Final report: Future Governance Structure Study of Modjo Logistics Hub

Published: EMAA and mtbs, January 2019

The Government of Ethiopia (hereinafter called the “GOE”) is working with the support of the World Bank Group to improve trade logistics along the Ethiopia-Djibouti Corridor. After years of investments in road- and rail infrastructure, the main focus of the GOE is now on the improvement of its key logistics nodes, in particular the Modjo Logistics Hub. To develop a modern logistics sector with its centre at Modjo, it is required to address constraints arising from the current regulatory and institutional framework that governs the operation of the Modjo Dry Port. The current governance structure is characterized by, among others:

• the free on Board (FOB) directive;
• the uni- and multimodal system;
• the vertically integrated operation by the Ethiopian Shipping and Logistics Services Enterprise (ESLSE);
• the single user set-up of Modjo; and,
• the absence of national and international private operators in Modjo