The Ethiopian Shipping Lines Share Company announced plans to open Multi Modal Transport service to the private sector.

Multi Modal transport offers the transportation of goods through different means of shipping (eg rail and road) under a single contract. The carrier is held liable for the whole trip across the various means under this system.

The Multi Modal system will be in effect for goods passing through Port Djibouti which accounts for 98% of Ethiopia’s imports and exports.

The Multi Modal System will allow the private sector avoid the extensive paperwork associated with the uni-modal transport system said Bruck Dagne, Logistics Manager at ESL.

The MTO will be liable for accidents that may occur during the delivery system as well as delays in delivery which makes it a more attractive to the uni-modal option according to Bruck.  

ESL has sub-contracted land transportation companies for inland transport to the dry ports in Modjo and Semera he said.

The Multi Modal Transport system was set up by an agreement signed between Ethiopia and Djibouti in 2006. The system initially served government and aid organizations in transporting good according to Yared Shiferaw Law, Insurance and Commerce Director at the shipping lines.  

In related news Ethiopian Shipping Lines has plans to import nine ships financed through credit from the Export-Import Bank of China according to Yared. It is expected that the ships will arrive within four years he said.

The new ships will replace old ones and help create alternative markets and trade routes for Ethiopian exports it was said.

Source: Capital