DHL Global Forwarding, the air and ocean freight specialist of DHL Group, and Ethiopian Airlines have signed a new agreement to form a joint venture company – DHL-Ethiopian Airline Logistics Services Ltd – to enhance Ethiopia’s logistics infrastructure and connections
With this partnership, DHL Global Forwarding will be the first global forwarder to establish a local presence in Ethiopia, following the government’s recent decision to liberalise major sectors of the booming economy.
The joint venture will provide freight capacity and logistics infrastructure to Ethiopia, where soaring economic growth has rapidly driven up demand for international forwarding and handling services. It includes provisions for agriculture exports that currently underpin Ethiopia’s economic growthExternal Link/New Window with the goal of offering door-to-door logistics services.
Ethiopia currently generates more than US$270mn revenue in exports. Door-to-door solutions including cold-chain services for life sciences and other temperature-sensitive industries are also expected to connect Ethiopia’s growing number of industrial zones and business parks, covering fast-growing sectors such as pharmaceuticals, garments and automotive production.
Since 2010, DHL Global Forwarding has undertaken the maintenance, repair and overhaul (MRO) operations of Ethiopian Airlines’ commercial segment, handling end-to-end customs clearance of essential items and ground transportation – ranging from aircraft parts, engines and mechanical modules to textile, utensils, food and beverages – via air and ocean freight between Europe and Asia.
“With Ethiopia’s projected GDP per capita growth of about six per cent through 2022External Link/New Window, there will be growing demand for logistics support from business,” said Tewolde GebreMariam, group CEO of Ethiopian Airlines.
Pramod Bagalwadi, a DHL veteran with more than two decades of experience in management roles within the logistics industry, has been appointed to lead the new organisation. This will be an additional portfolio for Bagalwadi, who currently leads the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.
