During his latest press conference Prime Minister Hailemariam Desalegn confirmed that his government is in the process of selling shares of the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), which is the only state run company that owns commercial boats in Africa, to an undisclosed company, according to Capital.
The PM explained that the costs of inland transportation out way the costs of transportation by sea because of logistical issues and the cost of moving freight in Ethiopia. He pointed out that, “the newly inaugurated railway will substantially decrease the cost of transportation, but logistical concerns are still a major source of concern.”
“We are trying to privatize the company with some equity to a specific company, not for lack of money but to modernize the system, using foreign companies that have knowhow, technology and managerial capability,” Hailemariam elaborated.
He said that that is why the government wants to introduce new ways of doing business and modernizing the system with the intervention of companies that have experience in logistics. “It has nothing to do with the financial shortages,” he stressed.
Ahmed Shide, the recently appointed Minister of Transport, who is responsible for following up the sector, told Capital that he is not able to comment about the negotiations as the process has not been finalized.
Recently it was stated that the Chinese logistics giant China Merchant Group (CMG) is negotiating with the government to purchase shares of the state owned enterprise, but government officials declined to comment.
The PM said that his government will sell shares of ESLSE with the goal of improving logistical services.
The China state owned CMG has become a leading, global logistics firm. In 2013 the company bought a 23.5 percent share of the Port of Djibouti, which is the major logistics hub for Ethiopia.
The Chinese government is expanding its influence in logistics hubs globally to realize its 21st century Silk Road Initiative.
[www.ezega.com]