UNECA: African Trade Policy

Center (ATPC)
Dry Port Service Enterprise

Feasibility Study of Dry Ports in

Ethiopia
Morning Presentation
Objectives, Scope of Work &
Methodology
 Project Objectives

• To undertake Feasibility Study of DPSE to

Reduce Corridor Costs

• To recommend Trade-Transport Facilitation

Measures for Addis-Djibouti Corridor

• To propose Dry Port Network

 Scope of Work & Methodology
 Review available relevant data & dry port experiences
 Collect data, stakeholders consultation & field survey
 Analyze, forecast & apply available corridor data
 Asses corridor capacities: the ports, transport & facilitation
 Analyze hinterland, port traffic assignment and modal split
 Costs and benefits analysis of DPSE & investment program
 Identify possible future network.
 Reviewing policy & legal framework
 Establishing effective DPSE & the way forward
Flow Chart of Dry Port Planning Model

Production

Tra

Domestic Trade

Central Import
Flowchart of the Study Sequence

Mobilization & Kic

Desktop Studie
Collection & A

Inception Re

Study Trips & S

Assessmen
 Review of Relevant
Documents & Experiences
 Basic Policy Sources, Frameworks
and Guidelines of the Study
1. National Sources
 Macro-economic Policies and Strategies (MOFED)
 General Development Vision of the Government (MOFED)
 ADLI, PASDEP and Sectoral Programs (MOFED)
 Foreign Trade achievement, status, programs and strategies
 Transport Sector Status, programs and strategy
1. Regional Sources
 Bilateral Agreements with Neighboring countries: Djibouti, Kenya and Sudan
 COMESA Trade & Transport Components
 AU, UNECA, SSATP, ADB Source, (Data, studies and resolutions)
1. International Sources
 UN and Donors Sources: World Bank, EU and Bilateral.
 UNCTAD & AL maty Declaration and Program of Action
 WTO and Doha resolution
 Academic and research documents
 Lessons learned from the best practices and websites
 1.Transit Rights of Landlocked Countries

 The full right of access to and from

the sea by all modes of transport
 The provision of transit facilities and
removal of all obstacles
 Exemption of transit trade from
custom duties and all other payments
2. Foreign Trade Transport Corridors
Definition:-
T y p ic al S tru ctu re o f F ore ig n T ra d e R o u te

L and Land
S ea
A B

LCC CC C
O /D
S e aP o rtX
D ry P o rt
R o a d /R ail S eaP o rtY
O /D
S h ip p in g

L C C = L a n d lo c k e d C o u n tr y C C = C o a sta l C o u n try
O /D = O rig in /D e stin a tio n A , B , C = T ra d in g & T r a n sit C o u n tr ie s
 Foreign Trade Transport Corridors

 ESA has about 17 corridors of which 7 are Ethiopians

 East Africa has the highest transport cost for import

 LLCs pay twice that of the coastal countries

 In Ethiopia (2008) about 12.4% of export and 17% of the import values or a
weighted average of 16% of the foreign trade values is consumed by transport
and transit costs.

 A number of efforts are being made to reduce transit costs & improve trade
competitiveness by AU/AfDB, UNECA, RECs, SSATP, EU, UNACTAD, USAID
& etc.
Freight cost as % of import value
Ratio of Transportation and Insurance Cost export value 2001
 Relative transport costs for coastal and landlocked countries
in Africa ( US $ / TEU)
Destination Origin

Northern Europe Japan North America

Senegal $ 1 610 $ 4 100 n.a
Mali via Senegal $ 2 380 + 48% $ 4870 + 19% n.a
Ghana $1 815 $ 3 025 $ 2 460
Burkina faso via Ghana $ 2615 + 44% $ 3835 + 27% $ 3 260 + 32%

Cameroon $ 1520 n.a n.a

Central Afr. Republic $ 2560 + 68% n.a n.a
Tanzania $ 1 380 $ 1 350 $ 2 000
Rwanda via Tanzania $ 3 880 181% $ 3 850 + 185% $ 4 500 + 125%
Burundi via Tanzania $ 4 530 228 % $ 4 500 + 233% $ 5150 + 157%
Zambia via Tanzania $ 3 250 135% $ 3 220 + 138% $ 3 870 + 93%

Source: Improving Trade Development Prospectus of Landlocked and Transit Development countries”,
UNCTAD, UNCTAD/DITC/TNCD/2003/7(2003
Total Transit Cost on Djibouti Corridor(2008)
Services Transit Costs US$/TEU/Ton

Per TEU G/Cargo Dry Bulk**

(Tons) (Tons)
Inland Transport* 500 30 90
Shipping 1,500 90 50
Ports 700 20 17
Inland Transport 1000 60 60
Total 3,700 200 217
Traffic Size in 000 124 664 2,420
Value USD 11,364 947 0.30

Source: Djibouti Port and Consultant estimate

 2005 Ministerial Declaration
The relevant decisions of the 2005 Declaration of
African Ministers to implement by 2015 include:

 Dismantling “all physical, non-physical

transport barriers that increase journey
times, customs clearance and border
delays and impede the flow of goods and
services”.
 Reduction of “transport cost of LLCs by
half” and improve “their access to global
markets”.
 3.Dry Port Studies
 International
 UNCTAD (1991) HANDBOOK of DRY PORTS
 INLAND CONTAINERS TERMINAL ANALYSIS (2006)
 International & African Resolutions & Declarations
 Domestic studies
 Feasibility Study of Inland Clearing Depots in Ethiopia (2001)
 Study of Inland Container Depot (2002) in Kality, Ethiopia
 Study for the Development of Dry Ports (2006)
 Actions taken & on-going
 Upgrading Corridor Roads
 Issuing Multimodal Transport Law
 Signing Bilateral Transit Agreements
 Establishment of DPSE & Construction of Mojo & Semera DP
 Initiation of Railway Network Development
 Major Foreign Trade Transit Players and Constraints in Ethiopia
Major Players Major Problem Areas Responsibility

1. Traders Trade-related problems Service Users

Transactions, Bank & Insurance, Permits, Trade Sector: importer & exporter
Cargo readiness, adequate storage, prompt and/or his agents;
loading/unloading at premise, timely Payments

2. Transporters Transport-related problems Service-Providers

Infrastructure, fleet capacity, service quality Transport Sector: Shipping, ports
ERA for Road, truckers/railways

3. Regulators Regulation-related problems Trade Regulators

Inspection, check points, tax-collection, law Customs, Standards
enforcement, clearance, performance MOA, MOTI, MOTC
system & procedures

4. Coordinators Coordination-related problems Federal Government (BPR) and

Documentation, Coordination, problem- private sectors
solving (Possibility of one-step system)

5. Facilitators Transit-related problems Bilateral agreements, decisions and

Joint border posts, harmonization, actions of transit (LL and coastal)
coordination & enforcement countries & entities, RECs,
Development partners
Profile of Ethiopian Economy
General Profile
 Economic Development & Achievement
Average Annual growth over last 5Y (2008)

 GDP: 11.7% with agri. 42.5% , industry 12.1% & services 45.4%

 Foreign Trade: total 27% with export 25% and import 27.7%.

 Savings: Domestic saving of 17% of the GDP.

 Investment: 21%.

 Projects: approved new projects 18% & investment 56%.

 Economic stability: maintain economic stability within acceptable

limits and achieve socio-economic development goals.

