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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Mar 29 2011 - 08:58:56 EST
Freight Forwarders Up In Arms Over Multimodal Transport System
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Government Instructions May Eliminate Private Companies
29 March 2011
ETHIOPIA - DJIBOUTI - In a bid to stem the flow of foreign currency from the
country and to speed up essential import cargo the Ethiopian Government
introduced a multimodal transport system last year by which importers could
receive shipping containers through to the dry ports of Modjo and Semera.
All thirty state agencies were instructed only to use the services of the
approved contractor, Ethiopian Shipping Lines (
<http://www.ethiopianshippinglines.com.et/> ESL), another state monopoly.
Many containers have traditionally been delayed upon import at the Port in
neighbouring Djibouti and demurrage fees settled in the overseas currency.
Now it appears that the Government is pressing importers to use the services
of ESL to the exclusion of the country's independent logistic providers. In
2008 ESL had 20,000 containers dropped at Djibouti, virtually all were
delayed, now, as the sole multimodal operator, imports are routed through
immediately to the dry ports for customs clearance.
Some days ago a letter from the Ethiopian Revenues and Customs Authority (
<http://www.erca.gov.et/> ERCA) was widely circulated urging that private
companies should immediately begin to use the multimodal system, effectively
cutting out freight forwarders as ESL is the only group to hold a licence
for multimodal transport into Ethiopia approved by the Djibouti authorities.
The Government have also started holding workshops to inform importers how
to use the system and state the letter is merely informative advising
importers they have the choice whether or not to use the system.
Ethiopian freight operators say firstly that the licence to operate the
newly opened port of Modjo was granted, without a tendering process, to
Dutch logistics group <http://www.stedergroup.com/> Steder B.V. Some
apparently further assert that the head of the Ethiopian Freight Forwarders
and Shipping Agency Association (EFFSAA), a fellow forwarder one Daniel
Zemichael, should resign having allowed the situation to develop.
To confuse the situation further the
<http://www.douanes.dj/Fr/ENG/Enghome.html> Djibouti Customs Authority has
shown reluctance for any in the private sector to make direct use of the
multimodal facility. Djibouti port earns an estimated $600,000 from the sale
of uncleared container freight annually and demurrage charges there are
approximately 70% higher than those at the Ethiopian dry ports.
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