The Ethiopian Federal Transport Authority (FTA) started implementing a new regulation which classify transport companies into five categories, Fortune reported.

The classification will be based on the capacities of the transport companies and is intended to create a transparent and modern administrative system, according to Fortune.

The latest regulation is expected increase competition between transport companies, and distribute work based on their capacities, according to Abelneh Agedew, head of promotions and public relations at the FTA.

“It will also allow clients to talk directly to transporters that can meet their needs, as opposed to relying on brokers,” he said.

Under the previous system, transport companies relied on their networking and word-of-mouth to get business, which resulted in under utilization of freighters’ capacity, according to Abelneh.

The new regulations aims to improve efficiency in the sector by introducing categories that allow for a better distribution of cargo among transporters.

Source: Fortune