Transport associations engaged in commercial services will be registered as businesses should a bill tabled to Parliament last week pass. A bill drafted by the Ministry of Transport & Logistics (MoTL) has been forwarded to the standing committee for Urban Infrastructure & Transport Affairs, which also motion Parliament to establish a new federal commission.

The bill comes as an amendment to a law passed in 2005. The draft excludes railway and sea transport modes mentioned as "other laws", such as a proclamation approved in 2017 to govern rail transport.

This is not the first attempt by the authorities to force associations to re-establish as commercial entities. Last year, experts at the Ministry of Transport drafted a directive with similar intentions, though judges at the Federal High Court later suspended the directive following pleas by the Transport Employers' Federation. The Federation is comprised of 54 associations and over 9,000 members.

These associations comprise a group of truck owners; an association must enlist at least 75 vehicles. However, their role is overlooked in any logistic or transport policies.

Yosef Alemu, general manager of Elshaday Cross-Border Transport, says it would be ideal to transition into a formal commercial entity but argues the timing of the amendment could not be more off.

"I'd like to see it changed," he said. "But it's not the right time."

Other associations have taken the hint and began reorganising into share companies. Among them is Yegna Hilm, which operates 180 vehicles. It has been incorporated as a share company, floating shares to its members and the public. Dejene Luche is the general manager of the Association and also serves as head of public relations for the Transport Employers' Federation. He believes the authorities are making the right move by abolishing transport associations.

"You can't take out loans as an association and grow your business," says Dejene.

However, he emphasises the need for a transition strategy to ensure the well-being of the transport sector. Dejene foresees that the biggest challenge will be persuading associations and members to make the shift.

Engida Hailemariam, working in the industry for 17 years, has a different opinion. Serving Kokeb Transport Association as a general manager, Engida believes the industry is more complicated and unwell than it appears. An absence of organised operations, lack of proper auditing and weak regulatory works undermine the sector, according to Engida.