The sole multimodal operator, Ethiopian Shipping and Logistics (ESL) steps up to make the Gelan Terminal a Roll-on/roll-off(RoRo) hub with a project connecting the Ethio-Djibouti Railway (EDR) line.
The terminal that was established in 2014 is currently operating as an exclusive vehicle handling facility, while the new design to make it a hub is expected to boost the handling capacity and operation to another level.
Mihretab Teklu, Deputy CEO for Port Terminal Service at ESL, said that the Gelan RoRo Terminal that is located about 25km east of Addis Ababa is expected to be a hub for RoRo cargos with in the coming couple of years.
“As per our design we are demanding to make the terminal to expand the handling capacity and to double from the current stage in the process,” he told Capital.
“At the current level, the facility has a capacity to handle up to 550 vehicles at a time, which is determined by the size of cars, but nonetheless the handling shall consider the through put of incoming and release of cargos,” he added.
He added that some other dry ports like Mojo, the biggest terminal, are handling incoming vehicle cargos at limited levels, “There will be an opportunity to include all incoming RoRo cargos at the new sufficient hub, which may support the multimodal service and cars that come through uni-modal process that are imported excluding ESL.”
“The major operation to transform the terminal into a hub is stretching a railway line that may connect with the EDR main line,” Mihretab explained.
According to the Deputy CEO, the terminal is about 10 km far from the main railway line.
Gelan was designed to manage container cargos while the infrastructure was not suitable to manage machines, due to that the facility was exclusively designed to handle vehicle cargos that come through multimodal and uni-modal.
“In the future we are targeting to change it to RoRo hub that shall handle car cargos with massive capacity under swift operations,” the Deputy CEO said.
Currently, the facility has utilized about 23 hectares.
“We have additional 15 hectares that has not been developed, so we have targeted to develop is with multipurpose warehouses that may manage bulk cargos,” he explained.
The railway line that passed through Endode Terminal, which is around Gelan area, shall be connected with the hub to create accessibility for vehicles that come through train.
“Connecting the railway line with Gelan will have an economic value and add efficiency to our operation,” he said, adding, “Currently; our experts with their counterparts at EDR are undertaking a study to connect the line. The first dray has been accomplished and it will be finalized in the near future.”
The Deputy CEO shared insights stating that at the beginning the railway project was considered to pass through economic hubs like dry port, industry parks and other but that was not done, “We had handled the project to connect the railway line with Mojo and Dire Dawa dry port.”
He said that connecting the Gelan facility with the main railway line will be a huge investment, “But if we have connections with the line, our handling capacity will be boosted and the comparative advantage to that degree will be significant.”
“Now we are focusing on finalizing the detailed study and we expect to make applicable implementations after two years,” he added.
In August 2022, EDR embarked on an eco-friendly vehicle cargo transporting operation, while the service was done up to Endode Terminal. The cargos were expected to be transported to Gelan through trucks, which is expensive as per the explanation of the Deputy CEO for Port Terminal Service at ESL.
EDR has 20 wagons that can transport about 240 vehicles in a single fleet. A single wagon can carry up to 14 vehicles and the number depends on the size of the vehicles.
Similarly, ELS has also bought 17 car carriers that are transporting vehicles from the ports in Djibouti to the center.
ESL has eight dry ports and terminal and two more will be added in the near future.
In related developments, the terminal that is located in Mekele 783 km north of Addis Ababa resumed operation as of Thursday May 4, after almost three years of interruptions because of the conflict that transpired in northern Ethiopia.

Ethiopian Airlines Group inaugurates the second phase of the Ethiopian Skylight Hotel, the by a mile largest in continent.
Prime Minister Abiy Ahmed (PhD), Mamo Mihretu, governor of the National Bank of Ethiopia, and Mesfin Tasew, CEO of Ethiopian Airlines, among many other high-level officials, attended the hotel’s grand opening ceremony held on Friday May 5, 2023.
The expansion of the project cost USD 155 million which is said to make Skylight hotel the biggest in Africa, according to the CEO.