 Per Capital GDP: increased to USD 213 (real) and USD 340 (nominal).
 Status of Road Transport Sector
Criteria 1997 2008 % Improvement
Over-all Annual
1. Network Size/length (km) (Total) 26,550 44,359 67 4.8
Paved Roads 3,708 6,066 64 4.6
Gravel Roads 12,162 14,363 18 1.5
Rural Roads 10,680 23,930 124 7.6

2. Network Density (km) 24.1 40.3 67 4.8

Per 1000 km2 0.46 0.56 17 1.8
Per 1000 inhabitant (km)

3. Network Quality (% in good condition) (Total) 22 38 73 5.1

Paved Roads 17 68 300 13.5
Gravel Roads 25 53 112 7.1
Rural Roads 21 49 133 8.0

4. Accessibility 79 67 15 1.5
Proportion of area >5km from road (%) 21.4 12.4 42 4.8
Average distance to a road (km)

5. Mobility 75,320 184,387 145 9.4

No. of Vehicle fleet 51,078 142,262 179 10.8
Annual Average Daily Traffic (AADT) 4.12 9.33 127 8.5
Average Vehicle km of travel (AVKM (Mn)

Source:- ERA & Consultant’s Estimate

 Existing Logistics Gap

• Problems
 High Port charges and reduced port free time
 Inadequacy of domestic storage facilities
 Uncoordinated bulk imports
 Delays in documentation & inspection
 Low utilization of vehicle fleet.

• Driving forces for change

 Rapid growth of the Economy & Trade
 Increased Transit Costs
 Natural , human and international related problems
 Multiplicity of Transit Options
 Better Opportunities
Area of 1500 masl

External Routes
Foreign Trade Sector
 Foreign trade related Licenses
(Sept 30/2007)
S.No TRADE FIELD Number Capital (Birr Mn.)

1 Export 8,386 4,363

2 Import 9,290 5,065

3 Export & Import 2,930 3,164

4 Foreign Trade Auxiliary 2,993 3,164

5 Customs Clearance 523 612

6 Forwarding & Ship Agent 46 721

7 Commercial Representative 61 44

Total 24,249 14,640

Source: - Ministry of Trade & Industry – November 2007

Analysis of 10 &5 Year Foreign Trade Trends
Year GDP Foreign Trade % of GDP Trade Deficit
Import Export Total

1997/8 55.5 11.4 7.1 18.5 33.3 -4.3

2002/3 73.4 20.1 9.8 29.9 40.1 -10.3
2007/8 245.6 76.6 28.3 104.9 42.7 -48.3
Trade Volume (000 MT) Trade Value (Br. Mn)
1997 /8 2002 /3 2007/8 1997 /8 2002 /3 2007 /8
GDP at CMP 59,750 71,690 124,800
AAGR (%) 10 Yrs 7.64
5 Yrs 11.7
Export 273 397 805 3,719 3, 186 8 ,216
AAGR (%)10 Yrs 11.42 8.25
5 Years 15.19 2 0.86
Elasticity 1.56 1.78
Import 2,425 3,387 5,153 7,491 1 3,382 37 ,237
AAGR(%) 10 Yrs 7.83 17 .39
5 yrs 8.76 2 2.71
Elasticity 2. 28 1.94
Total 2,698 3,784 5,956 11,210 1 6,573 45 ,453
AAGR (%) 10 Yrs 8.24 1 5.03
5 Yrs 9.5 2 2.36
Elasticity 1.97 1.91
 Volume of Major Imports
by type of Commodity (in 000MT)
2007/8 2008/9 2009/0 2010/1 2011/2 2012/3 2013/4 2014/5 2015/6 2016/7 2017/8
Year
Commodity
Grain 360 219 23 360 694 621 629 535 716 507 433

Fertilizers 36 175 234 80 302 252 383 352 397 273 479

Petroleum 2,017 1,067 1,095 950 945 1,461 1,034 1,823 1,229 1,454 1,619

Chemicals 17 121 34 30 19 20 23 23 47 42 48
Medical etc 33 39 72 51 43 46 55 69 132 80 76

Paper etc 35 176 467 123 50 54 67 80 138 99 111

Textiles etc 31 46 81 41 46 52 71 118 90 73 72

Metal etc 164 218 199 262 273 257 294 539 579 796 733

Machinery etc. 45 102 109 119 72 64 80 101 1,208 216 177

Others 37 57 68 123 85 70 143 215 224 194 828

Total 2,802 2,269 2,414 2,199 2,566 2,941 2,858 4,027 4,877 3,834 4,683

Source:- National Bank Report (2008) & Ethiopian Customs Authority as adjusted to avoid double
counting of grain
 Volume of Major Export by type of
commodity (in 000MT)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Commodity

Coffee 120 101 117 99 110 126 156 161 148 176 171
Pulses 31 30 24 27 109 66 73 122 110 159 233
Oilseeds 67 51 43 55 76 83 106 171 266 235 152
Meat/ Hides 10 8 11 13 11 13 13 23 23 22 18
Fruits/veg. 17 19 21 17 30 25 37 38 35 41 40

Others 29 18 35 69 65 84 38 56 62 80 148
Total 274 227 251 280 401 397 423 571 644 713 762

Source:- National Bank Report (2008) & Ethiopian Customs Authority

 Classification of Import and
Export Products
No Categories Commodities (2008 Date)
Export Products % Import Products %

1 Containerizable (100%) Coffee, General cargo, Consumers

 Break bulks Oil seeds, goods, Clothing. Plastics,
pulses, 87 Glasses etc 50%
spices etc
2 Semi-Containerizable (2/3) Fruits & 3 Chemicals, metals 10%
Vegetable & metal works etc
3 Non-Containerizable (100%)
 Dry bulk Fertilizer, cement & grain,
 Liquid bulk 10 Petroleum, 40%
 Others Live-animals,
flowers Vehicles & heavy machinery

Total Containerizable 89 57
Monthly Commodity and Traffic Flows between Djibouti Port and Ethiopia
Months Import Commodities by Major Categories Vehicle turn-around Petroleum
(2008-2009)

Trade & Industry Vehicles Food Items Fertilizer Grand Total Trucks* Wagon Tonnage Tanker Turn
Around**

July 246,007 1,436 44,493 207 292,143 10,437 74 170,296 4,039

August 287,717 1,282 120,680 327 410,006 13,562 23 188,352 4,468

September 263,608 1,358 110,337 224 375,527 12,216 22 160,698 3,808

October 390,400 1,454 109,877 140 501,871 15,888 59 158,659 3,755

November 302,139 1,234 165,620 1 468,994 15,051 84 165,574 3,924

December 303,571 1,290 181,059 241 486,161 15,811 11 185,535 4,390

January 303,391 969 141,358 7,127 452,845 15,127 26 182,250 4324

February 322,118 1,268 127,176 33,207 483,769 17,392 17 181,185 4,292

March 366,345 782 99,170 51,270 517,567 16,290 20 218,383 5,151

April 353,831 764 31,791 97,126 483,512 14,862 6 199,777 4,727

May 333,116 617 26,870 121,267 481,870 15,081 - 208,703 4,952

June 366,047 660 17,562 64,698 448,967 17,150 24 202,787 4,720

Total 3,838,290 13,114 1,175,993 375,835 5,403,232 178,867 366 2,222,199 52,550

Av.Monthly 319,858 1,093 97,999 31,320 450,269 14,906 31 185,183 4,379

Av.Daily 10,662 36 3,267 1,044 15,009 497 1 6,173 146
 Trade &Transport Links with Neighbors
Area (ooo km2) Popn PCI Trade No of border Port Distance Nearest Distance
(000) (USD) (Br Mn)* Links To Addis (km) to border (km)

