A digital vehicle fleet management system for trucks on the Addis Ababa Djibouti corridor has been launched today which would be crucial to transform the movement of goods between Djibouti and Ethiopia.
The government of Djibouti, through the Ministry of Infrastructure and Equipment, the Djibouti Ports Corridor Road (DPCR), and the Delegation of the European Union in Djibouti and IGAD launched the system, it was indicated.
The digital fleet management system is said crucial to transform the movement of goods between Djibouti and Ethiopia. This system will directly impact the efficiency of goods transported along the corridor routes.
This is the first practical step of a strategic partnership between the EU and the Republic of Djibouti: the EU’s support for the Horn of Africa initiative strategy, in collaboration with the governments of the Republic of Djibouti and the Federal Democratic Republic of Ethiopia.
The EU has committed 32 million Euros to a program dedicated to the “Promotion of Regional Economic Integration in the Horn of Africa through the Development of the Djibouti Corridor,” implemented by the French Development Agency (AFD) and TradeMark Africa (TMA).
The program aims to improve the efficiency and effectiveness of one of Africa’s busiest economic corridors while promoting inclusive trade.
The objective is to contribute to a 10% reduction in trade costs, a 15% decrease in exchange time, and a 30% reduction in customs clearance times at certain border crossing points.
The EU-supported program will also increase exports in targeted sub-sectors by 15% and enable a 15% growth in income for targeted vulnerable groups, especially women, in trade.
The initiative with the Djibouti Port Corridor Road (DPCR) Fleet Management System – a digital vehicle fleet management system, is the first to be launched in Djibouti under this program.
This digital system aims to extend the network of vehicle transmission terminals operating on the corridor using RFID (radio frequency identification) technology. It will secure revenues by extending the network to strategic intersections, including border points, and beyond PK51. It will enable comprehensive control of vehicle routes and transit times.
At the ceremony, Djibouti’s Minister of Infrastructure and Equipment, Mr. Hassan Houmed, highlighted the anticipated benefits in terms of reduced truck turnaround times and the optimization that the system offers to the logistics and transport sector.
“This fleet management system aligns perfectly with the Djibouti government’s Vision 2035, which aspires to bring the logistics and transport sector into the digital age. By integrating advanced RFID technology, we will be able to track goods trucks in real-time on the Djibouti-Ethiopia corridor, thereby optimizing logistics operations and reducing port wait times,” he commented.
Djibouti Minister of Trade and Tourism, Mohamed Warsama Dirieh said, “Driving forward the agenda of regional economic integration in the Horn of Africa through the strategic development of the Djibouti Corridor is paramount. This collaborative effort marks a significant step towards a more integrated and prosperous regional economy.”
The President of the Ports & Free Zones Authority, Aboubaker Omar Hadi, stated: “This project is of utmost importance for our ports and free zones, as it represents a significant advancement in our port community interconnection strategy. By integrating RFID technology, we will enhance the competitiveness of our trade corridor and improve the efficiency of goods transport.”
Source: ENA
