Ethiopia Issues First Private Multi-modal Transport Licenses

Addis Ababa, March 13/2024 (ENA) The Ethiopian Maritime Authority has granted the first private multi-modal transport licenses to three private companies today. 

The three firms which received the licenses are Panafric Global Logistics, Tikur Abay Transport and Logistics Company, and Cosmos Multi Modal Share Company.

At the handing over of the licenses, Transport and Logistics Minister Alemu Sime commended  the organizations and urged them to uphold their responsibilities with utmost professionalism.

Emphasizing the pivotal role of logistics in propelling the nation's economic prowess, he underscored its significance in enhancing global competitiveness, attracting foreign direct investment, and catalyzing trade flows. 

"This milestone signifies a turning point in our sea transport and logistics capabilities," the minister remarked, highlighting the government's comprehensive reform agenda, including the strategic decision to open multi-modal services to the private sector.

According to him, the move is aimed at bolstering efficiency, service quality, and cost-effectiveness.

Ethiopian Maritime Authority Director-General, Abdulber Shemsu said by seamlessly integrating multiple transportation modes, including sea, air, and land, the multi-modal approach streamlines the movement of goods, slashing costs, transit times, and logistical bottlenecks while enhancing customer service delivery.

 

"Through the expansion of multi-modal services, we can amplify the benefits for our nation, potentially saving over 20 million USD, while simultaneously strengthening our export competitiveness on the global stage," the director-general stated. 

The licenses issued were granted based on the rigorous evaluation criteria outlined in the guideline which assesses institutional organization, capital adequacy, and overall competence, it was learned.

Panafric Global Logistics Chief Executive Officer, Elizabeth Getahun expressed vowed to leverage the company's capabilities to fulfill their responsibility in spear heading the development of Ethiopia's logistics prowess.

 

Tikur Abay Transport and Logistics Company Executive Director, Ahmed Seid asserted the company's readiness to commence operations within six months, contingent on the government expediting the remaining formalities promptly.

 

As Ethiopia embarks on this transformative journey, the entrance of private multi-modal logistics firms is poised to catalyze a paradigm shift, ushering in a new era of efficiency, cost-effectiveness, and global competitiveness for the nation's burgeoning logistics sector.