Djibouti 23 779 950 3012 2 910/782 100

Somalia 638 9,500 600 1013 4 937 241

Kenya 583 38,000 1800 421 2 2067 1290

Sudan 2506 40,000 340 2144 6 1990 952

Eritrea 121 5,500 700 - 4 1163/882 67

Ethiopia 1127 76,500 200 6590 18 - -

 Transport and Communication Links to Neighbors

Services Linked Type of Links and border towns

Countries
1. Communications All Countries Fiber Optics, Microwaves and Satellites

2. Airlines All Countries Through ET and other airlines

3. Shipping All Countries Through Ethiopian And other Shipping Lines

4. Inland Waterways Sudan Baro-Akobo seasonal river navigation

5. Railways Djibouti Addis – Djibouti Line (CDE)

6. Roads 6.1 Djibouti Gelafi, Dewale

6.2 Somalia Togwuchale, Awbere, Ferfer and Dolo
6.3 Kenya Moyale, Kelem
6.4 Sudan Boma, Jakaw, Kurmuk, Guba, Metema, Humera
6.5 Eritrea Humera, Rama, Zalambesa and Bure
 Forecasting Foreign Trade Transport Demand

Major quantitative methods for external

trade forecasting
 Regression Model:-
Y = E(Y/X) = a + bX (Bivariate Model)

 The Compound Growth Rate Model :-

RT= { (Tn/To )1/n -1} 100 When RT= Growth rate of trade
Tt = Trade in year n
To= Trade in year zero
n = Number of years involved

 ERA Traffic Analysis (for verification)

 15 year projection of the Ethiopian Foreign Trade Traffic (000MT)
Import Export

Year 10% 12% 14% 12% 14% 16%

2008 4,683 4,683 4,683 762 762 762
2009 5,151 5,245 5,339 853 869 884
2010 5,666 5,874 6,086 956 990 1,025
2011 6,233 6,579 6,938 1,071 1,129 1,189
2012 6,856 7,369 7,909 1,199 1,287 1,380
2013 7,542 8,253 9,017 1,343 1,467 1,600
2014 8,296 9,243 10,279 1,504 1,673 1,857
2015 9,126 10,353 11,718 1,685 1,907 2,154
2016 10,038 11,595 13,359 1,887 2,174 2,498
2017 11,042 12,986 15,229 2,113 2,478 2,898
2018 12,146 14,545 17,361 2,367 2,825 3,362
2019 13,361 16,290 19,791 2,651 3,220 3,899
2020 14,697 18,245 22,562 2,969 3,671 4,523
2021 16,167 20,434 25,721 3,325 4,185 5,247
2022 17,784 22,886 29,322 3,724 4,771 6,086
2023 19,562 25,633 33,427 4,171 5,439 7,060
 Forecast of Import and Export Tonnage and Container Traffic

Im p ort E xport
Y ear T on nag e C ontain erizables C on tain erizab le
P etro- D ry B u lk T o nn ag C ontaineri N o. of
leum C argo G en era l C argoT otal B rea k-B ulk e* N o. o f T E U T o tal T on n ag e zable** TEU
200 7/8 1 ,3 68 1,1 63 2,152 4,68 3 2 ,5 53 2,1 30 12 4 7 62 6 57 33
2 0 08 /9 1 ,53 2 1 ,3 03 2 ,4 1 0 5 ,2 45 2 ,85 9 2 ,3 86 14 3 869 749 39
2 0 09 /1 1 ,71 6 1 ,4 59 2 ,6 9 9 5 ,8 74 3 ,20 2 2 ,6 72 16 5 990 854 47
2 0 10 /1 1 ,92 2 1 ,3 83 3 ,0 2 3 6 ,3 28 3 ,33 5 2 ,9 93 19 0 1,1 2 9 973 56
2 0 11 /2 2 ,15 3 1 ,5 79 3 ,3 8 6 7 ,1 18 3 ,76 5 3 ,3 52 21 9 1,2 8 7 1 ,1 1 0 66
2 0 12 /3 2 ,41 1 1 ,7 99 3 ,7 9 3 8 ,0 02 4 ,24 7 3 ,7 55 25 3 1,4 6 7 1 ,2 6 5 79
2 0 13 /4 2 ,70 0 2 ,0 45 4 ,2 4 8 8 ,9 92 4 ,78 7 4 ,2 05 29 1 1,6 7 3 1 ,4 4 2 94
2 0 14 /5 3 ,02 4 2 ,3 20 4 ,7 5 7 1 0 ,1 0 2 5 ,39 2 4 ,7 10 33 6 1,9 0 7 1 ,6 4 4 1 12
2 0 15 /6 3 ,38 7 2 ,6 29 5 ,3 2 8 1 1 ,3 4 4 6 ,06 9 5 ,2 75 38 7 2,1 7 4 1 ,8 7 4 1 33
2 0 16 /7 3 ,79 4 2 ,9 74 5 ,9 6 8 1 2 ,7 3 5 6 ,82 7 5 ,9 08 44 7 2,4 7 8 2 ,1 3 7 1 42
2 0 17 /8 4 ,24 9 3 ,3 61 6 ,6 8 4 1 4 ,2 9 4 7 ,67 7 6 ,6 17 48 7 2,8 2 5 2 ,4 3 6 1 62
2 0 18 /9 4 ,67 4 3 ,6 97 7 ,3 5 2 1 5 ,7 2 3 8 ,44 4 7 ,2 79 53 5 3,1 6 4 2 ,7 2 8 1 82
2 0 19 /0 5 ,14 1 4 ,0 67 8 ,0 8 7 1 7 ,2 9 5 9 ,28 9 8 ,0 07 58 9 3,5 4 4 3 ,0 5 5 2 04
2 0 20 /1 5 ,65 5 4 ,4 74 8 ,8 9 6 1 9 ,0 2 5 1 0 ,21 8 8 ,8 07 64 8 3,9 6 9 3 ,4 2 2 2 28
2 0 21 /2 6 ,22 1 4 ,9 21 9 ,7 8 6 2 0 ,9 2 7 1 1 ,24 0 9 ,6 88 71 3 4,4 4 5 3 ,8 3 3 2 56
2 0 22 /3 6 ,84 3 5 ,4 13 1 0,7 6 4 2 3 ,0 2 0 1 2 ,36 3 10 ,6 57 78 4 4,9 7 8 4 ,2 9 2 2 86
Forecast of Foreign Trade Container & Break Bulk Commodities
to be handled by DPSE (‘000)
Year Import Export
Tonnage* No. of Containers Break Bulk Tonnage* No. of Containers Break Bulk
Tonnage Tonnage
2007/8 2,130 124 - 762 33 267
2008/9 2,386 143 573 869 41 253
2009/1 2,672 165 528 990 50 234
2010/1 2,993 190 474 1,129 61 211
2011/2 3,352 219 412 1,287 74 182
2012/3 3,755 253 343 1,467 88 150
2013/4 4,205 291 269 1,673 104 115
2014/5 4,710 336 193 1,907 122 78
2015/6 5,275 387 119 2,174 142 44
2016/7 5,908 447 52 2,478 162 50
2017/8 6,617 487 37 2,825 186 38
2018/9 7,279 535 41 3,164 208 43
2019/0 8,007 589 45 3,544 233 48
2020/1 8,807 648 49 3,969 261 53
2021/2 9,688 713 54 4,445 292 60
2022/3 10,657 784 59 4,978 327 67
Potential Corridors of Ethiopia
Northern

