ERC in Multi modal Transport
Recently Ethiopian government has opened the Multi-modal logistics service which has been solely operated by the Ethiopian shipping lines services enterprise (ESLSE) for long time, based on the Directive no. 802/2021the EMA was given the mandate to outline requirements, evaluate and certify qualifying companies to engage on multi-modal logistics service. Therefore, EMA has called for potential companies which can fulfill the requirements it floated on Multimodal Transport Operators Commercial Licensing and Competency Certification Directive no. 802/2021.
It is expected necessity to enhance the performance of the logistics sector, creating efficient and strong service providers and realizing competition-led sector requires opening up of the multimodal transport system. The country’s import and export trade increased significantly from time to time by type and volume and consequently it is believed that realization of effective multimodal transport service by the sole operator is not possible.
The necessity of opening multimodal transport service that has been restricted to public enterprise to private investors to ensure that customers and the public at large are benefited from the quality of service, competition, and accessibility to it; Whereas, increasing the number of multimodal transport service providers is believed to have a significant contribution in reducing the country’s foreign currency expenditure related to international import and export trade transport cost, dwell time, and storage at seaport.
Ethiopian Railways Corporation (ERC) through its Logistics Operation Business Unit has embarked on the opportunity to register as one of the four multi-modal companies which can serve the nation in FOB procurement modalities. According to the assessing criteria by the call for request from Ethiopian Maritime Authority, ERC has been assessing the possibilities and its internal capacity which suffice for most of the requirements of Licensing and Competency Certification except for some limitation in the infrastructure requirements, Human resource, and Organizational experience and ICT infrastructure. Therefore, our corporation hereby looks for potential joint venture companies which can fill the gaps for the corporation to register as joint-venture Company.
As per the Ethiopian Maritimes Authority requirements for the issuance of competency license for multimodal transport operation, the Ethiopians railway corporation logistics business unit has made a consortium with private logistics companies, Panafric Global PLC, Tradepath International PLC, and Awash Cargo RIDE PLC. Accordingly, the consortium has submitted a full technical and financial proposal hoping for the issuance of the commercial and competency license for multimodal transport operator. This consortium will fill the national logistic gap in creating favorable framework for promoting and facilitating the national logistics and freight forwarding service to support and enhance Ethiopia’s economic growth. Moreover, with the good will of collaboration the company will create transparency, fairness, value for money, efficiency, and long-term sustainability to maintain macroeconomic stability.
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