A crisis is looming between Ethiopian authorities and their Djiboutian counterparts, following a new directive that is deemed to have given a monopolistic position to an alliance of private companies on the operation of stripping, stuffing, and “unstuffing” of containers.

Unlike the traditional practice, forwarders are no longer allowed to handle these operations on their clients’ behalf. An alliance of companies, under Maersk Djibouti Container Freight Station (MDCFS), has been given the exclusive rights over the operation in a specially designated location known in Djibouti as PK 12. This is an area on the outskirts of Djibouti town, a couple of kilometers from the Doraleh Port, where there is a brand new container terminal.

The designation of a special area for this particular operation “under the management of the customs” is a decision made by the Djibouti government, Hans de Jong, chief executive officer (CEO) of DP World Djibouti, emailed industry leaders.   

The new directive was communicated to the maritime community on April 12, this month, by Warsama Hassan Ali, commercial manager of DP World Djibouti. The reaction both in Djibouti and Ethiopia has been one of strong rejection of the new procedure.

There was a strike early last week in Djibouti, which has led to a meeting on Wednesday between leaders of the forwarding community there and Prime Minister Dileita Mohamed Dileita, according to reliable sources.
Ethiopian forwarding agents described the new procedure as an “unprofessional practice” imposed contrary to “international standards and norms”; they have also demanded the directive’s immediate suspension. (Fortune)

Gov’t begins cargo delivery at Modjo, Semera to private importers

Authorities at the Revenues and Customs Authority instructed on April 14, all agencies operating inside the newly built dry ports at Modjo and Semera to begin delivering containers imported by private companies, reliable sources disclosed.

The authority wants to see the transport modal otherwise known as through bill of lading to be launched on Thursday. However, this system has been in operation for over a year, with the delivery of containers owned by state agencies and non-governmental organisations.

However, the new requirement will apply only to private importers who be willing to see their cargo brought to the dry port facilities in Modjo and Semera, officials disclosed to Fortune.

“The requirement is applied on a voluntary basis,” a senior government official told Fortune.

The multimodal transport system places cargo in the responsibility of the shipping line all the way to the designated dry port facility inside the country, and stretches its mandate from sea ports. This kind of operation is believed to save foreign currency for the country; Ethiopia is subjected to 1.4 million dollars in opportunity cost for keeping cargo inside the port, while the authorities at the Doraleh Port regularly auction goods kept for over six months.

The multimodal transport system will save individual importers from incurring costs in storage and warehouse fees. Importers are not responsible for cargo handling and transport issues while containers are inside the sea port. The dry ports are believed to help avoid congestion at the ports.


Ghion up for royalty

Ghion Hotel is going back to the royal family after the family of Haile Selassie I started negotiating for its acquisition. Sons of Prince Mekonnen, favourite son of the Emperor, have been negotiating with the Privatization and Public Enterprises Supervisory Agency (PPESA). The venue in central Addis Ababa became a hotel in 1963 to host guests that were expected to come to attend the establishment of the Organization of African Union (OAU).

Apart from Ghion, Meskal Flower and Ethiopia Hotel were also refurbished for guests that were expected to flock to the country for the event.

A German-based company named Dinkanesh is negotiating the acquisition of Ghion Hotel, which is expected to be concluded by next week. Ghion has been a focus for many high profile business people and companies for the last couple of years after the government invited interested parties to a joint venture in the hotel. The royal family has been in talks to get the hotel back from the government after the Derg confiscated it.

Sources told Capital that the negotiation is in its final stage and is likely to be successful this time around after so many attempts to partially privatise it. The two parties are negotiating on how to refurbish the hotel in the future. (Capital)

Institute highlights key performance measures for quality products

The Leather & Leather Products Technology Institute (LLPTI) had identified 18 potential targets which enabled it to increase performance following the implementation of the Business Process Re-engineering (BPR), its PR department said.

In an exclusive interview with The Ethiopian Herald, the PR Department Head said that the new process enables the Institute to build its capacity and be competitive in the world market. He indicated that benchmarking plays a pivotal role in filling international competitors and national producer's gaps.

The Ethiopian government firmly believes in building the capacity of the leather industry and also benefit from the transfer of technology, he added. Accordingly, an internationally acknowledged Indian institute and LLPTI have concluded a benchmarking contract on March 1, last month, Wondimu said. The contract enables Ethiopian leather professionals to receive advanced on the job training in leather and leather products.

According to the director, the contract would be implemented in seven tanneries and seven shoe factories selected as model organizations. The new process, among others, includes change in management, production, quality and manpower.

In the first phase of the training, 40 Indian experts have been assigned in the shoe factories and tanneries. (ENA)