worth of trade, including the exporting of US$236 million of integrated circuit boards and US$125 million of clothing.

The analysis was based on a week’s worth of trade from the port of Ningbo from 1 to 8 January, the time frame based on the imposing of the restrictions in Ningbo, caused by a rise in Covid-19 cases.

Entry in and out of the port along with operations of containers have been restricted due to new restrictions placed in Ningbo’s Beilun District, after an outbreak of infections at Shenzhou International, a garment factory.

Many experts are worried about any delays at Ningbo, particularly as the Chinese Lunar New Year is fast approaching, which will see factories in China close for a period in early February, while the Chinese port’s commodities exported to the US during this time period amount to US$385 million.

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Maersk is No Longer the World’s Largest Container Line as MSC Takes the Top Spot

Maersk is No Longer the World's Largest Container Line as MSC Takes the Top Spot

The Mediterranean Shipping Company (MSC) has overtaken Denmark’s Maersk to become the world’s largest container line.

MSC’s rise to the top when the Swiss-Italian company took delivery of a container ship in Singapore, according to Alphaliner, a maritime consultancy. MSC bought the ship last year for $50.5 million.

With its new acquisition, MSC’s fleet can now carry 4.3 million standard 20-foot containers about 2,000 more than Maersk.

MSC and Maersk now each have a market share of 17% in container shipping ahead of CMA CGM, COSCO, and Hapag-Lloyd, according to Alphaliner. Collectively, the world’s top five container shipping lines account for about 65% of the market.

MSC’s move up the chart comes after a bumper year for container shipping as the world grapples with a supply chain crisis. It’s also the first time in decades that Maersk is not at the top of the list.

MSC has been adding more container capacity and has bought 128 secondhand container ships in recent years “an unprecedented number in shipping history,” said Alphaliner.

Meanwhile, Maersk has been aggressively expanding into land logistics and tech, Insider’s Emma Cosgrove reported in October.

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