The Ministry of Transport and Logistics (MoTL) announced an increase in the use of locally staffed container packing for the nation’s export cargo. This strategic initiative has resulted in cost savings despite encountering challenges due to a shortage of containers.
In the first nine months of the current fiscal year, over 22,400 Twenty-Foot Equivalent Units (TEUs) of export cargo were packed and shipped domestically. This figure translates to 58% of all outbound shipments during the period, according to MoTL Minister Alemu Sime. The Ministry initially set an ambitious target of achieving 83.9% local packing within the specified timeframe. Traditionally, a large portion of Ethiopia’s exports, particularly agricultural commodities, were packed in Djibouti, resulting in higher foreign currency expenditures.
“This strategic shift towards local cargo packing has generated significant cost savings, exceeding USD 2.5 million in the past nine months,” Minister Alemu highlighted in a recent address to parliament. The government aims to expedite logistical processes and reduce overall expenses by promoting local packing as opposed to port-side operations.
The current strategy involves diversifying port usage beyond the primary port in Djibouti City and its surrounding areas. Alternative ports like the Port of Tadjoura in Djibouti, Berbera in Somaliland, and Kenya’s Mombasa Port are now being utilized.
The Minister also recognized the crucial role played by the cross-border railway system in import operations, acknowledging its contribution to enhanced logistical efficiency. To further improve cargo transport efficiency from Djibouti, plans to introduce two additional locomotives were announced, addressing current limitations related to track availability.
Source: Capital Ethiopia
