Final MoT Project Profile 2

Ministry of Transport
Investment Potentials

2020



Introduction

 With a population of more than 100 million people and a rapidly growing
middle-class society, Ethiopia is the second-largest market in Africa and is
also part of the Common Market for Eastern and Southern Africa
(COMESA) comprising 19-member countries and over 400 million people;

 Ethiopia is also a diplomatic hub of Africa, home to key international
organizations such as the African Union (AU) and the UNECA, and the
UNDP, and plays major role in bridging the link between Africa and China;

 Geo-politically, the country is located at equi-distance from the world and
close to the middle east market, making her ideal investment hub in the
region;

 Ethiopia is also the main aviation hub for Africa and the home of Ethiopian
Airlines, which has won repeated recognition as the best airline in Africa.

 Readiness to reform the investment environment as expressed in terms of
revising the Investment regulation no. 474/202 and improving the contract
enforcement, paying taxes, registering property and custom clearing
resulted in a the flourishing business environment



Ministry of Transport: at a Glace

 Responsible to govern and promote the expansion of transport and logistics
services;

 Responsible to establish and implement regulatory framework to guarantee
the provision of reliable and safe transport services;

 Ethiopia recently ratified the National transport Policy and the National
Logistics Policies;

 The Ministry recently finalized the 10 year perspective plan of the sector;
 The council of Ministers of the country also approved the National

Logistics Strategy;
 The recently revised Investment regulation no. 474/2020 opens room for the

local and foreign investors to take active part in the transport sector as can
be seen in this document.
 The ministry has 10 accountable institution mandated with various
responsibiities and closly work with all regional and city administrations for
th smooth functioning of the transport and logistics sectors.





1. INDODE Logistics Hub

Project: INDODE Logistics Hub Development Project

Modality: PPP (Public Private Partnership)

Project To build a regional logistics hub which aims to reduce the logistics cost by
Purpose: improving the Ethiopian Logistics sector.

Location/ The project is located in the southeast of Addis Ababa, the Capital of Ethiopia (only
Length/Area: 15km to the airport), outer side of the INDODE Freight Station, in the heart of the
Ethiopian national transport network, and adjacent to the main Highway network
Project (No.4 Expressway and No.9 Expressway) in Ethiopian territory.
description
and Scope: The INDODE Logistics Hub Development Project is a multipurpose logistics
formulated in connection with the Addis Ababa – Djibouti Railway Project.
INDODE is currently the main freight station of the line in Ethiopian end. The
railway line is along the main import-export corridor of the nation with a potential to
significant major share of the freight volume generated on the corridor. The station
has abundant vacant land with convenient topography for development of
warehouses, buildings, and facilities. In addition, the Ethiopian Airlines is the main
cargo and passenger carrier for the African continent. The Airlines has a plan to
build a major Airport Hub in area in short proximity of the INDODE station. With
all the above facts in consideration, the INDODE station has the potential to emerge
as a major logistics hub for the region.

The Project encompasses design, construction, equipment and systems supply,
operation and transfer of the logistics hub with local capacity building.

Estimated  The total cost of the project is estimated at USD 2 Billion.
Cost:
 The start-up capital is estimated to be 10% of the total cost, i.e., USD 200
Million.

 The funds needed for the Project’s follow-up construction will rely on the project
itself to carry out more rounds of financing, rolling project investment and the
establishment of Public-Private-Partnership.

Intended Financial Benefits:-
Economic and
 The estimated direct profit is that, in terms of the project itself, the funds invested
Financial by the Ethiopian government and related departments can expect an annual
Benefits: interest rate of 5% - 7%. With the subsequent dividends, the overall annual return
is around 10%. If the Ethiopian government and relevant departments can
provide more supports and preferential policies (such as open foreign exchange
and investment incentives policies), the annual return rate can be expected to
reach 15% - 20%.

Economic Benefits:-

 The construction of the INDODE Station Port Logistics Development Project has
comprehensive and intensive functions, which can not only reduce the operating

costs of the regional economy and improve the circulation efficiency of
production factors, but also bring about demonstration effects, aggregation
effects and spillover effects, thus gradually promoting the transformation of
Ethiopia's economic structure and the optimization of industrial layout.

Project This project was initiated from the inception of the Addis Ababa – Djibouti Railway
History: Construction Project. It has passed several milestones in the past years. Currently,
the project is listed as one of the national PPP projects by the FDRE Ministry of
Finance and an international consultancy contract has been awarded by ERC to an
international consultant for the feasibility study of the project.

