Executives at Ethiopia’s state-owned Ethiopian Shipping and Logistics Services Enterprise (ESLSE) are advancing plans to add six bulk cargo ships to their fleet as the enterprise aims to bolster its capacity and support the nation’s growing import-export needs.
According to The Reporter, Wondimu Daba, ESLSE’s Deputy CEO for Corporate Services, confirmed that the ESLSE board is evaluating multiple acquisition options, including time charters, voyage charters, or outright purchases of the vessels.
“We are fully prepared to bring in these six ships. The board is now assessing whether a time charter, a voyage charter, or a direct purchase would be most strategic,” Wondimu said, adding that the acquisition will proceed through a standard bidding process in line with government procurement protocols.
As Ethiopia’s sole multimodal logistics operator, ESLSE manages a considerable share of the country’s trade logistics. According to its 2023/24 performance report, ESLSE handled approximately 45 percent of Ethiopia’s 8.25 million tons of dry cargo imported through Djibouti’s ports, the primary maritime gateway for Ethiopian goods.
The report also highlights ESLSE’s role in supporting Ethiopia’s export market, overseeing the shipment of over 13 million tons of goods by sea last year.
However, despite these achievements, the enterprise still faces challenges in meeting the logistical demands of Ethiopia’s expanding trade economy. Transport and Logistics Minister Alemu Sime recently highlighted ESLSE’s need for additional fleet capacity in a statement to state media.
“The country’s import-export demand is growing, but with only 10 bulk cargo ships currently owned by the enterprise, this is far from enough to support our logistical requirements,” Alemu explained. “This shortage often necessitates leasing additional ships through rental agreements to meet demand.”
In an effort to bridge this gap, ESLSE transported close to 834,000 tons of goods last year using vessels secured on lease or rental contracts. This approach has supported the firm’s operations but has also contributed to substantial operating expenses.
Despite generating 57 billion birr in revenue during the last fiscal year, heavy operational costs, totaling 48 billion birr, have limited net financial gains for the enterprise.
The planned acquisition of six bulk carriers marks a significant step towards reducing reliance on leased vessels and strengthening ESLSE’s capacity to manage Ethiopia’s shipping needs domestically. With the country’s import-export volumes expected to rise, these strategic fleet enhancements are positioned to play a vital role in achieving more efficient, cost-effective logistics solutions.
