Friday, April 19, 2024
BusinessShipping enterprise plans merger with Tana Transport

Shipping enterprise plans merger with Tana Transport

The Ethiopian Shipping and Logistics Service Enterprise (ESLSE) is planning to merge with Lake Tana Transport Enterprise (LTTE), aiming to expand its maritime transportation operations locally, The Reporter has learnt.

Roba Megersa, CEO of ESLSE, told The Reporter that they are in negotiations to merge LTTE in order to help the former expand local water transportation service as stipulated in its five years strategic plan launched recently.

In this regard, merging with LTTE means incorporating decades of experience accumulated in local water transportation services. LTTE is known for providing local citizens and tourists with transport services on Lake Tana, the largest lake in Ethiopia.

“Merging with Lake Tana Transport Enterprise is not easy and has challenges. It also requires lengthy negotiations. Yet, it will soon be concluded,” Roba said.

LTTE uses small vessels to transport goods and people across Lake Tana and rents out lake side docking sites for private small boat owners operating on Lake Tana. The LTTE provides transportation on Lake Tana using 10 small vessels, in addition to six recreational sites it owns by the side of the lake.

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In the previous fiscal year of 2019/20, it planned to bring in revenues of 13.1 million birr, but has managed to make only 3.8 million birr in the first half of the fiscal year.

Roba is of the view that merging with LTTE would enable the ESLSE implement its plans to launch water transport and other co-activities on various projects including the Grand Ethiopian Renaissance Dam (GERD).

The state-owned ESLSE provides freight forwarding and clearing, shipping, as well as trucking and stevedoring (loading or offloading cargo to and/or from a ship) services. In its ten-year roadmap and five year strategic plan, the enterprise plans to procure two bulk ships, and operate modern types of machinery at Modjo dry port, which can handle 16,000 cargo containers at a time.

According to Roba, the Enterprise is constructing a state-of-the-art dry port in Dire Dawa, situated on 34 hectares of land at a total cost of USD 70 million. The plan is to complete the construction in one year.

The Enterprise, which handles 60 percent of Ethiopia’s annual imports, amassed a net profit of 2.5 billion Birr in the previous fiscal year of 2019/20.

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