Fortune News | May 11,2019
May 31 , 2020
By GELILA SAMUEL ( FORTUNE STAFF WRITER )
Libya Oil Ethiopia Ltd, one of the largest oil companies in the country, has witnessed the theft of lubricants worth 800,000 Br from containers for the third time in less than a year.
The company, which operates 167 stations in the country, has been the victim of tampering on several shipments of lubricants that were unloaded from Djibouti. After the first robbery, Libya Oil reported it to the Ethiopian Oil Companies Association at the end of October of last year.
This was not the only example of this kind of heist. Total Ethiopia and National Oil Company (NOC) also reported that lubricants were missing from containers at the end of October, the same period as Oil Libya.
After receiving the complaints, the Association wrote a letter to the Ethiopian Shipping & Logistics Services Enterprise, according to Tadesse Girma, secretary-general of the Association, which was formed in August 2017 and has seven members. NOC, Libya Oil, Total Ethiopia, Yetebaberut Beherawi Petroleum (YBP), TAF Oil Plc, Kobil Ethiopia Ltd, and Gomeju Oil are the Enterprise's members.
“We asked the Enterprise to compensate the companies for the amount of damage incurred and also demanded that the shipments be transported by railway instead of by road,” he said.
While the follow-up to the first incident was ongoing, the second theft was inflicted on Oil Libya, and the Association again sent a reminder letter to the Enterprise. Libya Oil also appealed to the state shipping giant independently.
“In the first and second theft, it was hard to figure out where the theft occurred - whether it was the route from Djibouti to Modjo Dry Port or from the port to our cars," said an official from Oil Libya. “By the third time, we figured out where it might have occurred."
Frustrated by the series of robberies, the company requested the inspection of the container at Modjo Dry Port in the presence of officials from the Customs Commission, the Enterprise and Modjo Dry Port.
“We witnessed missing lubricants,” said the official from Oil Libya. “No one was willing to record what we witnessed on the scene.”
"There was no satisfactory answer to our letters," said Tadesse, who added that the Association went on to send a letter to the CEO of the Enterprise.
"In accordance with our agreement, as a transporter, we have no idea as to the content or number of items in the container," said Roba Megerssa, CEO of the Enterprise, which carries 17,000 containers a month. "Our responsibility lies in keeping the seal of the container intact to the delivery point. Unless the seal is damaged, we have no legal responsibility since we don't even know what the contents are."
"We receive so many complaints," said Roba. "However, an investigation by the police comes first before any allegations."
Since the situation is getting worse as time passes, the Association is proposing using the railway for future shipments, according to Tadesse.
Modjo Dry Port, which is located approximately 70Km from the capital, has a railway system with a capacity to move 3,500tn of cargo on a single trip. The largest port in the country, Modjo Dry Port manages over 70pc of the country's imports and has the capacity to hold 14,500 containers at a time. The train can make two trips a day to Djibouti, while truck transport takes more than four days for a two-way trip.
"Before any other option, the complaints need to be checked into with an investigation," said Roba.
It really all comes down to the shipping terms of the parties, according to Tesfaye Belay, a lecturer at Addis Abeba University specialising in procurement, logistics and supply chain management.
"Whenever shipping companies receive sealed containers and deliver them sealed, they are unlikely to be liable for any damages," he said. "The transporters don't have the chance to know what the containers carry."
Thus, Tesfaye recommends that the case needs further investigation to detect what exactly happened.
PUBLISHED ON May 31,2020 [ VOL 21 , NO 1049]
Fortune News | May 11,2019
Fortune News | Apr 17,2021
Fortune News | Jun 12,2021
Fortune News | Mar 05,2022
Radar | Jul 20,2019
Editorial | Mar 20,2021
Radar | Jul 31,2021
Fortune News | Mar 20,2021
Agenda | Sep 14,2019
Featured | Mar 26,2022
November 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
November 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
May 21 , 2022
There was a great deal of handshaking and patting each other on the back at the Hyatt...
May 14 , 2022
Diana Yohannes is one of those actively engaging in social media platforms with her T...
May 7 , 2022
The Ethiopian Economic Association (EEA) recently proposed the formation of a macroec...
April 30 , 2022
There is no ambiguity in the UNDP's assessment of Ethiopia’s economic performance a...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Adulteration is getting out of hand. Consumers in Ethiopia are being left to their ow...
Or see contact page