Ethiopia is set to end the state monopoly on the multimodal transport sector this month, opening the industry to private investors. The Ethiopian Maritime Authority has announced that the first three private multimodal operators will be accredited and granted work permits in October, with operations expected to commence within six months.
Out of eight organizations that applied for multimodal work, only three—Panafric Global, Tikur Abay Transport, and Cosmos Multimodal Operation—met the government’s criteria for accreditation. Abdulber Shemsu, Director General of the Ethiopian Maritime Authority, confirmed that licenses will be issued this month to these operators.
“If the government grants licenses to these private enterprises, they will be stripped of their licenses if they do not enter into operation within six months,” Abdulber stated. He highlighted that this shift marks a significant change from the previous arrangement, where Ethiopian Shipping and Logistics (ESL), a state-owned operator, was the sole multimodal transport provider for nearly 13 years.
The transition comes as part of a broader effort to enhance logistics capabilities and improve trade efficiency between Ethiopia and Djibouti. Under a bilateral agreement established in 2006, ESL has been operating as a non-vessel operating common carrier (NVOCC) in Djibouti.
Abdulber noted that the Ethiopian government is finalizing arrangements to support new multimodal operators and is committed to facilitating their entry into the market. “Our bilateral agreement with Djibouti has been mentioned as a multimodal operator operating in Ethiopia, but we are now finalizing this matter,” he said.
Alemu Sime, Minister of Transport and Logistics, emphasized the government’s commitment to providing private investors with essential infrastructure and institutional support. He stated that integrating multiple modes of transport—including sea, air, and land—will enhance customer service by improving goods movement and reducing costs.
Ethiopian Shipping and Logistics (ESL) has set a revenue target of 70.64 billion birr for the 2024/25 fiscal year, aiming to transport over 126,000 containers and more than 705,000 tons of cargo through its vehicles under the new multimodal system.
