Ethiopia has announced plans to strengthen its maritime trade capacity by acquiring six new cargo ships, a move aimed at reducing reliance on foreign shipping companies. The Ethiopian Shipping and Logistics Services Enterprise (ESLSE) revealed that two Ultramax dry bulk carriers, each with a capacity of 62,000 tons, have already been purchased this fiscal year and are expected to enter service soon.
These vessels are estimated to cost between $25 million and $35 million each based on current global shipbuilding prices. The expansion is part of Ethiopia’s broader strategy to enhance trade and investment efficiency as a landlocked nation heavily dependent on Djibouti’s port for imports and exports.
Increase shipping capacity
In addition to the bulk carriers, Ethiopia plans to add four container ships capable of carrying between 3,000 and 4,000 containers each. While no timeline for delivery was provided, the container ships are expected to cost between $40 million and $60 million per vessel, bringing the total estimated investment to between $150 million and $250 million.
The expansion would increase Ethiopia’s shipping capacity, which currently consists of 10 cargo ships, including the Abay 2 with a capacity of 63,000 tons and smaller vessels ranging from 26,000 to 27,000 tons. Strengthening its shipping fleet will allow Ethiopia to gain more control over its trade logistics, improve efficiency, and reduce costs associated with foreign shipping services.