Investment Profile for design

Ministry of Transport
Investment Potentials

2020

Table of Content

Introduction

As one of the oldest country, Ethiopia presents a unique historical and cultural dynamism for investors
expressed in terms of its resident’s varied interest and consumption behavior. With its more than 110
million population dispersed throughout the country, the country has untapped market for investment.
Moreover, the strategic and geographical location of the country in the region as well as the presence
of Ethiopia Airlines, put the country as a gateway to Africa through networked connection and modal
integration.
As can be seen from the World Bank’s Ease of Doing business ranking, Ethiopia’s performance in
terms of improving the business and investment environment is progressing drastically year after year.
The country showed remarkable performance in improving contract enforcement, paying taxes,
registering property and custom clearing. Moreover, the revision of the investment regulation no.
474/20202 by allowing more room for the local and foreign investors to take part in the flourishing
business environment of the country and shifting to online service provision of customs related
services will result in a better business environment for investment.

Government incentives and enabling framework for investors
1. Ease of repatriation

One of the conditions that investors develop interest to invest capital in one's country is can
gaining profitable returns and repatriating the amount gained from the investment. Under the
current situation, most companies currently invested in the country are having difficulties to
repatriate all their profits. Thus, easing the process might be some considered as one of the
incentive mechanisms to entice the big companies to invest.

2. Fiscal Incentives (Longer Tax holidays)

The projects that we are planning to launch are projects that give services to the public and the
selling prices would probably be controlled by the government. So, less profit and longer
investment returns are expected. Thus, longer tax holidays than the usually given tax holidays for
other investments would be expected and could be more interesting for investors.

3. Construction material Concessions

In line with the fact mentioned in incentive No 2, which is public service, concessions on
construction materials or any other materials for the project might be taken as an incentive.

4. Prefeasibility study for all projects should be done

Doing prefeasibility study of the projects might provide the investors the privilege to calculate the
ROI (Return on investment), thus this makes the investors to clearly see what they are getting into
which on the other hand entice them to the project.

About MOT

Ministry of Transport is among the 20 ministries in Ethiopia that is responsible to govern the transport
and logistics sector of the country. It has 10 accountable institutions under it.

Pillars

Projects Profiles

Project: 1. INDODE Logistics Hub
INDODE Logistics Hub Development Project

Modality: PPP (Public Private Partnership)

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

Location/ The project is located in the southeast of Addis Ababa, the Capital of
Length/Area: Ethiopia (only 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 (No.4 Expressway and No.9
Expressway) in Ethiopian territory.

Project description The INDODE Logistics Hub Development Project is a multipurpose
and Scope: 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 Cost:  The total cost of the project is estimated at USD 2 Billion.
 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 Economic Financial Benefits:-
and Financial  The estimated direct profit is that, in terms of the project itself, the
Benefits:
funds invested by the Ethiopian government and related departments
can expect an annual 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 History: This project was initiated from the inception of the Addis Ababa –
Djibouti Railway Construction Project. It has passed several milestones
Location/ in the past years. Currently, the project is listed as one of the national
Length/Ar PPP projects by the FDRE Ministry of Finance and an international
consultancy contract has been awarded by ERC to an international
ea: consultant for the feasibility study of the project.

The project is located in the southeast of Addis Ababa, the Capital of
Ethiopia (only 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 (No.4 Expressway and No.9
Expressway) in Ethiopian territory.

Project The INDODE Logistics Hub Development Project is a multipurpose
description logistics formulated in connection with the Addis Ababa – Djibouti
and Scope: 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  The estimated direct profit is that, in terms of the project itself, the

and funds invested by the Ethiopian government and related departments
Financial can expect an annual interest rate of 5% - 7%. With the subsequent
Benefits: 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: 2. Logistics park development (consolidation center)
Modality:
Project Purpose: Logistics Park Project
Location/
Length/Area: Construction & Management of Modern logistics park by Private sector
Estimated Cost:
Project description A Modern Logistics park to handle industrial products will enhance the
and Scope: efficiency of the Logistics system of the industrial parks.

Intended Economic To be selected based on prefeasibility study
and Financial
Benefits: 800 million USD

Project History: The Modern Logistics Park is full logistics package which contains
Freight 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.

The major industrial parks such as Bolie Lemi, Addis Industrial Village,
Killinto,Hawassa, Dire Dawa, Mekelle, Kombolicha, Adama, Bahirdar
and 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.

New

Project: 3. Modjo green logistics hub
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
Project Purpose: infrastructure development on specific services

Location/ A Terminal to handle loose cargos like fertilizer and grain will be
Length/Area: developed to enhance the efficiency of the Logistics system along the
Estimated Cost: Ethio-Djibouti Corridor.
Project description
Mojo Green Logistics Hub is found in Oromia Regional state, 58 Km
and Scope: distance to South East from Addis Ababa 850 km from Port of Djibouti.

