Ethiopian Shipping and Logistics (ESL) has announced its readiness with sustainable and competitive IT technology on a global scale. Timely financial reporting is a crucial factor for its forthcoming participation in the capital market, and the company aims to complete its Oracle Transportation Management (OTM) implementation by the end of the year.
Over the past eight years, the state-owned logistics giant has been committed to adopting advanced technologies to enhance its global competitiveness and operational efficiency. ESL has successfully implemented Oracle’s cutting-edge Enterprise Resource Planning (ERP) system, a globally recognized back-office solution that has significantly improved all areas of its operations.
Abera Diriba, Director of the Information Communication Technology (ICT) Department at ESL, explained that various modules of the ERP system, which integrates and automates business processes to enhance efficiency and decision-making, have been gradually installed since 2019.
“We chose Oracle’s back-office system, one of the leading global solutions, because it encompasses all departments, including finance, human resources, procurement, and asset management,” Abera stated.
Since the ERP system went live, all ESL branches—including its office in Djibouti, eight dry ports, global agents, and vessels—are now seamlessly connected to the headquarters in Addis Ababa.
The system effectively manages procurement processes from planning to delivery, as well as human resource administration.
“One of the key successes since the ERP implementation is that ESL can now efficiently maintain its financial records,” Abera remarked. “We have eliminated past inefficiencies and resolved all financial report backlogs.”
With the new technology, the company can generate financial reports for any timeframe. “We are currently preparing an interim report for the first half of this budget year, which was previously impossible,” he added.
The robust financial reporting system will also support ESL’s participation in the upcoming securities exchange. Additionally, the ERP system has reduced operational redundancies by streamlining workflows.
Abera, an ICT specialist with extensive experience in various public institutions, emphasized that logistics depend heavily on the seamless flow of information from loading ports to customers’ destinations.
“With a centralized, state-of-the-art IT system managing workflows, efficiency has markedly improved, directly enhancing customer satisfaction,” he stated.
However, he acknowledged the vital role of local stakeholders and port operators in ensuring effective service delivery.
ESL now provides faster customer service, allowing clients to track cargo movements in real time. The new system also streamlines customs payments, reducing delays and unnecessary costs like demurrage.
“Ethiopia is unique in having a shipping company that operates vessels without a seaport,” Abera noted. “With this technology, ESL is now globally competitive.”
The scalability of the ERP system ensures its adaptability to future technological advancements, including AI and Redwood. Since 2019, 38 ERP modules have been implemented.
OTM System to Revolutionize Logistics Operations
As part of its logistics enhancement initiative, ESL is implementing the Oracle Transportation Management (OTM) system to optimize shipping, inland transport, freight forwarding, and related documentation. Launched in October 2024, the OTM project is expected to be fully operational by November 2025.
“For years, ESL relied on Sealiner, an outdated container tracking and logistics management system, which is now being replaced with modern technology,” Abera explained.
Given ESL’s collaborations with international agents, shipping companies, and other stakeholders, it is essential to adopt globally compatible systems. “For example, we operate slot leases with other shipping lines, so our systems must align with theirs,” he added.
The OTM system will enhance inland fleet management by enabling real-time truck monitoring, dispatch coordination, and maintenance scheduling.
Customers will also benefit from online services, including quotations, invoicing, and a more comprehensive website featuring branch operations and complaint handling.
In line with the government’s digital strategy, ESL plans to introduce paperless office automation soon.
“OTM is widely used by global companies due to its scalability,” Abera noted. While technology requires significant investment, it is indispensable in today’s digital era.
“IT used to be a support function, but now it is a governance priority, receiving strong leadership attention at ESL,” he said. “As a global player, we must stay competitive by adopting the latest trends—otherwise, our future would be uncertain.”
With over 600 vehicles and 10 ships, ESL is now the only operator of commercial deep-sea vessels on the continent. It recently completed a 750 million birr investment in the purchase of 100 heavy-duty 6×4 truck tractors.
