Grant Arrangement Cool Port Addis signed: Unlocking the country’s horticulture industry through cool logistics services
During a ceremonial meeting at Ethiopia’s Ministry of Finance on 28 February 2024, the Grant Arrangement for Cool Port Addis was signed by MoF State Minister H.E. Semereta Sewasew and Henk Jan Bakker, the ambassador of the Kingdom of the Netherlands to Ethiopia. This happened in the presence of multiple stakeholders from both Ethiopia and The Netherlands. “The development of Cool Port Addis at Modjo Dry Port is a next step in the ambitious logistic investment agenda of Ethiopia to enhance its international trade”, declared the Minister of Transport and Logistics Dr. Alemu Sime Feyisa.
Collaboration between Ethiopia and The Netherlands
The development of Cool Port Addis is a close cooperation between public and private parties from Ethiopia and The Netherlands. “As the main logistics service provider of Ethiopia and operator of Modjo Dry Port, with the realization of Cool Port Addis we enter the cool logistics sector to provide rail based end-to-end services to exporters of perishables” tells Beriso Amelo, CEO of Ethiopian Shipping and Logistics Services Enterprise. Apart from SDG impacts in terms of economic development and job creation, the Dutch interest is clear: “Dutch companies are among the biggest investors in Ethiopia’s horticulture industry and the Netherlands is the largest destination of Ethiopian exports worldwide, with horticulture products as the main commodity”, explains Henk Jan Bakker.
Financing of Cool Port Addis
In addition, the financing of Cool Port Addis were secured by a combination of Ethiopian and Dutch efforts. “This is a strategic investment and will set an example for future infrastructure investments in Ethiopia” says MoF State Minister H.E. Semereta Sewasew. The Dutch part of the finances were provided through a DRIVE grant by Invest International. Joost Oorthuizen, CEO of Invest International, tells why they were interested to support this project: “Invest International proactively promotes the development of sustainable and inclusive international trade. This is a good example of a win-win situation in which CO2 reduction, related to logistics, coincides with the creation of opportunities and economic value”. This CO2 will be created by the shift from truck to train for the inland transport to the port of Djibouti and by the shift from airfreight to sea freight for international transport.
Artist impression of Cool Port Addis
Flying Swans in Ethiopia
Flying Swans has initiated the development of Cool Port Addis and, together with the Ethiopian Maritime Authority, has been in the lead of the project development. In line with its vision to be the development partner of choice in emerging economies, Invest International has strategically funded the Flying Swans development agenda and early stage project development work in Ethiopia for several years. “The signing of the Grant Arrangement marks an important milestone in the history of Flying Swans in Ethiopia, as we start a new phase of activities in the country” declares Jeroen Bos, together with Marcel Biemond Program Directors of Flying Swans. “The Dutch fresh produce sector has been eagerly looking forward to this moment”, says Janine Luten, Director of the Fresh Produce Center in The Netherlands, “because efficient cool logistics services are essential for international sourcing of fruit and vegetables by our members.”
Improving logistics services
That is also the reason why Port of Rotterdam is a long-time partner in the Flying Swans program. “As the main import port of fruit and vegetables in Europe, we are happy to make our services and network available to support these initiatives and make the logistics chains even more sustainable”, explains Danny Levenswaard, Director Breakbulk at Port of Rotterdam. However, these developments don’t end when Cool Port Addis is realized. Abdulber Shemsu, the Director General of the Ethiopian Maritime Authority tells that “the government of Ethiopia is committed to continuously improve the logistics infrastructure and procedures in the country to promote and support its fruit and vegetable production and export sector.”
Train transporting a reefer container trial shipment on Addis-Djibouti railway
Catalyzing horticulture industry
One of the main objectives of Cool Port Addis is to catalyze the growth of the horticulture industry in Ethiopia. Tewodros Zewdie, Executive Director of the Ethiopian Horticulture Producer and Exporters Association, explains about this: “The realization of Cool Port Addis is an important development for Ethiopian horticulture producers to enter or expand their presence at the global market.” The Ethiopian Ministry of Agriculture (MoA) also anticipates a bright future for the national horticulture industry. According to the state minister for Agriculture and Horticulture, H.E. Dr. Meles Mekonnen, "Cool Port Addis will play a crucial role by facilitating harvesting and postharvest handling of fresh produces, transportation and preservation of perishable horticultural products such as fruits, vegetables and flowers. It will also preserve product quality, increase the shelf life of perishable items, enhance market diversification, reduce postharvest losses and help to economic development and job creation.”
For more information about Cool Port Addis and Flying Swans, please contact:
Tom Bouwman
Senior Project Manager
bouwman@flyingswans.org
+31 645 020 938
www.flyingswans.org