Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter Vol. 02 No. 102

Freight Forwarders Association Appoints New Leadership, Outlines Vision for Industry Advancement

Freight Forwarders Association Appoints New Leadership, Outlines Vision for Industry Advancement
Freight Forwarders Association Appoints New Leadership, Outlines Vision for Industry Advancement

The Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) has unveiled its new leadership lineup, signaling a fresh direction for the influential logistics advocacy group for the coming years. In a significant reshuffle during its latest general assembly, the association saw the replacement of five out of its seven board members, including the departure of its past president, Elizabeth Getahun, who served her full term.

Dawit Woubishet, who has been the association’s vice president for nearly three years, steps up as the new president of EFFSAA, a decision warmly received within the community.

Bringing a wealth of experience from his tenure as a board member and CEO of Pave Logistics and Trading PLC, Anteneh Alemu will serve as the vice president, enhancing the leadership team’s expertise. The assembly also introduced new board members, including Mesfin Tefera of Abay Logistics Plc, Emebet Tafesse from Erkab Transit and Consultancy Services Plc, Tesfaye Gelan of TM Multimodal Logistics Plc, Goitom Asfaw from AGL Logistics Ethiopia, and Aklilu Sahlemariam of Cruise Logistics Plc, all set to contribute to the association’s future successes.

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Ethiopia-Sudan Railway Advances: Feasibility Study Sets Stage For Next Phase

The African Development Bank recently released its Implementation Progress and Results Report (IPR) for the Standard Gauge Railway (SGR) Feasibility Study between Ethiopia and Sudan, dated 14 March 2024. The study, initiated during the COVID-19 pandemic, experienced some delays.

This feasibility study assessed the corridor planned from Addis Ababa-Weldiya/Haragebeya-WeretaGonder-Metema-Galabat- Gadarif-Kassala-Haiya-Port Sudan. The route covers an estimated total distance of 1512 km, with 594 km within Ethiopia and 918 km in Sudan.

The objectives of the feasibility study were to develop passenger and freight traffic projections for the proposed corridor, analyse railway interoperability and select appropriate design criteria for the standard gauge line. The study also explored engineering aspects and financing options, including the potential for developing the project as a Public-Private Partnership. The initial feasibility report was submitted on 28 December 2022, with an updated version following in February 2023.

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EDR Expands Partnerships for Enhanced Logistics and Investment in Railway Facilities

The Ethio Djibouti Railway Standard Gauge Share Company (EDR) and the Djiboutian port operator Doraleh Container Terminal Management Company (SGTD) are in talks to invest in railway facilities. Additionally, EDR is planning to start working with a Chinese enterprise in Nagad and Dire Dawa.

Abdi Zenebe, the CEO of the joint venture between the governments of Ethiopia and Djibouti, stated that the railway firm is expanding its business and diversifying its operations by forming new partnerships with interested parties in the logistics industry.

According to him, negotiations are underway between the railway firm that links Djibouti with central Ethiopia and SGTD, a modern container port operator in Djibouti, for the port operator to participate in parts of EDR’s operations.

Regarding EDR’s operations, the Ethiopian side expects to support the flow of goods such as mining and agricultural products, and the ports in Djibouti are interested in increasing port efficiency, according to Abdi.

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African Airlines Show Impressive 20.7% Increase in Year-On-Year International Traffic

African Airlines Show Impressive 20.7% Increase in Year-On-Year International Traffic
African Airlines Show Impressive 20.7% Increase in Year-On-Year International Traffic

Airlines across Africa are reaping the rewards of increased demand, with the International Air Transport Association (IATA) reporting an increase of 20.7% in passenger traffic compared to this time last year. The collection of carriers includes, but is not limited to, Kenya Airways, Ethiopian Airlines, Egyptair, Royal Air Maroc, and Air Senegal.

African Airlines are surging forward with the expansion, which has seen capacity grow by 22.1% yearly, catapulting the continent’s aviation scene into a new realm. The growth has been expected as the world continues its post-pandemic thaw, and Africa’s numbers add to the 5.7% global increase in passenger numbers seen in February this year.

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Red Sea Crisis Forces Operators to Use More Container Ships, Adding to Emission Concerns

Red Sea Crisis Forces Operators to Use More Container Ships, Adding to Emission Concerns
Red Sea Crisis Forces Operators to Use More Container Ships, Adding to Emission Concerns

The shipping industry’s pledge to limit its carbon footprint may suffer a setback as the current Red Sea crisis prompts it to use more vessels and take longer routes to ensure the smooth sailing of global maritime trade.

The disruption has raised doubts about the sector’s ability to stay on track to meet the International Maritime Organization’s mandate for a 20% reduction by 2030. The shipping industry accounts for nearly 3% of global carbon dioxide emissions.

Container ship emissions could rise by as much as 11% to 257 million tons in 2024 if disruptions including in the Red Sea and Panama Canal continue, according to consultancy firm AlixPartners.

The Red Sea crisis has also put plans of some operators to replace aging fleets with newer more fuel-efficient ships on the backburner.

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