Page 14 - LUA July - August 2023 Magterz and Online
P. 14

COUNTRY REPORT




         neighbouring African countries, such as
         Kenya, Sudan, and Djibouti. These trade
         lanes have experienced increased traffic,
         especially in the perishables segment, as
         Ethiopia's agricultural exports are in high
         demand in the region.”
           Several global logistics players operate
         out of Ethiopia via local partnerships and
         joint ventures. CEVA Logistics works
         locally in Ethiopia through its joint
         venture, MACCFA, a leading freight
         forwarding agent. The company provides
         services particularly for consumer goods                            calendar year. In the 2021/22 fiscal year, we
         and aid and relief market segments while                            have transported around 750,000 tonnes
         working for numerous multinational                                  of cargo, operated 67 dedicated freighter
         companies in the market.                                            destinations, and have belly capacity to
           Peter Penseel, COO, Airfreight for                                over 130 international destinations. Our
         CEVA Logistics told the publication,                                vision is to be among the top cargo airlines
         “Over the past 10 years, the perishable                             in the world in terms of FTK (Freight/
         sector has been the driving force behind                            Cargo Tonne Kilometres) by providing safe,
         Ethiopian exports, and the trade lanes are                          market-driven, and customer-focused air
         managed locally by Ethiopian Airlines.                              cargo, courier, and mail transport services
         For perishables, the trade lanes are mostly   The country has       by 2035. Accordingly, ET will operate 37
         exports to Europe. In addition, volumes   seen an increase          freighter jets to 90 dedicated freighter
         are made up of products connected         in textile exports,       destinations by 2035.”
         to clothing, e-commerce, and pharma                                    Compared to many carriers in the
         industries. Trades lanes to the U.S. see   including ready-made     region, its cargo arm has also successfully
         sizable volumes for clothing, while import   garments, textiles,    adopted digitalisation.
         trade lanes remain connected with Asia.”  and accessories.             Alemu added, “Ethiopian Cargo &
                                                                             Logistics Services is fully automated with
         THE JUGGERNAUT ROLLS ON                             JOE LAWRENCE    one of the latest aviation cargo IT systems.
         One of Ethiopia’s strengths is the country’s   AIRLINE SERVICES INTERNATIONAL  We are using the latest technologies for data,
         largest airline - Ethiopian Airlines (ET),                          information, and market intelligence with
         whose earnings jumped 20% to $6.1 bln   passenger transportation returning back   100% eAWB from our main hub in Addis
         in the 2022/2023 fiscal year, despite the   to normal, we have reconfigured our   Ababa. We use Elevating Transfer Vehicles
         impact of the Russian-Ukraine war and   Preighters back to passenger aircraft.”  (ETV) for the movement of our shipments
         the increase in fuel prices. As per official   Recent years have seen Ethiopian   in our warehouse. We also use the latest
         figures, the carrier transported 13.7 million   ramping up cargo infrastructure and services   real-time monitoring systems, temperature-
         passengers and 723,000 tonnes of cargo in   to become a logistics hub in the continent.   controlled cold rooms, and ULDs in the
         the fiscal year.                  Cargo now accounts for half of Ethiopian’s   transportation of perishable items.”
           The airline has been expanding its fleet,   revenues post-pandemic, explaining the
         adding new destinations, and increasing   vertical garnering significant investment.  BOOM IN PERISHABLE TRADE
         frequencies on existing routes. Bole   Becoming one of the largest cargo   As per a recent report on Ethiopia
         International Airport in Addis Ababa,   network operators in Africa, the carrier   published in 2022 by the ITA (International
         Ethiopia's capital, has also undergone   has also put in place a modern warehouse   Trade Administration) which comes
         significant upgrades to accommodate the   of 1 million tonnes storage capacity in   under the U.S. Department of Commerce,
         growing air traffic.              the cargo terminal to cater to the growing   Ethiopia’s agricultural exports are primarily
           Talking about its cargo milestones,   perishables and eCommerce trade between   unprocessed commodities, including coffee,
         Abel Alemu, MD of Ethiopian Cargo &   China and Africa and other nations.  oil seeds, pulses, live plants, and cut flowers.
         Logistics Services, Ethiopian Airlines   Alemu added, “Ethiopian is currently in   It is a major producer of coffee and barley
         told the publication, “Ethiopian Cargo &   the process of investing in a state-of-the-art   and ranks second in sorghum, third in maize
         Logistics is one of the major global cargo   eCommerce warehouse and working on   & wheat, and fourth in coarse grains and
         carriers and we are currently operating nine   the required commercial and operational   maintains the largest number of livestock in
         B777-200Fs, two B767-300Fs, and four   aspects of the eCommerce logistics services.   Africa. Ethiopia exported 271,111 tonnes of
         B737-800F aircraft. Following the outbreak   So far more than 80% of the warehouse   coffee in 2020/21 generating $855.6 million
         of the pandemic, Ethiopian converted   construction is completed and it will be   in revenue, cited this report.
         24 passenger aircraft to Preighters. With   ready in the last quarter of the current   Dawit Woubishet, Director at logistics

       12 LUA                                                                                  JULY - AUGUST 2023
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