2. Logistics Park Development (Consolidation Center)

Project: Logistics Park Project

Modality: Construction & Management of Modern logistics park by Private sector

Project Purpose: A Modern Logistics park to handle industrial products will enhance the
efficiency of the Logistics system of the industrial parks.

Location: To be selected based on prefeasibility study

Estimated Cost: 800 million USD

Project description The Modern Logistics Park is full logistics package which contains Freight
and Scope: rail line, Logistics information service, Packaging services, Circulation
processing, Loading / unloading, Container yard, Automated Warehouse,
Customs service, Cargo Tracking, E – commerce, Logistics consulting,
training, program design, Financial and insurance services, Business tax
services, Logistics equipment Rent, Shipping agency service, Vehicle
inspection and maintenance, Catering, accommodation, Intermodal service,
Hospital and Bonded areas are major service.

Intended Economic The major industrial parks such as Bolie Lemi, Addis Industrial Village,
and Financial Killinto,Hawassa, Dire Dawa, Mekelle, Kombolicha, Adama, Bahirdar and
Benefits: Jima are in need of well-established Logistics park to have best services in
export of the industrial products and import of raw materials to the parks.

Project History: New

3. Modjo Green Logistics Hub

Project: Modjo Green Logistics Hub Project

Modality: Joint Investment with Ethiopian Shipping and Logistics Service Enterprise
(ESLSE) or secure land on lease base from ESLSE and full infrastructure
development on specific services

Project Purpose: A Terminal to handle loose cargos like fertilizer and grain will be developed
to enhance the efficiency of the Logistics system along the Ethio-Djibouti
Corridor.

Location/ Mojo Green Logistics Hub is found in Oromia Regional state, 58 Km distance
Length/Area: to South East from Addis Ababa 850 km from Port of Djibouti.

Estimated Cost: 310,221,572.57 USD

Project In its master plan lay out Modjo Green Logistics Hub has 13 Import
description and Deconsolidation Warehouses, 3 Export consolidation Warehouses, 3 Cold

Scope: Storage Warehouses, 1 General Cargo Warehouse, Bulk Rail Yard (Rail
Furniture, Grain system, Fertilizer System) and Container Rail Yard Furniture
to be developed.

Intended 79.1% of multimodal shipments are transported via Modjo Green Logistics
Economic and hub and this is a considerable market for investors in the sector. Modjo is the
Financial Benefits: ideal location to be very huge Logistics hub in the country.

Since its position is at heart of the country and near to Addis Ababa the
capital city which is encircled by most of industrial zones, cargo owners and
logistics service providers prefer Modjo in many aspects.

Project History: Modjo Dry Port Terminal started its operation in 2009. It is currently owned
and operated by ESLSE. It is the state owned monopoly company, responsible
for shipping, multimodal operations, the dry port and a domestic logistics
service with its own trucks. When operations at Modjo started the originally
size of the plot has been 62 hectares of which 2.5 hectares have been utilized

in the first phase. The 62 hectare plot has a master plan for the required
facilities to provide logistics services at the port. On the other hand, with the
funding of World Bank based on the National Logistics Strategy, it has
secured an additional 120 hectares of land for Modjo Dry Port expansion to
transform it in to Modjo Green Logistics Hub. Strategic decisions made
during establishment of Modjo Dry Port account set two objectives: i.e, to
reduce Djibouti Port dwell time of cargoes by establishing alternate cargo
storage at the dry port and hence reduce demurrage costs, reduction of
expenses incurred in USD rather than ETB, and to facilitate import/export
trade logistics.

4. Cool- Chain Logistics Development

Project: Cool-chain Logistics Development Project

Modality: PPP (Public Private Partnership)

Project Purpose: To unlock the growth potential of Ethiopia towards becoming an important
center in evolving worldwide network of fruit and vegetable production hubs
by improving the transportation of reefer-borne fresh produce using the
railway line.

Location/ The project is located in selected potential fruit and vegetable production areas
Length/Area: in Ethiopia, at Mojo dry port and along the Addis Ababa – Djibouti railway

line. Generally the project will be implemented on the whole value chain i.e.
from production to export of fruits and vegetables in Ethiopia.

Project description The scope of the project is to implement a complete national cool logistics
and Scope: project with a seamless rail connection to the port. Most designated
agricultural growth regions are in the vicinity of important rail nodes and dry
ports being planned. To accommodate the perishable products at the dry ports
the following functionalities are foreseen in this project:
 Cold storage to keep on products on temperature for smaller growers
which don’t have cold storage capacity at their production site.
 Cross docking to make swift and low cost connection between different
origins/ destinations, transport modes and containers.
 Reefer stack and reefer plugs to keep containers at the right
temperatures until trains arrive and depart.

