Cosmos Multimodal Transport Operators (MTO) has secured a strategic land lease agreement with the Gada Special Economic Zone Development Corporation (GSEZ) to serve as the logistics operational arm at the facility.
This agreement, signed by Cosmos Multimodal Transport Operators (MTO) Plc, represents a significant advancement in strengthening Ethiopia’s logistics sector. GSEZ, a regional enterprise under the Oromia administration, will provide Cosmos with access to a vital logistics hub located in the central-eastern part of Ethiopia, marking a critical step in the company’s expansion strategy.
As a joint venture between Gada Transport and Logistics SC and Tradepath International Plc, Cosmos is one of three recently licensed non-vessel MTOs aimed at disrupting the monopoly held by the state-owned Ethiopian Shipping and Logistics.
The company already operates a 15-hectare terminal in Mojo, a key logistics center situated 75 kilometers east of Addis Ababa, near the Mojo Dry Port and the railway line linking to Djibouti’s ports.
The new agreement, finalized on Monday, February 10, at GSEZ’s headquarters in Adama, located 85 kilometers east of Addis Ababa, highlights a commitment to advancing economic development, particularly in the logistics sector.
Motuma Temesgen, Director General of GSEZ, underscored the significance of logistics as a backbone of economic growth. “We are dedicated to fostering a conducive environment for operators and industrialists to thrive, ultimately benefiting the country’s economy,” he stated.
Getu Hunduma, CEO of Gada Transport and Logistics, emphasized the company’s decade-long success in inland transport operations. “We have been a key player in freight forwarding and import-export transportation, operating a fleet of 190 trucks. Under Cosmos, we are now expanding our capabilities to include multimodal operations,” he remarked.
“The newly acquired land will facilitate import-export activities within the economic zone and include supply chain facilities, while the existing terminal in Mojo will be restructured to enhance multimodal services,” Getu told Capital.
Dawit Woubeshet, CEO of Cosmos, expressed optimism about the company’s readiness to begin operations soon. “Logistics is the backbone of the economic zone, and we are committed to playing our part in accelerating economic growth,” he stated at the signing ceremony.
Dawit noted that the new plot will support the increasing economic activities in the zone, while the existing facility in Mojo will focus on multimodal operations.
“Construction of warehouses, cold storage, and other facilities is already underway at the Gada Transport plot,” he shared with Capital.
Motuma also addressed the broader economic challenges facing Ethiopia, acknowledging that while the economy is growing, export earnings have not met expectations, and import costs remain high due to inefficiencies in the logistics sector.
The establishment of the Logistics Park within the GSEZ is a strategic initiative aimed at bridging existing gaps and fostering a competitive, efficient, and affordable logistics ecosystem, he told Capital.
The park has already started attracting investors from Asia, the Gulf States, and Ethiopia, which is boosting industrial and agro-processing activities.
Prime Minister Abiy Ahmed recently announced the creation of the Lume Free Trade Zone within GSEZ, marking Ethiopia’s second free trade area after Dire Dawa.
This development is expected to enhance opportunities for economic growth and development. Over the long term, GSEZ plans to expand to more than 23,000 hectares of land between Adama and Mojo, establishing a robust infrastructure hub to attract a diverse range of economic players.
The agreement with Cosmos reflects GSEZ’s commitment to delivering inclusive and competitive logistics services.
“Logistics in such zones must be coordinated, efficient, and technologically advanced to ensure affordability and reduced lead times,” Motuma emphasized, underscoring Ethiopia’s advantageous position in airfreight capabilities.
