The Ethiopian Shipping Lines Share Company announced that it had finalised preparations to buy nine new ships for 300 million dollars this fiscal year.

Out of the nine ships, seven will transport dry cargo while two will carry oil, Ambachew Abraha, managing director of Ethiopian Shipping Lines, said.

Ambachew said that loans from the China Exim bank will cover 80 percent of the price of the ships while the balance will come from the Commercial bank of Ethiopia.

It was reported last week that the Council of Ministers would soon pass a directive that will remake the shipping lines as the Ethiopian Shipping & Logistics S.C.

The new company will be an incorporation of three state owned companies – Ethiopian Shipping Lines, Ethiopian Maritime Transit Services and the Dry Port Services Enterprise.

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

The draft is scheduled to be tabled for discussion with the public towards the end of September before it is sent to the Minister of Council for endorsement.

The Ethiopian Shipping Lines Share Company was founded in 1964.

Source: Walta Information Centre, Fortune