Estimated Cost: The total cost of the project is estimated at USD 120 Million.

Intended Economic The financial, economic and social benefits of such a cool logistics with a
and Financial seamless rail connection to the port are tremendous for Ethiopian government
Benefits: and the private investor. The cool rail corridor between Addis Ababa and

Djibouti will function as the high volume backbone for the emerging
nationwide cool rail network. The super- efficient cool logistics will create the
necessary conditions for the much wanted growth in horticulture production,
commercialization and exports. In particular high volume Fruit & Vegetables
flows can now grow next to the flowers. This in turn will generate new
opportunities for SME’s in production, packaging, logistics and services, in
Ethiopia.

Project History: This project was initiated three years back together with the Dutch partners and
it is listed as one of the top priority projects by the Ethiopian Government. At
present, detail studies including feasibility and market studies are underway.

5. Private Operators in the Existing Infrastructure

Project: Private Sector Engagement on Rail Transport Operation

Modality: Open Market

Project Purpose: To exploit the potential of the existing line

Location/ The project is located along the Addis Ababa – Djibouti Railway corridor
Length/Area: which is the main import-export port corridor of the country. It traverses

through different major urban centers like Addis Ababa, Bishoftu, Adama,
Diredawa etc.
Project description The feasibility study for the Addis Ababa – Djibouti Railway line indicates
and Scope: that the line has a potential of accommodating 21 pair of trains per day with a
freight traffic capacity of 16 Million Tones per annum. The current operator on
the line is Ethio-Djibouti SG Railway S.Co. (EDR) which has achieved to
transport a maximum of 4 pair of trains per day with an average annual freight
volume of 1.3 Million Tones.

Such gap indicates that there is an ample unutilized line capacity that can
accommodate number of potential private rail operators. Therefore, this project
is designed to engage private operators who can bring their own sets of rolling
stocks and provide commercial freight and passenger transport on the line in
competition with other operators.

Estimated Cost:  The cost for the project may differ with the proposal of the respective
operator (on the number of rolling-stock to be deployed on the line, number of
personnel to be trained and recruited, number of annual trips planned to
undertake, etc).

Intended Economic The operator will benefit from the ever growing economic development of the
and Financial country which creates huge freight transport demand for the corridor. Being a
Benefits: private rail operator in an emerging East African economy will create a

promising opportunity of serving the logistics sector of the region. In return,
the operator will enjoy a large sum of profits from the service delivered.

Project History: Engagement of private sector in the railway sector was championed by the
Home Grown Economic Reform Agenda of the country initiated before 2 years.
A number of studies has been undertaken to achieve this vision by international
consultants and sector institutions. Currently, the government has opened the
rail operations business to international investors with several reform initiatives
which includes establishment of a strong sector economic and safety regulator.

6. Transit Oriented Development

Project: Transit Oriented Development (TOD) Project – ERC HQ

Modality: Joint Venture (JV)

Project Purpose: The project aims at building a transit oriented urban center leveraging on
the existence of the Addis Ababa Light Rail Transit Line and its major
stations. The infrastructure to be developed by the project is mainly for
office and commerce, with surrounded area planned for residential
purpose.

Location/ The Project is located in the middle center of Addis, close to Light Rail,
Length/Area: Meskel Square, Road to Bole International Airport, Administrative
Departments, covers 71,000 m2 and Service radius is 3-5 km, service area
is about 30-50 km2, about 200,000 to 300,000 people will be served.

Project description The project will establish new and modern Central Business District
and Scope: (CBD) within an area of direct and indirect impact within 5-minute journey
radius of the Addis Ababa Light Rail Transit, covering approximately 18
square kilometers.
The project will create charm and prosperity of the city by implanting
highly complex function and cultural facilities. Main functions that will be
developed include: -

 Core Commercial Zones
 High-End Office Zones
 Life Supporting Zones
 High-Quality Residential Zones
 International Conference Zones
 Training Zones

These zones will include, but not limited to the following complexes: -
high-end business district with sets of office, hotels, apartments; a
modern, high-tech and brand-new ERC HQ Building; staff welfare
housing; Core Commercial Center; high-end hotels to serve the business
people; International Conference Center; High-Quality Housing; Office
Area; School and Training Center & Multi-Functional Area.

