The experience of successful nation shows that transportation and well mobilization of people is the key component for their top position and the well-being of the respective citizens.
As a land locked country, Ethiopia needs swift form of inland transportation and integrated logistic service. Thus, the government has set to achieve stretched goals to link the country with road network and to swift shipment of goods from the nearby port towns to the hinter land.
Over the last years, UNDP Ethiopia has been working closely with the Ministry of Transport and the Ethiopian Maritime Affairs Authority (EMAA), whose responsibilities include facilitating Ethiopia’s port utilization agreements and also monitors trade corridors performances.
Logistics is one the most dynamic sectors of Ethiopia’s economy however it is clear that the performance is still at lower level compared to other economies set apart by significant challenges that must be overcome.
There are many opportunities that Ethiopia can tap into for future growth which could help to transform the industry to a more efficient, effective, sustainable and competitive global business. Taking into consideration the irreplaceable role of logistic for all-round development Ethiopia has formulated and establish National Logistics Strategy.
As documents indicate UNDP provided technical support and one grants for the development of a diagnostic study, logistics intervention actions, blueprint, and an implementation strategy.
Ethiopia’s first National Logistics Strategy is being implemented over a period of five years. Three years ago, UNDP Ethiopia’s Resident Representative Eugene Owusu handed over the National Logistics Strategy document to Workneh Gebeyehu, the late Minister of Transport of Ethiopia.
From then on wards the government has been striving to inter connect the country with road networks varying from all-weather rural roads to a sophisticated and complex express ways.
The strategy is aiming at enhancing Government’s efforts towards safeguarding industry-led growth which has been identified as a vital pillar of the successor Growth and Transformation Plan of Ethiopia.
According to Eugene Owusu the strategy aimed to ensure the efficient transportation and storage of goods and recommends enhanced communication and information flow and continued infrastructure investments. The private sector is also expected to have a pivotal role to play in the execution of the strategy.
The National Logistics Strategy is expected to improve Ethiopia’s maritime, air and road connectivity, which in turn will greatly enhance multi and unimodal logistics operating
systems, Ethio-Djibouti Corridor Management, customs, maritime and transit administration structures.
More notably the country is registering astonishing result from toll road projects. Accordingly, after years of loan payment holiday, the government has paid 1.9 billion Birr out of the 11.2 billion total cost of the project, which is set to be paid within 20 years.
In an exclusive interview with The Ethiopian Herald, Ethiopian Toll road Enterprise Public Relation and Marketing Director Zahara Mohamed said that the Enterprise has collected the revenue mainly from regular toll payment service, advertisement fee and other sources.
“The Enterprise has been striving to provide better services applying updated technologies and deploying skilled man power, designing projects which enable to achieve swift traffic flow and ensure road safety, she said adding that the enterprise has finalized preparation to receive the Dire Dawa-Dewole Toll Road which is expected to be operational soon.”
She further stated that the enterprise said that the Addis-Adama Express Way generates 800,000 Birr revenue by providing service for over 24, 000 vehicles per day. Thus, ever since it started operation the enterprise has been striving to effectively collect revenues and return the loan
financed for the road. Presently, the enterprise has made tariff increments, she added.
The enterprise has finalized its preparation to receive and administer Diredawa-Dewolle Toll Road Project which will start operation soon. The construction of two projects of Modjo-Hawassa expressway is also being undertaken as per the schedule while bidding process sees finalization to commence the last two projects.
Zahara insisted that though the enterprise has been utilizing technologies and establishing effecting communication system, yet it has faced casualty and property damage.
On the other hand, according to documents obtained from the Ethiopian Road Authority (ERA), the construction of express ways are well in progress and is going to be functional in the near future.
The 202.5 Kms expressway construction which costs 13 billion Birr is phased in four projects, Modjo-Meki , Meki-Zeway, Zeway-Arsi Negele and Arsi Negele-Hawassa. Modjo-Meki project, 56.4 Kms, which is under construction at a cost of 3.6 billion Birr will be completed soon. 58.1 percent of the finance was obtained from African Development Bank (AfDB) and the remaining 41.9 percent was covered by the government of Ethiopia. The road passes on route that had no road previously; hence, it is sure to enhance socio-economic activities.
The Ethiopian Herald July 4/2019
BY LAKACHEW ATINAFU
