Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 086

ToT Concluded with a Grand Closing Ceremony

ToT Concluded with a Grand Closing Ceremony

The 4th round of Training of Trainer (ToT) program for FIATA Diploma in Freight Forwarding program, which was held from February 23 to March 07, 2023, finalized on Tuesday 7 March 2023 at Sheraton Addis Hotel.

Mrs. Elizabeth, who welcomed guests and gave opening remarks, requested the government for land allocation to the Association, so it could build a training center and make its training program widely accessible.

Following the chairperson, Eng. Yehualaeshet Jemere, Director General of Ethiopian Maritime Authority, delivered a message whereby he acknowledged EFFSAA for its effective capacity-building initiatives.

“As Senior Vice President of FIATA, I would like to congratulate the Ethiopian Freight Forwarders and Shipping Agents for making this important training program a success.” said Master Trainer Mr. Thomas Sim, the senior vice President of FIATA. He further stated that, the previous achievements contributed a lot to the association’s successful completion of the training program.

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Private Operators Poised to Join Multimodal Logistics Sector

Four new multimodal logistics companies set to join the sector will be announced in few weeks.

The end of government monopoly in the logistics sector is imminent, as four logistics companies are in hot pursuit to be the first group of private multimodal logistics service providers under the terms of “Free on Board” (FoB).

After several companies expressed their interest to join the sector, a committee under the Ethiopian Maritime Authority is edging closer to announce the four companies set to join the sector. These companies will be sharing the market with the six-decade-old state-owned giant Ethiopian Shipping and Logistics Service Enterprise (ESLSE).

According to the director general of the Authority, Yehualashet Jemere (Eng), the process in selecting the companies is undergoing at his office, and “the selected companies will soon be announced.”

Should the companies seek a temporary license until meeting the full requirements, they are required to fulfill a paid-up capital of 228 million birr and own or rent 3.5 hectares of land for at least four years, besides meeting several other requirements important for the works of logistics service.

Asked if his office would keep issuing multimodal transport service licenses, Yehualashet confirmed it would only be five companies this time as per the directive.

“It is a policy matter whether or not the sector will be open for more competitors,” he said. “It will have an effect on the country’s economy, so it is debatable and can be decided later.”

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Customs Operations Impede Incoming Ethiopian Cargo From Djibouti

The difficulties that have arisen in recent months regarding customs operations that impede incoming Ethiopian cargo from Djibouti to the center have been discussed during the most recent visit of an Ethiopian delegation led by Alemu Simie, Minister of Transport and Logistics (MoTL), to Djibouti, a major sea outlet for Ethiopian cargo.

The stack of goods in Djibouti has been attributed to customs-related problems that mostly occurred in the most recent few months, which Ethiopian operators claimed has resulted in an additional cost for cargo.

The case has been discussed, according to the Ethiopian Maritime Authority (EMA) Djibouti Branch, to coordinate Ethiopian cargoes with the committee, which consists of Ethiopian state offices and stakeholders headquartered in Djibouti. While the issue occurred a few months prior to the committee’s meeting, it was only recently that the matter was discussed.

The head of the EMA branch in Djibouti, Abebe Tefera, claimed that in order to expedite cargo going to Ethiopian consumers, Djiboutian Customs is asking for documents such the HS Code and Area Code, which are irrelevant to them.

Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) sent a letter to the appropriate government entity in order to find a solution for the cargo that are stuck in Djibouti.

Abebe claims that 168 containers handled by the state-owned multimodal logistics giant ESL are stuck in Djibouti as a result of the customs issue. “If this large company runs into trouble, private logistics providers would have a bigger problem. I know that EFFSAA wrote a letter on the case, but I have no idea how much it has affected them,” he added.

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Ethiopian Airlines Launches Cargo Flight to Addis Ababa

Ethiopian Airlines Launches Cargo Flight to Addis Ababa

In the early morning of March 13th, the first Ethiopian Airlines Boeing 767-300F landed at Copenhagen Airport. This marks the return of Ethiopian Airlines to Copenhagen Airport for the first time in nearly 20 years. Ethiopian Airlines has launched a new cargo route from Addis Ababa via Liege to Copenhagen and then non-stop back to Addis Ababa from Copenhagen. This addition to the Copenhagen Airport cargo network will provide new opportunities for trade and commerce between Ethiopia and Denmark.

The flight will be served every Sunday with a Boeing 767-300F capable of carrying approximately 52 tons of cargo.

Additionally, Ethiopian Airlines are returning to Copenhagen Airport with passengers on May 22nd. The flight will be a direct service from Addis Ababa via Vienna to Copenhagen and will be flown with new Boeing 787 Dreamliner aircraft.



DMP shifts to a higher gear following $7 million investment

The biggest port operator in Djibouti, Doraleh Multipurpose Port (DMP) expanded its port activity with additional USD 7 million investments that will allow the port to hand additional vessels with huge cargo.

DMP, the modern port facility in the region stated that it has acquired additional port equipment that would give additional power for its operation that it handles inside the port facility.

The purchase of these new materials is part of an ongoing investment program that aims to improve the performance in unloading and delivery.

This significant investment of more than 7 million USD will allow DMP to reach the level of requirements of its customers.

5 forklifts of 16 tonnage, 7 loaders, 2 excavators, 2 reach stacker, 6 tractors and trailers, and 2 Vigan type bagging machine with extension of fertilizer terminal conveyor are the equipment that the operator possess on its latest investment.

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