Ethiopian Shipping and Logistics (ESL) has unveiled plans to enter Ethiopia’s railway sector, expanding its operations beyond maritime transport and strengthening its position as a multimodal logistics provider.

The state-owned company, already active in shipping, inland transport, and freight forwarding, intends to establish a rail transport division to connect seamlessly with its existing network. CEO Beriso Amelo said ESL is prepared to invest in railway infrastructure if granted access to the country’s lines, noting the move would lower costs and improve supply chain efficiency.

ESL’s announcement comes as the Ethio-Djibouti Railway (EDR) struggles with debt exceeding USD 4 billion. Sources at EDR indicated that ESL’s entry would not create conflict, since Ethiopia is developing additional government-operated railways to meet rising demand.

The railway initiative follows ESL’s recent expansion of inland transport. The company invested Birr 750 million to acquire 100 Sinotruk trucks, part of a broader plan to grow its fleet to 1,000 vehicles within two years.

Backed by strong financial results, ESL’s board, chaired by Finance Minister Ahmed Shide, approved raising its capital to Birr 200 billion, pending final endorsement by Ethiopian Investment Holdings. In the last fiscal year, ESL generated Birr 109 billion in revenue, distributed Birr 17 billion in dividends to the government, and earned USD 500 million in foreign exchange.

The company is also moving ahead with a fleet expansion strategy, seeking to acquire nine vessels. This includes two new Ultramax multipurpose bulk carriers and four second-hand vessels, alongside a planned re-entry into container shipping after nearly 30 years.

With no major international debt and financing secured from local banks, ESL says its expansion in both rail and sea transport will reinforce Ethiopia’s logistics capacity and global competitiveness.

Source: Capital Ethiopia