“Skylight Hotel has been providing a wide range of luxury experiences to its guests and with the completion of the second phase more five-star facilities and experiences will be available. We can now proudly say that we have the largest hotel in the African continent,” said Mesfin Tasew.
Ethiopian Skylight Hotel, stands within a prime location at just 5 minute walk from Addis Ababa Bole International Airport.
In January 2019, Ethiopian Airlines launched the first phase of the Ethiopian Skylight Hotel which cost 65 million dollars. The hotel currently boasts a total of 1,024 contemporary rooms additional to the new 651 rooms, and suites of various accommodation types,

including fully equipped flats suited for both long and short-term stays, thanks to the recent enlargement. The hotel also includes 19 food and beverage outlets, including Ethiopian, Italian, Arabian, and Asian restaurants, coffee houses, bars, recreational facilities, and spots for sips or hand-crafted cocktails with a panoramic view of the airport and the city.
The second phase of the project was under construction while the hotel’s facilities were accessible and available to visitors via the first phase of the Ethiopian Skylight facility. The construction took three years. Terminal Hotel in September 2022, which is managed by Ethiopian Skylight Hotel and is also set to take passengers’ transit experience at Ababa Bole International Airport to a whole new level with 97 modern and luxurious rooms, a restaurant, a meeting space, and other facilities within the airport Departure Terminal 2.

54 Capital FMCG Group of companies, manufacturer of Tena Edible Oils, 555 and Aura Soap & Detergents, and Chef Luca wheat products change its corporate brand to SAMANU.
“SAMANU’s logo inspiration is taken from the source of life of the Abay River and mirrors our corporate root in Ethiopia and strong commitment to growth,” said Joachim Yebouet, Chief Executive Officer of the company, adding, “Our vision is to step towards our vision of improving the livelihoods of Ethiopians by leveraging and developing Ethiopian resources.”
54 FMCG, business group in Ethiopia began operation in 2013 through an investment in a small refinery and quickly expanded into other FMCG products.

“We now have some of the most iconic local FMCG brands, making us the fastest growing conglomerate in Ethiopia. Today 54 FMCG is home to several notable FMCG brands such as Tena Edible Oil, 555 Household Care, Chef Luca Pasta and Aqua safe Natural Mineral Water,” the CEO highlighted indicating that Samanu plans on taking ambitious steps to further expand its portfolio through investments in direct manufacturing and the vertical integration of its businesses.
Recently the company announced a USD 21 million growth capital investment in Ethiopia from Norfund, a Norwegian investment fund focused on building sustainable businesses and industries in developing countries, to increase local production of edible oil and expanding into agro-processing that will create jobs, increase food security, and provide income for up to 200,000 smallholder farmers.

