A new committee composed of members from the Ethiopian and Djiboutian transport authorities has been formed to facilitate freight and shipping logistics between the two countries. The Committee was initiated by the Maritime Affairs Authority and endorsed by the National Logistics Council, a high-level team formed to put forward policy interventions to solve the bottlenecks in the logistics industry.

Overcoming challenges to the logistics sector, conducting research in the field, and addressing industrial bottlenecks are some of the main tasks shouldered by the Committee. Since its establishment in November, the Committee has had a series of virtual meetings and plans to organise a workshop in Addis Abeba by the end of January.

Founded following a workshop held this October, the Committee is comprised of members from the Customs Commission, the Federal Transport Authority, the Ministry of Trade & Industry, and the National Bank of Ethiopia among others. Djibouti port, customs and roads agencies are taking part on behalf of the neighbouring country, while the Ethiopian Freight Forwarders & Shipping Agents Association represents the private sector in Ethiopia.

The Committee will conclude its discussions on two major points: a shared standard working procedure and the alignment of working hours between the two countries.

This is a platform to develop these working procedures to bring systematic change, according to Elizabeth Getahun, president of the Association.

A study conducted by the Ethiopian Logistics Community of Practice, another member of the technical committee, found that the mismatch of working hours between the two countries is cause for high economic losses. Ethiopia has 40 working hours a week, while Djibouti has 48.

"We plan to submit the proposal for established common working hours between the two countries at the workshop," Elizabeth said. "This is one of the major  reasons for congestion at the Port."

The Association also signed a memorandum of understanding (MoU) with the Customs Commission at its annual general assembly event held at the Hyatt Regency earlier this month as part of the "ease of doing business" reforms in the country. In line with this, the Commission has launched an automated system that enables companies to process and secure permits and pay duties and tariffs online.