Estimated Cost: The estimated cost of ERC HQ TOD Project is estimated to be 500
Million Dollar.

Intended Economic  The brand value of the Project will be maximized through equity
and Financial cooperation to achieve win-win results.
Benefits:
 A rough pre-estimate justifies that the project can bring quick and
attractive financial return. Part of the property can be sold for more-
than 500 Million USD. The rest part of the property and estate can be
rented for 15 Million USD annually.

Project History: This project has been under inception for the past few years and conceptual
designs has already been developed. Currently an international consultant
is hired to undertake the feasibility study of the project.

7. Addis- Djibouti Railway Line Operation Enhancement

Project: Addis- Djibouti Railway line Operation Enhancement
Modality: PPP or JV
Project Purpose: To enhance the operational efficiency of the Addis Ababa – Djibouti

standard gauge railway line by adding a minor sum of additional capital
investment.
Location/ The project is located along the Addis Ababa – Djibouti Railway corridor
Length/Area: which is the main import-export port corridor of the country. It traverses
through different major urban centers like Addis Ababa, Bishoftu, Adama,
Diredawa etc.
Project description The maximum operational service delivered to date on the Addis Ababa –
and Scope: Djibouti railway line is 3 pair of trains per day with the average about 1.5
pair of trains per day. However, the line at its current status, has a potential
to serve 7 pair of trains per day. Moreover, with few additional
investments it can accommodate 12 pair of trains per day.

The additional investment includes: -
 Investments to improve Infrastructure Capacity

o Connecting Awash oil depot with the Addis – Djibouti line
o Connecting Horizon oil terminal with the Addis – Djibouti line
o Fencing Sections with Dense population along the line and with

frequent crossing of people and livestock
o Constructing passing loops for long sections and additional

receiving & departure tracks at existing stations
o Supply of dry bulk freight at loading & unloading conveyer

belts and stacking machine for warehouses
o Installation of automatic bar at pedestrian crossings
o Upgrading of External Power Supply
 Investments to improve moving assets productivity and operational
efficiency
o Supply of additional electric locomotives, diesel locomotives

for shunting, flat wagons, box wagons, oil tank wagons
o Establishing comprehensive maintenance center

Estimated Cost: The total cost of the project is estimated at USD 500 Million.

Intended Economic Through the improvement of the operational efficiency of the Addis Ababa
and Financial – Djibouti line, the line capacity will grow to 12 pair of trains per day and
Benefits: the annual freight volume may grow to 10.4 Million Tones.

The freight volume growth will increase the revenue from the operation of
the line and in turn will contribute for the payback and profit on the
investment.

Project History: After two years of transport operation, the Addis Ababa – Djibouti line
didn’t meet the expected operational targets. After a thorough analysis on
the root causes of the inefficiency, a study by Mckinsey proposed
additional investments can improve the line’s efficiency to a desired level.
Since then, the project is being promoted by the Ministry of Transport.



8. Berebera Connection- Addis Djibuti Line to the Berbera
through Dire-Dawa

Project: Ayisha – Berbera Railway Line Development Project

Modality: PPP (Public Private Partnership)

Project Purpose: To build Standard Gauge Railway line from Ayisha to Berbera Port; this gives an
alternative sea access to landlocked Ethiopia.
Location/ The project estimated length is 310 Km branching from Addis Ababa – Djibouti
Length/Area: Railway line from Ayisha and runs all the way to port of Berbera in Somali
Land.

Project description Located in Ethiopia and Somalia, this line starts from Ayisha and goes southeast
and Scope: wards. Then, it enters Somalia and reaches Berbera (front-port station). The total
estimated length is 310 km, including about 60km in Ethiopia and 250km in
Somalia. This line will be an important international railway corridor to the sea
and is connected to Addis Ababa - Djibouti railway line.

Estimated Cost: The total cost of the project is estimated at USD 1.5 Billion. This cost is a rough
estimate and the final construction cost would be determined up on selection of
contractor who would carry out detail study, route selection and determination of
the relative railway infrastructure composition of the line like bridges and
tunnels along the route, the type of signaling and communication systems to be
adopted etc.

Intended The project construction in Ethiopia accords with the logistics policy and
Economic and construction demand of national rail network, builds an alternative international
Financial Benefits: maritime transportation channel, promotes socio-economic sustainable
development and forms a green transport corridor. The project will improve the
inland transport system of Berbera port and will have an impact on all areas
along the line and facilitate development of the port service industry and
national economy of Ethiopia.

