The Council of Ministers endorsed last Friday the formation of the Ethiopian Shipping & Logistics Enterprise (ESLE).

The enterprise is an amalgamation of Ethiopian Shipping Lines (ESL), Ethiopian Maritime Transit Services (EMTS) and Dry Port Service Enterprise (DPSE).

The initial proposal for the company to be a corporation was abandoned. It is to be formed as a state enterprise instead.

Although the roles of the individual companies will remain as they are, under the newly formed enterprise they will be governed by a new board of directors and management.

A draft proposal for the incorporation and article of association for the new company was submitted to the Prime Minister’s office early in September. The draft directive sent to the Council of Ministers requested nine billion birr to incorporate the company.

However, that number was rejected and sent back as it was considered too much. The prime minister had also sent back the bill, instructing the committee to rewrite it into a regulation for it to get passed without being tabled in parliament as a draft proclamation.

The council has directed that the capital and assets of all three companies be used as the enterprise’s.

Source: Fortune