Central

Southern
The Structure of the Ethiopian Corridors
 Towns Location Region/ Country Distance Woreda Traffic
Population (2008)
Lat Long Sea Port Addis Ababa ADT Truck Traffic

Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604

Secondary Dry Ports

Jijiga 09 22 42 50 Somali 315 616 369523 526 288

Regional Freight Stations

Harar 09 28 42 04 Harar 415 516 131000 1574 454

Border Posts
Togwuchale 09 27 43 30 Somali 241 74.3 287071 405 244

Sea Ports
Berbera 10 15 45 11 Somale Land 931
Port of Berbera Layout
 Towns Location Region/ Country Distance Woreda Traffic
Population
(2008)
Lat Long Sea Port Addis Ababa ADT Truck
Traffi
c

Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604

Secondary Dry Ports

Semera 09 22 42 50 Somali 315 616 369523 526 288

Border Posts
Bure* 13 00 42 10 Afar 67 820 65911 139 43
Sea Ports
Asab 13 00 42 41 Eritrea 887
Port of Assab Layout
 Towns Location Region/ Country Distance Woreda Popn. Traffic
(2008)
Lat Long Sea Port Addis Ababa ADT Truck Traffic

Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604

Front Line Corridor

Mekele 13 28 39 29 Tigray 437 780 184973 1803 935

Regional Freight Stations

Kombolcha 11 00 39 44 Amhara 557 400 75438 1340 724

Woldiya 11 48 39 30 Amhara 433 520 46855 1803 935

Adigrat 14 17 39 27 Tigray 317 900 190066 993 521

Border Posts
Zalanbesa 14 27 39 24 Tigray 284 933 112360 403 220

Sea Ports
Port of Massawa Layout
 Region/
Location Country Distance Woreda Traffic
Addis Popn. Truck
Towns Lat Long Sea Port Ababa (2008) ADT Traffic
Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604
Secondary Dry Ports
Bahr Dar 11 37 37 22 Amhara 1153 565 183489 2779 1469
Regional Freight Stations
Metema 12 58 36 12 Amhara 816 902 83000 369 212
Border Posts
Metema 12 58 36 12 Amhara 816 902 83000 369 212
SeaPorts
Port Sudan 19 30 37 20 Sudan 1108
Port Sudan Layout
 Towns Location Region/ Country Distance Woreda Popn. Traffic
(2008)
Lat Long Sea Port Addis Ababa ADT Truck Traffic

Central Corridor
6604
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182

Front Line Corridor

935
Mekele 13 28 39 29 Tigray 437 780 184973 1803

Regional Freight Stations

724
Kombolcha 11 00 39 44 Amhara 557 400 75438 1340
935
Woldiya 11 48 39 30 Amhara 433 520 46855 1803
521
Adigrat 14 17 39 27 Tigray 317 900 190066 993

Border Posts
220
Zalanbesa 14 27 39 24 Tigray 284 933 112360 403

Sea Ports

Masawa 15 38 39 29 Eritrea 1217

Port of Mombasa Layout
 Location Distance Woreda Traffic
Region/ Addis Popn. Truck
Towns Lat Long Country Sea Port Ababa (2008) ADT Traffic
Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604
Secondary Dry Ports
Jijiga 09 22 42 50 Somali 315 616 369523 526 288
Regional Freight Stations
Harar 09 28 42 04 Harar 415 516 131000 1574 454
Gode 05 45 43 2 8 Somali 280 1185 179444 128 99
Border Posts
Ferfer 05 03 45 05 Somali 350 656.4 41911 881 463
Sea Ports
Mogadishu 02 00 45 30 Somalia 1206
Port of Mogadishu Layout
 Location Distance Woreda Traffic
Region/ Popn.
Addis Truck
Towns Country (2008)
Lat Long SeaPort Ab aba ADT Traffic
Central Corridor
Mojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604
Front Line Corridor
Semera 11 24 40 27 Afar 385 600 91738 1072 940
Border Posts
Galfi 12 00 42 00 Afar 217 768 65911 1072 940
SeaPorts
Djibouti 11 45 43 10 Djibouti 985/812
Port of Djibouti Layout
 1,411
1500 Vessel Calls 1,398

1300
1,000 1,047
974
1100

900

700

500

300

100
2004 2005 2006 2007 2008

8000000 6 ,9 0 0 ,3 79
7500000
7000000 Total Volume of Djibouti Port (MT)
6500000
6000000 5,2 9 1,13 1
5500000
5000000 3 ,8 6 2 ,3 9 0
4500000 3 ,74 3 ,3 3 2
3 ,3 6 3 ,50 3
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
2004 2005 2006 2007 2008

400000

350000
300000

250000
Container Throughput (TEU)
200000
150000

100000
50000
0
2002 2003 2004 2005 2006 2007 2008

Import Export TS
 Profile of Port of Djibouti
No. Descriptor Description
1 Name Port of Djibouti
2 Location 19o53’N - 37 o 13’E, at Strait of Bab-el Mendeb a confluence of the Red Sea and Gulf
of Aden

3 Country/REC Djibouti; East/Horn of Africa; IGAD, COMESA

4 Maritime Strategically located on Maritime routes connecting it directly to Europe, Middle

Routes East and Asia

5 Infrastructure No. of berths 15, adequate warehouse and port structures, dry port, free port and
container and petroleum terminals

6 Equip. & Lab force Adequate dry-bulk, break-bulk and container handling equipment for normal
operation but shortage of labor with about 5000 employees

7 Management Managed by Dubai Port International (DPI) under a 20 year management contract to
manage and develop the port including development of free trade zone.

8 Capacity Total Capacity: 10Mn tons; Cargo handled: 6.25Mn dry and 2.29Mn liquid bulk cargo
in 2008. It also handled 152,798 import and 140,167 export containers (2008)

9 Performance Perth throughput container handling 20/hr, container stay time 12 days; cargo stay
time of 20 days, transit time of inland transport 3 days

10 Cost of Container handling costs are as follows: Port charges is US$ 650/TEU, stuffing/un-
Services stuffing is US$113/TEU, Port Dues is US$45.3/TEU and storage charge is
US$6.35/TEU and the total cost of US$650/TEU and 20/ton
 Profile of Port of Djibouti…
No. Descriptor Description
11 Countries Djibouti (domestic), Ethiopia (landlocked) and some transshipment to other ports. It now
Served serves about 98% of Ethiopian traffic which is about 85% of the whole port traffic.
12 Corridor Design. Djibouti-Addis Corridor, the main import-export corridor of Ethiopia. There is a Joint
transport agreements and corridor committee to follow the implementation
13 Transport Road = 910km, in very good condition, and another under consideration.
Modes Railway = 782km, old and in bad conditions but is now under rehabilitation.
14 Strength Good location, commercialized through private management, good infrastructure and
equipment, adequate traffic, and completion of modern Duraleh container terminal
15 Weakness Relatively expensive, poor handling of drivers and rail service, lack of rail siding to Duraleh
in Djibouti delay in signing of the SAD agreement, monopolistic attitude in providing
services and increasing port charges without consultation.
16 Opportunities Big economic growth of Ethiopia, rehabilitation of Ethio-Djibouti Railway and plan to
construct dry port at Addis Ababa, Semera and Dire Dawa; over all good relationship
including recent multi-modal and investments agreements between the two countries.
17 Threats Possible competition from Berbera, Assab and others; Cargo safety and security; delays at
boarder crossing and transit checkpoints, poor customer relationship
18 On-going Further expansion of Duraleh terminal, improving cargo handling equipment and
Projects rehabilitation of CDE
19 Planned  axle load control (of COMESA), study of US$0.5Mn, ADB projects in pipeline
Projects  Transit and trade facilitation program: US$ 1Mn (same as above)
 Road Safety and HIV/AIDS: on major transit routes at US$1Mn for
20 Way forward Improving facilitation, increasing productivity, practicing client-friendly and consultative
management approach, signing of SAD and separation of policy and management
domain
Corridor Capacities (continued)