Intended Economic 310,221,572.57 USD
and Financial
Benefits: In its master plan lay out Modjo Green Logistics Hub has 13 Import
Deconsolidation Warehouses, 3 Export consolidation Warehouses, 3
Project History: Cold Storage Warehouses, 1 General Cargo Warehouse, Bulk Rail Yard
(Rail Furniture, Grain system, Fertilizer System) and Container Rail Yard
Furniture to be developed.

79.1% of multimodal shipments are transported via Modjo Green
Logistics hub and this is a considerable market for investors in the
sector. Modjo is the 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.

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.

Project: 4. Cool- chain logistics development
Cool-chain Logistics Development Project

Modality: PPP (Public Private Partnership)

Project Purpose: To unlock the growth potential of Ethiopia towards becoming an
Location/ Length/Area: 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.

The project is located in selected potential fruit and vegetable
production areas 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 and The scope of the project is to implement a complete national cool
Scope: logistics 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
and Financial Benefits: a seamless rail connection to the port are tremendous for Ethiopian
government 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: 6. Transit oriented development
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 (CBD)
and Scope: 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
Length/Area: corridor 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
and Financial Ababa – Djibouti line, the line capacity will grow to 12 pair of trains
Benefits: per day and the annual freight volume may grow to 10.4 Million
Tonnes.

 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
addistional 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/ Length/Area: The project estimated length is 310 Km branching from Addis Ababa –
Djibouti Railway line from Ayisha and runs all the way to port of
Berbera in Somali Land.

Project description and Located in Ethiopia and Somalia, this line starts from Ayisha and goes
Scope: southeast 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 Economic The project construction in Ethiopia accords with the logistics policy
and Financial Benefits: and construction demand of national rail network, builds an
alternative international 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/ Length/Area: The project estimated length is 976 Km branching from Addis Ababa –
Djibouti Railway line from Mojo and runs all the way to Moyale
(boarder to Kenya)

Project description and Mojo – Moyale railway line project is single track railway line and has a
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 Benefits: Ethiopia to access additional sea port. Meeting the requirements of
rapidly 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.

Project: 10. Dry bulk terminal including Silo Development
Modality:
Dry bulk terminals Development
Project Purpose:
Construction & Management of Modern Dry Bulk Terminals by Private
Location/ sector
Length/Area:
Estimated Cost: A Modern Dry Bulk Terminals to handle import grain, fertilizer and
Project description domestic consumable bulk products with efficient logistics service.

and Scope: To be selected based on study

Intended Economic 200 million USD
and Financial
Benefits: Dry bulk terminals including mega warehouses and silos will be
constructed in selected regions which used as the distribution center
Project History: of those bulk cargos especially coming from sea ports.

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 Semara
Length/Area: 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 Djobouti.

 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 hector
and Scope: 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.

Project: 12. Freight forwarding (JV)
Modality:
Project Purpose: Freight Forwarding and Shipping Agency services

Location/ JV with local private sectors
Length/Area:
Estimated Cost: Well organized freight forwarding and shipping agent company will be
Project description established in Joint venture with technologically advanced foreign
company to enhance the efficiency the logistics sector.
and Scope:
TBA
Intended Economic
and Financial 49% share for foreigners and 51% share for local companies
Benefits:
Freight forwarding is an intermediary that provides a wide range of
Project History: logistics 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.

Industrial Parks Developments are in progress across the country and
exports of agricultural products are booming from time to time which
demands well 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.

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 is now open to foreign investors.

Project: Manning services of seafarers

Modality: Opening manning agency for seafarers with JV or fully owned approach

Project Purpose: A Manning agency will be established to search market for Ethiopian
seafarers across the globe.

Location/ TBA
Length/Area:

Estimated Cost: no

Project description Crew Manning agency will recruit and offer a great career at sea to officers,
and Scope: engineer and other personnel's. It also makes sure that the seafarers are
equipped with required knowledge/ skill and capable mentally and physically
to work at sea.

It also maintains the legal documents and records of seafarer to help
out ship owners to filter the perfect candidate for an operation. In
general the agency will have an obligation in Selecting, contracting and
managing the crew, including, when applicable, the negotiation of
salaries, the negotiation of pensions, social security contributions,
taxes and other obligatory concepts relating to their employment,
payable in the state of residence of each crew member.

Intended Economic Ethiopia is a country with 110 million population and significant
and Financial amount of university graduates who have no secured job. Hence,
Benefits: manning agency 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. Freight Transport Having a Capacity of more than 25 tones /for FTA/ (JV)

15. Cross-country /inter-state/ public transport service using buses with a seat capacity more
than 45 seats /for FTA/ (JV)

16. Urban mass transport services with large carrying capacity /for FTA/ (JV)

17. Domestic Air transport service /for CAA/ (JV)

18. International Air Transport Services /for CAA/ (JV with Government)
19.