The Ethiopian Shipping and Logistics Services Enterprise (ESLSE), known commercially as the Ethiopian Shipping Lines, is the national cargo shipping company of Ethiopia.
Djibouti Port Container Terminal
Established in 1964, it has continued to operate despite Ethiopia having become a landlocked country in 1993; its main base is now the Port of Djibouti and Berbera in Somaliland.
Historical Overview
Ethiopia regained a coastline on the Red Sea when Eritrea was federated with Ethiopia in 1952. However, it was not until 1965 that the Ethiopian Shipping Lines was established as a joint venture with the American company Towers Perrin.
Operations commenced in 1966 with three ships called Queen of Sheba, Lion of Judah and Lalibela. The Line quickly faced serious challenges when the Suez Canal was closed in 1967. Until Suez Canal was opened again, the vessels had to go all around the Cape. The size of the ships was not appropriate for such long voyages, and the company ran into a loss.
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The Ethiopian Shipping and Logistics is a merger of four enterprises which were working independently in the sea transport sector. Among the major companies that has helped coming in to being of the new merger is the former Ethiopian Shipping Lines Share Company (ESL), established March 1, 1956 E.C with a capital of 50,000 (fifty thousand) Ethiopian birr. This establishment laid the corner stone for the development of modern sea transport in Ethiopia.
When the shipping line was established, the American Towrus Investment had 51% and the Commercial Bank of Ethiopia 51% and Ministry of Finance 49% capital share. Later, ESL’s capital was made to upgrade to 375,000 (three hundred seventy thousand Birr). It was at this time, the enterprise had three ships built namely, Queen of Sheba, Lion of Judea, and Lalibella.
The enterprise as initiated in such a historical upheaval and advancing as a pioneer African shipping company could not sustain its initial development. Due to a war broken out between Israel and Egypt from 1959 - 1967 and the closing of Suez Canal has forced the enterprise vessels to voyage down through South Africa via West Africa to North.
The enterprise striving in such a way to sustain its existence faced a major challenge in the course of development due to a new upheaval observed in 1967 revolution and change of government and the new political economical ideology implemented in Ethiopia. The enterprise faith at this time was to be confiscated as a state public enterprise as it was to other manufacturing and public enterprises. The enterprise is given a name Ethiopian Shipping Line Corporation and it became a fully state owned company with a capital of 22 million Birr.
In order to strengthen its business capacity, it has brought second hand made ships namely Ras Dejen and Karamara, in 1967 E.C and 1970 E.C respectively and deployed them in operation. Side by side the enterprise has discarded these worn out ships that terminated their service years and substituted them with other more capable vessels in subsequent years. The enterprise has progressed in its capacity building and bought the vessels Omo Wenz in 1978 E.C, Ziway and Chamo in 1980 E.C, Awash in 1981 E.C and have aggrandized its profitability, providing wider services for international and national import and export cargos. It has bought Admas in 1987 E.C, Tekeze in 1991 E.C, Shebelle in 1998 E.C and Gibe in 1999 and has provided effective sea transport services.
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The other major enterprise that shares a significant part in the merger was Ethiopian Maritime and Transit Services Enterprise. That enterprise has been established in April 1960 E.C with a capital of 500,000 Birr to facilitate and expedite the movement of import and export cargoes. This enterprise has played its national role at all ports it has been functioning. And after the nations import and export cargoes were being served at Djibouti port, equipping itself with port machinery, effective service provision system and well-skilled human power it has handled all the tasks that are related with shipping and logistics services at major ports.
On the other hand, The Dry Port Enterprise established in 1999 has performed great tasks in reducing the cost, time and property losses at Djibouti port by implement dry port initiative and expansion projects. The initial and approved capital of the new merger was 3.7 billion Birr. The Ethiopian Shipping and Logistics Services Enterprise (ESL for short) is the result of this merger.
This newly amalgamated enterprise came into being following the issuance of Regulation by the Council of Ministers (Regulation No. 255/2011), and is vested with the huge responsibility of rendering sea-transport & logistics services to the country’s importers, exporters, and investors in a more effective and efficient way, by reducing transit time, cost and hand offs.
ESL has its headquarters located in the heart of Addis Ababa, Ethiopia, with main branches at Djibouti, Modjo, and Kality (the former Comet) and other branches in Mekelle, DireDawa, Kombolcha, Semera and Gelan towns. The Enterprise is re-starting the building work of its Head Office, the process of which has been interrupted for some years due to construction related problems.
Since then, the ESL has focused mainly on domestic import and export, to promote foreign trade.
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Recent Financial Performance
Addis Ababa, Ethiopia - Ethiopian Shipping and Logistics (ESL) has recorded a 9.3 billion birr profit in the first half of the 2024/25 fiscal year, significantly exceeding its initial financial projections. According to CEO Berisso Amallo, the company had originally forecasted a profit of 6.2 billion birr for the first six months of the fiscal year. However, ESL’s actual profit exceeded this target by an impressive 150%, reflecting its operational efficiency and the impact of favorable economic policies.
One of the most significant contributors to ESL’s success has been the liberalization of Ethiopia’s foreign exchange market. ESL’s strong financial results reflect not only its adaptability to Ethiopia’s evolving economic landscape but also its ability to compete on an international level.
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Key Financial Data (First Half of 2024/25 Fiscal Year)
| Metric | Value (Billion Birr) |
|---|---|
| Actual Profit | 9.3 |
| Forecasted Profit | 6.2 |
| Exceedance | 150% |
