Gov’t Begins Cargo Delivery at Modjo, Semera to Private Importers

Authorities at the Revenues and Customs Authority instructed on Wednesday, April 14, 2010, all agencies operating inside the newly built dry ports at Modjo and Semera to begin delivering containers imported by private companies, reliable sources disclosed.

The authority wants to see the transport modal otherwise known as through bill of lading to be launched on Thursday. However, this system has been in operation for over a year, with the delivery of containers owned by state agencies and non-governmental organisations.

However, the new requirement will apply only to private importers who be willing to see their cargo brought to the dry port facilities in Modjo and Semera, officials disclosed to Fortune.

“The requirement is applied on a voluntary basis,” a senior government official told Fortune.

The multimodal transport system places cargo in the responsibility of the shipping line all the way to the designated dry port facility inside the country, and stretches its mandate from sea ports. This kind of operation is believed to save foreign currency for the country; Ethiopia is subjected to 1.4 million dollars in opportunity cost for keeping cargo inside the port, while the authorities at the Doraleh Port regularly auction goods kept for over six months.

The multimodal transport system also save individual importers from incurring cists in storage and warehouse fees. Importers are not responsible for cargo handling and transport issues while containers are inside the sea port. It is also believed to help avoid congestion at the ports.

The federal government has built dry port facilities on a 61ht of plot outside of the town of Modjo, 73km east of Addis Abeba, in the Oromia Regional State, and in the town of Semera, the seat of the Afar Regional State, 550km northeast of the capital.

The dry port facility in Modjo, whose construction cost 20 million Br, is managed by Steder Group B.V. Liner Agency, a Dutch firm that has been awarded a three-year management contract by the Ethiopian Dry Ports Enterprise (EDPE). The facility incorporates two large size warehouses, as well as offices for customs, banks, insurance firms and maritime transit operators.

By TAMRAT G. GIORGIS
FORTUNE STAFF WRITER