The sole logistic service provider Ethiopian Shipping and Logistic Service Enterprise /ESLSE/ has disclosed the delayed procurement of 150, 6×4 trucks.
The enterprise has awarded the Chinese prominent truck manufacturer Jinan Sinotruck Co. at a total cost of 13 million dollars. According to the enterprise the procurement will be financed (70 percent) by loan from the Commercial Bank of Ethiopia while the remainder will be financed by the Enterprise itself.
According to Roba Megersa, CEO of ESLSE the enterprise has already kick-started the process to import the trucks in the coming three months.
“We have already opened letter of credit to get the foreign currency,” said Roba – adding that the enterprise would get the new cars within three months.
On the latest bid announcement, ESLSE expressed its interest to buy the 6×4 trucks, the 4 axle cargo semi-trailers that are trucks with three axles and the 4 axle trucks with two front axles.
The first bid was floated about a year ago which was expected to be opened in September 2019, but due to the issue of axle load standards of Ethiopia that is consulted by Ethiopian Roads Authority and Ministry of Transport, the opening was postponed to October.
“The enterprise initially aimed to import 4 axle load capacity trucks which were prohibited in the country because of road overload factors. We are now going to import tri-axle trucks,” said Roba. Tri-axle trucks are indeed allowed by the two government bodies based on the agreement that Ethiopia signed under COMESA and other treaties.
As per the country’s law the maximum permissible axle load is 58 tones, but on average most trucks in the country load up to 40 tones.
After the initial postponement, the opening was further delayed by bidders who wanted further clarification about axle loads from the Ethiopian Roads Authority and Ministry of Transport.
Despite these happenings, according to the enterprise the first Technical evaluation was finalized on December 17, 2019. The bid to procure the 150 units of trucks was however canceled on the basis that the companies that participated in the technical evaluation fell below the expectation of the enterprise. The bid had attracted 14 companies which included one local company.
Following these events, in January the enterprise floated a second-round bid and thereafter the Chinese Company got the award.
According to experts, ESLSE has about 440 trucks. 215 of those trucks were purchased from the French automotive company, Renault Trucks, about four years back. The rest came from different organizations. The different organizations came about by the amalgamation of the Ethiopian Shipping Lines, the Dry Port Services Enterprise and the Maritime and Transit Services in 2012. The experts further say that the Renault Trucks are in good condition as they were recent purchases whereas the rest are not in the best of conditions.