Project History: This project is new and it is intended to prepare the detail feasibility study and
engineering design jointly with the developer.

9. LAPSSET Project: Three Components Road, Oil Pipe and
Rail Connection

Project: LAPSSET Corridor Railway Development Project

Modality: PPP (Public Private Partnership)

Project Purpose: To build Inter-regional Standard Gauge Railway line from Mojo to Moyale
(boarder to Kenya) as part of the overall LAPSSET railway projects (i.e.
Lamu to Isiolo, Isiolo to Juba, Isiolo to Addis Ababa, and Nairobi to
Isioloa Standard Gauge Railway line).

Location/ The project estimated length is 976 Km branching from Addis Ababa –
Length/Area: Djibouti Railway line from Mojo and runs all the way to Moyale (boarder

to Kenya)

Project description Mojo – Moyale railway line project is single track railway line and has a
and Scope: junction arrangement at Mojo with Addis Ababa- Djibouti railway line.
There will also be a junction arrangement at Moyale to connect with
Kenya railways. Major railway stations will be located near the large
settlements such as Modjo, Shashemene, Konso, Weyto, and Moyale.
Seven intermediate stations are anticipated along the proposed corridor in
the vicinity of Ziway, Awasa, Sodo and other towns.

Estimated Cost: Estimated cost is around USD 6 Billion. This cost is a rough estimate and
the final construction cost would be determined up on selection of
contractor who would carry out detail study, route selection and
determination of the relative railway infrastructure composition of the line
like bridges and tunnels along the route, the type of signaling and
communication systems to be adopted etc.

Intended Economic It will serve as import‐export corridor and give option for land locked
and Financial Ethiopia to access additional sea port. Meeting the requirements of rapidly
Benefits: growing economy of the country by providing a reduce trade transport
cost, improved quality of transportation service and increased capacity.
Provide better access to new areas to unlock the hitherto unexploited or
underutilized potential of the country and ports of Lamu and Mombasa in
Kenya.

Project History: The railway project pre-feasibility study is complete for the Ethiopian and
Kenyan route. The Government of Kenya and the Government of Ethiopia have
signed a Bilateral Agreement to jointly pursue the development of the LAPSSET
Standard Gauge Railway.

10. Dry Bulk Terminal including Silo Development

Project: Dry bulk terminals Development
Modality:
Construction & Management of Modern Dry Bulk Terminals by
Project Purpose: Private sector

Location A Modern Dry Bulk Terminals to handle import grain, fertilizer and
Estimated Cost: domestic consumable bulk products with efficient logistics service.
Project description
To be selected based on study
and Scope:
200 million USD
Intended Economic
and Financial Dry bulk terminals including mega warehouses and silos will be
Benefits: constructed in selected regions which used as the distribution center of
those bulk cargos especially coming from sea ports.
Project History:
The handling system of dry bulks such as fertilizer currently are from
seaport to final destination and this results long distance for truckers,
on the other hand long waiting time of cargo at seaport due to less
turnaround of trucks which leads to high port demurrages.

New

11. Dry Port and Container Terminal Development
Throughout the Country

Project: Dry ports and Terminal Development Project

Modality: Joint Investment with Ethiopian Shipping and Logistics Service
Enterprise (ESLSE) at Semera Dry Ports, Dire Dawa Dry Port, Woreta
Dry Port, Mekelle Dry Port and Kombolicha Dry port or secure land on
lease base from the Government and full infrastructure development at
new sites such as Jigijiga based on feasibility studies.

Project Purpose: A Terminal to handle import and export containers to enhance the
efficiency of the Logistics system along the Corridors which Ethiopia is
using to reach the sea.

Location/  Semera dry port is located in Afar National Regional State at
Length/Area: Semara city. Semara is located approximately 592 km from Addis Ababa
and 270 km from Djibouti, which is the main import and export gate of
Ethiopia as a land locked country.

 Dire Dawa dry port is located in Dire Dawa city administration.
Dire Dawa city is located approximately 550 km from Addis Ababa and
380 km from Port of Djbouti.

 Woreta dry port is located in Amhara National Regional State at
Woreta town, which is approximately 620 km from Addis Ababa, 819
km from Port of Djibouti and 1230km from Port Sudan.

 Mekelle dry port is located in Tigray National Regional State at
Mekelle city, which is approximately 783 km from Addis Ababa and 754
km from Port of Djibouti.

 Kombolicha dry port is located in Amhara National Regional
State at Kombolcha town, which is approximately 380 km from Addis
Ababa and 480 km from the port of Djibouti.

