Ethiopian Shipping and Logistics (ESL) announced on Monday that it had achieved a profit of over Birr 6 billion in the previous Ethiopian fiscal year. ESL surpassed its target of Birr 5.4 billion, achieving over 100% of its plan. Additionally, the company successfully secured USD 480 million out of its planned USD 500 million, reaching 87% of its target.
The company made some efforts to address the challenges it faced at both the national and global levels, including the impact of the coronavirus pandemic, the Russia-Ukraine crisis, and the conflict in the northern part of Ethiopia. Accordingly, it acquired 185 heavy-duty trucks to enhance its land transport services. It played a significant role in transporting approximately 34% of the total 7.4 million tons of imported shipments.
The company has set a target of reaching Birr 6.7 billion in profit for the current fiscal year. It has also made plans to utilize Kenya's Lamu Port to enhance trade between Ethiopia, Kenya, and South Sudan. This decision is part of ESL's strategy to diversify and expand its port operations. Berisso Amelo (PhD) stated that ESL was working on expanding its port access and establishing its own free trade zone. While the shipping service has been improving, it still falls short of meeting the demands of Ethiopia's growing economy.
The Lamu Port is a component of the LAPSSET project, a regional initiative aimed at improving infrastructure and connectivity in East Africa. With an expected completion date in 2025, the port will have a capacity of 20 million containers annually.
Alongside the Lamu Port, ESL is also focused on promoting the establishment of local dry ports throughout Ethiopia. These inland facilities provide services similar to seaports, including cargo handling and storage. By increasing the number of dry ports, ESL aims to improve the efficiency of Ethiopia's logistics network, facilitating smoother import and export processes for businesses.
Source: The Ethiopian Herald and Fana BC
Image Source: Fana BC