BY ABEBE WOLDEGIORGIS
Trade is vital to a nation’s economic boost and currently the growing agricultural products necessitate sufficient markets. Therefore, to supply products to local and international markets modernizing the transport network up to the neighboring countries’ ports plays key role in accelerating the economic progress.
Ethiopia as a land locked country, is basically depend on the port of Djibouti for its import export trade. However, the current economic growth of the country witnessed that it is coerced to broaden port service options in the other neighboring countries.
Recently, while she talked with the local Media, Minister of Transport, Dagmawit Moges said that in the coming 10 years Ethiopia aspires to double its trade volume which prompts to modernize the road transport sector and utilize additional ports.
The port of Tajura located in Djibouti began to load and unload 7 percent of Ethiopian export and import goods. As a result, congestion in the port of Djibouti is reduced to some extent.
Aiming to lessen this problem, the port of Lamu located in Kenya costal part of Indian Ocean and part of the LAPPSSET project developed recently by tripartite agreement of Ethiopia, Kenya and South Sudan that began to harbor the first ship.
The 10 years plan to modernize transportation and port utilization is intended to enable the region use the nearby ports in the neighboring countries so as to simplify import and export trade and making it cost effective as well.
As to Dagmawit, currently, the nation’s import-export trade is growing rapidly and in the coming 10 years the current trade volume which is 17 billion tons goods will be reached to 32 billion tons of goods.
Agricultural products with value addition will be exported to the foreign market. The trade connection among the three countries looks promising for the political harmony and cultural ties in the Horn in addition to boosting trade activities.
The Minister further stated that port of Lamu particularly helps business men situated in the Southern Nations Nationalities and Peoples’ Region to provide their products to the foreign market.
Ethiopia, Kenya and South Sudan are the countries that have more than 180 million inhabitants and transact goods worth more than 170 billion USD of through the trade route. Hence, the availability of the new port further benefits the three countries via facilitating boarder trade.
Currently, the 650 km long road from port of Lamu to Garisa and Mersabit towns which are located in Kenya and Moyale town located in Ethiopia is nearing its completion.
The Port of Lamu is located on the cost of Indian Ocean which is 20.7 meters deep has the capacity to accommodate 34 loaded ships at once to load and unload their goods.
Ethiopia, though it is the second populous country in Africa has no its own ports. Therefore, broadening its opportunity for optional port service is crucial.
As to the Minister, based on the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project tripartite agreement, the Kenyan government offered Ethiopia 20 hectares of land for the construction of dry port 5 kilo meters away from Port of Lamu.
In addition, Ethiopia obtained land for the construction of industry parks in the nearby areas. The industry park and the dry port will be constructed jointly by both the government and the private sector.
The goods unloaded in the port could be stored in the dry port until they are moved to their destiny instead of waiting for direct transportation from Port of Lamu which in turn minimizes warehousing rental cost on the port.
The African regional trade integration covers 10 percent only to what it must have been while Asian continent reached to 60 percent.
In order to share experience, the South Sudan and the Kenyan transport Ministers visited the Ethiopian transport sector activities and made field visit in the Mojo Hawassa express way. The road enables to transport agricultural products from there towards port of Djibouti in a speedy way.
They also visited the Adama industrial parks. The LAPSSET project has the objective to realize vision 2063 that aims to connect African countries 100 percent through road network.
The LAPSSET highway component has been categorized in sections as indicated below:
Lamu – Garissa – 250 km
Garissa – Isiolo – 423 km
Isiolo – Moyale – 505 km
Isiolo – Nadapal – 721 km
Isiolo – Marsabit-Moyale
It is important to note that significant progress has been made on the ongoing construction of LAPSSET Highway component, particularly the 505 km Isiolo-Moyale Road and being funded jointly by the African Development Bank, European Union and the Government of Kenya. Indeed, Kenyans and Ethiopians will soon be able to enjoy improved transport and logistics services and transact business between Addis Ababa, Lamu and Nairobi.
The Isiolo – Merille River Road, constitutes the first section of the 505 km road from Isiolo to Moyale which is part of the road linking Tunduma in Southern Tanzania with Addis Ababa in Ethiopia. The project construction works are completed. This project was funded by African Development Bank.
Merille River – Marsabit 121km
This road constitutes the second section of the 505 km road from Isiolo to Moyale and Addis Ababa in Ethiopia. The road begins at Merille River and runs in a northerly direction and terminates at Marsabit. The construction is being funded by the European Union.
Marsabit -Turbi 123 km
The road begins in Marsabit at the junction with the road and runs in a northerly direction and terminates in Turbi constituting the third section of the 505 km road from Isiolo to Moyale and Addis Ababa in Ethiopia. The construction works for this section has progressed to 47.4 percent having commenced in April 2011 and is being funded by the African Development Bank.
Turbi – Moyale 125 km
The Construction works have progressed this section is being funded by the African Development Bank and is completed in December 2015.
Furthermore, the Government of Kenya is currently considering mechanisms for participation by private sector investors to deliver the Lokichar – Isiolo – Garissa – Lamu Road and Lamu – Garsen Road through Engineering, Procurement, Finance and Construct Delivery of the road provides immediate road connection between Lamu Port and Juba and Addis Ababa.
The Ethiopian Herald July 9/2021