 Jigijiga is located in Somali National Regional State which is
approximately 623 km from Addis Ababa and 318 km from Berbera Port.

Estimated Cost: 400 million USD

Project description  Semera Dry Port occupies a total area of 160 hectare while 2.5
and Scope: hector land area is used for container terminal services. The port has the
capacity to handle 1180 TEU containers at a time and its annual
container handling capacity has reached up to 2378 TEU.

 Dire Dawa dry port occupies a total area of 0.78 hectare while
0.78 hectare land area is used for container terminal services. The port
has the capacity to accommodate 368 TEU containers at a time and its
annual container handling capacity has reached up to 3852 TEU.

 Woreta Dry port occupies a total area of 20 hectare while 3
hectare land area is going to be used for container terminal services. The

port has the capacity to handle 900 TEU containers at a time.

 Mekelle Dry port occupies a total area of 3 hectare while 3 hectare
land area is used for container terminal services. The port has the

capacity to handle 1440 TEU containers at a time and its annual
container handling capacity has reached up to 7789 TEU.

 Kombolicha Dry port occupies a total area of 15 hectare while 4
hectare land area used for container terminal services. The port has the
capacity to handle 1888 TEU containers at a time and its annual handling
capacity has reached up to 4891 TEU.

Intended Economic Industrial Parks Developments are in progress around Baihr Dar, Bure,
and Financial Dire Dawa, Mekelle and Kombolicha which demands well organized
Benefits: logistics services.

On the other hand the international trade volume of the country is
increasing continuously by 7-10% annually which needs more Logistics
centers like dry ports and facilities across the country. Hence, investing
in those areas will result in considerable return.

Project History: Semara port and terminal was established in 2010 and no investment
currentlly. Dire Dawa port and terminal was established in 2013 and its
under construction by ESLSE at a very ideal location around Melka
Jebidu on the side of Ethio- Djibouti Rail way. Kombolcha port and
terminal was established in 2013 and no investment done. Mekelle port
and terminal was established in 2013 and master plan has been prepared
for construction and waiting finance. Woreta port and terminal was
established in 2019 and currently the port is under construction in a
limited space to be continued at large with the availability of finance.

12. Freight Forwarding (JV)

Project: Freight Forwarding and Shipping Agency services

Modality: JV with local private sectors

Project Purpose: Well organized freight forwarding and shipping agent company will be established
in Joint venture with technologically advanced foreign company to enhance the
efficiency the logistics sector.

Location/ TBA

Estimated Cost: 49% share for foreigners and 51% share for local companies

Project description Freight forwarding is an intermediary that provides a wide range of logistics
and Scope: services to move certain cargo from its point of origin to its final destination. It is
a company that handles the shipping process through a large network of third
parties. These companies manage many different cargos from its customers and
have control over the whole shipping process to make sure the shipments arrive
safely and timely. In order to provide such a wide range of services they have to
develop a reliable network of carriers, insurers, custom agents and advisers to
have the ability to deal with all the expected and unexpected issues that can
emerge during the transportation process. Hence, the foreign Freight forwarders
have got chance to invest in Ethiopia with JV as a result at least 3 companies are
now entering to the JV process.

Intended Economic Industrial Parks Developments are in progress across the country and exports of
and Financial agricultural products are booming from time to time which demands well
Benefits: organized logistics services such as freight forwarding and shipping agency.

On the other hand, the international trade volume of the country is increasing
continuously by 7-10% annually which needs more Logistics service providers.

Project History: DHL with Ethiopian Airlines Group, CLS logistics with Bolorie Africa, Macffa
Fregight Logistics with CEVA Logistics are the freight forwarding and shipping
agent companies running in Ethiopia with JV Modality.

13. Agency Service for Manning Services of Seafarers

Project: Manning services of seafarers
Modality: Opening manning agency for seafarers with (PPP)
Project Purpose: A Manning agency will be established to search market for Ethiopian

seafarers across the globe.
Location/ TBA

Estimated Cost: 2.5 million USD
Project description Ethiopia has over 4000 seafarers employed overseas. Given the growing

and Scope: number of Ethiopian seafarers and the global demand; Ethiopia has huge
potential to become one of the emerging crew supply sources in Africa.
However, there is a gap in terms of having an efficient manning agency that
would cater for the recruitment and placement needs of Ethiopian seafarers.
To this end, the country is adopting a seafarers training recruitment and
placement strategy. Central to this strategy is, inviting the private sector

engagement in the placement of seafarers, and hence, inviting competent
and experienced companies to invest in this sector.

