Ethiopian Shipping and Logistics (ESL), the state-owned logistics powerhouse, has reported strong financial and operational achievements for the first half of the 2024/25 fiscal year, surpassing its revenue targets and reinforcing its critical role in Ethiopia’s trade sector.
Despite a primary focus on feeder services for Ethiopian cargo stored at regional ports, ESL generated USD 271 million in foreign currency earnings from its cross-trade operations—16% above its target of USD 234 million.
Financially, ESL recorded a total income of Birr 46.8 billion, exceeding its Birr 44 billion target by 106%. Its gross profit for the period outperformed expectations by 50%, while pre-tax profit reached Birr 9.3 billion—far surpassing the projected Birr 6.2 billion. Expenses for the period stood at Birr 37.5 billion, aligning with forecasts. In a further show of financial strength, ESL transferred a Birr 3 billion dividend to its parent entity, Ethiopian Investment Holdings (EIH).
CEO Berisso Amallo credited the company’s strong performance to Ethiopia’s macroeconomic reforms, which have introduced a market-driven exchange system, and growing revenues from cross-trade activities. He emphasized that resolving Red Sea security concerns could further enhance the company’s trade opportunities.
ESL continues to focus on cross-trade operations, a segment that secured USD 421 million in foreign currency earnings in the previous fiscal year. As the sole deep-sea vessel operator on the African continent, the company primarily transported Ethiopian cargo from ports such as King Abdullah in Saudi Arabia and Salalah in Oman to Djibouti, Ethiopia’s main maritime outlet.
Challenges persist, including disruptions from the Ukraine-Russia conflict and Red Sea hostilities involving Yemen’s Houthi militants. However, ESL has maintained operational stability, moving over 2 million tons of freight and approximately 60,000 TEU containers using multimodal transport.
Looking ahead, ESL aims to handle 819,877 tons of cross-border freight and 4.3 million tons of import marine freight by the fiscal year’s end.
Source: Capital Ethiopia
