Executive Spotlight: Dr. Beriso Amelo – Steering Ethiopian Shipping and Logistics to New Heights
In the dynamic and rapidly evolving landscape of global logistics, few leaders stand out as distinctly as Dr. Beriso Amelo, the CEO of the Ethiopian Shipping and Logistics Services Enterprise (ESLSE). With a career marked by strategic vision and transformative leadership, Dr. Beriso has been at the forefront of revolutionizing Ethiopia’s logistics sector, driving it towards greater efficiency, competitiveness, and global integration.
Dr. Beriso Amelo brings to his role a rich tapestry of experience that spans decades in the logistics and shipping industry. His educational background, fortified with advanced degrees in maritime studies and logistics management, has equipped him with the knowledge and insights necessary to navigate the complex challenges of modern-day shipping and supply chain management. Prior to assuming the helm at ESLSE, Dr. Beriso held various pivotal roles within the organization, where he honed his skills in operational excellence and strategic planning.
Under his leadership, ESLSE has not only expanded its operational capacity but also enhanced its service offerings to better meet the demands of a rapidly growing Ethiopian economy. Dr. Beriso’s tenure as CEO is characterized by a commitment to modernization, with significant investments in digital technologies, port infrastructure, and fleet expansion. These initiatives are part of his broader vision to position ESLSE as a key player in the Horn of Africa’s logistics sector and beyond.
As Ethiopia continues its ambitious journey towards economic transformation, Dr. Beriso Amelo’s leadership at ESLSE remains a cornerstone in the country’s efforts to establish a robust and resilient logistics network. His strategic foresight and unwavering dedication make him an influential figure not just in Ethiopia, but in the broader regional logistics arena.
In this exclusive interview with ABN Magazine, Dr. Beriso Amelo shares insights into his leadership philosophy, the challenges and opportunities facing the Ethiopian logistics sector, and his vision for the future of ESLSE. His story plays a role in innovation, resilience, and a deep commitment to the sustainable growth of Ethiopia’s economy.
Through Back
The Ethiopian Shipping and Logistics Services Enterprise (ESLSE) has been a cornerstone of Ethiopia’s economic development for over five decades. Established in 1964 as Ethiopian Shipping Lines (ESL), the enterprise was founded with the goal of supporting the nation’s growing international trade. Initially operating a modest fleet, ESL connected Ethiopia to major markets in the Middle East and Europe, becoming a vital component of the country’s import-export network.
Throughout the 1980s and 1990s, ESL embarked on a significant expansion and diversification strategy. The enterprise extended its services beyond shipping to include freight forwarding, port services, and inland transportation. This expansion was driven by the need to offer more comprehensive logistics solutions and to better control the supply chain. Despite facing political instability and economic fluctuations, ESL adapted to current changes by continually evolving its business model and improving service delivery.
A pivotal moment in ESL’s history came in 2011, when it merged with several other state-owned logistics companies to form the Ethiopian Shipping and Logistics Services Enterprise (ESLSE). This merger aimed to create a more unified and efficient national logistics provider capable of competing on a global scale. The newly formed ESLSE embarked on an ambitious modernization program, investing in fleet upgrades, port facilities, and advanced IT systems. A notable innovation during this period was the introduction of multimodal transport services, integrating sea, rail, and road transport to significantly reduce transit times and costs.
As the 21st century progressed, ESLSE faced new challenges, including fluctuating global shipping rates and increasing competition. In response, the enterprise focused on innovation and strategic partnerships. It introduced digital platforms for booking and tracking shipments, expanded its container services, and optimized port operations to handle larger cargo volumes. These advancements not only improved operational efficiency but also solidified ESLSE’s position as a leading logistics provider in Africa.
Looking ahead, ESLSE remains committed to playing a crucial role in Ethiopia’s economic growth. The enterprise aims to further expand its fleet, enhance its logistics services, and actively participate in the African Continental Free Trade Area (AfCFTA). With a focus on sustainability and technological innovation, ESLSE is set to drive Ethiopia’s ambitions of becoming a key logistics hub for Africa, continuing its legacy of resilience and adaptability.
Current states
Currently, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE) stand as a prominent player in Ethiopia’s logistics and maritime sectors, reflecting a robust and evolving operation. Following its transformation in 2011 into a unified entity from several state-owned logistics companies, ESLSE has significantly enhanced its capabilities and scope of services.
