From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Tue Jul 07 2009 - 17:25:06 EDT
Port of Djibouti Rejects Ethiopian Shipping Lines Request for Dedicated
Space
Posted in July 7th, 2009
by Editor in Economy, Current News
Disagreement is brewing between officials in the marine sector in
Ethiopia and Djibouti over the use of the Port of Djibouti, and whether
or not Ethiopia's flagship carrier should continue to pay security fees,
reliable sources disclosed to Fortune.
The management of the Port of Djibouti, DP World, has rejected a request
made three months ago by the Ethiopian Shipping Lines (ESL) to be
granted a dedicated access to two of the 15 berths at the Port. The two
berths ESL showed strong interest in are berths number one and two,
which were handling containers, fitted with two gantry cranes.
Signed by Jerome M. Oliveira, chief executive officer (CEO) of the Port
of Djibouti, the letter DP World wrote on June 21, 2009, says it "would
not be possible for Djibouti Port to honour" ESL's request.
Ambachew Abraha, managing director of the ESL, first made his request
when he met Aden Ahmed Douale, chairman of the Djibouti Ports and Free
Zones Authority, in March 2009; he had expressed his company's desire to
lease the container terminal at the Port of Djibouti, these sources
disclosed. He subsequently wrote a letter to Douale three days after
their meeting in Djibouti, including a request to be waived from
security fees ESL pays per container, which is close to six dollars,
according to these sources.
ESL request is followed the completion of a brand new port at Doraleh,
which incorporates both oil and container terminals. Consuming a total
investment of 400 million dollars, the investment raised from the Dubai
based DP World, Doraleh is built 13Km east of the Port of Djibouti to
earn a reputation as the largest in East Africa; it can handle 1.2
million containers (20ft) annually.
DP World Djibouti has made a decision to move all operations related to
container handling to the terminal at Doraleh, leaving the old port to
the operations of general cargoes. Nevertheless, ESL managers argue that
their vessels are multipurpose in character, including Ro/Ro (carrying
vehicles), general as well as bulk cargoes. They claim that going back
and forth between the new and old port facilities would subject them to
additional costs.
Of Ethiopia's 4.8 million tonnes import and exports of goods in 2008, up
from 3.9 million tonnes in 2006, ESL brings an average of 20,000
containers.
"Ethiopian Shipping Lines container handling activities will be done in
Doraleh Container Terminal (DCT) as from July 1, 2009," says the letter.
"The General Cargo/Roro will be discharged and loaded in Djibouti Port
without prejudice of shifting cost when ESL's containers will be
discharged previously at DCT."
The management of DP World says allowing ESL to have berths dedicated to
its container operations would deny Djibouti Port the "flexibility" for
further development and investments; and the contract signed between the
management firm, lenders and the government of Djibouti, requires all
"container activities must be transferred" to the new container terminal
at Doraleh.
Although inaugurated in February 2009, it was at the beginning of this
month vessel operators were told to discharge all their containers at
Doraleh. One of the largest ship operators, Messina Liner, was told to
use the new container terminal as of July 1, 2009. This notice has not
been made to ESL yet, sources disclosed. Nor have any of the nine
vessels owned by ESL arrived at the Port; there was only Shebelle, with
5,000tns of cement bought from Pakistan, that has called Djibouti last
week.
"But the bulk cargo it carries couldn't tell us whether the new notice
applies on us," said a senior manager at the ESL.
Oliveir has also informed ESL in his letter that the Port Authority of
Djibouti will continue to check incoming containers for security
purposes. ESL had argued that since all the containers are certified for
having gone through security checks upon departure, subjecting
containers it brings to searches incurs it to double charges.
But ESL managers are infuriated more with the form of the exchange of
letters than the substance, reliable sources disclosed. Although their
letter was addressed to officials of the Djibouti government, the
response came from the CEO installed by DP World, a foreign firm awarded
a management concessions.
"This makes us question who responsible in Djibouti is to discuss with
Ethiopia," said one senior manager.
Managers of DP World Djibouti have not responded to questions emailed
from Fortune.
By Tamrat G. Giorgis
Fortune Staff Writer
http://abbaymedia.com/News/?p=2654
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