German logistics company DHL Global Forwarding and Ethiopian Airlines have signed a new agreement to form a joint venture company-DHL Ethiopian Airlines Logistics Services Ltd. The company will be based in Ethiopia and carry out business in the African continent hence enhancing Ethiopia’s logistics infrastructure and connections.
“Logistics is key to support Africa’s fast economic growth and industrialization drive. Ethiopian has, therefore, partnered with DHL who has a proven expertise and experience in the logistics sector, with a view to avail the right logistics solutions in terms of cost, time and quality. We have had a longstanding and mutually rewarding partnership with DHL, and with this JV we aim to make the country a logistics hub for Africa,” says Tewolde GebreMariam, CEO, Ethiopian Airlines Group.
Ethiopia Airlines with a controlling stake of 51 per cent will provide regulatory and operational support while DHL Global Forwarding with a 47 per cent stake establishes air, ocean and road connections between the country’s main trade hubs and the rest of the world.
The airline has recently partnered to serve manufacturers in the newly established industrial parks and other export centres in Ethiopia.
“With its GDP growth, Africa is stepping into the spotlight as production hub. Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa, and under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries”, says Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa
Since 2010, DHL Global Forwarding has been supporting the maintenance, repair, and overhaul (MRO) operations of Ethiopian Airlines’ commercial segment, extending various solutions on end-to-end Logistics Services for aircraft parts, engines and mechanical modules to textile, utensils, food and beverages – via air and ocean freight between Europe and Asia.
The International Air Transport Association (IATA) says Africa airlines topped for the second time in freight demand since 1990. Capacity in 2017 increased 9.9 per cent, the demand has been driven by strong growth in Africa-Asia trade which increased by more than 64 percent in the first 11 months if last year.
