Ethiopian Ministry of Transport Issues Multimodal Directive

The Ethiopian Ministry of Transport issued a Multimodal Transport Implementation Directive effective as of January of 2012. The new directive requires all government owned shipment to be transported by the Ethiopian Shipping and Logistics Enterprise and to be delivered to dry ports and warehouses recognized by the Ethiopian Revenues and customs Authority.

The directive also instructs vehicle shipments of more than three tons to be delivered to dry ports and warehouses.

Private importers with Letters of Credit from State banks are similarly expected to deliver container shipments to ERCA dry ports and warehouses according to the directive. State banks will organize a directive to organize Letters of Credit for vehicle importers taking delivery of their shipment at dry ports.

It is expected that the new directive will reduce the foreign currency spent on warehousing fees at Port Djibouti by streamlining shipment processing according to officials.

The directive allows for a monopoly of the multi modal system by the ELSE until private operators are licensed under a new bill that will require 10 million birr initial capital for investors in the sector is passed according to sources.

Importers will arrange agreements with the ELSE for the transport of their shipment to Port Djibouti handling all clearance requirements and delivering the shipment to dry port facilities at Modjo or Semera.  

It is to be remembered that the Ethiopian Shipping Lines Share Company announced plans to open Multi Modal Transport service to the private sector last month.

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.

Source: Addis Fortune