T=Daily dry Ports tonnage ready

for delivery
 Summary of Current Profile of Ports and their Related Hinterlands (Corridors)
No. Ports Central Ports Northern Ports Southern Ports

Key Features

1 Name Djibouti Berbera Asab Port Sudan Massawa Mombasa Mogadisho

2 Country Djibouti Somalia Eritrea Sudan Eritrea Kenya Somalia

3 Location Gulf Red Sea Red Sea Indian Ocean
4 Distance from Addis (km) 910 937 882 1900 1170 2067 1451
From Border (km) 218/100 242 76 952 282 1294 374
5 Hinterland Central, Western, Southern & Eastern North & North Western Southern S.Eastern
6 Transport : Road Good Good Good Good Road Good Poor Poor

Rail* Poor - - Poor - Poor -

7 Functionality/Operational Functional Functional Inactive Functional Inactive Functional Inactive

8 Total Capacity (Mn MT) 10.0 0.5 2.0 10.0 0.6 10.0 1.0

9 Possible Ethiopia Share % 85 80 85 10 40 10 40

10 Current Share(2008 - %) 98 1.5 - 0.5 - - -
11 Ave. Tariff** (Birr/ton) 750
12 Average Transit Time (hrs) 20 - - - - - -
 Djibouti Corridor Capacities
 Capacity of Seaports
 Adequate capacity : berths, storage areas and cargo handling equipment for
normal operation but shortage of labor
 Capacity of Inland transport
 Road capacity
• Adequate Capacity : PHV : Design Capacity is 1:12
 Trucking Capacity
• Inadequate Capacity: about 25% short of the requirements

 Railways capacity
• Insignificant Contribution : with only 80,000 tons a year (2008 ),
• Could increase to take up-to 30% after rehabilitation
• The planned railway network will change the proportion 50:50
 Capacity of Dry Ports
• refers to the size of cargo movement into, within and out of the dry port
• Is a function of daily vehicle arrival, equipment, storage area and,
average dwell time and operational efficiency
• Capacity varies with the size of the dry port itself :- Central, frontline &
hinterland dry ports and freight stations
Afternoon Presentation
Dry Port Benefit & Potential
Locations
 Benefits of Dry ports and Freight Stations
 Reduced transport costs thorough increased vehicle efficiency.
 Improved cargo delivery time through reduced dwell time,
 Increased saving by shifting cargo handling

 Minimizing corridor risks: business, economic and political risk

 Increasing business activities & employment
 Reducing sea port congestions.

 Increased beneficial impacts on local & regional economic activities

 Provides truck parking space/stations & cargo handling facilities
 Offers benefits to users, regional economy & national development
 Criteria for Proper Location of Possible
Dry Ports and/or Freight Stations
Adequate demand threshold

Availability of competitive transport

Geographic/strategic centrality

Balancing distance to about 300km

 Suitable land, utilities & safety

 Proposed Logistics System

Joint Border Posts (17)

Strategic Dry Ports (9)

 Central DRY PORT (1)
 Frontline DRY PORTS (5)
 Hinterland DRY PORTS (3)

 Regional Freight Station/depots (13)

 Export

Import Jo
Port Assignment & Modal Split
 Currently Functional Sea Ports &
Their Hinterlands
 Joint Djibouti and Berbera Ports (Most parts)

 Djibouti Port (Dire Dawa, Harar & Awash)

 Berbera Port (Togochale, Jijiga & Somale Region)

 Other Ports ( Adjacent border zones)

 Three Phase Assignment Process
 Phase 1 (Map 1) represents the 1st 5 year period
Three Phase Assignment Process
 Phase 2 intermediate 2nd 5 year period
Three Phase Assignment Process
 Phase 3 final 3rd 5 year period
 Port Assignment (%)
Port Current 1st 5yrs 2nd FY
Djibouti 98.0 70.0 40.0
Berbera 1.5 20.0 20.0
Asab - - 25.0
Masawa - - 15.0
Port Sudan 0.5 10.0 5.0
Mombasa - - 5.0
Total 100.0 100.0 100.0

Hinterland Distribution
Zone Zonal Centers Import Export
1 Central AA; Adama, Kality, Ambo, Zwai 50 25
2 Northern Mekele, Dese/Kombolcha, Shire, Adwa/Axum 10 10
3 North Western Bahirdar, Gonder, D/Tabor 10 10
4 North Eastern Semera, Mille, Logiya, Tendaho, Asaita 3 3
5 Eastern DD, Harar, Jijiga 10 10
6 Southern Hawasa, Shashemene, Dilla, Moyale 7 20
7 South Western Jimma, Bedele, Mizan 5 10
8 Western Nekemte, Asosa, Gambela 5 12
 Djibouti Addis Corridor Traffic
Distribution
In 000 MT
Period Total Share of Djibouti Total Less Mojo Semera Dire Dawa
DD (CDE)
% Tonnage

2,130 98 2,088 2,008 1,606 402 80

1st 3,755 70 2,628 2,328 1,863 466 300

2nd 6,617 40 2,647 1,847 1,477 369 800

5th 10,657 40 4,263 1,066 853 213 3,197

 Operational Process of the Dry Ports

Direct Delivery : Liquid bulk, dry

bulk & open/oversized products
Special Deliveries

Delivery through dry ports:

Containers, break bulks & ROROs
 A General Dry Port Model & Flow Pattern

α β

IMPORTS
IM
0.7αIM 0.3αIM

0.3αEX
0.6
0.7 αE X
0.4
IM=FCL IM=LCL
0.3EX = FCL 0.7EX = LCL
 Operational Process for Export
 FCL containers pass through DP
 30% of export
 30% of FCL containers will be inspected by customs
 processed in five days

 LCL containers pass through DP

 70% of export
 all LCL containers will be inspected at CFS
 processed in seven days

 Empty containers
 The empty containers are exported within 15 days
 Gene

Container
2008/9 3,000
2012/3 31,000
2017/8 130,000
2022/23 229,000
 Operational Process for Import
 FCL containers pass through DP
 60% of imported containers
 30% of FCL containers will be inspected by customs
 processed in seven days

 LCL containers pass through DP

 40% of imported containers
 all LCL containers will be inspected at CFS by customs
 processed in ten days

 Empty containers
 stay at empty container stack for up to 15 days for possible
reusing for export
 General Dr

Containers (000

2008/9 14
2012/3 126
2017/8 48
Evaluation of DPSE Project
 Evaluation of the DPSE Project

 Basic approach for benefit-cost analysis

 Identify & quantify benefits & costs
 Prepare discounted cash flows.
 Benefit- Cost Analysis with relevant criteria
 Sensitivity analysis : Assessing possible risks

