Import-export businesses in Ethiopia saw tough time due to congestion at sea port in neighboring Djibouti. As a way out of this, the country has started developing dry ports in areas either adjacent to or along major import-export corridors.
The container hosting capacity that stood at 1,200 containers at dry ports in Ethiopia some years ago has grown to 25,000as seven dry ports are in operation.
Ethiopia’s first dry port, Modjo Dry Port, has started on a small scale at the end of 2009. The dry port has been relieving the congestion in Djibouti port. But the government has constructed addition six ports to meet the growing demands for dry ports.
Most recently, Wereta dry port enters operational phase in south Gondar, Amhara state. The dry port terminal that will be constructed in four phases is to lay on 20 ha land, and it will host 100,000 containers per year. The initial phase on a three ha land is said to see completion in six months consuming 100 million Birr.
Ethiopian Shipping and Logistics Service Enterprise Executive Officer Roba Megerssa, who delivered speech at the launching event in Wereta dry port said the Enterprise has aggressively been working on the expansion of dry ports and multimodal transport services.
Speaking in quantities, he said the service expansion has resulted in cutting cost and time previously incurred on importers and exporters as well as on the country. The country saves an annual expense that stretches up to 500 million USD. Also, the freight transport time that used to take up to 45 days, trimmed to only five days, he indicates.
Regarding the port at Wereta town, he said it fosters investment as import-export business becomes more profitable. And this can have direct impact on poverty alleviation efforts of the country.
Until now, the seven dry port terminals create 1,000 permanent and over 2,000 temporary jobs, according to him.
He also unveiled as the Enterprise’s annual income has grown to 17.5 billion Birr from 4.6 billion Birr twenty years ago. And currently, the enterprise total capital is grown from over 3 billion Birr to 20 billion Birr he noted.
The facility makes businesses easier to industrial parks at Mekelle, Kombolcha, Debre Berhan and Bahir Dar, Transport Minister Dagimawit Moges said for her part.
Wereta dry port terminal can also increase the cargo traffic of northwest Ethiopia and now giving services of dry port can grow into eight.
Local crop producers can also get better market access as the town becomes hub of businesses.
Dr. Ambachew Mekonon, Amhara State President, on same event pointed out that the state has potential of producing rice, stalk crop and pulse while it is also supplying as opal to the market.
More importantly, a 504km railway—Addis Ababa-Woldia- Wereta— which is under construction could connect markets at Gadarif, Galabat, Kesela and Haya of Sudan while making sea access possible via Port Sudan. Agreement has been reached with African Development Bank to finance the remaining Gondar-Mettema rail road.
Herald May 3/2019
BY MISGANAW ASNAKE