Today, ESLSE boasts a modernized fleet, equipped to handle diverse cargo types and meet international standards. The enterprise has made substantial investments in upgrading its ships and port facilities, allowing it to manage increased volumes and improve operational efficiency. The introduction of multimodal transport solutions has been a key innovation, enabling seamless integration of sea, rail, and road transport, which reduces transit times and lowers costs for customers.
ESLSE has also embraced digital technology to streamline its operations. The adoption of advanced IT systems facilitates real-time tracking and management of shipments, providing clients with enhanced transparency and control over their logistics processes. This technological integration has improved service delivery and positioned ESLSE as a forward-thinking leader in the regional logistics industry.
Despite facing ongoing challenges, such as fluctuating global shipping rates and competitive pressures, ESLSE continues to adapt and innovate. The enterprise focuses on strategic partnerships and collaborations to bolster its market position and expand its reach. Additionally, ESLSE is actively involved in Ethiopia’s economic development plans, contributing to the country’s goal of becoming a key logistics hub in Africa.
ESLSE’s current state reflects a well-rounded and dynamic organization, committed to maintaining its leadership role in Ethiopia’s logistics sector through continuous improvement and adaptation to global trends.
Future of ESLSE
ESLSE is focused on expanding its influence and capabilities as it moves forward. The enterprise envisions further strengthening its fleet and logistics infrastructure to meet the growing demands of both domestic and international markets. Key to this vision is the continued integration of advanced technologies to enhance operational efficiency and customer experience.
ESLSE is also committed to playing a central role in the African Continental Free Trade Area (AfCFTA), positioning itself as a critical logistics hub that connects Ethiopia with other African nations and global markets. By embracing sustainability practices and investing in green technologies, ESLSE aims to lead the region in adopting environmentally responsible logistics solutions.
Moreover, the enterprise plans to deepen its strategic partnerships, both within Africa and internationally, to expand its service offerings and geographic reach. This includes exploring new trade routes, enhancing port capacities, and developing more comprehensive multimodal transport solutions.
Ultimately, ESLSE’s vision is to be a driving force in Ethiopia’s economic transformation, leveraging its logistics expertise to support the country’s ambitions of becoming a major player in global trade. Through innovation, sustainability, and strategic growth, ESLSE is poised to shape the future of logistics in Africa.
International trade and ESLSE aspect
ESLSE plays a crucial role in facilitating Ethiopia’s participation in international trade, serving as the primary gateway for the nation’s imports and exports. By connecting Ethiopia to key global markets, ESLSE ensures the smooth flow of goods, which is essential for the country’s economic growth and development.
The enterprise has strategically positioned itself to handle the increasing demands of international trade, with a modern fleet capable of transporting a wide range of cargo. ESLSE’s ports and logistics infrastructure are continuously upgraded to accommodate larger volumes, streamline operations, and reduce turnaround times. These improvements have made ESLSE a reliable partner for businesses engaged in global commerce, enhancing Ethiopia’s competitiveness on the international stage.
In addition, ESLSE’s commitment to adopting advanced technologies, such as digital tracking systems and automated processes, has significantly improved the efficiency and transparency of its operations. These innovations not only benefit local businesses but also attract international partners seeking reliable logistics solutions in Africa.
Through its role in international trade, ESLSE contributes to Ethiopia’s broader economic objectives, helping to integrate the country into the global economy. By facilitating efficient and cost-effective logistics services, ESLSE supports the growth of Ethiopia’s export industries, attracts foreign investment, and strengthens the nation’s trade relationships worldwide.
Success of ESLSE
ESLSE’s success is a result of its strategic adaptability and commitment to excellence in logistics. Over the years, the enterprise has evolved from a small national shipping line into a leading logistics provider in Africa. This transformation is marked by significant investments in fleet modernization, port infrastructure, and advanced technologies, all of which have enhanced its capacity to meet the growing demands of international trade.
A key factor in ESLSE’s success is its ability to offer comprehensive logistics solutions, including multimodal transport that integrates sea, rail, and road services. This innovation has streamlined supply chains, reduced costs, and improved delivery times, making ESLSE a preferred partner for businesses in Ethiopia and beyond.