 Quantifiable benefit components

 Savings due to increased transport efficiency
 Savings in reduced dwell & transit time
 Shifting stripping & stuffing activity to dry port
 Evaluation of the DPSE ….
 Quantifiable cost components
 Infrastructure Costs
 Equipment Costs
 Operation Costs
 Peculiar features of benefits and costs
 Capital intensive project
 “Sunk cost” (about 10%)
 Widespread of the benefits and costs
 Foreign exchange savings
 Pricing of Dry Port Services
• Key services for Pricing
 Cargo handling charges
 Storage-occupancy charges
 Other service charges
• Bases for Pricing
 “value-of-service” - marginal cost pricing
 “cost-of-service”- full-cost/average cost pricing
 Application of other comparable sources
 Pricing of Dry Port …..
 Constraints
 Lack of detailed cost data
 Absence of DPSE pricing experience
 Establishing Preliminary Prices eg cargo consolidation)
(

 Djibouti port rates – on higher side (US$113/TEU)

 Comet rates – on lower side (US$32/TEU)
 Generally observed rates (US$72/TEU)
 Proposed Rate for analysis: average of domestic
rates i.e 50% of the Djibouti rates
(US$ 57 (0.5*113)
Proposed Preliminary Tariff Structure for Major DPSE Services (US $)
Services Djibouti Comet Proposed
Container Cargo
Free day 8 10 7
Storage charges/TEU
9-15 days 5.65 5 2.85
16-20 days 7.05 3.55
Container cleaning and inspection 17 8.5
Lift on/off charge 37 18.5
Empty 16
Loaded 24
Internal movement 37 18.5
Stripping or stuffing 113 32 56.5
Storage of Empty Container
TEU/Day 3.75 2 1.875
Charges for handling export
Export Empty 17 8.5
Export Full 116 58
General and bulk Cargo
Open Storage/Ton/Day 0.05 0.025
Warehouse Storage 0.2 0.1
Dangerous Cargo/Day 0.4 0.2
Vehicles
Storage
Up to 3tons 5.3 2.65
Over 3tons 11 5.5
 Quantifiable Benefits of the Project

Savings in trucking costs

Savings in dwell & transit times
Savings in Container Stripping
and Stuffing Costs
Foreign Exchange Savings
 Benefit/Revenue of Dry Ports
Year National DPSE
Import Export Total
2007/8 - -
2008/9 6,661 375 7,036 3,151
2009/1 8,520 922 9,442 7,249
2010/1 10,936 1,680 12,616 12,508
2011/2 14,050 2,694 16,744 19,185
2012/3 18,038 4,016 22,054 27,590
2013/4 22,652 5,699 28,351 37,633
2014/5 28,501 6,649 35,150 50,104
2015/6 35,880 8,919 44,799 65,514
2016/7 45,149 11,688 56,837 84,468
2017/8 54,160 16,994 71,154 102,006
2018/9 59,648 19,034 78,682 112,279
2019/0 65,695 21,318 87,013 123,588
2020/1 72,355 23,876 96,231 136,037
2021/2 79,692 26,741 106,433 149,743
2022/3 87,775 29,950 117,725 164,831
 Cost Components of Dry Ports

Type of Costs Nature of Costs

1. Construction Fixed
2. Cargo handling equipment Fixed
3. Facilities & other equipment Fixed
4. Human resources Variable
5. General expenses Variable
 List of Equipment for Mojo and Semera Dry Ports
Year Mojo Semera
Equipment List Equipment List
RS FL10 FL6 FL3 Trac Trail Vehi. Garage Total Value RS FL10 FL6 FL3 Trac Trail Vehi. Garage Total Value
Eqt (Birr ''000) Eqt (Birr ''000)

2010 2 1 2 2 2 3 3 1 26,869 1 1 1 1 2 3 1 16,505

2011 3 1 5,727 3 1 5,627
2012 4 30,000
2013
2014 3 22,500
2015 5 8 3,892 2 3 1,522
2016
2017 3 22,500
2018 2 3 1,522 1 2 848
2019 2 2 6,160 1 2 3,960
2020
2021
2022
2023
2024
TOT 12 3 4 2 9 14 6 2 119,170 1 2 2 1 4 7 6 2 28,462
 Summary of Total Dry Port Costs
TYPE OF PORTS Activity/Type of Expense
Capital Costs Annual Total Cost of Previous Net Future
Operating Costs the Project Investment Investment

Head Office: Birr 13,131,560 12,410,377 25,541,937 25,541,937

USD 1,048,847 991,244 2,040,091 2,040,091

Mojo: Birr 361,419,100 45,585,189 407,004,289 28,600,000 378,404,289

USD 28,867,340 3,640,990 32,508,330 2,284,345 30,223,985
Semera : Birr 168,164,690 24,336,995 192,501,685 26,000,000 166,501,685
USD 13,431,685 1,943,849 15,375,534 2,076,677 13,298,857

Dire Dawa: Birr 168,164,690 24,336,995 192,501,685 192,501,685

USD 13,431,685 1,943,849 15,375,534 15,375,534

Other Dry Ports(6) 210,676,800 33,817,707 244,494,507 244,494,507

Birr

USD 16,827,220 2,701,095 19,528,315 19,528,315

Reg. Freight Terminals: (13) 120,663,400 20,484,687 141,148,087 141,148,087

Birr
 Estimated Dry Port Cost (Mn)
Projects Qty Birr USD
Head Office 1 25.54 2.04
Mojo 1 378.40 30.22
Semera 1 166.50 13.30
Dirdawa 1 192.50 15.38
Other frontline1 3 40.75 3.25
Hinterland Dry Port2 3 40.75 3.25
Regional Freight Stations3 13 10.86 0.87
Joint Border Posts4 17 4.68 0.37
Total 40 859.59 68.69
Note: 1. Other frontline:-Jijiga, Bahrdar, Mekelle
2.Hinterland Dry Port:-Nekemte, Jima & Hawassa
3.Regional Freight Stations:-Adigrat, Indasellassie, Metema, Woreta, Woldiya, Kombolcha,Assosa, Gambella, Sodo,
Arbaminch, Moyale, Harer & Gode
4.Joint Border Posts:-Humera, Metema, Bambude, Kurmuk, Jikawa, Buma,Kelem, Moyale, Dolo , Ferfer, Togochale,
Awbare, Dewale ,Galafi , Bure, Zalambasa, and Rama
Estimated Total cost of DPSE (US$’000)
Year H/O Mojo Semera Total
Operan
Constn Equipt Operan Constn Equipt Operan

