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Ethiopia Grants Multimodal Transport Service Licenses to Three Companies

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Three Ethiopian companies have been granted licenses to offer multimodal transport services, marking a significant step towards a more robust logistics sector in the country.

The Minister of Transport and Logistics, Dr. Alemu Sime, presented the qualification certificates to Panafric Global, Tikur Abay, and Cosmos Multi Modal Share Company. These companies met the established competition criteria and are now authorized to provide comprehensive transportation solutions.

It is to be recalled that the Ethiopian Maritime Authority (EMA) rejected bids from seven logistics firms for multimodal operating licenses in 2023, including Tikur Abay. Despite initial selection, Tikur Abay was later disqualified over minor board structure criteria. The rejection also included Ethiopian Railways Corporation which at the time argued that it fulfilled all the multimodal license requirements and was the most qualified candidate among the competitors. As a result, speculations suggested government reluctance to open the sector and unrealistic criteria designed to deter competition.

At the licensing ceremony, Dr. Alemu emphasized the crucial role of the private sector in enhancing the competitiveness of Ethiopia's logistics industry. He highlighted the development of guidelines specifically designed to enable private entities to participate in the logistics sector. These guidelines have now paved the way for issuing licenses to qualified private transport companies.

Source (including image): Ethiopian News Agency

Additional source: The Reporter