Ethiopian businesses take major losses due to recurrent conflicts in the last few years, leading to the closure or stagnation of several businesses in many regions of the country.
Policy-oriented research commissioned by the Center for International Private Enterprise (CIPE) and conducted by the Ethiopian Economic Association (EEA) in 2022 found that Small and Mid-sized Enterprises (SMEs) in Amhara, Afar, and Tigray have either reduced their operations significantly or shut their businesses down following the recent hostilities in the regions. Despite businesses’ major losses due to recent conflict, there are still few platforms or institutional mechanisms through which representatives of the private sector can meaningfully contribute to peacebuilding and economic recovery, the research reveals.
Currently, CIPE is supporting the Ethiopian private sector’s efforts to improve conflict mitigation skills and contributes to peacebuilding.
“Considering the crucial role Ethiopia’s private sector plays in creating jobs and investments that are vitally important for the country’s stability, the business community’s engagement in issue-based, inter-regional conversations can contribute to sustainable peace. In this context, CIPE aided in the establishment of an inter-regional private sector coalition consisting of chambers of commerce, business associations, and civil society organizations (CSOs) from four regions: Oromia, Amhara, Somali, and Afar. The interregional coalition aims to foster an environment for collaborative peacebuilding, economic recovery, and regional economic integration and stability. The coalition currently includes 20 organization members (chambers of commerce, business associations, and women and youth organizations) in the four regions. Following the cessation of hostilities in Northern Ethiopia, the business community representative in the Tigray regionhas expressed their willingness to join the inter-regional, accepting CIPE’s invitation,” the International Private Enterprise cited.
The coalition was actively engaged in identifying priority issues and solutions that are captured in the business agenda for peace and economic recovery which was launched in March 2023. The business agenda formed the basis for a dialogue between the government and the inter-regional private-sector coalition that aims to garner support for the key priorities and solutions identified by the business community to rehabilitate businesses and resume inter-regional trade in conflict-affected areas.
The five priorities of this initiative included; immediate reconstruction of infrastructure and business properties in conflict-affected areas, improving access to finance for businesses operating in conflict-affected areas, restoring and strengthening business relations within and between regions, stimulating investment in conflict-affected areas, and promoting inclusive and consistent public-private dialogue (PPD).
As highlighted, under the five priortites, some of the solutions forwarded by the coalition members include; granting debt relief to businesses that lost their properties due to conflict, effectively enforcing the Movable Property Security Right Proclamation No. 1147/2019, establish a loan guarantee fund to support businesses in conflict-affected areas, establish regular joint peace forums between regions, organize joint cross-regional mobile bazaars, including conflict risk on the list of risks covered by insurance policies for businesses operating in conflict-prone areas, and providing special investment incentives to attract investors to invest and contribute to the economic recovery of war-affected regions.
Reflecting on the business agenda, Kebede Mohammed, the Secretary General ofthe Afar Region Chamber of Commerce and Sectoral Association stated that, ‘’Following the November 2022 ceasefire agreement that ended violent clashes in war-affected regions,to sustainably redress the effects of conflict and ensure lasting peace, rebuilding destroyed infrastructure, restoring basic services, upholding the rule of law, and supporting the private sector should be prioritized,’’ adding that, “Several of our members are highly affected by the war; interregional trade relations have been slow; investment has been down; production and productivity have been meager; and illegal trading has been expanding in the region. We are now working to increase the engagement between the government, the private sector, and all stakeholders in building a common framework and solving issues that the private sector is facing. The sector needs the support of all stakeholders especially the government to get out of the current situation.”
Haftay Hagos, the Secretary General of the Tigray Region Chamber of Commerce and Sectorial Association, explained that before the war, private business, investment, and tourist flow to the region was high but the outbreak of the COVID pandemic followed by the deadly war has destroyed everything.
“The war has damaged the trust between the private sector and the community by giving ways for the prevalence of informal trading in the region. After the Pretoria agreement, there are improvements, but there are still issues that need to be addressed such as providing incentives to local businesses, solving issues related to a shortage of hard currency, and instituting appropriate policies to support the private sector resume operation,” said Haftay.
“The private sector can contribute to post-war reconstruction efforts by investing in infrastructure and creating job opportunities, which can help to stabilize the region. Therefore, it is essential to promote inclusive public-private dialogues, good governance, and a system that respects the rights of the private sector in interregional trade relations and provides support to affected businesses for the sustainable growth of the private sector,” he emphasized whilst indicating that his office has organized a bazaar in 9 different cities in the region engaging businesses from different parts of the country with the aim to increase inter-regional trade.
Nibret Bantegegn, the Secretary General of the Amhara Region Chamber of Commerce and Sectoral Association, mentioned that the conflict has disrupted the economic activities of the region, causing a setback to the development of the private sector.
“The government should take measures to support businesses to operate smoothly and contribute to the growth of the economy” Nibret expressed, adding, “The regional and federal governments should support the private sector in war-affected regions by providing needed-supportand creating an enabling environment for reconstruction and economic development to sustainably address the critical challenges it is facing now including instability and lack of finance.’’
For the last 15 years, CIPE has been working on initiatives aimed at improving the business environment and promoting entrepreneurship in Ethiopia including implementing private sector-led policy advocacy,and providing financial and technical support for national and regional business membership organizations to build their capacity.