Crew Manning agencies will strive to offer Ethiopian seafarers with
attractive recruitment opportunities offering a great career at sea. The
manning agency is expected to make sure that the seafarers are equipped
with required knowledge, soft skills such as discipline, adaptation to
multicultural environment, communication skills to work at sea.

Furthermore, the manning agency is expected to ensure the rights of
seafarers are protected and should commit itself to operate within the terms
of the Maritime Labour Convention. It also maintains the legal documents
and records of seafarers and liasewith ship owners and training institutions
and the regulatory agencies in the protection of the rights of seafarers and
their corresponding obligation in terms of remittances and others.

Intended Economic Ethiopia is a country with 110 million population and significant amount of
and Financial university graduates who have no secured job. Hence, manning agency
Benefits: service will be the best investment option for the private sector.

Project History: In the area of seafarers training and manning activities the only company is
the Ethiopian Maritime Training Institute (EMTI S.C.) is a private company
established to provide professional maritime training for Ethiopian
Engineering graduates. In partnership with Bahir-Dar University (BDU),
EMTI S.C. is training more than 500 Marine Engineering and Electro
Technical Officers annually, and this number will increase to more than
1,000 officers annually.

In addition to EMTI the country has a potential to supply about thousands
of crews to the world annually.

14. Supply and Operation of Freight Transport

Project: Supply and operation of dry and wet cargo transport
Modality: Collaboration modality ( JV)

Project Purpose: Improve the supply of high occupancy freight transport trucks to create an
agile supply chain for import/export of goods;

Location/ Import 2000 dry cargo trucks having a capacity of more than 25 tones;
Length/Area: Import 400 tanker/liquid trucks having a capacity of more than 25 tones;

These trucks are required to supplement the cross border import/export of

dry and wet cargoes;

Estimated Cost: The unit price for a 40 tone freight transport truck is estimated to be about
225,000.00 USD;

Regarding tanker trucks the estimated price is about 100,000 USD; and the

total cost for the first 400 trucks becomes 40 million USD;

Project The trucks are mainly required to provide cross-border services in a view
description and of facilitating import/ export of goods;

Scope: Currently, the transport sector is in an immediate need of about 2400 dry
and fluid cargo trucks;

In addition, more than 6000 dry cargo tracks are required for the coming

10 years;

Intended The transportation of goods from Djibouti port to various parts of Ethiopia
Economic and and from various parts of the country to the port is done using trucks.

Financial These trucks are vital for improving the efficiency and effectiveness of the
Benefits: logistics system;
The smooth functioning of the logistic system has a paramount

contribution in moderating the commodity prices;

Freight transport operators employ many people and create many times

more private-sector jobs.

Project History: Ethiopia is one of the land-locked countries in Africa. It uses mainly
Djibouti Port, which is located about 1000 km away from the capital city

for import and export of goods.

A predictive study on the marketing trends (Import/Export of goods)
clearly show the demand supply gap for heavy trucks (about 8000 trucks in
aggregate) for the coming ten years;
On the other hand, Ethiopia imports all of its automotive needs. It does not
manufacture automotive as a whole.
Some companies only assemble and build bodies of dry and wet cargo on
chassis imported with cab.
Therefore, the need for importing the aforementioned trucks is
unquestionable.

15.

15. Supply and Operation Cross Country (Inter-city) Public
Transport Service

Project: Supply and operation of Cross Country (Inter-city) Public Transport
Service with a capacity of more than 45 seat;

Modality: Collaboration modality ( JV)

Project Purpose: Improve the supply of high occupancy cross country buses to facilitate
mobility and access for the public transport,

Capacity : Import 8,000 high occupancy (more than 45 seats) buses ;

Estimated Cost: The unit price for a high occupancy buses is estimated to be about
120,000.00 USD; and the total cost for the first 2000 buses becomes 960
million USD;

Project description The public buses are mainly required to provide cross country public
and Scope: transport services in a view of facilitating access and mobility
throughout the nation,

Currently, the country has about 2000 high occupancy cross country
buses; however, about 8,000 additional buses are required in the coming
10 years;

Intended Economic These additional buses narrows demand supply gap for cross country
and mass transport services;

Financial Benefits: Household expenses reduced by using mass transit;
had the high quality transit service and lower dependence on cars that
many urban centers have;

It facilitate mobility of people from region to region which intern
improve productivity.

In addition, operators employ many people and create many times more
private-sector jobs.

