The concept of dry ports relates to inland intermodal terminals, where shippers can leave and/or collect standardized units as if directly at the seaport. It is crystal clear that dry ports have immense importance in easing traffic cognition, reducing emissions of carbon and accidents, and above all, dry ports are well positioned in providing services for the handling and temporary storage of containers.
In an exclusive interview with The Ethiopian Herald, Asheber Nota, Communications Director at Ethiopian Shipping and Logistics Enterprise, stated that Ethiopia has 8 dry ports in various parts of the nation, constructed based on economic needs, logistics and feasibility.
They have an aggregate capacity of hosting 24,000 containers at a time and handle over 90 percent of the country’s exports, which stand at around 3 USD billion worth of goods, and imports, which is almost five times that amount.
According to him, the Enterprise is now looking to have more dry ports based on economic demand and the achievability of the various economic corridors. The dry ports that are stationed in central parts of Ethiopia are operating regularly and usher many importers and exporters customers than the other dry ports.
The main one is Modjo Dry Port, which is located in the eastern inlet of Addis Ababa. Established a decade ago, it hosts 78 percent of the country’s shipping and logistics services.
The central part of Ethiopia dry ports had been under expansion because of growing demands. An expansion project is completed at the Modjo Dry Port, Ethiopia’s first dry port, on 138 hectares of land with 150 USD million obtained from the World Bank.
Another one is the newly constructed Wereta Dry Port, which is situated in northern Gondar of Amhara State. Completed at a cost of 3mln of USD, the port will rest on three hectares piece of land and will be able to accommodate 1,000 containers at once is expected to facilitate Ethiopia’s trade with Sudan.
As to him, the regional government has set aside 17 hectares of additional land for the port to use as demand increases. “Currently, the contractor is in the process of hiring and structuring human resources for use at the port. The facilities include a warehouse, a terminal, offices and a cafeteria.”
He further noted that the port will greatly facilitate trade with Sudan. Ethiopia’s exports to Sudan, mainly coffee, tea, meat and spices, stood at around 50 USD million in 2016, while the former buys oil from the latter.
Apart from these efforts, the Enterprise is also working with pertinent stakes to practice efficient dry port management, with full participation of importers and exporters and logistics firms. The Enterprise will keep on addressing the gaps in bid to lessen the impact in the logistics sector.
Ethiopian Horticulture Producer Exporters Association (EHPEA) Executive Director, Tewodros Zewdie noted that logistics is the vital constituent of any business, it is clear that many countries round the world are using dry ports to ease the export and import activities.
Yes, the dry ports are growing in number, he continued, and this is what we are looking for, and the incumbent is working to boost the infrastructure in the logistics sector and dry port facilities.
EHPEA is demanding because transporting perishables goods has different requirements in terms of demand, load integrity, and transport integrity, he opines. The need for specific equipment of a refrigerated unit, and the energy necessary to run it make transportation costs for cold chain products much higher than standard goods, so the risk is much higher for the booking agent.
“Ethiopia has the potential to supply flowers and horticulture products to the Middle East and Europe; and to this end, the government should keep on allocating resources in human capital development, and logistics management knowledge.”
He further noted that the country’s logistics should address gaps with established policy that could make difference on the ground.
It is clear that perishable goods transportation demands specific transportation system that could let to supply the market with fresh and safe food items. If materials come to harm and deteriorate while in transportation, they can cause economic loses and environmental fatalities. At the same time these materials can raise medical costs as well. Therefore, as to him, the policy should need to address legal arrangements related with perishable goods transportation.
EHPEA is looking dry ports with cold chain development facilities because it safeguards the food items be fresh and marketable. The dry ports in hinterlands in the North part of Ethiopia for instance, could benefit exporters, especially who are engaged of sesame seeds export, he noted.
He concluded his remark by stating that the private sector should be drawn to the sector, and given access to financial support to invest in the sector.
The Ethiopian Herald December18, 2019
BY MENGISTEAB TESHOME
