Ethiopian Shipping and Logistics Services Enterprise (ESLSE) announced that the logistics fleet operation was commendable despite the conflict escalations in the past few months.
The state owned mammoth logistics enterprise said that despite the war affecting its operation, the shipments that are transported to the country is promising.
Roba Megersa, CEO of ESLSE, disclosed that there was a tendency of reducing the cargo shipment since the country was in war.
The volume of fertilizer cargo that was expected to arrive in Djibouti has been slowed down and similarly containerized cargos have shown reduction but when compared with the situation of the country, “the operation is commendable,” he remarked.
He stated that even though he does not have detailed information on the procurement, some portion of fertilizer has been delayed which slightly reduced the activity of ESLSE. He reminded that the shipment of fertilizer has been delayed for one month, and the procurement of UREA is not yet concluded.
“In terms of containerized cargo about 70 percent was fulfilled, which is great achievement if we compare with the condition where we were in the past months. It is good for the country since we were in the war economy,” Roba told Capital.
He said that in this coming month, three vessels carrying Ethiopian fertilizer will be docked at Djibouti.
Similarly relief cargos for those affected by the war are also expected to accelerate ESLSE’s activity in the coming months.
The global outbreak of COVID 19 is currently stated as a serious challenge for the logistics sector and global trade with similar case being observed on the Ethiopian market mainly on shipments price hike.
The pandemic has also decelerated the operation in the logistics sector in Ethiopia and Djibouti, which is the major outlet for Ethiopian cargos.
On her latest appearance at the Urban Infrastructure and Transport Standing Affairs Standing Committee of parliament, Dagmawit Moges, Minister of Transport and Logistics, said that the shipment of fertilizer that was expected to arrive at ports in Djibouti in October last year has been delayed. She added that up to 30 vessels caring fertilizer are expected to dock at the port in the coming few months.
The fertilizer is badly needed at the centre before the upcoming harvest season which is fast approaching. Experts said that currently the demand of fertilizer for the country has increased because of the latest initiative that the government introduced, which is farming through irrigation scheme in the dry season.
In relation to the economic activity of Djibouti, recently the International Monetary Fund stated that growth is expected to recover to about 4 percent in 2021 on a rebound in investments and construction, but the outlook for 2022 is less favorable and subject to downside risks due to the conflict in Ethiopia and a possible resurgence of the pandemic. Once the regional security and health situations are secured, growth prospects are strong, with a competitive port sector well-positioned to benefit from a rebound in regional and global trade.