Project History: The aggregate demand for urban mass transport vehicles is about 10,000
for the coming ten years;

Currently, the country has about 2000 mass transits;

Therefore, additional 8,000 high occupancy mass transit vehicles are
required.

16. Urban Mass Transport Services -Supply and Operation of
Urban Mass Transport

Project: Supply and operation of Urban Mass Transport Service and School buses
Modality: Collaboration modality ( JV)

Project Purpose: Improve the supply of high occupancy mass transport buses to facilitate
urban mobility and access for the public transport,

Location/ Import 2,000 high occupancy mass transport buses for major cities of the
Length/Area: nation;

Import 500 school buses for Addis Ababa;

Estimated Cost: The unit price for a high occupancy mass transport buses is estimated to be
about 120,000.00 USD; and the total cost for the first 2000 buses becomes
240 million USD;

Regarding school buses, the estimated price is about 100,000 USD; and the
total cost for the first 500 buses becomes 50 million USD;

Project The public buses are mainly required to provide intercity public transport
description and services in a view of facilitating urban mobility,

Scope: Currently, our urban centers especially Addis Ababa is in an immediate
need of more than 1000 mass transport buses (including 500 school buses),

Intended These additional buses narrows demand supply gap for public transport;
Economic and Mass transit reduces road congestion, fuel consumption;
Household expenses reduced by using public Transit;
Financial Social connections increase when driving is decreased and supports for the
Benefits: smooth functioning of the education system;

had the high quality transit service and lower dependence on cars that many
urban centers have;

Transit Lessens Gas Use and Reduces air Pollution

If cities are located near high-frequency transit service, they will improve
their productivity which means cities reap greater tax revenues.

Furthermore, transit agencies and organizations employ many people and
create many times more private-sector jobs.

Project History: The aggregate demand for urban mass transport vehicles is about 7,000 for
the coming ten years;

Currently, the country has about 2,000 urban mass transport vehicles;

However, the Addis Ababa City Administration is striving to import about
3,000 high occupancy vehicles in the coming two years.

Therefore, additional 2000 high occupancy urban mass transport vehicles
and 500 are required.

17. Supply and Operation of String-Rail Track Structure -
SkyWay Project

Project: String-Rail Track Structure - SkyWay project

Modality: Collaboration modality ( PPP, FDI, JV)

Project Purpose: Build and operate the innovative transport and infrastructure complex with
the overpass string-rail track structure.

Location/ The total length of the route is about 21 km. It has five stops; planned to be
Length/Area: located at Addis Ababa.

Estimated Cost: The SkyWay is a transport and infrastructure complex estimated cost is 200
Million USD,

The cost includes not only a transport overpass, but also the rolling stock,
an automated system of safety, control, power supply and communication,
transport infrastructure, etc.

Project description It is a 21 km two way overpass string-rail track structure;
and Scope:
The travel time on the route considering the stops will not exceed 20
minutes at an average speed of 75 km/h;

 Planned operation time of SkyWay innovative transport is 20 hr per day;

 Planned passenger traffic on the route will be at least 40 million people
per year.

 Project payback period will make about 11 years considering the stage-
by stage workload.

 The project will be profitable and will yield revenue even at the fare of
0.2 USD (net cost of travel for one passenger — 0.18 USD).

Intended Economic Considering the opportunity of quick and comfortable trips on the route at
and any time at an affordable price, the total passenger traffic will continue to
grow;
Financial Benefits:

Project History: In this case, the urban SkyWay transport system will allow to reduce the
travel time by 3–4 times due to a higher speed and the absence of idling in
traffic jams; It improves productivity;

The annual revenue will amount to 24 mln USD. The operation costs for
the SkyWay transport and infrastructure complex will amount to
approximately 7 mln USD per year;

The economic effect from passenger transportation will make about 17 mln
USD per year;

Consequently, the economic effect for 50 years of SkyWay transport
system operation will be about 850ml USD, with the project cost of
approximately 200ml USD;

It will significantly improve the quality of life for the residents of the city,
will raise the investment and tourism attractiveness;

This project is new for Ethiopia. The project is mainly intended to be used
as one the public transportation mode,

It can also be used as means of freight transport and for entertainment for
tourist attraction as well;

As pilot project Concept not is prepared for a piloting space possibly from
Ayat to Tulu Dimtu of Addis Ababa

Contact

P.O.Box: 1238
Tel: 251-11-551-61-66
Fax: 251-11-551-56-65
Email: [email protected]
Website: http://www.motr.gov.et