Due to the suspension of Djibouti’s operating oil port, Ethiopia calls for the Djibouti administration to provide alternate tankers for the incoming petroleum cargo promptly.
The Ethiopian Petroleum Supply Enterprise (EPSE) delegation asked Djibouti authorities to provide alternative discharge ships for oil imports during its visit earlier this week.
On Monday, July 29, the Enterprise delegation, headed by newly appointed EPSE CEO Esmlealem Mihiretu, met with Aboubaker Omar Hadi, Chairman of the Djibouti Ports and Free Zones Authority (DPFZA).
During the meeting, representatives from EPSE asserted that the delay in gasoline supply for trucks departing Horizon and the current unavailability of two storage tanks at Horizon Terminal, which is closed for a year for repairs, are to blame.
The company, which is Ethiopia’s only importer and has a strategic store of petroleum products, is reportedly searching for alternatives, according to information obtained from DPFZA.
DPFZA said, “Several solutions and areas of collaboration were discussed during the meeting.”
During the discussion, the use of the floating vessel M/T Red Sea II, which can store 73,000 cubic meters (CBM), was suggested as a quick fix.
Another option has been to use the oil storage facilities at Djibouti Damerjog Industrial Park (DDIP), a major multiport complex being built on the border with Somaliland, southeast of the capital, Djibouti.
Damerjog Liquid Bulk Port (DLBP) is accommodated by DDIP as part of the enormous project.
The government of Dubai owns all of the shares in the Horizon Djibouti Terminal, which is situated near Doraleh. It was formed in 2003 and started operations in 2005. The 4.5 million tons of annual capacity of the facility is said to be insufficient to meet Ethiopia’s increasing demand.
Ethiopian Investment Holdings (EIH), a sovereign wealth fund (SWF), was negotiating with Djibouti authorities to acquire a thirty percent ownership in an ultra-modern oil port infrastructure that can easily handle boats of the newest generation.
It was reported in late 2022 that the investment holding will acquire the stake through EPSE, one of the 27 enormous public companies under SWF ownership.
The previous CEO of EIH, Mamo Esmlealem Mihretu, and the Chairman of DPFZA, which controls Great Horn Investment Holding, signed a memorandum of understanding (MoU) in May of the same year to investigate the potential in the field of oil storage facilities.
The signing of the Memorandum of Understanding (MoU) follows years of intensive talks focused on the cooperative creation of an oil terminal, since the existing facility, Horizon Djibouti Terminal (HDT), is becoming less capable of meeting Ethiopia’s increasing demands for petroleum products.
For example, in late 2017, the transport ministers of the two nations had extensive talks on building a new oil terminal to accommodate Ethiopia’s increasing needs.
As part of the USD 4 billion DDIP, DLBP will have a 13 million tons handling capacity.
This morning, the Chairman of DPFZA received at Red Sea World, Mr. Esmlealem Mihiretu, the CEO of the Ethiopian Petroleum Supply Enterprise (EPSE). Accompanying Mr. Mihiretu were his esteemed colleagues Mr. Tadesse Hailemariam and Mr. Abayneh Awel.
The Ethiopian Petroleum Supply… pic.twitter.com/gWGQxjv0tO
— Djibouti Ports & Free Zones Authority (@dpfza) July 29, 2024
During the meeting earlier this week, the EPSE officials also asked the chairman to install the Djibouti Port Community System (DPCS) platform at the company’s headquarters in Addis Ababa. This will enable the tracking of trucks to be done accurately and on time, as the transactions from Horizon Terminal to Ethiopia will be followed.
