Companies interested in multimodal transportation have a rare opportunity that opened after the Ethiopian Maritime Authority decided to onboard capital and enhance logistics capabilities across the eight dry ports.

About 13 local companies have shown interest in the second bid, with notable names like the Ethiopian Railways Corporation, Maccfa Freight Logistics, Panafric Global and National Transport Plc making the list.

With only a month left, officials believe the move will allow private companies to share in the logistics business monopolised by state-owned Ethiopian Shipping & Logistics.

Yalew Tesfaye, CEO of the logistics administration at the Authority, indicates that extensive reforms have been tabled as part of a national strategy to improve Ethiopia's trade potential by including multi-use logistics modalities.

He revealed that four operational licences will be given to the private sector over the coming five years, with capable companies providing a diverse alternative, hopefully resulting in private operators shipping containerised cargo.

While joint ventures between local and foreign investors are allowed, the selected companies are subject to a rigorous set of requirements, including a board of directors with a minimum of five years of experience. Companies are required to lease five hectares of land at the ports and have 30 trucks with the capacity to acquire 40 more with 400qtl carrying capacity.

Logistics companies recognise the lucrative business opportunity, although it is too early to comment on the arrangement.

Maccfa Freight Logistics has been operating in a joint venture with Siva Shipping & Transport for nearly three decades.

Although Board Chairman Mulugeta Assefa applauds the attempt after half-hearted efforts in the past 15 years, he believes the bid requirements are exaggerated and exclusionary to local companies.

"It's unlikely that anyone makes the cut," he told Fortune.

Maccfa has seven offices across the country and provides services through its own 15 trucks. While Mulugeta said they lease more when necessary he disclosed the company primarily relies on providing "soft skills" for its revenues.

Mulgueta indicates that multimodal transport will significantly help decrease waiting times and document authentication backlogs. However, he emphasised that the requirements need adjustment to factor in skills, network, knowledge and experience.

"This is what matters more," he said.

The inclusion of multimodal transport into the logistics sector a decade ago has heralded improved timeliness and better tracking and tracing capabilities. At the same time, it has been dominated by the six-decade-old state-owned behemoth Ethiopian Shipping & Logistics which amassed 42.7 billion Br in revenues last year.