The enterprise’s proactive approach to embracing digital advancements has also played a crucial role. By implementing real-time tracking systems and automating key processes, ESLSE has improved operational efficiency and customer satisfaction, positioning itself as a forward-thinking leader in the logistics industry.
Furthermore, ESLSE’s success is reflected in its expanding role within the African Continental Free Trade Area (AfCFTA), where it is becoming an essential logistics hub that connects Ethiopia with other African nations and global markets. This strategic positioning not only boosts Ethiopia’s trade capabilities but also reinforces ESLSE’s status as a key player in regional and international logistics.
Through its relentless focus on innovation, efficiency, and strategic growth, ESLSE has established itself as a cornerstone of Ethiopia’s economic infrastructure, driving the nation’s progress in global trade and logistics.
Global Maritime Trade amid Geopolitical Turbulence: Navigating the Challenges
The ongoing global economic challenges, deeply impacted by the over two-year-long Russia-Ukraine war, have left countries facing severe economic strain. Global trade has been disrupted, resulting in soaring inflation rates, while developing countries struggle with heightened food security risks. The International Monetary Fund reports that due to the direct and indirect effects of the war, global economic growth has steadily declined for three consecutive years from 3.2% in 2023 to a projected 2.4% in 2024. Factors contributing to this downturn include disruptions in production, inflation, restrictive fiscal and monetary policies, and the economic slowdown in China.
Adding to these challenges, the war between Hamas and Israel, which began on October 7, 2023, has introduced new economic pressures, particularly within the logistics sector. Recent international data show that oil prices surged by 6% in just one month, driving up global logistics costs. One of the most concerning aspects of this conflict is its proximity to two critical maritime choke points: the Suez Canal, connecting Europe and Asia, and the Strait of Hormuz, a vital artery for trade between the Arab world, India, and the Far East. The threat to these key passages poses a significant risk to global shipping, with potential disruptions in the movement of goods.
Since November 2023, attacks on commercial vessels in the Red Sea en route to the Suez Canal by Yemen’s Houthi militias have escalated the crisis. International reports have documented 24 such attacks between November 19, 2023, and early January 2024. Leading shipping companies, including Maersk, Hapag-Lloyd, and CMA CGM, have rerouted vessels around South Africa’s Cape of Good Hope, a diversion that has increased shipping costs threefold and extended transit times by 1 to 3 weeks.
UNCTAD’s October 2024 survey revealed a 70% drop in traffic through the Gulf of Aden, while traffic along South Africa’s Cape of Good Hope surged by 60%. The diversion has added 3,000 to 6,000 miles (5,556 to 11,112 km) to shipping routes, significantly delaying deliveries. For instance, transporting wheat from Odesa through the Red Sea to Djibouti, a journey that previously took 8 days, now takes 38 days due to route changes.
Another critical shipping passage, the Panama Canal in Central America, has also been affected. Climate change has lowered the canal’s water levels, reducing its capacity by 49%, further complicating global logistics.
The security risks surrounding the Suez Canal have wide-reaching implications for African and neighboring countries. For instance, 31% of Ethiopia’s total import and export trade, which passes through Djibouti’s port, is dependent on the Suez Canal. The disruption of this route could severely impact the flow of Ethiopian cargo. Consequently, Ethiopian ships have increasingly been tasked with transporting vital goods. As a case in point, the Nile 2 ship, which normally operates between international ports, was repurposed to carry soil fertilizer to Ethiopia.
If the security conditions in the Red Sea do not improve, critical imports like fuel and fertilizer could face further disruptions. To mitigate these risks, there are calls for Ethiopia to invest in additional ships and expand container carriers. Slot ships, once a reliable option for container transport, are now struggling with delays caused by the need to reroute, leading to a shortage of containers.
Moreover, the resurgence of piracy since November 2024, with over 20 reported incidents in the Gulf of Aden and Somali waters, is another growing concern for maritime security.
Given these threats to the stability of the port of Djibouti, exploring alternative seaports and making strategic preparations is imperative for Ethiopia. As the world grapples with overlapping crises, the impact on the global economy and sea transport remains profound. Inflation, trade restrictions, and interrupted product movement are just a few of the lingering effects, with significant consequences for international logistics and economic growth projections worldwide.