2007/8 496 8,122 2,146 910 4,195 1,318 486 17,673

2,011 1,020 6,091 457 1,820 3,146 449 972 13,957
2,012 991 4,061 2,396 2,731 2,097 1,458 13,734
2,013 991 2,030 3,641 1,049 1,944 9,655
2,014 991 1,797 3,641 1,944 8,373
2,015 991 311 3,641 122 1,944 7,008
2,016 991 3,641 1,944 6,576
2,017 991 1,797 3,641 1,944 8,373
2,018 991 122 3,641 68 1,944 6,765
2,019 991 492 3,641 316 1,944 7,384
2,020 991 3,641 1,944 6,576
2,021 991 3,641 1,944 6,576
2,022 991 3,641 1,944 6,576
2,023 991 3,641 1,944 6,576
2,024 991 3,641 1,944 6,576
 Net Cash Flow of the dry port project
Year Net Cash Flow
Total Income DPSE Total Cost Total DPSE
Revenue
2007/8 17,673 (17,673) (17,673)
2008/9 7,036 4,860 13,957 (6,921) (9,097)
2009/10 9,442 9,553 13,734 (4,292) (4,181)
2010/11 12,615 15,641 9,655 2,960 5,986
2011/12 16,744 23,433 8,373 8,371 15,060
2012/13 22,054 33,304 7,008 15,046 26,296
2013/14 28,351 45,230 6,576 21,775 38,654
2014/15 35,150 58,684 8,373 26,777 50,311
2015/16 44,799 76,667 6,765 38,034 69,902
2016/17 56,837 98,807 7,384 49,453 91,423
2017/18 71,154 122,788 6,576 64,578 116,212
2018/19 78,682 135,472 6,576 72,106 128,896
2019/20 87,012 149,564 6,576 80,436 142,988
2020/21 96,231 165,131 6,576 89,655 158,555
2021/22 106,433 182,328 6,576 99,857 175,752
2022/23 117,725 201,326 6,576 111,149 194,750
 Investment Criteria Applied
C r it e r ia D e f in it io n F o r m u la A c c e p t a n c e R u le
1 N P V N e tP r e s e n t V a lu e = A c c e p t if N P V > 0
P r e s e n t V a lu e o f C a s h in flo w n
Bt − Ct r * = d is c o u n tin g
M in u s p r e s e n t V a lu e o f C aNs hP V= ∑ t= 0 ( 1+ r *)
t r a te
o u t flo w
2 IR R I n t e r n a l R a t e o f R e t u r n = TI Rh eR = r s u c h t h a t A ccep t
d is c o u n t r a t e w h ic h e q u a t e s t h e if I R R > r *
p r e s e n t v a lu e s o f a n in v e s t m e n t ’ sN P V = 0 or
c a s h in f loa wn d o u t f lo w  N P V  Bt = B e n e f it f lo w
= r1 + ( r2 − r1)  1  Ct = C o s t f lo w
 N P 1V+ N P V2 
3 P B P P a y b a c k P e r io d = T h e N u mP bBePr is o f n t h a t s a t is fie s A c c e p t if P B P <
y e a r s , n , r e q u ir e d t o r e c o v e r t h en sta n d a rd p a y b a c k
in it ia l in v e s t mo re np tr in c ip a,l ( PP) = t∑= 1N C F t p e r io d w h ic h in
w h re e N C F is t h e n e t P B P I=n it ia l in v e s t m e n t o u r c a s e is 5 y e a r s
u n d is c o u n t e d c a s h flo w S u m o f N e t c a s h f lo w s
 Results of Evaluation

S.No Criteria Results

National EDPSE
1 NPV @ 20%/ discount Rate (US$Mn) 89.2 -
@12% - 7.15

2 IRR (%) 74.8 14.48

3 Payback Period (years) 7 11
 Social Cost Benefit Analysis of DPSE (‘000 US$)
Year Annual Benfit Annual Cost Net Cash Flow Discount Rate Discount Net Discount Rate Discount Net
@ 20% Benfit @ 20% @ 70% Benfit @ 70%

2007/8 - 17,673 (17,672.80) 1 (17,672.75) 1.0000 (17,673)

2008/9 7,036 13,957 (6,920.30) 0.8333 (5,766.88) 0.5714 (3,954)
2009/10 9,442 13,734 (4,292.50) 0.6944 (2,980.89) 0.3265 (1,402)
2010/1 12,615 9,655 2,960.00 0.5787 1,712.97 0.1866 552
2011/2 16,744 8,373 8,371.10 0.4823 4,036.97 0.1066 893
2012/3 22,054 7,008 15,045.20 0.4019 6,046.32 0.0609 917
2013/4 28,351 6,576 21,775.20 0.3349 7,292.48 0.0348 758
2014/5 35,150 8,373 26,776.70 0.2791 7,472.89 0.0199 533
2015/6 44,799 6,765 38,033.50 0.2326 8,845.37 0.0114 432
2016/7 56,837 7,384 49,453.00 0.1938 9,584.32 0.0065 321
2017/8 71,154 6,576 64,578.40 0.1615 10,429.77 0.0037 240
2018/9 78,682 6,576 72,106.10 0.1346 9,704.61 0.0021 153
2019/0 87,012 6,576 80,436.10 0.1122 9,021.44 0.0012 97
2020/1 96,231 6,576 89,654.50 0.0935 8,379.45 0.0007 62
2021/2 106,433 6,576 99,856.70 0.0779 7,777.50 0.0004 40
Total 89,197 (332)
 Benefit Cost Analysis for DPSE (US$ in 000)

