The Mojo Green Logistics Hub in Ethiopia is poised for the initiation of a cool chain logistics system, a move anticipated to bolster the export of agricultural produce. The Cool Port Addis project, situated 74 kilometers east of Addis Ababa, aims to facilitate supply networks for perishables via a dry port facility. This initiative emerges in response to the high cost and inefficiencies associated with Ethiopia's reliance on air cargo for shipping goods, attributed to the absence of coordinated and developed shipping facilities.
The project, a collaborative effort between Ethiopia and the Netherlands, with technological input from Flying Swans, a Dutch consortium, is expected to commence in the coming months. With an estimated cost of USD 50 million, the initiative will unfold in two phases, enhancing the export capabilities for fresh fruits and vegetables through advanced cooling systems and comprehensive value chain services.
Ergana Buche, the Ethiopian Maritime Authority's Coordinator for Cool Chain Logistics, highlighted the project's significance as an "ice-breaking initiative" for the country, emphasizing its capacity to handle 242,000 metric tons annually. The project also aims to integrate with the Addis-Djibouti railway system, linking to the SGTD port in Djibouti, which boasts a modern cool cargo handling system.
The first phase of the project has secured a €10.6 million grant from the Netherlands, with the Ethiopian government covering the remaining costs. Upon completion, management will transition to Ethiopian Shipping and Logistics, supported by capacity building and skill transfer initiatives. The project is expected to significantly impact the export of perishables, particularly avocados, by providing a competitive transportation model to air freight.
Source: capitalethiopia.com