The Ethiopian Shipping and Logistics Services Enterprise (ESLSE) opened an international bid for the procurement of trucks. Documents for the procurement of 150 brand new heavy duty trucks to improve its service and replace the old ones were submitted.
According to Wondimu Denbu, deputy CEO of the Enterprise for Corporate Service the enterprise finalized the technical evaluation last Tuesday December 17, 2019.
The procurement will be financed by loans from the Commercial Bank of Ethiopia and 30 percent will be financed by the Enterprise itself.
As Roba Megersa, CEO of ESLSE said, 14 companies participated in the bid, including the local firm; Mesfin Industrial Engineering plc.
The bid was expected to be opened last September, but it was postponed to October 20, in connection with bidders who wanted further clarification about axle loads and to get clarification from Ethiopian Roads Authority (ERA) and Ministry of Transport. The enterprise aimed to import 4 axle load capacity trucks which is not allowed in the country. “We are going to import tri axle trucks,” said Roba, which were allowed by the two governmental bodies based on the agreement that Ethiopia signed under COMESA and other treaties the four axle truck is not allowed to be driven on the street to protect the road from over loading.
Currently ESLSE has about 440 trucks, 215 Renault trucks were purchased about four years ago.
ESLSE wants to get rid of 123 trucks that are not suitable for its import export operation. According to the deputy CEO, the enterprise is waiting for the board’s decision to remove these trucks in the coming 15 days. Beside these 123 trucks, the enterprise has awarded bid winners for other 36 old Mack Trucks.
ESLSE is also leasing trucks from private transporters besides using its own. Ethio – Djibouti is one of the most expensive corridors in the world. There are many logistical problems. “The trucks are very old, after one trip to Djibouti they have to go to maintenance,” said Roba, This is also because of the road infrastructure. According to Roba, Ethiopia needs about 600 trucks for daily transportation of containers however, we only have the capacity of half that number. The 750km railway connecting Addis Ababa with the port in Djibouti launched last year and can cut a three-day journey down to 12 hours.
In the past budget year ESLSE, earned 1.7 billion birr. The enterprise is one of the mega public enterprises scheduled in the latest privatization process through partial sales.