DETERMINED TO STAND FILM AGAINST THREATENING COMPETITION - TRANSPORT |
Ethiopia for the first time, started acquiring modern vessels under its own flag when the Ethiopian Shipping Lines S.C. was incorporated under the laws of Ethiopia and started operation in 1964.
Since 1974, as a result of strong support given by the government through its cargo reservation policy, the corporation has shown a healthy economic progress.

Mr. Ambachew Abraha General Manager of Ethiopian Shipping Lines, discloses, " We have raised our capacity from 3 ships to 11 and we have bought recently another additional bigger semi container vessel. We have managed to establish overseas office in Rotterdam, and branches in Dubai and Djibouti".
The Ethiopian Shipping Lines is operating under severe threats from giant foreign ship operators which utilize advanced technologies. Apart from these regular operators, there are also numerous shipping companies that compete on ESL route on tramp and space charter basis.
Mr. Ambachew says, " Currently, ESL is using the Djibouti port 100 percent. Since Djibouti is a deep-sea port, there is competition with big ships and they are taking cargoes which would be ESL cargoes. ESL is threatened by big shipping companies."

However, he likes competition, since it brings economic advantage for Ethiopian exporters and importers. " These big shipping companies carriers could give more competitive freight rate than ESL carriers utilizing economy of scale. Due to this, ESL freights rate has been reduced, but this is an advantage for the nation. Importers and exporters have more possibilities to export and import in cargo at competitive rate."
The main objective of the maritime sub - sector is promoting the national shipping services so as to ensure the availability of reliable and competitive sea transport services which facilitates the country's foreign trade movement and contributes in saving and earning of hard currency.
Bearing The Pain For Future Prospects |
Late last year the council of ministers, based on a proposal from the Ministry of Transport and Communications, has introduced a new directive, No. 67/89 that requires individuals or companies to deposit 200,000 dollar capital for clearing license and 133,000 dollar capital to establish shipping agency.
This was a big blow for the majority of the companies that are rich with broad experience but with limited financial resources. | However, very few resisted this blow and they are still in clearing and forwarding business. One of these is PACKTRA PLC. Its General Manager Mr Bekekadu Tillahun says " The name PACKTRA means pack and transport, and it has always been privately owned. We had our own offices in Assab. Now, we have offices in Nazareth, and in many big cities of the country, we are also under establishment in the Djibouti port."
PACKTRA PLC gives clearing, packing, transiting forwarding and storage services. And it also gives commission agent service.
The company is especially involved in packing properties of tourists, businessmen, professionals and ECA and the USAID staffs, who bring in their working equipment into Ethiopia and later on would take their equipment with them when they leave the country. PACKTRA is working with the custom office, to speed up the process of free passage. Concerning the future of the company, Mr Befekadu says: " At this moment, we want to sell 50% of our company share. We want to bring investors. After selling, we will bring more equipment, materials, warehouses for dry cargo, and cold storage".
Private clearing, forwarding, ship's agency and brokerage services are facing severe threats from state owned Ethiopian Maritime and Transit services and they are also very likely to face severe threats from the giant international forwarders and multi-modal transport operators which utilize advanced technologies.
Giving everything a whirl |

Poor road conditions and logistical problems do not hinder Dinsho Transport Service from reaching every accessible remote area.
Dinsho Group of Companies, which was established after the fall of the military government, is a multi-sectoral company. It participates in almost every economic sector mainly in the Oromiya Regional State. Oromiya Regional State is the biggest regional state with a population of 20 million and with rich natural resources.
The main aim of the company is to serve the rural population. Mr. Dubale Jale, Chairman and CEO of Dinsho Companies, says, "The largest activity we were engaged in, is the distribution of agricultural inputs, and we do have to do so. In our country, about 85 percent of the population is involved in agriculture."
Dinsho has a transport company named Dinsho Transport Service Company which handles the transport operations. Mr. Dubale states "We believe that, we are doing good business in the region, and we have already assigned about 300 large trucks to get fertilizers from the stocks, and distribute them to the whole country."
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