Ethiopia creates multimodal monopoly

   The Ethiopian Ministry of Transport has issued a directive, effective January, requiring all government-owned cargoes to be transported by the Ethiopian Shipping and Logistics Enterprise (ESLE) and only delivered to ports and warehouses that are recognized by the country’s customs service. 
   The directive also covers vehicle shipments of more than three tons, requiring them to be delivered to “dry” ports and warehouses that meet the same customs criteria. Private importers that open letters of credit from state banks will also have to use these facilities.
   For this directive, multimodal transport covers all movements of goods through at least two means under a single contract, and the carrier is held liable for the entire process. The multimodal system will be in effect for all goods passing through the Port Djibouti, which accounts for 98 percent of Ethiopia’s imports and exports.
   Ethiopian regulators hope the new directive will streamline shipment processing and reduce foreign currency spent on warehousing fees at Port Djibouti. This totals about $1.4 million a year.
   ESLE is a newly merged operation combining Ethiopian Shipping Lines, Dry Port Services Enterprise, and Maritime & Transit Services, and may face no opposition on negotiating shipping prices until a bill is passed to license private competitors. This legislation will require about $580,000 in initial capital to acquire a license and become a multimodal transport operator, according to previous statements by the Ministry of Transport.
   Importers must make agreements with ESLE to get goods to Port Djibouti, meeting all clearance requirements and delivering their shipments to either the dry port facility at Modjo or Semera.