Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 066

YLPA 2022 Candidate Nominated.

Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) has nominated its candidate for the 2022 Young Logistics Professionals Award (YLPA 2022)

Kidst Abebe won the internal competition program organized by EFFSAA to with the aim of selecting one nominee from the applied more than 15 participants.

The candidate will compete by representing the Association in specific and Ethiopia and RAME-FIATA in general on one of the prestigious international stage of the Logistics industry.

The Young International Freight Forwarder of the Year Award was started in 1999 in collaboration of TT Club and FIATA. The aim of the award is to encourage training in the freight forwarding and logistics sector and to further develop the professionalism of young people in the industry. The award gives the TT Club and FIATA an opportunity to enhance the international freight forwarding and logistics industry, by investing in the young rising stars of tomorrow.

In 2021, the TT Club and FIATA agreed to change the name of the “Young International Freight Forwarder of the Year Award” (YIFFYA) to the “Young Logistics Professionals Award” (YLP Award), to reflect the fact that all young talents of the industry are welcome to take part in the competition, regardless of their specialization.

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2022 FWC Registrations to Open in March!

The FIATA Congress Committee met to further discuss important milestones including the opening of delegate registration, and the Congress Programme finalisation. It was agreed that the registrations for the FIATA World Congress (FWC) will open during the month of March.

As for the programme, the Congress will officially open on Wednesday 14 September 2022, starting with the Young Logistics Professionals Day and will end on Friday 16 September evening with the traditional Gala Dinner. More details on the full programme and information about the Institutes, Advisory Bodies, as well as Regional meetings and panel discussion sessions will be communicated in due time.

The 2022 FWC is scheduled from 13-16 September 2022 in Busan, Republic of Korea.

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New railway to connect Ethiopia with Assab, Berbera, Lamu Ports

The Ethiopian Railway Corporation (ERC) is undertaking new studies to determine the feasibility of building railway networks linking Ethiopia to Berbera, Lamu, and Assab ports.

It is a part of the country’s port diversification plan and surfaces three years after Prime Minister Abiy Ahmed (PhD) signed agreements with neighboring countries, including Sudan and Somalia, to develop ports as a gateway for the Africa’s most populous landlocked country.

While linking Ethiopia with more ports through railway expected to avert the overdependence of the country on ports of Djibouti, which handle over 80 percent of its imports, the corporation is undertaking the pre-feasibility studies using internal capacity.

According to Behailu Sintayehu, deputy CEO for railway network at the ERC, the pre-feasibility studies are being conducted only on the Ethiopian side.

Financially, the Corporation has already secured financial pledges, including the Italian government’s promise to finance the Ethio-Eritrean railway project. In the case of Berbera port, there are promises made from the African Development Bank (AfDB) and the French government.

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First Logistics Park Edges Closer to Reality

Ethiopia will soon have its first logistics park if a feasibility study undergoing by a Chinese consultant hired by authorities bear fruit.

The feasibility study of the first logistics park kicked off at Indode, a peri-urban town on the south-west of Addis Ababa, a few kilometers from Sebeta town.

CRTEC, a Chinese railway consulting firm, is conducting the study to the tune of 38 million birr, while 30 hectares of land has already been availed for the gigantic park.

The logistics park will have cooling chain refrigerators for fresh commodities and other sophisticated facilities for import and exports. Existing dry ports in the country currently handle mainly containers.

The ERC has secured the title deed for the land.

The Public Private Partnership (PPP) Board at the Ministry of Finance approved the Indode Logistics Park to be built under the PPP framework, which culminated in selecting the consulting firm.

Though the Ministry of Transport and Logistics says the Indode Logistics Park will cost USD two billion, the project cost will be decided after the completion of the study.

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ESLSE Wraps Up Technical Evaluation To Procure Heavy Duty Chinese Trucks

The Ethiopian Shipping and Logistics Services Enterprise’s (ESLSE) concludes a technical evaluation of bidders for the procurement of 150 heavy duty trucks. Currently newly procured 38 trucks are being transported from China to expand the cross border movement.

The logistics giant that procured 150 general trucks last budget year with the total cost of 11 million dollars has allocated its own budget to procure additional 38 trucks directly from the prominent Chinese manufacturer, Jinan Sinotruck Co.

The Chinese company won the bid to supply the 150 Sinotrucks last year, and the new purchasing value rate is similar with that of last year’s price, which means about USD 73,000 per a single truck.

Currently, ESLSE has 450 operation heavy duty trucks and the new coming 38 trucks will increase the number to 488.

About five years ago, 215 trucks were purchased from the French automotive company, Renault Trucks. As the norm of ESLSE, the new coming trucks will allow the enterprise to exclude the long serving and economically inefficient trucks from its cross border operation.

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ESLSE Provides its Rate for Sugar Bid

Ethiopian Shipping and Logistics Service Enterprises (ESLSE) disclosed that it has provided specific and detailed price indications prior to the opening of the 200 metric tons of sugar bid for the Ethiopian Sugar Corporation (ESC).

Prior to this, however, the sugar corporation had extended its bid opening day from the 10th of February to the sixteenth of this month, that is this Wednesday, on the basis of ESLSE’s failure to provide its indicative price to bidders.

Following the request of the corporation to the shipping enterprise, ESLSE has confirmed that it has provided the necessary clarification to ESC on Saturday, February 12. The enterprise has provided to the corporation its detailed price tag inclusive of considerations of different loading ports with volumes of loading.

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Newly Amended Regulation Harmonizes with Regional Vehicle Overload Control

The recently amended ‘vehicle axle unit load limits regulation’ is stated to harmonize the country’s truck loading standard with the regional’s tripartite agreement, Vehicle Load Management Agreement (VLMA) signed by regional parties.

Although the amended regulation being not fully public as of yet, experts in the sector explain that the new law will threshold the permissible maximum combination mass to 58 tons. Similarly, despite the exact sum of fines not being disclosed, penalties have been put in place for those that will abuse the new law.

It is to be recalled that the Council of Ministers ratified different regulations in different sectors, of which the amendment of the long awaited ‘vehicle axle unit load limits regulation’ was atop of the agenda.

Experts in the transport sector said that the new regulation which replaces the 1990 regulation, will be harmonious to the Tripartite – Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) and East African Community (EAC) – standardized vehicle and axle/axle unit load limits agreement which Ethiopia is a part of.

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