Mar 11 , 2024
A proposal that aims to establish a comprehensive framework for certifying private companies as dry port developers and operators was put forth by the Ethiopian Maritime Authority. It is a significant step forward to improve Ethiopia's logistics performance ranking. Historically, dry port development and operation have been under the exclusive control of the state-owned Ethiopian Shipping & Logistics (ESL). This monopoly stifled competition and hindered the overall development of the logistics sector. However, four years ago, the Council of Ministers made a crucial decision by opening the sector to private participation. The proposed directive outlines the criteria for obtaining certification as a dry port developer and operator. Joint ventures, share companies, state-owned enterprises, and private limited companies can apply, provided they meet the rigorous technical standards set forth by the Authority. If implemented effectively, this new directive has the potential to be a game-changer for the logistics sector. Ethiopia's logistics network relies heavily on eight dry ports, all operated by ESL. The Modjo dry port, located near Addis Abeba, shoulders the burden of handling nearly 75pc of the national cargo volume. The Ministry of Transport & Logistics' ambitious 30-year roadmap envisions a network of 35 dry ports across the country. Temesgen Yihune, director of Logistics Coordination at Authority, emphasises the importance of private sector involvement. "Logistics is still in its infancy in the country," he said. The success of this initiative hinges on the clarity and enforceability of the certification process. Stringent technical standards must be balanced with streamlined procedures to avoid bureaucratic hurdles that could deter potential investors. Additionally, ensuring transparency and a fair playing field is crucial to attract reputable and capable private companies.
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