T o t a l L e s s V a tG r o s s O p e r a t i n g L e s s T a x a b leI n c o m e T a x
Y ear R e v e n u e R e v e n u e 1 5 % I n c o m e C o s t P r o f it D e p r c ia t nI n c o m e ( 3 5 % ) N e t I n c o mD eF ( 1 2 % ) 1 2 D F ( 1 5 % )D F ( 1 5 %
2 0 0 7 /8 - - - 1 7 ,6 7 3 - 1 7 , 6 7 3 - -1 7 ,6 7 3 - - 1 7 ,6 7 3 1 -1 7 ,6 7 3 1 - 1 7 ,6 7 3
2 0 0 8 /9 3 ,1 5 1 4 ,8 6 0 729 4 ,1 3 1 1 3 ,9 5 7 - 9 , 8 2 6 - -9 ,8 2 6 - - 9 ,8 2 6 0 .8 9 2 9 -8 ,7 7 3 0 .8 6 9 6 - 8 ,5 4 4
2 0 0 9 /1 0 7 , 2 4 9 9 ,5 5 3 1 ,4 3 3 8 ,1 2 0 1 3 ,7 3 4 - 5 , 6 1 4 - -5 ,6 1 4 - - 5 ,6 1 4 0 .7 9 7 2 -4 ,4 7 6 0 .7 5 6 1 - 4 ,2 4 5
2 0 1 0 /1 1 2 ,5 0 8 1 5 ,6 4 0 2 ,3 4 6 1 3 ,2 9 4 9 ,6 5 5 3 ,6 3 9 2 ,9 1 1 728 255 473 0 .7 1 1 8 337 0 .6 5 7 5 311
2 0 1 1 /2 1 9 ,1 8 5 2 3 ,4 3 4 3 ,5 1 5 1 9 ,9 1 9 8 ,3 7 3 1 1 ,5 4 5 9 ,2 3 6 2 ,3 0 9 808 1 ,5 0 1 0 .6 3 5 5 954 0 .5 7 1 8 858
2 0 1 2 /3 2 7 ,5 9 0 3 3 ,3 0 4 4 ,9 9 6 2 8 ,3 0 8 7 ,0 0 8 2 1 ,3 0 0 1 7 ,0 4 0 4 ,2 6 0 1 ,4 9 1 2 ,7 6 9 0 .5 6 7 4 1 ,5 7 1 0 .4 9 7 2 1 ,3 7 7
2 0 1 3 /4 3 7 ,6 3 3 4 5 ,2 3 0 6 ,7 8 4 3 8 ,4 4 5 6 ,5 7 6 3 1 ,8 6 9 2 5 ,4 9 5 6 ,3 7 4 2 ,2 3 1 4 ,1 4 3 0 .5 0 6 6 2 ,0 9 9 0 .4 3 2 3 1 ,7 9 1
2 0 1 4 /5 5 0 ,1 0 4 5 8 ,6 8 4 8 ,8 0 3 4 9 ,8 8 1 8 ,3 7 3 4 1 ,5 0 8 3 3 ,2 0 7 8 ,3 0 2 2 ,9 0 6 5 ,3 9 6 0 .4 5 2 3 2 ,4 4 1 0 .3 7 5 9 2 ,0 2 9
2 0 1 5 /6 6 5 ,5 1 4 7 6 , 6 6 7 1 1 , 5 0 0 6 5 ,1 6 7 6 ,7 6 5 5 8 ,4 0 1 4 6 ,7 2 1 1 1 ,6 8 0 4 ,0 8 8 7 ,5 9 2 0 .4 0 3 9 3 ,0 6 6 0 .3 2 6 9 2 ,4 8 2
2 0 1 6 /7 8 4 ,4 6 8 9 8 , 8 0 8 1 4 , 8 2 1 8 3 ,9 8 6 7 ,3 8 4 7 6 ,6 0 2 6 1 ,2 8 2 1 5 ,3 2 0 5 ,3 6 2 9 ,9 5 8 0 .3 6 0 6 3 ,5 9 1 0 .2 8 4 3 2 ,8 3 1
2 0 1 7 / 8 1 0 2 , 0 0 6 1 2 2 ,7 8 8 1 8 , 4 1 8 1 0 4 ,3 6 9 6 ,5 7 6 9 7 ,7 9 3 7 8 ,2 3 5 1 9 ,5 5 9 6 ,8 4 6 1 2 ,7 1 3 0 .3 2 2 4 ,0 9 3 0 .2 4 7 2 3 ,1 4 2
2 0 1 8 / 9 1 1 2 , 2 7 9 1 3 5 ,4 7 2 2 0 , 3 2 1 1 1 5 ,1 5 1 6 ,5 7 6 1 0 8 ,5 7 5 8 6 ,8 6 0 2 1 ,7 1 5 7 ,6 0 0 1 4 ,1 1 5 0 . 2 8 7 5 4 ,0 5 8 0 .2 1 4 9 3 ,0 3 4
2 0 1 9 / 0 1 2 3 , 5 8 8 1 4 9 ,5 6 4 2 2 , 4 3 5 1 2 7 ,1 3 0 6 ,5 7 6 1 2 0 ,5 5 4 9 6 ,4 4 3 2 4 ,1 1 1 8 ,4 3 9 1 5 ,6 7 2 0 . 2 5 6 7 4 ,0 2 3 0 .1 8 6 9 2 ,9 2 9
2 0 2 0 / 1 1 3 6 , 0 3 7 1 6 5 ,1 3 1 2 4 , 7 7 0 1 4 0 ,3 6 1 6 ,5 7 6 1 3 3 ,7 8 5 1 0 7 , 0 2 8 2 6 ,7 5 7 9 ,3 6 5 1 7 ,3 9 2 0 . 2 2 9 2 3 ,9 8 6 0 .1 6 2 5 2 ,8 2 7
2 0 2 1 / 2 1 4 9 , 7 4 3 1 8 2 ,3 2 8 2 7 , 3 4 9 1 5 4 ,9 7 9 6 ,5 7 6 1 4 8 ,4 0 3 1 1 8 , 7 2 2 2 9 ,6 8 1 1 0 ,3 8 8 1 9 ,2 9 2 0 . 2 0 4 6 3 ,9 4 8 0 .1 4 1 3 2 ,7 2 7
2 0 2 2 / 3 1 6 4 , 8 3 1 2 0 1 ,3 2 6 3 0 , 1 9 9 1 7 1 ,1 2 7 6 ,5 7 6 1 6 4 ,5 5 1 1 3 1 , 6 4 1 3 2 ,9 1 0 1 1 ,5 1 9 2 1 ,3 9 2 0 . 1 8 2 7 3 ,9 0 8 0 .1 2 2 9 2 ,6 2 9
7 ,1 5 3 - 1 ,4 9 6
 N P V = U S$ 89.2M n @ 20%
discount rate

 [ 89.2] 
IR R =74.80% = + (75− 20)*
i.e20  = 20+ 55*0.996= 74.80%
 89
.2 + 0.33

n
P B P = 7 years i.e w hen n reaches 7 years
I= ∑ NCFt
t=1

N P V = U S5 $M 7n. 1@ 1 2 % d i s c o u n t r a t e

 [ 7 .1] 5 
I R R = 1 4 .4 8 % 12i+. e(1=−51 2*)  = 12+ 3*0 .8 2= 714.4 8%
 7.1 5+ 1.5 0
n
P B P = 1 1 y e a r s I = ∑i . eN C F t w hen n reaches 11 years
t= 1
 Summary of Environmental Impacts and Mitigation Measures
Project Type: Construction of dry ports and drainage structures

Policy Issue: Establishing proper construction standards based on good engineering practices

Positive Impacts: Reduce transport corridor cost, creates employment, increases income generation
And proper control of gullies and erosion caused by natural conditions

Negative Impacts: Gullies, erosion, deforestation, & land use changes due to natural process manly
topographical, soil & geotechnical conditions of the area as accelerated by
settlement
Mitigation Measure: Control gullies through protection dams, control & guide seasonal water flows
through proper drainage structure, undertake plantation, relocate & compensate
Farmers & land owners & creation of buffer zone to control noise pollution

Responsibility: EDPSE, Local Authority etc: Policies, strategies and action plans, dissemination
of guidelines, close supervision and enforcing laws and regulation

Compensation to owners Immediately compensate the 441 Mojo dwellers whose land has been taken for
use by the dry port. Of the 800 affected HH about 359 farmers have already been
compensated while the remaining 441Mojo dwellers are waiting the municipal
decision to be given land for compensation
 Organization and Management
 Legal Framework: Regulation no 136/2007
 DPSE is a Public Enterprise Proc.No. 25/1992
 Major activities of the Enterprise :
 To provide efficient loading & unloading and
temporary storage facilities for foreign trade goods
 To perform the stripping of import and stuffing of
export containers within the country
 To help speedy processing of foreign trade
customs clearance
 To engage in other related activities to achieve
national goals and its objectives
 To expand dry ports and freight stations through-
out the country to help improve the logistics of
foreign trade cargo
Organizational structure of the DPSE Branch (Mojo & Semera)
 Project Financing
 Establishment of Financial Requirement
 Review proclamations & regulations
 Examine status of project components
 Assess present financial management
system : capital structure & budgets
 Proposed Capital Structure: 20:80
 Source of Financing
 20% own fund
 80% soft loans
 Programming and Implementation
N o A c ti vi ty 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4
1 C o n str u c ti o n
M o jo

S e m e ra

2 E q u ip m e n t
M o jo
S e m e ra
A nnua l
O p e ra tio n a l
3 A c ti v it ie s

M o jo
S e m e ra
C e n t ra l
 Way forward
 Finalize organization, management and staffing
 Complete all on-going infrastructure DPSE
 Purchase of cargo handling equipment
 Establish Ethio-Djibouti Corridor Authority
 Join the NCTTA JOINT
 Review, update and adopt conventions
 Rationalize orders of bulk items imports
 Promote expansion of adequate domestic storages JOINT
 Improving vehicle utilization
 Phase out development of the dry port network
 Promote the participation of private sector
 Regularly assess quality of services JOINT
THANK YOU FOR
YOUR ATTENTION