Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 01, No. 032

Unexpected incidents leave trucks stranded in Djibouti

Two unforeseen incidents temporarily delay the flow of trucks that carried Ethiopian import cargos from Djibouti in the past one week.

The information obtained from truck companies’ agents indicated that in the week, trucks have been stranded for days since the Djibouti Bureau of Ethiopian Customs Commission temporarily halted issuing a permit that required entering into Ethiopia.

One of the truck companies’ head told Capital that his company, which manage some of the trucks have faced delay for about four days due to the customs permit issue.

He said that it is a common occurrence for a delay of one or two days in Djibouti due to different reason that may not directly be related with customs issue, “But the current case is different and the delay has extended,” he expressed.

Agents told Capital that they have been informed by their representatives regarding the issues and was linked to the internet connection termination at the branch office.

Almost all of Ethiopian cargos loaded on vessels are transporting to the country via Djibouti that is connected on three roads networks and railway as well. Most of the ports in Djibouti are modern and some of them are recently built.

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Ethiopia’s port ownership to be answered in the 10-year transport plan

Ministry of Transport (MoT) expressed that ownership and management of seaport will be determined by the ten-year transport plan.

The transport sector development in general is expected to consume 3.2 trillion birr or USD 75 billion in the coming decade, while the sector that is mostly preserved for public and domestic investors will expand its playground to foreign investors in different schemes.

Dagmawit Moges, Minister of Transport, said that the transport sector has six strategies, 22 sub strategies goals and 98 interventions in the logistics sector.

One of the interventions is looking into the port usage of the country. “Under the initiative we may have a program that shall be turned to become a project,” she said.

For the implantation of the strategy, the Council of Ministers’ have formed a National Logistics Council that is chaired by MoT and includes Minister of Trade and Industry, Ministry of Revenue, Ministry of Agriculture, Ministry of Finance, National Bank of Ethiopia, Customs Commission, Investment Commission and representative of the private sector logistics actors.

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ESLSE, Djibouti’s port management harmony pays off

A strong coordination between ports management in Djibouti and Ethiopian Shipping and Logistics Service Enterprise (ESLSE) accelerates the cargo handling and has further improved lifting capacity.

47.2 percent of the 1.8 million tons of fertilizer cargo procured for this year has already reached at the port and almost all of them are transported to the destination in Ethiopia.

Ethiopia, which is the biggest population without sea outlets in the world, is mainly using ports in Djibouti which is connected by three roads and a railway network for cargo import.

Roba Megersa, CEO of ESLSE, said cargo shipment and handling in ports and moving to a central destination has massively grown in the past couple of years. This operation is marvelous despite COVID 19 affecting the logistics industry he expounded.

He said that the current management at the ports in Djibouti has strongly improved its leadership quality which has helped the two sides to understand each other thus accelerating the activity on the logistics sector. “They listed us and tried their best to fulfill our demands. They are working strongly to solve any problem that may occur,” he told explaining the reasons that led to the registration of achievements in the sector.

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Kenya’s Lamu port set to commence operations by June 2021

Kenya’s Lamu port set to commence operations by June 2021

Kenya’s Lamu port is set to begin clearing Ethiopian cargo by June 15 2021, according to the multi-agency team steering the project.

Kenya News Agency reports that LAPSSET chairperson Maj Gen (Rtd) Titus Ibui, said following the meeting between President Uhuru Kenyatta and Ethiopia Prime Minister Dr Abiy Ahmed late last year at official inspection tour to Lamu Port Project, the government is keen to complete the project and start clearing Ethiopian cargo from Lamu port.

“We travelled by road from Mombasa to Garissa to inspect the project. The progress is good. The road between Lamu and Garsen is complete,” Ibui said.

“We have contractors on the ground in other areas to make sure by June we will have our first exports to Southern parts of Ethiopia, Hawassa Industrial Park and Adama Industrial Park which specialize in textile, motor vehicle assembly and food processing,” he added.

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Suez Canal traffic jam caused by stuck ship Ever Given ‘cleared’

Suez Canal traffic jam caused by stuck ship Ever Given 'cleared'

The last ships stranded by the giant container vessel that was stuck in the Suez Canal have now passed through the waterway, the canal authorities say.

More than 400 vessels were left waiting at either end of the canal when the 400m-long Ever Given became wedged across it on 23 March. But Egypt’s Suez Canal Authority says the shipping traffic jam is now over.

Officials have opened an investigation into the incident and expect to made their findings public early next week. The results could have major legal repercussions, as various parties seek to recoup the costs of the repairs to the ship and the canal, as well as the salvage operation.

About 12% of global trade passes through the 193km (120-mile) canal, which connects the Mediterranean Sea to the Red Sea and provides the shortest sea link between Asia and Europe.

The 220,000-tonne Ever Given was finally freed last Monday after a major salvage operation involving a flotilla of powerful tug boats and dredging vessels that shifted an estimated 30,000 cubic metres (1.1m cubic ft) of mud and sand. The operation allowed hundreds of ships, carrying millions of tons of cargo, to start moving through the waterway. A total of 85 ships, carrying cargo weighing 4.2 million tons, passed through the canal in both directions on Saturday, the Suez Canal Authority (SCA) said in a statement. These were expected to include the last 61 ships out of the 422 that were queuing when the Ever Given container vessel was dislodged.

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